Global Titanium Dioxide Market Valued at $13.3 Billion in 2015

The global titanium dioxide (TiO2) market size was valued at $13.3 billion in 2015, according to Grand View Research’s new report, “Titanium Dioxide (TiO2) Market Analysis By Application (Paints & Coatings, Plastics, Paper & Pulp, Cosmetics), By Region (North America, Europe, Asia Pacific, CSA, MEA), And Segment Forecasts, 2014 – 2025.”
 
The market is expected to witness growth at a CAGR of over 8.9% from 2016 to 2025, owing to increasing demand from end-user industries. Usage of the product as pigments in paints and coatings formulation is expected to fuel industry growth over the next few years. 
 
Progressive growth in the automotive industry, especially in lightweight automobiles, has driven significant demand for paints and coatings, which in turn is anticipated to propel product demand over the forecast period.
 
The market in the US was largely driven by the paints & coatings sector over the recent past. Recovery of the US construction industry has boosted the paints and coatings market, exhibiting rising demand for environment-friendly and anti-corrosive architectural coatings.
 
The product is used as a dispersing agent, flocculent, and whitening agent in the paints and coatings industry. In automotive coatings, the product is used as a dispersive agent with maximum gloss retention and high chalk resistance. Rapid growth of the automotive industry in China, India, and Japan is expected to augment the product demand over the forecast period.
 
Coatings formulated using titanium dioxide have excellent compatibility with polycarbonate, a thermoplastic used as an alternate to glass and metal-based materials. Rising demand for lightweight vehicles, owing to need for higher fuel efficiency, has resulted in surging demand for polycarbonate in the automotive industry.
 
Nanoparticles of titanium dioxide find extensive usage in photovoltaic systems, including dye-sensitized solar cells, quantum dot-sensitized solar cells, polymer-inorganic hybrid solar cells, inorganic solid-state solar cells, and perovskite solar cells. The product has wide use in coatings of photovoltaic cells as a photoactive material, owing to their efficiency in improving the performance of dye-based cells.
 
Paints and coatings dominated the global market, accounting for 57.3% of global market revenue in 2015. This trend is expected to continue over the forecast period. The segment is anticipated to grow at a steady CAGR of 4.2% from 2016 to 2025.
 
Superior properties including opacity, whiteness, scattering of light and high refractive index have accelerated the product use in paints and coatings formulations. The product is widely used as a key raw material in the production of the anticorrosion coatings, automotive coatings, aircraft coating, emulsion paints, marine coatings, and decorative coatings. Increasing infrastructure investments in developing economies have been a dominant factor driving demand for architectural and decorative coatings, which in turn is expected to have a positive impact on the market over the forecast period.
 
Plastics appeared to be another key application of titanium dioxide in 2015. The product improves the mechanical strength of plastic products and electrical properties. Furthermore, it enhances weathering properties of plastics, along with providing protection from UV light and high temperatures.
 
Plastics production is expected to increase over the forecast period, owing to their rising demand in automotive, building materials, and masterbatches. This, in turn, is likely to positively impact the product demand over the next few years, enabling the segment to grow at a CAGR of 5.0% from 2016 to 2025.
 
Pulp & paper was one of the key end-use industries of the product in 2015, owing to its usage as a filler in pulp & paper production. The product improves the brightness, opacity, color, porosity, smoothness, gloss, and printability of paper. The product has considerable use in production of decorative foils, decor papers, and magazine papers used in various printing applications.
 
Asia Pacific was the largest market, accounting for 45.2% of global volume in 2015. Rising construction activities in China, India, and South East Asian countries have motivated the demand for paints & coatings in the region, which in turn is expected to augment product demand growth. Furthermore, rising demand for lightweight automotive owing to their energy efficiency and durability propelled the product demand in automotive coatings. 
 
Recent economic developments and rapid industrialization have stimulated product demand growth in Asia Pacific. The region is predicted to exhibit the fastest growth rate in the industry over the forecast period. Countries such as China, India, Japan, Malaysia, Vietnam, Indonesia, and South Korea are projected to be the major contributors to the growth in Asia Pacific. Europe held the second-largest share of the industry revenues in 2015, accounting for 25%, followed by North America.
 
Key players in the industry include Chemours, Huntsman, Kronos Worldwide, Tronox Limited, and Cristal Global. The top four players accounted for nearly 50% of the total production volume in 2015, thereby rendering the industry a consolidated one.