With the increasing pace of infrastructure development across the world, the demand for titanium dioxide has also increased substantially. This has led to an increase in the titanium dioxide market price. The total demand for titanium dioxide is expected to reach the value of US $18 billion by 2022. This increase in demand is due to increasing consumption in the paints and coating sector. With the maturity of end-user industries, the demand in North America and Europe has been witnessing a slow growth rate. Also, there is a positive impact on the industry due to rise in the usage of lightweight materials.
What is titanium dioxide?
Titanium dioxide is a bright white compound that is inorganic in nature. In a wide range of products, it is used as a vivid colorant. Rutile, anatase, and ilmenite are the main types of titanium dioxide. It possesses non-toxic, non-reactive, and lustrous properties. It is also luminous in nature. It is resistant against UV-rays, heat, light, and change in weather. The refractive index of titanium dioxide is more than diamond and it has a strong tinting strength. It is widely used in paints & coatings, plastics, rubber, cosmetics, paper & pulp, and textile industries.
Paint and coating industry is the main consumer of titanium dioxide because of the rising demand for paints in the automobiles and infrastructure sector. Titanium dioxide helps in creating a bright and reflective quality when applied to a surface. Because of its non-toxic nature, its growth is expected to increase further due to various government regulations against its substitute compounds.
The titanium dioxide market is also seeing growth due to its increased use in the cosmetic industry. Because of it being transparent and having UV absorption quality, it is widely used in manufacturing creams and sunscreen products.
Titanium dioxide market size and analysis
The total capacity of titanium dioxide market was 6 MMT in the year 2017. The global value of titanium dioxide is expected to reach $18 billion by the year 2022.
Slow growth is expected from North America and Europe due to the maturity of end-use industries in the region. The demand is further expected to increase due to expansion in the construction sector, especially in the U.S. The growth in both the residential and non-residential real estate sector is the main reason for an increase in demand of paints and coatings, which has a positive impact on the growth of the titanium dioxide market. The demand has also increased due to anti-corrosive properties of titanium dioxide which finds its usage in architectural coatings.
Titanium dioxide is widely used in vehicle paints due to its resilience and brightness. It is also suitable for pigments in vehicles due to its high refractive index. It finds its application in decorative papers, foils and also has various print-based applications.
The fast-paced development in emerging countries has also supported the overall market growth for titanium dioxide due to the increase in demand of anti-corrosive coatings. It is now used in the plastic industry for making masterbatches.
Growth depending on regions
The Asia Pacific region is the largest market of titanium dioxide due to rise in the pace of infrastructure development in developing countries such as India and China. The market is expected to grow further in the next few years.
The demand for titanium dioxide in the Asia Pacific region has also increased due to an increase in the usage of automobiles. The market in Europe and the U.S is witnessing slower growth as compared to the Asia Pacific region.
With numerous automobile industries present in European countries like France and Germany, the growth of titanium dioxide market is steady here. The market growth is further expected to grow due to increased use of electric vehicles, which have opened up an entirely new sales channel for the automobile industry.
The demand is expected to grow at an average rate of 4% until 2022. The additional production capacity from China and Canada is expected to help increase the supply across the globe.
Titanium dioxide market price
The boost in construction and building industries has significantly increased the demand for titanium dioxide. The rapid development of infrastructure in developing countries has resulted in significant growth of the titanium dioxide market, which has led to an increase in the market price.
The supply shortfall has directly affected the price of titanium dioxide globally. Also, product demand has further increased with its use as a whitening agent. The heightened demand has subsequently resulted in a rise in prices. The surge in prices, as a result, has led to the use of substitute products by various manufacturing industries. The substitute products used by various industries include antimony oxide, zinc oxide, carbonates, and lithopone. This use of substitutes is expected to challenge the market growth in the coming years.
Despite stiff challenge being posed by readily available substitutes, the benefits offered by titanium dioxide will ensure the steady growth of the market in the coming years.