The expansion of construction industry with increased utilization of naphthalene derivatives for the manufacturing of cement is anticipated to drive the market growth. The evolution of textile industry with better and improved textile products according to the changing lifestyle coupled with urbanization is estimated to positively drive the market growth. Naphthalene derivatives are extensively used in dyes and pigment manufacturing industries as well as for the production of agro chemicals. The expansion in pharmaceutical sector is estimated to increase the market growth owing to rise in use of naphthalene in limited quantities for production of medication and drugs. Naphthalene derivatives are used as remedies against skin rashes, allergies, burns and sores coupled with their increased use in cosmetics products, toothpastes and mouthwashes, which is anticipated to increase the market growth.
The global naphthalene derivatives market is anticipated to record a CAGR of around 4.6% over the forecast period, i.e., 2019-2027 owing to increase in use of these derivatives for industrial applications. The naphthalene derivatives are used heavily in agro chemicals, textiles and construction industries owing to their odorless nature coupled with low volatility. Additionally, the availability of naphthalene derivatives in various compositions, for instance, as salts, alcohols, acids and others is anticipated to increase the market growth owing to their increased applicability in various industries. The rapid industrialization and urbanization is anticipated to result in the market growth owing to changing lifestyle of people, with people investing more in construction and textile sectors. The recent developments and innovations in naphthalene derivatives and discovery of new naphthalene compounds is estimated to increase the market growth owing to availability of different salts and acids in a number of textures, finishes, surfaces and polishes resulting in improved applicability of these compounds.
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The market is segmented by form, by product, by end user and by source. The end user segment is further segmented into construction, agro-chemicals, textiles, oil & gas, paints & coatings, pulp & paper, pharmaceuticals and others, out of which, the construction segment is anticipated to observe significant growth on account of expansion and increased investments in the industry, followed by agro chemicals segment and textile segment. The product segment is further segmented by sulphonated naphthalene formaldehyde, phthalic anhydride, naphthalene sulphonic acid, naphthols, alkyl naphthalene sulphonate salts and others, out of which the sulphonated naphthalene formaldehyde (SNF) is estimated to witness significant growth on the back of its use in concrete cement as super plasticizer and high cost effectiveness as compared to other compounds. Additionally, the phthalic anhydride segment is anticipated to witness market growth owing to their use in manufacturing dyes and pigments thereby expanding the textiles industry followed by alkyl naphthalene sulphonate salts on the back of their use as dispersants in many industries.
The chemical properties of naphthalene makes it toxic for human use when given in excessive dosage. The extended exposure to naphthalene results in destruction of red blood cells causing hemolytic anemia, damage to lungs and neurological system owing to which the compounds have limited applications. The harmful effects of these compounds on environment are toxic to aquatic life, are flammable, combustible and cause severe health hazards. These factors are anticipated to hinder the market growth.
Our-in depth analysis of the naphthalene derivatives market includes the following segments:
By End User
On the basis of regional analysis, the naphthalene derivatives market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The markets in North America and Europe are estimated to observe a significantly high combined market share owing to the prominent presence of medical and agro chemical sector in the regions. The expansion of the textile and construction market with companies involved in research and development is anticipated to further increase the market growth. The market in Asia-Pacific region is anticipated to witness high growth owing to rise in urbanization and industrialization in the region. The expansion in textile industry and other manufacturing sector owing to low cost labor availability, high customer demand and cheaper raw material cost is anticipated to result in an increase in demand for naphthalene products. The market in Middle East and Africa region is anticipated to witness slow growth owing to limited number of end user industries.
The naphthalene derivatives market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.