The global plasticizer market size is estimated to grow at a steady rate from 2016 to 2024. Rising demand for PVC products, robust growth in automotive sector, urbanization and infrastructural growth and high demand for consumer products will be the major drivers for the plasticizer market in the future, as per Global Market Insights.
Plasticizers are additives that increase a materials viscosity and plasticity and are usually combined with polyvinyl chloride (PVC) or other polymers to impart unique properties. Growing demand for PVC products and expanding automotive industry will boost the market in the coming years. PVC is the third most widely produced polymer in the world and global PVC market was valued at around US$5 bln in 2016 and will grow at a moderate rate till 2024. The growth in the PVC market will augment the products market due to the its extensive use in PVC manufacturing. The market will also witness growth due to rapid urbanization and construction projects around the world where the product is used as an additive for concretes and other polymers and in the production of wires and cables. Growing automobiles demand and sales worldwide will boost the market owing to the products use in tire manufacturing. Global tire demand in 2015 was more than 2000 million units and is expected to rise further till 2024 which will influence the market positively. Improving economic condition of people around the globe and the resultant demand for consumer products and growth in packaging industry will bolster the plasticizer market. Stringent government regulations on the use and disposal of plastics, harmful effects of plastics on the environment and high cost of production may hamper the market during the forecast years. Research on bio-based plasticizers which are biodegradable and environment friendly will likely open growth opportunities for the product in the near future.
By product, global plasticizer market is segmented into the following categories-phthalates, aliphatics, terephthalates, trimellitates, polymerics, epoxy, phosphates and others. Phthalates accounted for major share of the market in 2015. Market share of terephthalates, epoxy and aliphatics is expected to rise at a moderate rate due to its use as a replacement to phthalates in many countries.
By application, global plasticizer market is segmented into six categories viz. floors & walls, coverings for films and sheets, wires & cables, consumer goods, coated fabrics and others. The products application in floors and walls has a substantial share in its global consumption in 2016 due to its use as a concrete additive. The product is also used extensively for coverings owing to its properties such as viscosity reducers, low volatile organic compounds and fast fusers. Plasticizers will be mostly used for these two categories of applications in the forecast period due to increasing preference of customers for new designs in coverings and floor walls in their buildings. As the economic condition of people improve, the products application in production of wires & cables and consumer goods will also increase. By end users, global plasticizer market can be segmented in the following categories – construction & remodeling, electronics & communication, automobile and tire industry, medical & healthcare and others. Among these, the products usage in the construction & remodeling industry has a substantial share and is expected to drive the market in the forecast period. Its use in electronics & communication, automobiles and healthcare industries will also influence the market in a positive way. By region, global plasticizer market is divided into five segments viz. North America, Europe, Asia Pacific, Middle East and Africa and Latin America. Asia Pacific has been the leading market for plasticizers, both in terms of production and consumption, due to improved economic condition and increasing infrastructural development and is expected to retain this position owing to the presence of many end user industries in this region It is followed by North America and Europe where the market is expected to grow at a slow pace in the forecast period because both the markets are well established and mature having only a limited potential for growth. Middle East and Africa and Latin America will witness steady growth during this period.
The global plasticizers market is estimated to be worth US$19,366.90 mln by 2019, as per Markets and Markets. The Asia-Pacific is the most promising market for plasticizers and is anticipated to be the same in the near future. The Asia-Pacific is the largest market of plasticizers, which consumed more than half of the total demand in 2013. The demand for plasticizers in the region is projected to grow at a CAGR of about 6.41% from 2014 to 2019. It is estimated that China and Japan were the biggest consumers of plasticizers in the region, followed by India in 2013. India is also projected to be the fastest growing plasticizers market in the region due to increasing domestic demand. The Chinese market for plasticizers is also growing at a notable pace, which is primarily due to the growing manufacturing industry that is further pushing the demand for plasticizers, domestically. Also, the budding PVC industry in the region is ultimately pushing demand for plasticizers within the region. Intensified efforts of various regulatory authorities to promote environment-friendly products have led to innovation and developments in the industry, making it a strong hub and the most potential growth market for plasticizers. Plasticizers are majorly consumed by low phthalates, which were at the forefront in terms of volumetric consumption in 2013, mainly due to the growth in demand of DOP, owing to its low cost and suitable plasticizing properties that are further employed in various applications. The demand of low phthalates is subjugated by China, followed by India, and Japan. Due to its plasticising performance, and cost-effectiveness DOP is widely employed as a general purpose plasticizer especially with PVC. Additionally, the high phthalates segment is dominant across the globe unlike the low phthalates segment which is majorly in Asia-pacific. On the other hand, DOTP is projected to be the fastest growing non-phthalate (being closely followed by bio-based segment) of plasticizers, which is projected to grow at a CAGR of about 10.18% between 2014 and 2019. The Chinese consumption for DOTP is estimated to almost double in the next five years. The demand for phthalates as a whole is falling out of favour especially when employed in food contact products, medical goods, and toys. This has led to a shift from phthalates to phthalate-free alternatives such as DOTP.
The global plasticizers market is expected to reach US$18,538 mln by 2022, as per Allied Market Research. The market was valued at US$15,179 mln in 2015 and is projected to register CAGR of 2.9% from 2016 to 2022. The phthalates type held two-thirds of the global market in 2015. Plasticizers are additives applied in polymers & other materials to enhance their softness, flexibility, and processability. They are applicable in flooring & wall coverings, films & sheets, wires & cables, coated fabrics, consumer goods, and several others. The global plasticizers market is segmented based on type, application, and geography. Raw materials for plasticizers generally comprise esterification of different types of alcohols & acids as well as other chemicals as per the required application.
Emerging applications of plasticizers in various end-user industries and high demand for non-phthalate plasticizers in different regions are major factors that are expected to drive the market growth. However, strict government regulations over some of the phthalates and toxicity of PVC polymer may hamper this growth. Increase in demand for bio-based plasticizers for products, such as personal care cosmetics, toys, food contact materials, health care commodities, and others, are expected to create growth opportunities for various players in the market. Bio-based plasticizers, such as epoxides & sebacates, are expected to grow at the highest CAGR throughout the analysis period, due to their remarkable properties such as non-toxic nature, high efficiency, improved heat stability, lower volatility, and others. These are employed in automotive, adhesive & sealants, paints & coatings, and other end uses. In 2015, the phthalates type occupied major market in terms of revenue; However, this trend is expected to decline to some extent during the forecast period, owing to the harmful effects of few phthalate plasticizers such as endocrine disruption and damage to reproductive system as well as kidney, lungs, and liver, resulting in their complete or interim level ban by regulatory bodies. The main applications employing plasticizers include floorings & walls and wires & cables. Moreover, the wires & cables application segment accounted for second largest market share in 2015, and is expected to grow at the CAGR of 2.3% during the forecast period. According to Eswara Prasad, Team Leader, Chemicals & Materials at Allied Market Research, "Construction & packaging firms have resulted in high growth rates of flooring & wall as well as film & sheet covering application segments. Asia-Pacific is a leader in plasticizers market due to huge production & demand in China. Increasing focus of manufacturers & consumers on bio-derived plasticizers has led to rigorous R&D, thus resulting in a large number of patents published on it in recent years".
Key Findings of Plasticizers Market
* Film & sheet coverings is anticipated to be the fastest growing application segment, in value terms, growing at a CAGR of 3.5% from 2016 to 2022.
* Asia-Pacific is expected to continue to be the dominant share holder, with more than half of the global plasticizers market, with highest CAGR of 3.2% in terms of revenue.
* The flooring & wall segment occupied the maximum market share, and is expected to grow at a CAGR of 3.4% during the forecast period.
* China is the largest country in terms of demand & supply in global plasticizers market.
DINP segment accounted for one-third of the global phthalates market in 2015
* In 2015, Asia-Pacific and LAMEA collectively accounted for more than half of the global plasticizers market, with lucrative CAGR and are expected to continue this trend. This is attributed to upsurge in construction & packaging industries, specifically in China, India, Brazil, and other developing economies. Growth in urbanization & industrialization are the main reasons for growth of the plasticizers market in Asia-Pacific.
The major companies profiled in the report include Arkema S.A., BASF SE, Daelim Industrial Co. Ltd., Dow Chemical Company, LG Chem Ltd., Evonik Industries AG, ExxonMobil Chemical, Eastman Chemical Company, Ineos Group, and UPC Group.
As per Transparency Market Research, thanks to the augmenting urbanization, growth of the construction industry, and the infrastructural developments in the medical and the healthcare sector, especially in emerging economies, such as China and India, the global market for plasticizers has been witnessing a remarkable progress in its size and valuation. Along with this, the surge in the demand for PVC products and the expansion of the automotive industry are also boosting this market significantly. Moving forward, the replacement of a number of wood and iron products, such as windows, floorings, doors, and pipes, with plastics will reflect positively on the sales of plasticizers across the world in the near future. However, the harmful effects of plastics on environment, stringent government regulations limiting the usage of plastics, and the high cost of plasticizer production, together, may restrict this market from growing steadily in the years to come The global plasticizers market offered an opportunity worth US$14.85 bln in 2015. Increasing at a CAGR 5.50% between 2016 and 2024, the market is anticipated to attain US$23.87 bln in revenues by the end of 2024.
Phthalates, non-phthalates, aliphates, and polymeric plasticizers have surfaced as the key products available in the global plasticizers market. Phthalates have been the most preferred product among consumers and are anticipated to remain substantial among all the product types over the forthcoming years. Floor walls and coverings, wires and cables, consumer goods, and films and sheets are the prime applications of plasticizers across the world. In 2015, the demand for plasticizers was higher from floor walls and coverings than other application. With the increasing preference of consumers for new designs of floor walls and coverings in their houses and workplaces, the pace of demand from this segment is anticipated to remain high over the next few years.
Asia Pacific has been leading the global plasticizers market since the last few years, thanks to the augmenting usage of PVC products in the housing and construction, electric and electronics, automotive, and the medical and healthcare industries in this region. Analysts anticipate Asia Pacific to continue registering dominance in the global market in the near future, expanding at a CAGR of 6.10% from 2016 to 2024. The increasing infrastructural development, boosted by the economic strengthening of Asian economies, especially China, Korea, Japan, and India, is projected to support the Asia Pacific market for plasticizers considerably over the forthcoming years. North America and Europe, on the other hand, are likely to witness a sluggish progress in the next few years, as both the markets are near maturation. North America, being the hub of established industries, where leading players have been operating since long, has very limited growth opportunities for this market, which is going to affect the North America plasticizers market adversely in the near future. In the similar fashion, the market in Europe is also well-established, which is becoming unfavorable for this market.
Zion Research estimates the global plasticizers market accounted for US$15.35 bln in 2014 and is expected to reach US$19.82 bln by 2020, growing at a CAGR of around 4.4% between 2015 and 2020. Plasticizers are additives used in applications are for plastics that increase the plasticity or fluidity of a material. They are most commonly phthalate esters in PVC applications. Plasticizers provide viscosity, flexibility, softness, or other properties to the finished product. At the same time they offer protection against the effects of weathering and temperature, thereby helping to maintain the product’s functionality. Rapidly growing demand for PVC coupled with the growing demand for high and non phthalates are expected to be the major drivers of the plasticizers market. However, the declining market for DOP may hamper the market growth in the near future. Nonetheless, ongoing research on biobased pesticides may open growth opportunities for the market within the forecast period. In Europe, the safe use of plasticizers is enabled by Registration, Evaluation, Authorization and Restriction of Chemicals (REACH). However, government regulations and rising health concerns of the consumers expected to boost the demand of bio-plasticizers. Low phthalates, high phthalates and non-phthalates are the key products of the plasticizers market. Low phthalates was the leading segment and accounted for 44.2% share of the total volume consumption in 2014. In terms of volume, high phthalates was another key outlet of plasticizers market in 2014. Non-phthalates is an important segment of plasticizers market on account of increasing demand for bio-based plasticizers.
Plasticizers finds in different applications such as floor walls & coverings, wires & cables, consumer goods, film & sheets and others. In 2014, floor walls & coverings was the dominating application segment of plasticizers market. It accounted over 25.1% share of the total volume consumption. This growth is attributed to huge utilization of plasticizers in floor walls & coverings owing to its excellent properties such as fast fusers, viscosity reducers, and low-VOC.
The Asia-Pacific was the largest consumer of plasticizers, which constitutes 61.2% share of the total volume consumption in 2014. Europe was another leading region for plasticizer market and expected to show moderate growth in the years to come.
Key players in the market include BASF, Eastman Chemical Corporation, ExxonMobil Corporation, Evonik Industries Ag, Dow Chemical Corporation, Nan Ya Plastics Corporation, Shandong Hongxin Chemicals Co. LTD., UPC, Aekyung Petrochemical Co. Ltd and Teknor Apex.