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, 2018 - 2025

Industry Insights

The global titanium dioxide (TiO2) market size was valued at USD 13.3 billion in 2015. 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 & coatings formulation is expected to fuel industry growth over the next few years. 

Developing countries have witnessed growing demand for lightweight vehicles over the past few years. Furthermore, the automotive industry in developed regions including North America and Western Europe is exhibiting a promising trend, owing to recovery from the financial downturn. Progressive growth in the automotive industry, especially in lightweight automobiles, has driven significant demand for paints & coatings, which in turn is anticipated to propel product demand over the forecast period.

The market in the U.S. was largely driven by the paints & coatings sector over the recent past. Recovery of the U.S. construction industry has boosted the paints & coatings market, exhibiting rising demand for environment-friendly and anti-corrosive architectural coatings. As a result, the usage of the product as pigments in the formulation of advanced paints & coatings has increased over the past few years.

The product is used as a dispersing agent, flocculent, and whitening agent in the paints & 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. As a result, the product usage has grown with rising demand for polycarbonate over the past few years.

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. Focus to increase the use of clean energy source, has fueled the product demand in photovoltaic cells application.

Application insights

Paints & 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. Significant growth in construction and automotive sectors, particularly in developing regions, has fueled the product demand in the paints & coatings industry over the past few years. 

Superior properties including opacity, whiteness, scattering of light and high refractive index have accelerated the product use in paints & 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. Furthermore, rising environmental concerns have boosted the production of bioplastics over the recent past. This in turn, is likely to positively impact the product demand over the next few years, enabling the segment to grow at a fast-paced 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.

Regional Insights

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. The European segment witnessed considerable growth in the past years, owing to rising demand from paints & coatings and cosmetic industries. Countries including Germany, Italy, France, and the UK were among the major producers of automotive, and thus have been driving sizeable product demand in the paints & coating segment. This trend is expected to continue over the next nine years.

Central & South America and the Middle East & Africa are expected to witness promising growth over the forecast period. These regions are likely to emerge as high-potential markets over the next few years. The product demand in Brazil is expected to experience slow but positive growth due to growing photovoltaic installations in the country. Countries including Saudi Arabia, UAE, and South Africa are predicted to create lucrative opportunities in the industry owing to progressive growth in end-user industries.

Competitive Insights

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. 

Various companies follow integrated operations; companies such as Kronos Worldwide Inc., Kerala Minerals and Metals Ltd., and Tronox Limited are involved in the extraction of raw materials as well as titanium dioxide production. Companies such as AkzoNobel and BASF have forward integrated operation with production of paints & coatings.

Report Scope

Segments covered in the report

This report forecasts volume and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. Grand View Research has segmented the titanium dioxide market by, application and region.

• Application Estimates & Trend Analysis (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Paints & coatings

  • Plastics

  • Paper & pulp

  • Cosmetics

  • Others

• Regional Estimates & Trend Analysis (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • MEA

    • UAE