Titanium Dioxide Market Is Expected to Reach $17.12 Billion by 2020
June 18, 2015
According to a recent report by Transparency Market Research, the global titanium dioxide market was valued at $13.14 billion in 2013 and is anticipated to reach $17.12 billion by 2020, expanding at a compound annual growth rate (CAGR) of 3.8% from 2014 to 2020. Titanium dioxide is a white-colored, solid, inorganic material with high thermal stability and poor solubility. Major raw materials used in the production of titanium dioxide include mineral sources such as ilmenite and rutile. Major processes used in the manufacturing of titanium dioxide include sulfate and chloride.
Demand for lightweight vehicles has increased due to rising demand for fuel-efficient vehicles. This trend is estimated to continue during the forecast period. Polycarbonate, a thermoplastic, is used as a substitute for metal and glass-based automotive parts in lightweight materials. However, low scratch resistance of polycarbonate has restrained its market growth. Titanium dioxide is one of the major coating materials used to coat polycarbonate. Therefore, rising demand for lightweight vehicles, coupled with increasing demand for polycarbonate, has been a major factor driving demand for titanium dioxide. Rising demand for coatings in photovoltaic modules to increase their efficiency is likely to offer high growth opportunities in the titanium dioxide market. However, an increase in the number of stringent regulations in the titanium dioxide market due to environmental and health hazards is one of the major factors hampering demand for titanium dioxide.
Based on application, demand for titanium dioxide has been segregated into four major segments: paints and coatings, plastic, paper and others. Paints and coatings was the largest application segment for titanium dioxide in 2013 and accounted for over 50% of the market share. This trend is expected to continue during the forecast period. Plastic is anticipated to be the fastest-growing application segment due to high growth in end-user industries such as packaging and automotive. Other application segments include niche application segments such as artificial fibers and inks.
Asia-Pacific dominated the global titanium dioxide market with a share of over 40% in 2013. This trend is estimated to continue during the forecast period. Asia-Pacific is projected to be the fastest-growing region in the next few years due to high growth in several end-use industries in the emerging economies of India and China.
The titanium dioxide market is consolidated in nature; the top four players constituted over 50% of the global market share in 2013. Major players in the titanium dioxide market include DuPont, Cristal Global, Kronos Worldwide and Tronox Ltd.
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