Malaysia specialty chemicals market is anticipated to grow at
significant rate in the projected period of 2028 which is driven by the increasing use in agrochemicals. In 2022, the sales
value of manufactured pesticides and agrochemical products in Malaysia was around
USD 910 million.
Malaysia specialty chemicals market is expected to expand during
the projected period due to increasing use in agrochemicals as urbanization and
industrial development accelerate due to which agricultural land decreases,
leading to a higher demand for agrochemicals to significantly raise crop yield
per acre of land, thereby propelling the growth of the market in the upcoming
years.
Malaysia specialty chemicals 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 specialty
chemicals market enhances companies' presence in the region as these
acquisitions help companies to better serve their customers and meet the
growing demand for specialty chemicals in Malaysia in the forecasted period.
For instance, Malaysian chemical company, Petronas Chemical
Group Berhad (PCG) acquired Da Vinci Group B.V., a Netherlands-based company
producing specialty chemicals such as silicones and lubricant oil additives. The
acquisition marks PCG’s commitment to expanding its business into the promising
specialty chemicals segment.
Rising Demand from Automotive Industry
Specialty chemicals are used in the automotive industry,
usually in the production of adhesives, sealants, coatings, lubricants, and
plastics. The demand for lightweight automobiles continuously increases as lightweight
vehicle improve the fuel efficiency and meet regulatory requirements for lower
emissions. Specialty chemicals such as lubricants, adhesives, and coatings are
used to reduce friction and wear in engines, transmission systems, and other
components as well as used to create coatings that provide protection against
weathering and other environmental factors, improving the durability of
lightweight materials. They are used to improve the performance of batteries,
catalytic converters, and other emissions control systems, reducing the
environmental impact of vehicles. Several researchers estimate that the
increased expenses per kilogram of weight saved in vehicle weight reduction
measures will be possible with electric automobiles.
Regular IC engine-powered automobiles can save 2-3 per kilogram
of weight, whereas electric vehicles can save 7-8/kg. In their regular driving
cycles, general cars use more energy when accelerating, but they may also recover
more kinetic energy through braking energy recovery. A lighter vehicle body enables
battery reduction while preserving range in electric cars. By allowing the
shrinking of other sections like the brake system and driven train components,
a lighter vehicle body, and battery pack further contribute to the total weight
reduction of the electric vehicle. Electric vehicles require specialized
components and materials that are different from those used in regular IC engine-powered
automobiles. Specialty chemicals are used to improve the safety of vehicles,
helping to reduce the risk of accidents and injuries by providing protection
against corrosion, and reducing the risk of component failure.
For instance, BASF provide specialty chemicals for the
automotive industry including additives and pigments for plastics that go into
automotive interiors and exteriors.
Moreover, specialty chemicals are assimilated for the drugs
manufacturing for cardio-vascular disease, Hughes syndrome, and skin-care
diseases. They are created from fundamental chemical compounds in sizable
reactors at various manufacturing facilities. Many specialized chemicals, such
as catalysts, are employed in industrial pharmaceutical operations, including the
manufacture of paracetamol, vitamin K, and erythromycin. Additionally, to
address growing climate change concerns, modern catalysts like nano catalysts
aid in making the drug development process cleaner and greener.
For instance, Clariant
produces excipients and Polyethylene Glycols (Macrogols) used as solubilizers,
emulsifiers, solvents, rheology modifiers, binders, humectants, plasticizers
etc. for all sorts of pharmaceutical dosage formulations.
Therefore, the rising demand from automotive and pharmaceuticals
sector led to the growth of Malaysia specialty chemicals market in the projected
year.
Growing use of Specialty Chemicals in Agrochemicals
Malaysia is an agriculture country, many valuable crops such
as palm oil, rubber, and cocoa has always been important in the region. Food
crops such as tropical fruits and rice are essential. The population of the
region has been increasing rapidly resulting in increasing demand of food. Moreover,
arable land is declining due to industrialization and urbanization, which
decreased agricultural production, negatively impacting the region's growth,
and leading to food security concerns. To overcome this issue, the farmers increase
utilization of agrochemicals. Agrochemicals are chemicals that are used in agriculture
to protect crops from pests and diseases, enhance plant growth, and improve
crop yield. These chemicals include pesticides, herbicides, fungicides, and
fertilizers. Specialty chemicals can be used in agrochemical formulations to
improve their efficacy, stability, or safety. These chemicals are used as
solvents or carriers in agrochemical formulations to enhance their delivery to
crops. Additionally, some specialty chemicals can be used as active ingredients
in biopesticides, which are increasingly being used as a more sustainable
alternative to traditional chemical pesticides. Along with it, adjuvants are added
in agrochemicals that increase the effectiveness of an agrochemical due to
several modes of action, such as facilitated wetting, penetration, or better
retention, these agrochemical adjuvants are made from specialty chemicals.
For instance, Dow Chemical produces agrochemicals adjuvants
namely POWERBLOX RF-65 Rainfastness Adjuvant, which is a specially designed
co-polymer, and used for aqueous pesticide formulations.
Furthermore, Clariant introduced the Synergen brand series
agrochemical adjuvant which enhances the performance of agrochemicals.
Thus, increasing demand for agrochemicals dominate the growth
of the Malaysia specialty chemicals market in the upcoming years.
Increasing Demand for Construction Chemicals
Malaysia is working with a vision to develop industry at an
advanced and modern level and making this sector as one of the high
contributors of the economic development in the nation. Rapid urbanization,
growing use of Ready-Mix Concrete (RMC) and green chemical will lead to
increase in usage and quality of chemicals in construction sector. The specialty
chemicals used in the construction sector are also known as construction
chemicals. Residential sector, commercial sector, industrial sector and
government infrastructure projects are the most prominent users of construction
chemicals. These construction chemicals help to enhance the structural and
decorative properties of a building and extend its life. They reduce the need
for repairs and help concrete structures retain their strength. Construction
chemicals, such as surface treatment chemicals, foaming agents, and coatings,
are some of the most critical components of the construction process.
For instance, Malaysian government plans to spend USD 3.9
billion on transport infrastructure, specifically to build and upgrade roads
and highways and upgrade existing roads, airports, and ports.
However, specialty chemicals are manufactured from the bulk
chemicals, and bulk chemicals are obtained from crude oil, the price of the
crude oil is highly volatile which fluctuate the cost of bulk and specialty
chemicals which makes it difficult for companies to plan their operations and
investments effectively and the prices significantly impact on the demand of specialty
chemicals. In addition to this, the specialty chemicals have a disposable high
cost because it must go through various procedures. It increases the production
cost which restrain the growth of the market. Moreover, increasing environmental
stringent regulations related to the disposal of hazardous waste and the use of
environmentally friendly materials as well as the competition from the availability
of less expensive conventional counterparts of specialty chemicals are resulting
in slowing down the market growth.
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Recent Development
- In 2023, Clariant IGL Specialty Chemicals
(CISC) showcase renewable-based ethylene oxide derivatives at ChemExpo
India.
- In 2022, Petronas Chemicals Group
Bhd (PetChem) will buy the entire stake in Perstorp Holding AB, a
sustainability-driven global specialty chemicals company, for USD 2.33 billion.
- In 2022, Azelis reached an
agreement to acquire 100% of the shares of Chemical Solutions Sdn Bhd
(ChemSol), one of the leading distributors of raw materials in the personal
care, cosmetics, and household markets in Malaysia.
- In 2020, PCC and PETRONAS Chemicals
Group planned joint production of specialty chemicals in Malaysia.
Market Segmentation
Malaysia
specialty chemicals market is
segmented based on application and region. Based on application, the market is categorized
into construction chemicals, dyes & pigments, agrochemicals, surfactants, and
others. Based on region,
the market is segregated into east Malaysia and west Malaysia.
Company Profiles
BASF (Malaysia) Sdn. Bhd., Dow Chemical
Pacific Ltd, PETRONAS Chemicals Group Berhad (PCG), Clariant (Malaysia) Sdn Bhd,
Eastman Chemical (Malaysia) Sdn Bhd, Evonik Malaysia Sdn Bhd, Hextar Global
Berhad, Azelis Malaysia Sdn. Bhd., Suka Chemicals (M) Sdn Bhd, DKSH Holdings
(Malaysia) Berhad are some of the key players in Malaysia specialty
chemicals market.
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Attribute
|
Details
|
|
Base
Year
|
2022
|
|
Historic Data
|
2018 – 2021
|
|
Estimated
Year
|
2023
|
|
Forecast Period
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2024 – 2028
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|
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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Application
|
|
Region scope
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East Malaysia, West
Malaysia
|
|
Key companies profiled
|
BASF (Malaysia) Sdn.
Bhd., Dow Chemical Pacific Ltd, PETRONAS Chemicals Group Berhad (PCG),
Clariant (Malaysia) Sdn Bhd, Eastman Chemical (Malaysia) Sdn Bhd, Evonik
Malaysia Sdn Bhd, Hextar Global Berhad, Azelis Malaysia Sdn. Bhd., Suka
Chemicals (M) Sdn Bhd, DKSH Holdings (Malaysia) Berhad
|
|
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 specialty chemicals market has been segmented
into the following categories, in addition to the industry trends, which have been
detailed below:
- Malaysia
Specialty Chemicals Market, By Application:
- Construction
Chemicals
- Dyes
& Pigments
- Agrochemicals
- Surfactants
- Others
- Malaysia Specialty Chemicals Market, By Region:
- East Malaysia
- West Malaysia
Competitive landscape
Company Profiles: Detailed analysis of the major companies in Malaysia specialty
chemicals 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).
It is an
upcoming report to be released soon. If you wish and early delivery of this
report or want to confirm the date of release, please contact us at [email protected]