Oxo Alcohols Market

Oxo Alcohols Market Size (2023-2028)

Oxo Alcohols Market size is anticipated to project US$ 21.92 billion by the end of 2028, increasing at a CAGR of 4.5% between 2023-2028

The oxo alcohol market has overgrown over the past few years and is yet to continue the trend in the next six years. The growth is majorly owing to the increasing demand for oxo alcohols as solvents and the rising demand for plasticizers. Carbon monoxide (CO) and hydrogen (H2) are coupled together to an olefin to produce an aldehyde using the hydroformylation reaction and, after that, hydrogenating the aldehyde to form oxo alcohols. Oxo solvents are predominantly consumed as solvents for the preparation of plasticizers, coatings & adhesives, paints, lubricant adhesives, and chemical manufacturing. Acrylates, acetates, chemical intermediates, and plasticizers are the major end-user firms of oxo alcohols. The technology used for the manufacture of oxo alcohols from olefins is LP Oxo technology. These are some of the characteristics that drive the global oxo alcohols market revenue in the upcoming years. 

Oxo Alcohols Market Drivers:

The increasing demand for Butyl Acrylates, 2-Eh Acrylates, oxo alcohols in the Asia Pacific, growing investment in Saudi Arabia's downstream sector, stringent norms escalating the demand for high-performance fuels, development of the dioctyl terephthalate market, and increasing demand for production gap in China are the major drivers that propel the global oxo alcohols market growth during the forecast period. The rapid increase in plasticizers boosts the oxo alcohols market to hold the most significant regions. Plasticizers are the most frequently utilized phthalate esters in PVC (polyvinyl chloride) applications. Plasticizers amplify compound processing features and also make end-use products flexible. Plasticizers are nothing but water reducers that enhances in reducing of the total water-to-cement ratio in building and construction projects and adding more fluid consistency to cement without the requirement of water for the dilution process. To improve the strength of the concrete, plasticizers are deployed to enhance the workability of concrete by reducing the water-to-cement ratio. The increasing demand for oxo alcohols as solvents tends to uplift the global oxo alcohols market growth. Oxo alcohols, as solvents, are majorly used in various applications like printing inks, used in polishers, cleaners, production of drugs, and solubilizers in textile firms. On the other hand, oxo alcohols are used as a dehydrating agent in industries. These are the features likely to propel the oxo alcohol market size during 2022 - 2027.

Oxo Alcohols Market Restraints:

The maturity of the product and the negative impact of dioctyl phthalate in regions including Europe and North America tend to hinder the global oxo alcohol market growth in the upcoming years. Dioctyl Phthalate is a clear liquid and has a mild odor, slightly less dense than water. Hence, it floats on water. Therefore, it can easily penetrate the soil and contaminate groundwater and nearby streams. Moreover, eye contact may produce massive irritation. At the same time, a direct connection to the skin may observe mild irritation. Hence it is the primary hazard and creates a threat to the environment. With these features, regions like Europe and North America negatively impacted dioctyl phthalate, which further led the global oxo alcohols market to hold the minor market size.

Recent Developments in the Oxo Alcohols Market:

• On December 8th, BASF is one of Europe's largest n-butanol manufacturers, declared force majeure on supplies of its NBA (n-butanol) products from the German plant. 

• In February, The Dow Chemical Company announced that it would increase prices for oxo-alcohol products' including n-butanol, isobutanol, and 2-ethyl hexanol. Owing to the increasing prices of feedstock propylene, the company has decided to increase the costs of oxo alcohols.

Challenges in the Oxo Alcohols Market:

The shrinking grounds for small capacity plants is the primary challenger that slows down the growth of the global oxo alcohols market. In addition, some clays' physical and chemical properties produce a significant swelling when water is being absorbed and when the water dries up, the clays shrink. The occurrence of these clay minerals allows the soil to shrink and swell. Therefore, it is a significant challenge for the global oxo alcohols market growth during the forecast period.

OXO ALCOHOLS MARKET REPORT COVERAGE:

Oxo Alcohols Market Segmentation:

By Type:

• 2-Ethylhexanol
• N-Butanol
• ISO Butanol
• Others

Among these types, 2-ethyl hexanol contributes the largest global oxo alcohol market share. 2-ethyl hexanol is majorly used as a feedstock for various end-use applications such as di-2-ethyl hexyl phthalate, 2-ethyl hexyl acrylate, and plasticizers. It also performs several characteristics, including flexibility, lesser emissions, better adhesion, and enhances the fuel's performance. Due to these factors, 2-ethyl hexanol tends to have the largest market and is yet to continue its dominancy in the global oxo alcohol market during the forecast period.

By Application:

• Glycol Ethers
• Acetates
• Acrylates
• Lubes
• Solvents
• Resins
• Plasticizers
• Others

Among these different applications, plasticizers hold the significant global oxo alcohol market share in 2018 and are estimated to rise with the highest CAGR shortly. Plasticizers are colorless and odorless esters that are widely used in the building and construction industries. In addition, plasticizers exhibit good performance, high efficiency, and low volatility. Due to these factors, plasticizers' applications continue their trend in the global oxo alcohols market.

Oxo Alcohols Market Regional Analysis: 

The Oxo Alcohols Market Report includes the segmentation of Regions:

•  North America 

•  Europe 

•  Asia Pacific 

•  Latin America 

•  Middle East & Africa 

The Asia Pacific region held the largest global oxo alcohol market share due to the increasing demand for distribution gap in China. Moreover, North America and Europe tend to be the fastest-growing region with almost 90% of the global oxo alcohol market share. However, the Middle East & Africa oxo alcohols market is estimated to have a steady CAGR respectively during the forecast period due to the increasing demand for oxo alcohols in countries including Africa and Saudi Arabia.

Impact of COVID-19 on the Oxo Alcohols Market:

COVID-19 has widely impacted many sectors, and it is being evolved across the globe. Many front-liners were fighting vigorously during this pandemic, and people maintain social distance wherever they go. During this pandemic, most market players were focusing on working to meet the demand across the world. The global alcohol market is also being affected by COVID-19. Majorly, the occurrence of disruptions in the supply chain led to the market being negatively impacted during the crisis.

Oxo Alcohols Market Key Players:

The companies covered in the report include:

• BASF Petronas

• Dow Chemical Company 

• Eastman Chemical Company

• ExxonMobil Chemical Company

• Arkema SA 

• Evonik Industries

• The Andhra Petrochemicals Limited