The global alkoxide market is projected to have a compound annual growth rate of 4.92%, from US$2.180 billion in 2019 to US$3.051 in 2026. The market of alkoxide is expected to drive an increasing population, increasing demand in agricultural and pharmaceutical industries. The growth of the alkoxide market is expected to be restrained by fluctuating prices of the raw materials, the increasing cost of the manufacturing process of using skilled labor and processing equipment, and fluctuating prices of the raw materials such as aluminum, methanol, and so on wileadled to fluctuations in the prices of the alkoxide market and hamper the growth of it. This also prevents use the of alkoxide to be used in low-cost end products, which further restraints the growth of the alkoxide market.
By application, the market is segmented into pharmaceuticals, fine chemicals, electronics, agricultural, and others. Agricultural alkoxide market growth is expected to be driven by the increasing population as with the increasing population, the demand for the food and agricultural goods is increasing which will boost the demand for the agrichemicals, including alkoxide, as it helps to improve the quantity and quality of the crops. In the forecast period, it is expected that the increase in research & development and increasing technological advancements will further boost the demand for the pharmaceutical industry. The market is segmented by region into North America, South America, Middle East, and Africa, Europe, and the Asia Pacific. The region the Asia Pacific will have significant growth in the forecasted period and is expected to hold a significant share of the market due to the increasing demand for alkoxide acid in India and China majorly. In the North America region, the demand is expected to be driven by the nutritional and pharmaceutical industries. US manufacturers are coming into agreements of strategic distribution to grab the increasing opportunities in the nutritional and pharmaceutical industries.
The pandemic covid-19 has adversely impacted the alkoxide market. Before the pandemic, the major demand for alkoxide came from agrichemicals, pharmaceuticals, and the coating industries. But the pandemic led to shutdowns of the factories which lead to a decline in the demand for the paints and coatings, and hence, affected the demand for alkoxide acid. This also leads to a fall in investments in the alkoxide market, as the projects in the alkoxide market have been disrupted and slowed down due to the fall in demand for the alkoxide acid.
Rapid industrialization and urbanization are boosting the demand for the construction and sanitary industries, which is further boosting the demand for the alkoxide-based products that are being used in it such as sealants and adhesives. Evonik, one of the top companies has come up with some innovative adhesives which are environmentally friendly as well. In 2019, AIC has come into a distribution agreement with Evonik in the US pharmaceutical and nutritional industries.
APAC to witness lucrative growth.
Asia Pacific is expected to witness significant growth in the forecast period. In this region, China and India is expected to have a significant growth rate in the forecast period. The growth of these countries is expected to be driven by the increasing demand for alkoxide in pharmaceutical and agricultural industries. Increasing concerns of the people for their health is increasing the demand for the alkoxide in pharmaceutical industry in China. While in India, increasing population is boosting the demand for the alkoxide in agricultural industry. In India, agriculture holds the significant share of the gross domestic product and socio-economic status, which brings several potential opportunities for the manufacturers of alkoxide acid in this industry. With the help of research and development and technological advancement helps companies to get the growth in the alkoxide acid market in India and helps India to overcome the challenge to low yield, and crop protection measures. This will help the manufacturers to get government support, but the market is expected to be restraint by the regulatory hurdles to get their products registered and patented, which takes a longer time than usual.