The global Maleic Anhydride market was valued at USD 4.7 billion in 2022 and is projected to cross USD 7 billion by 2032, growing at a CAGR of 4.8%. The strong growth in the market can be attributed to an increasing demand from downstream applications such as Butanediol (BDO) and  unsaturated polyester resins (UPR) application. 

Maleic Anhydride (MAN) is colourless or white solid with acrid odour. Maleic anhydride can be produced using two routes, oxidation of benzene and oxidation of n-butane. In the early 1980s, production of Maleic Anhydride using benzene became uneconomical due to rising benzene prices. All the existing benzene-based units in the United States (USA) were either closed or converted to n-butane feedstock to comply with the regulations of benzene emissions. The major incentives of the C4 hydrocarbon are the lower cost and the lower environmental impact, that makes n-butane an inexpensive and non-toxic feedstock. Today, virtually all new plants that operate use n-butane feedstock to produce MAN. Countries like China still use benzene for production of Maleic Anhydride because of the limited availability of n-butane and certain logistic challenges. Most of the new plants in China are based on n-butane as feedstock.

The average historical utilization rates of Maleic Anhydride have been in the range of 55-60% during 2016 to 2021. On an average 60 kilo tons of capacities have been added annually to meet the increasing global Maleic Anhydride demand. Overall, the global Maleic Anhydride capacity stood at 3750 kilo tons in 2022 with Asia Pacific accounting for almost 75%. Global Maleic Anhydride capacity will witness strong growth over the next five years, potentially increasing from 3,750 kilo tons in 2022 to 4,900 by 2032, thereby, recording a average annual growth of 3% over the forecast period. The USA and the Middle East has the advantage of low-cost feedstock while in China it is the move towards minimizing the export dependency by increasing operating rates and also on account of lower cost of production from coal. Historically, USA has seen a growth in the petrochemicals industry due to shale gas reserves.

Over half of the maleic anhydride produced is dedicated to the production of unsaturated polyester resins (UPR) owing to UPRs versatile properties and various applications. UPR is the important polymer used in the production of composite materials like glass fibre-reinforced plastics (FRP) and for casting resins. The largest market for maleic anhydride is unsaturated polyester resins (UPR) in most of the regions of the world. Unsaturated polyester resins are utilized in several industries such as construction, automotive, marine, and others. Increasing construction activities in developing regions will drive the unsaturated polyester resins market as a considerable amount of UPR goes into construction. China is the world’s largest producer of unsaturated polyester resins (UPR) and the capacity is expected to increase at higher rate during the forecast period owing to decreasing oil prices. Growth of UPR also depends on the economic factors including GDP growth of a country. UPR market has observed a shift towards Asian countries like China and India as the market in developed countries is mature. One of the major drawbacks of UPR is its lower recycling rate. Automotive industry which is the major end-user for UPR prefers the use of recyclable unreinforced thermoplastics over reinforced polymers.

The global Maleic Anhydride market is dominated by the Asia Pacific region accounting for over 50% of the global market. The maleic anhydride market is further projected to grow at a CAGR of 6.5% during the long term forecast period. Maleic anhydride consumption in Butanediol (BDO) and unsaturated polyester resins (UPR) application is projected to drive the demand in the coming years. The 1-4 Butanediol (BDO) production capacity in Asia Pacific currently stands at 3,200 kilo tons and is projected to surpass 5,500 kilo tons by 2032. This substantial capacity expansion is poised to further boost the Maleic Anhydride market.

Growing purchasing power in the developing economies is seen as a key driver of demand for Maleic Anhydride, as the major share of pie from the Maleic Anhydride application is taken up by unsaturated polyester resins which is further used to make composite materials, mainly glass fibre-reinforced plastics. UPR is also used in manufacturing of heat resistant pipes and tanks in construction sector. FRP composites are further used in construction, automotive and marine industries. The economy in Asia-Pacific has been thriving on account of the advancements witnessed in the construction industry. The escalating growth in construction industry in Asia-Pacific region and developing countries globally is expected to drive the growth of the unsaturated polyester resins over the forecast period. This is expected to increase the demand for Maleic Anhydride during the forecast period. Moreover, use of UPR for industrial pipes is growing significantly owing to its remarkable heat resistance properties. Increase in use of Maleic Anhydride compatibilizers to modify commodity polymers like polyethylene and polypropylene for better adhesions and dispersion to fibres for better strength in the construction sector. This will further drive the Maleic Anhydride market in the long term forecast till 2032.

IGPL is the only producer of Maleic Anhydride in India, with a capacity of around 8 kilo tons located in Taloja, Maharashtra. India has been a net importer of Maleic Anhydride, with imports averaging 57 kilo tons between 2016 and 2020. In November 2021, Indian Oil Corporation (IOCL) announced that it plans to invest around USD 490 million to construct a 120 kilo tons Maleic Anhydride plant at its Panipat Refinery and Petroleum Complex (PRPC). The unit is expected to become operational by 2026 and reduce the country s import dependence. The Maleic Anhydride produced will be further utilized as the raw material for production of tetrahydrofuran (THF) and butanediol (BDO). Along with Maleic Anhydride plant, the company is planning to construct 20 kilo tons  tetrahydrofuran (THF) and 16 kilo tons butanediol (BDO) facility.

In July 2020, Polynt-Reichhold Group announced plans to construct a greenfield Maleic Anhydride facility with an installed capacity of around 50 kilo tons at its Morris, Illinois site. The company operates two other Maleic Anhydride plants in Europe with an installed capacity of around 100 kilo tons per year.

Thirumalai Chemicals (TCLS USA) is planning to build a 25 kilo tons Maleic Anhydride manufacturing plant from butane in Marshall County, West Virginia. Site construction is expected to begin in early 2023, with plant commissioning in mid-2024.

By the end of 2021, SIBUR is planning to commence operations at its 45 kilo ton Maleic Anhydride facility located in Tobolsk, Russia. Upon completion, SIBUR will be the only Maleic Anhydride producer in Russia. The company also plans to export most of its produced Maleic Anhydride to neighboring countries.

In June 2022, PETRONAS Chemicals (PCG) signed an agreement to acquire the 113 kilo tons Maleic Anhydride plant located in Kuantan, Malaysia from BASF PETRONAS Chemicals Sdn Bhd (its joint venture (JV) company). Earlier, BASF PETRONAS Chemicals Sdn Bhd (BPC) closed its Butanediol (BDO) and derivatives production plant permanently as part of a product portfolio realignment initiative. PETRONAS Chemicals intends to repurpose the Maleic Anhydride plant for the food and pharmaceutical industries by upgrading and revamping the facility to produce higher-quality Maleic Anhydride. The company is currently conducting a thorough evaluation, with an anticipated completion date in Q1 of 2023. If approved, the plant is expected to become operational by Q2 of 2025.