Market Trends of Alpha Methylstyrene Industry
Automotive Industry to Dominate the Market
- Alpha methyl styrene is an intermediate for the production of ABS resin. Further, ABS resin is used as a replacement for metal in the automotive industry. Various automotive parts that look for weight reduction factors use ABS thermoplastic. ABS is commonly used for parts that include dashboard components, seat backs, seat belt components, handles, door loners, pillar trim, and instrument panels.
- According to the Organization Internationale des Constructeurs d'Automobiles (OICA), global automotive vehicle production reached 85.01 million in 2022, with a growth rate of 6% as compared to 80.20 million vehicles manufactured in 2021, thereby indicating an increased demand for alpha methyl styrene from the automotive industry.
- Furthermore, the rising production of electric vehicles is likely to enhance the market demand for the market-studied. For instance, according to the EV Volumes, a total of 10.5 million new BEVs and PHEVs were delivered during 2022, an increase of 55 % compared to 2021.
- Asia-Pacific region is home to some of the world's most valuable vehicle manufacturers. Developing countries such as China, India, Japan, and South Korea have been working hard to strengthen the manufacturing base and develop efficient supply chains for greater profitability.
- According to the China Association of Automobile Manufacturers (CAAM), China has the largest automotive production base in the world, with a total vehicle production of 27.2 million units in 2022, registering an increase of 3.4 % compared to 26.1 million units produced last year.
- In Europe, Germany is among the vital manufacturer of vehicles. According to the German Association of the Automotive Industry (VDA), Germany produced 263,400 units of cars in July 2022, registering a growth rate of 7% compared to the same period in 2021. Additionally, the demand for electric cars is increasing in Germany. Thus, various companies are increasing the production volume of electric cars in the country. For instance, in June 2023, Ford announced the inauguration of the Cologne Electric Vehicle Center, a hi-tech production facility in Germany.
- In North America, according to the OICA, automotive production in 2022 accounted for 17.7 million units, an increase of 10% compared to that in 2021, which was around 16.1 million units.
- Therefore, the demand for alpha methyl styrene is expected to grow with the expanding automotive production during the forecast period.
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Asia-Pacific to Dominate Alpha Methyl Styrene Market
- Asia-Pacific holds a prominent share in the alpha-methylstyrene market globally and is expected to dominate the market during the period of forecast.
- As per the data released by the National Bureau of Statistics, China's tire industry is experiencing substantial growth, reflecting the increasing demand for tires in the domestic as well as international markets.
- According to the National Bureau of Statistics of China, as of May 2023, China produces roughly 6 million metric tons of plastic products monthly. Since January 2020, the highest monthly output of plastic products was recorded in December 2021, at 7.95 million metric tons.
- Furthermore, China is a hub for chemical processing, accounting for a major chunk of global chemicals. In China, the world's largest chemicals market, a slight slowdown in chemical production growth is expected in 2023. Following Russia and Ukraine war, the chemical industry experienced a year marked by further bottlenecks in global supply chains already strained by rising energy and raw material costs, pandemic, economic uncertainty, and political turmoil in 2022. Continuing on the tumultuous grounds, China is expected to register a slightly weaker growth of 5.9% in chemical production in 2023, as per the BASF's chemical industry outlook. However, the increasing investments in the construction of new chemical plants support the demand for AMS in the mid-term.
- India is one of the largest producers and consumers of rubber after China in the Asia-Pacific region. In India, over 65% of the rubber produced is used for manufacturing automotive (50%) and bicycle tires and tubes (15%). Moreover, the country has almost 66 tire-producing plants and about 41 tire-producing companies.
- According to IBEF, total plastics exports between April-September 2022 stood at USD 6.38 billion. During this period, the exports of plastic raw materials, medical items, and pipes and fittings increased by 32.3%, 24.8%, and 17.9% over the same time last year.
- Thus, rising demand from various industries is expected to drive the market studied in the region during the forecast period.
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