Chemical Intermediates Market

Chemical Intermediates Market Size (2023-2028)

The Chemical Intermediates Market is anticipated to increase to US$ 131.2 billion by 2028, from US$ 113.4 billion in 2022 with a growing CAGR of 8.3% during 2023-2028

Chemical Intermediates Market Scenario:

Chemical intermediates are a crucial component in producing a wide range of chemicals. As a result, there is a strong need to manufacture a wide range of chemicals in the business. For example, chemical intermediates are often employed in manufacturing agricultural chemicals like insecticides and fertilizers. As a result, the key engine of this industry's growth is increased agricultural productivity. In addition, chemical intermediates are widely utilized in the pharmaceutical sector, where they are used as needed in the manufacturing of drugs. The growth of the Chemical Intermediates Market is being aided by rising disease prevalence and ongoing efforts to discover novel treatments.

5-hydroxymethyl-furfural (HMF) is a chemical building block that may be extracted in high yield from biomass and converted into a variety of interesting compounds in just a few stages. Over the last 20 years, numerous organizations have investigated the conversion of HMF to 1-hydroxy hexane-2, 5-dione (HHD). HMF can be transformed to HHD in an aqueous phase using a range of heterogeneous and homogeneous catalysts in a hydrogenation/hydrolytic ring-opening reaction.

Chemical Intermediates refer to the development of a molecular entity from a chemical component during the synthesis of the final product. The concentration of these compounds in the reaction mixture is minimal since they are highly reactive and have a limited life period. Coating paints, detergents, elastic textile fibers, insecticides, fertilizers, and a variety of other items contain it. It's commonly utilized on airport runways, in pharmaceutical businesses, and in agriculture as a de-icing agent. Therefore, these characteristics of chemical intermediates further propel the global chemical intermediates market growth during the forecast period.

Chemical Intermediates Market Drivers:

Chemical intermediates are in higher demand from end-user industries. This is the primary factor that drives the global chemical intermediates market growth during 2022 - 2027. Chemical intermediates are utilized as a building component to make a wide range of compounds. Therefore, there is a high need in the sector to produce a wide range of chemicals. Chemical intermediates are extensively utilized to produce agricultural chemicals such as insecticides and fertilizers. As a result, rising agricultural production is the primary driver of this industry's growth. In addition, chemical intermediates are frequently used in the pharmaceutical sector, where they are used as needed in medication production. The expansion of the intermediate chemical industry is aided by rising disease prevalence and ongoing attempts to generate novel treatments.

Using 1-hydroxy hexane-2, 5-dione as a chemical intermediary, there is a growing demand for bio-based 5-hydroxymethylfurfural building blocks, which further attributes the global chemical intermediates market growth in the next six years. The chemical 5-hydroxymethyl-furfural (HMF) building blocks may be extracted in high yield from biomass and converted into a variety of interesting products in simple steps. Moreover, several teams have researched the conversion of HMF to 1-hydroxy hexane-2, 5-dione (HHD) over the last 20 years. HMF can be converted to HHD through a hydrogenation/hydrolytic ring-opening reaction in the aqueous phase with various heterogeneous and homogeneous catalysts. Recent breakthroughs in the utilization of HHD as a building block for several useful compounds, including pyrroles, cyclopentanone derivatives, and triols, as well as state-of-the-art HHD synthesis, including mechanistic aspects of its creation. Because of the bio-based chemical intermediate building blocks, demand for chemical intermediates is increasing.

Chemical Intermediates Market Restraints:

On the other hand, variations in the prices of raw materials may hamper the global chemical intermediates market growth during 2022 - 2027. In addition, the primary raw ingredients include the downstream components of crude oil, which are needed to make chemical intermediates. Therefore, the price of raw materials used in chemical intermediates is similarly affected by crude oil demand volatility. According to the BP Statistical Study of World Energy, crude oil market volatility, such as price volatility, has risen from $98.95 in 2014 to $52.39 in 2015, and from US$43.73 in 2016 to US$71.31 in 2018. As a result of the price uncertainty surrounding crude oil, the price of chemical intermediates is also rising. Crude oil price fluctuation is thus expected to be a major problem for chemical intermediates industry suppliers, hampering the chemical intermediate market's expansion during the forecast period.

Moreover, the difficulty of producing bio-based chemical building blocks acts as a commercial restraint. Many of the bio-based chemical building blocks now on the market are regarded as common agricultural products, including sugars and vegetable oils, which differ significantly in cost and are expensive. On the other hand, many chemical building blocks are bulk compounds, and a large volume of feedstock would be required. Some worry that Europe's ability to deliver some extra sugar and oils is limited to some extent, while others argue that the potential for improving yields in Eastern European countries is still significant. Waste and residue sources will be valuable because they are both affordable and widely available in Europe.

 CHEMICAL INTERMEDIATES MARKET REPORT COVERAGE:

Chemical Intermediates Market Segmentation: 

By Product:

• Ethylene Amines

• Caustic Products

• Hydrochloric Acid

• Hydrogen Peroxide

• Monochloroacetic Acid

• Others

Based on the product, ethylene amines accounted for more than 40% of the market for chemical intermediates. Ethylene amines, in particular, are volatile molecules that have the ability to change the characteristics of chemicals. Therefore, ethylene amine is broadly utilized in various applications, including building and construction additives, gas sweetening, oil cutting, seed protection, and some others. Compared to other product types, the advantages of ethylene amine include low environmental impact, low energy usage, and high yields, all of which increase consumer demand.

By Form:

• Solid
• Liquid
• Gas

The solid segment tends to dominate the global chemical intermediates market based on form. The solid form of chemical intermediates is the most common. It comprises a wide variety of uses, is easier to store and transport, and is less expensive than liquid chemical intermediates. The majority of solid sodium chemical intermediates will dissolve in water and be converted to a liquid form in pharmaceutical, agricultural, automotive, petrochemical, lubricant, and other applications.

By End User:

• Chemical & Petrochemical

• Energy & Power

• Food & Beverages

• Healthcare

• Transportation

• Agriculture

• Others

Based on end-user, the healthcare industry is anticipated to have the largest global chemical intermediates market share during 2022 - 2027. The expanding frequency of chronic diseases and the pharmaceutical industry's increased R&D initiatives and activities are some of the factors driving chemical intermediates market expansion. The utilization of developing technology, such as high throughput, bioinformatics, and combinatorial chemistry, to improve drug candidate identification has increased. In addition, drug research has evolved greatly due to novel chemical intermediate forms, allowing the approach to become more refined, reliable, and time-consuming. Therefore, it is projected that the usage of pharmaceutical chemical intermediates will continue to grow.

By Application:

• Automotive

• Pharmaceutical

• Agrochemical

• Petrochemical

• Lubricants

• Others

In 2020, the pharmaceutical sector was attributed to having the highest global chemical intermediates market share during 2022 - 2027. Chemical intermediates play an essential role in the pharmaceutical business, and the increasing usage of chemical intermediates in the production of pharmaceuticals is fueling consumer demand. In addition, medical progress is propelling the pharmaceutical business forward, primarily owing to the rising disease prevalence, treatment availability, and favorable government legislation.

Chemical Intermediates Market Regional Analysis: 

• North America

• Europe 

• Asia Pacific 

• Latin America

• Middle east and Africa 

The Chemical Intermediates Market Report includes the segmentation of Regions:

• With a revenue share of 52.7 percent in 2021, Asia Pacific dominated the Chemical Intermediates Market and is expected to continue to do so throughout the forecast period (2022 - 2027). APAC's rapid expansion can be ascribed to widely available production technology as well as cheap access to raw materials. Reflecting consumer demand trends and the rising sophistication of APAC's industrial output, the chemical intermediates industry is experiencing a new phase of development, with a shift toward specialty-chemical growth.

• Chemical intermediates are expected to be a lucrative regional market in the Middle East and Africa. Chemical intermediates are in high demand throughout the Middle East and Africa because they are needed in the textile sector in those regions.

Impact of COVID-19 on the Chemical Intermediates Market:

In the chemical intermediates business, the COVID-19 pandemic has had a considerable influence. This is due to an increase in disinfection consumption as well as an increase in the demand for plastic and glass in the manufacture of personal protective equipment and protective gear. Furthermore, to fulfill the expanding health and hygiene requirements, a surge in demand for textiles is projected in the near future. But, disruptions in the supply chain, cost variations in petrochemicals, and economic restraints are projected to limit the worldwide market growth.

Recent Developments in the Chemical Intermediates Market:

• BASF SE increased the capacity for higher carboxylic acids namely 2-Ethylhexanoic acid and Isononanoic acid.

• As part of the site's regularly scheduled maintenance turnaround, Invista, a major manufacturer of chemical intermediates, polymers, fibers, and fabrics, completed its project to deliver the company's most advanced adiponitrile (ADN) technology to its Victoria, Texas, facility on schedule. The site will oversee the start-up and ramp-up of ADN production in a regulated manner.

Chemical Intermediates Market Key Players:

The companies covered in the report include:

1. INVISTA

2. Akzo Nobel NV

3. Stepan Company

4. SABIC

5. BASF SE

6. Chevron Corporation 

7. LG Royal DSM

8. Jay Chemical

9. Exxon Mobil Corporation