Malaysia Aromatics market is anticipated
to grow significantly rate in the projected period of 2028, driven by the increasing demand from construction industry. In 2022,
the value of construction work by the public sector in Malaysia was valued at USD
5.91 billion.
Malaysia aromatics market is
expected to expand during the projected period, due to increasing demand from construction
industry as it is utilized as an additive in the construction material, especially
in concrete, helping to enhance the workability, strength, and durability of
concrete. In addition to this, aromatics are also used as sealants, coatings,
and membranes in the construction industry which act as a hydrophobic material providing
waterproofing and moisture barrier properties, while also providing protection against
leakage, ultimately resulting in propelling the growth of Malaysia aromatics market
in the projected period.
Malaysia aromatics market is a
dynamic and competitive sector that offers opportunities for growth and innovation.
The market players are focusing on expanding their product portfolio, enhancing
their quality standards, improving their distribution network, and increasing
their market share. Along with this, merger and acquisition activity in the aromatics
market enhances companies' presence in the region as these acquisitions help
companies to better serve their customers and meet the growing demand for aromatics
in Malaysia in the forecasted period.
For instance, Petronas
Chemicals Aromatics Sdn. Bhd. is a joint venture between Japanese and Malaysian
companies, capable of producing 540,000 tons of paraxylene and 200,000 tons of
benzene per year.
Growing Demand from Construction
Industry
The construction in Malaysia is
experiencing rapid growth, fueled by infrastructure development, urbanization,
and a booming real estate market. The Malaysian government has made
considerable progress in expanding and modernizing its infrastructures
throughout the country. This effort is evident in the five-year centralized
economic development plan known as the Malaysia Plan.
For instance, in the 12th
Malaysia Plan, the government announced its goal of developing 120 cities to
achieve a sustainable city status by 2025, by providing additional support to
private-sector projects implementing strategic development programs under Public
Private Partnership (PPP) 3.0 model.
The government also intends to
construct 500,000 affordable houses by 2025, increasing the construction
activity in the country due to the increase in demand of construction material.
Aromatics, such as naphthalene-based superplasticizers and lignosulfonates, are
widely used as concrete additives and admixtures in the construction industry.
These additives enhance the workability, strength, and durability of concrete,
improving its resistance to cracking, reducing water content, and increasing
the speed of construction. Aromatics-based additives also contribute to
improved curing and increased concrete longevity, ensuring the longevity of
structures. Effective waterproofing solutions are crucial for protecting
buildings and infrastructure from moisture damage. Aromatics-based sealants,
coatings, and membranes are extensively used in the construction industry to
provide waterproofing and moisture barrier properties. These materials prevent
water ingress, protect against leaks and moisture-related issues, and enhance
the lifespan of structures, ensuring their structural integrity. In addition to
this, aromatics find application in flooring and surface coatings, enhancing
the aesthetics, durability, and protection of floors and surfaces in the
construction industry. Aromatics-based coatings, such as epoxy and polyurethane
coatings, offer excellent chemical resistance, abrasion resistance, and
decorative finishes. These coatings are used in a wide range of applications,
including industrial floors, commercial spaces, parking lots, and residential
interiors, providing seamless, durable, and visually appealing surfaces.
Moreover, energy efficiency is a growing concern in the construction industry,
and insulation plays a vital role in achieving sustainable and energy-efficient
buildings. Aromatics-based insulation materials, such as polyurethane foam, are
used in roofing, wall insulation, and HVAC systems. These materials offer
excellent thermal insulation properties, reducing heat transfer and minimizing
energy consumption for cooling and heating, resulting in energy-efficient
buildings with reduced environmental impact. Along with this, aromatics, such as styrene,
toluene, and xylene, are key components in the production of adhesive
formulations that offer strong bonding, excellent adhesion to different
substrates, and superior mechanical properties. These adhesives find
application in bonding metals, plastics, wood, and other materials used in construction
processes. Therefore, increasing utilization of aromatics in the construction
industry propels the demand of the Malaysia aromatics market in the upcoming
years.
Rising Demand from Pharmaceutical
Sector
Healthcare sector has witnessed
substantial growth in Malaysia, which is driven by an increasing prevalence of chronic
diseases, and rising demand for healthcare services. The pharmaceuticals
industry plays a pivotal role in meeting the healthcare needs of the country. Aromatics,
such as benzene and toluene, serve as essential building blocks for the
synthesis of active pharmaceutical ingredients (APIs) and intermediates. These
APIs form the basis of various medications used for treating diseases and
improving patient well-being. The pharmaceuticals industry is increasingly
focusing on research and development (R&D) activities to develop innovative
drugs and formulations. Aromatics find application in the synthesis and
development of novel molecules and pharmaceutical compounds. The versatility of
aromatics allows chemists and researchers to create structurally diverse
compounds with specific properties and therapeutic effects. As R&D efforts
intensify, the demand for aromatics in the pharmaceuticals industry increases.
Moreover, advancements in technology have led to improved manufacturing
processes and increased efficiency in the pharmaceuticals industry. Aromatics, as
solvents and reagents, play a crucial role in optimizing these processes. They
aid in the extraction, purification, and synthesis of pharmaceutical
ingredients, ensuring high purity and quality. Additionally, advancements in
catalysis and reaction engineering have enabled more efficient and sustainable
production of pharmaceutical compounds using aromatics. Thus, increasing demand
of aromatics from pharmaceutical sector dominates the growth of the Malaysia aromatics
market in the forecast period.
Increasing Demand from Automotive Industry
Aromatics play a pivotal role in
the automotive sector, offering a wide range of applications that enhance performance,
functionality, and aesthetic appeal. Due to strict regulations regarding reducing
carbon emissions and improving fuel efficiency, the automotive industry is
increasingly adopting lightweight materials and technologies. Aromatics, such
as polycarbonate and polystyrene, are widely used in manufacturing lightweight
components, including interior trims, bumpers, and body panels. These materials
offer excellent strength-to-weight ratios, contributing to overall vehicle
weight reduction and fuel efficiency improvements. Safety is a paramount
consideration in the automotive industry, and aromatics play a vital role in
ensuring vehicle safety and durability. Aromatics, such as polyurethane and ABS
(acrylonitrile butadiene styrene), are utilized in the production of airbags,
seatbelts, dashboards, and other critical safety components. These materials
provide excellent impact resistance, dimensional stability, and heat
resistance, ensuring occupant safety and vehicle integrity. Along with this, aromatics-based
materials, such as polyurethane foam and synthetic leather, are extensively
used in seating, interior trims, and upholstery applications. These materials
provide cushioning, sound insulation, and luxurious finishes in the automobile.
For instance, Petronas developed
benzene which is used as coating, electronic laminates, adhesives, and composite
materials for aerospace and automotive industry.
Thus, all such factors are
expected to drive the demand for aromatics in the projected years.
However, the aromatics compounds are
highly dependent on feedstock, particularly crude oil and natural gas.
Fluctuations in crude oil and natural gas prices can significantly impact the
production costs and profitability of aromatics manufacturers. To mitigate these
issues, companies in the market need to adopt effective risk management
strategies, such as hedging mechanisms and long-term supply agreements. This reduces
the demand of aromatics and result in restraining the growth of the market. Moreover,
aromatics materials on combustion produce a large amount of soot. This process increases
the concentration of greenhouse gases result in rising global warming issue by
releasing heat in the environment heating. Cycloalkanes which are composed of
carbon and hydrogen atoms arranged in ring-like structures, have capability to
reduce soot emissions compared to aromatics and other fuels used presently in
jets & airplanes, make them an alternative attractive source, result in
decreasing the demand further slowdown the market growth.
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Recent Development
- In 2022,
Honeywell completed the engineering assessment for Pengerang Energy
Complex (PEC) Greenfield Integrated Condensate Splitter & Aromatic
Complex located in Johor, Malaysia.
Market Segmentation
Malaysia Aromatics Market is segmented
based on type, application, end user industry, and region.
Based on type, the market is divided into benzene, toluene,
o-xylene, p-xylene, and others. Based on application, the market is categorized
into solvent and additive. Based on end user industry, the market is fragmented
into paint & coatings, adhesives, pharmaceuticals, chemicals, automotive,
construction, personal care, and others. Based on region, the market is segregated
into East Malaysia, and West Malaysia.
Company Profiles
PETRONAS Chemicals Group Berhad, Chevron
Phillips Chemical Malaysia Sdn. Bhd., Shell Malaysia Plc, KP Malaysian
corporation, ChemOne Group, BIS Chemicals Sdn Bhd., Brenntag Sdn. Bhd. are some of the key players in Malaysia Aromatics
Market.
|
Attribute
|
Details
|
|
Base
Year
|
2022
|
|
Historic Data
|
2018 – 2021
|
|
Estimated
Year
|
2023
|
|
Forecast Period
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2024 – 2028
|
|
Quantitative
Units
|
Revenue in USD Million, and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
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Revenue forecast, company
shares, competitive landscape, growth factors, and trends
|
|
Segments
covered
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Type
Application
End
User Industry
|
|
Region scope
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East Malaysia, West Malaysia
|
|
Key companies profiled
|
PETRONAS Chemicals Group
Berhad, Chevron Phillips Chemical Malaysia Sdn. Bhd., Shell Malaysia Plc, KP
Malaysian corporation, ChemOne Group, BIS Chemicals Sdn Bhd., Brenntag Sdn.
Bhd.
|
|
Customization
scope
|
10% free report customization with purchase. Addition or alteration
to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase
options to meet your exact research needs.
|
|
Delivery
Format
|
PDF and Excel through Email (We can also
provide the editable version of the report in PPT/Word format on special request)
|
Report Scope:
In this report, Malaysia Aromatics
Market has been segmented into the following categories, in addition to the
industry trends, which have also been detailed below:
- Malaysia Aromatics
Market, By Type:
- Benzene
- Toluene
- O-Xylene
- P-Xylene
- Others
- Malaysia Aromatics
Market, By Application:
- Malaysia Aromatics
Market, By End User
Industry:
- Paint
& Coatings
- Adhesives
- Pharmaceuticals
- Chemicals
- Automotive
- Construction
- Personal
Care
- Others
- Malaysia Aromatics
Market, By Region:
- East Malaysia
- West
Malaysia
Competitive landscape
Company Profiles: Detailed
analysis of the major companies in Malaysia Aromatics Market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market
players (up to five).
Malaysia Aromatics Market is
an upcoming report to be released soon. If you wish early delivery of this report
or want to confirm the date of release, please contact us at [email protected]