Market Trends of Methyl Isobutyl Ketone (MIBK) Industry
Increasing Demand from Paints and Coatings Industry
- Methyl Isobutyl Ketone (MIBK) is a medium evaporating solvent. It is an active solvent for various synthetic resins, including cellulosic, vinyl copolymers, acrylics, alkyds, polyesters, and epoxies.
- It is very useful in developing high solids coatings and used for automotive applications because of its combined high solvent activity and low-density characteristics.
- In the automotive sector, methyl isobutyl ketone (MIBK) is used for manufacturing automotive chemicals, such as protective paints and coatings, that are further used in exterior parts of the vehicle to add a pleasant appeal to vehicles. They are also used in metallic parts and plastic vehicle components of both interior and exterior types.
- Automotive coatings protect against sunlight, material corrosiveness, and environmental effects. It includes acid rain, hot-cold shocks, stone chips, UV radiation, car washing, and blowing sand.
- The automobile industry in the United States is the second-largest after China, contributing significantly to the regional and global automobile markets. The country houses major automakers producing and exporting vehicles to other economies in the Americas, Europe, and the Asia Pacific.
- As per the National Automobile Dealers Association (NADA), the total value of the car and automobile manufacturing market in the United States was USD 82.6 billion in 2021. The association predicted that US new light-vehicle sales would likely increase by 3.4% to 15.5 million units in 2022. As of 2022, General Motors announced an investment worth more than USD 7 billion to produce electric vehicles in the United States.
- According to the IEA (International Energy Agency), in the United States, the federal aim is for electric vehicles (EVs) to make up 50% of new passenger cars and light trucks sold by 2030.
- Over a period, various companies produced different and new variants in coatings, such as heat and anti-reflective coating, electro-chromatic and smart coatings for windows, self-cleaning topcoats, UV curable, powder coating systems, iridescent and color-changing base coats, and abrasion-resistant coatings for headlamps, among others.
- All the factors above, in turn, are expected to drive the Methyl Isobutyl Ketone (MIBK) over the forecast period.
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Asia-Pacific region is Expected to Dominate the Market
- In the Asia-Pacific region, India and China are major consumers of methyl isobutyl ketone because of increasing demand and production in end-user industries such as electronics.
- According to the India Electronics and Semiconductor Association, the semiconductor component market in the country is expected to be worth USD 32.35 billion by 2025. The ongoing 'Make In India' initiative by the government is expected to result in investments in the semiconductor industry in the country.
- The India Electronics and Semiconductor Association (IESA) signed an MoU with the Singapore Semiconductor Industry Association (SSIA) to establish and develop trade and technical cooperation between the electronics and semiconductor industries of both countries. It is expected to result in the setting of various advanced semiconductor manufacturing technologies that would further increase the scope for establishing semiconductor manufacturing facilities in India.
- Recently, the domestic electronics manufacturing sector is expanding steadily, owing to favorable government policies, such as 100% Foreign Direct Investment (FDI), no requirement for an industrial license, and the technological transformation from manual to automatic production processes. New incentives, such as the Modified Incentive Special Package Scheme (M-SIPS) and Electronics Development Fund (EDF), started in the country with a budget of USD 114 million for domestic electronics manufacturing in India.
- China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, and other personal devices, recorded the highest growth in electronics. China is the largest base for electronics production in the world. China is actively manufacturing electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal devices.
- To benefit from the extensive demand scenario, China embarked on strategic initiatives like the 'Made in China 2025' plan, under which the Chinese government announced its goal to reach an output of USD 305 billion by 2030 and meet 80% of its domestic demand.
- Chinese companies are stepping up efforts to push into the semiconductor industry. The government in China subsidized semiconductor companies to build factories through various policy incentives. Some cities that announced their plans for semiconductor production facilities include Chongqing, Shanghai, Beijing, Chengdu, Hefei, Shenzhen, Wuhan, Xiamen and Liaoning, and Shaanxi. Therefore, with the establishment of new semiconductor manufacturing facilities, the demand for PVDF is expected to increase rapidly over the forecast period.
- On the other hand, various EV manufacturers are looking forward to establishing production plants to meet the current demand.
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