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Polyphenylene Ether Alloy (PPE) Market Progresses for Huge Profits During 2024
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A notable trend observed in the global polyphenylene ether (PPE) alloy market is joint ventures between market participants and pursuits for PPE capacity expansion. This is not only strengthening the technical expertise and production capacity of partnering companies, but also bolstering their operational capabilities. A case in point is Asahi Kasei Chemicals Corporation. In January 2017, the company entered into a joint venture with China National Bluestar (Group) Co. Ltd. As per the agreement, Asahi Kasei Chemicals Corporation will commence the production and sale of its mPPE brand Xyron in China, including the intermediate material i.e. 2, 6-xylenol and polyphenylene ether (PPE).
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A report by Transparency Market Research forecasts the global polyphenylene ether alloy market to expand at a CAGR of 4.9% between 2016 and 2025. The market is expected to attain a value of US$1,951.2 mn by 2025 from a valuation of US$1,264.7 mn in 2016.
North America to Stay Dominant in Future
The global polyphenylene ether alloy market has been studied based upon product type, end users, and geography in this report. The product type segments of the market considered in this report are PPE/PS, PPE/PA, PPE/PP, and others. Amongst all, the segment of PPE/PA currently leads the market and is expected to display notable growth in the upcoming years due to the rising demand for recycled plastic in electrical and electronics and due to the demand for light weight components in automobiles.
North America held the leading share in the global polyphenylene ether alloy market in 2015 followed by Europe volume-wise. The trend is expected to continue over the forecast period owing to the increasing demand for sustainable products. The rapid growth in automotive sector combined with rising demand for recycled plastic in consumer electronics and other industrial applications is fuelling the growth of North America PPE alloy market.
Favorable Physical Properties Stoke Demand for Polyphenylene Ether Alloy across Industries
The global polyphenylene ether alloy market is driven by several factors, of which rising demand for reducing the weight of automotive components for fuel efficiency is a prominent one. Stringent regulations to curb CO2 emissions has compelled manufacturers to opt for revolutionary materials which is working in favor of the market.
Another significant factor driving the market is stringent regulations in place across several industries for controlling corrosion of equipment. This makes polyphenylene ether alloy suitable for several applications, especially fluid transporting equipment as it possesses high hydrolytic stability due to its low absorption rate properties. Furthermore, polyphenylene ether alloys are eco-friendly, recyclable, and display high dimensional stability by virtue of which they are expected to witness demand from electrical and electronics and medical industry.
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The demand for high performance cables in electrical and electronics is significantly boosting the polyphenylene ether alloy market. This is because polyphenylene ether alloy displays excellent dimensional stability and low creep behavior at elevated temperatures, which make them suitable for circuits, wires, cables, and plugs.
On the flip side, high production cost and fluctuating raw material cost for PPE alloy are negatively impacting the market. Availability of other thermoplastics such as polycarbonate and polybutylene terephthalate that are low in cost and are at par with PPE alloy in functionality is proving detrimental to the market’s growth.
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