The zinc oxide market is expected to record a CAGR of more than 5% globally during the forecast period. Zinc oxide is an inorganic compound with the formula ZnO. It is a white powder that is insoluble in water, and it is widely used as an additive in numerous materials and products. Zinc oxide is also known for its unique physiochemical characteristics such as catalytic, anti-corrosive, antifungal, anti-bacterial and UV filtering properties. The growing product application in the rubber and ceramic industry has been driving the market growth.
- However, the poisonous nature of zinc oxide fumes whose exposure can cause metal fume fever which is a flu-like illness with symptoms of metallic taste in the mouth, headache, fever, and chills are likely to hinder the growth of the studied market.
- The emerging research and technological advancement in the field of zinc oxide nanoparticles employed for diagnosis, imaging, as well as treatment of cancer offer great opportunities for the zinc oxide market over the next five years.
- The Asia-Pacific region dominates the market, owing to growing application of zinc oxide in rubber and ceramic sectors in the country.
Key Market Trends
Growing Demand from Rubber Industry
- Rubber industry stands to be the dominating segment owing to the high demand for tires from the automotive industry.
- Zinc oxide is used as a vulcanizing agent in the process of the vulcanization of rubber to increase the durability. As rubber is used to manufacture tires which are extensively utilized in the automotive industry, so the consumption of zinc oxide is expected to increase in the forecast period.
- Asia-Pacific region is known as the manufacturing hub with 1/4th of the automotive manufacturing. Some of the dominating countries include China, Japan, India, and Thailand.
- China has increased its manufacturing of electric vehicles rapidly in the past few years. Growing popularity for electric vehicles is expected to drive the demand for automotive tires, thereby propelling the adoption of zinc oxide in rubber industries.
- According to International Energy Association, electric vehicle sales in 2019 witnessed an increase of 63% from previous year. Thus, similar trend of growing adoption of electric vehicle is anticipated to provide boost to the zinc oxide market.
Asia Pacific Region to Dominate the Market
- Asia-Pacific region stands to be the dominating market for zinc oxide. Factors, such as the growing consumption of zinc oxide in the rubber and ceramic sector will drive market growth.
- Increasing application of rubber in automotive interiors, such as airbags, interior cables, radiator seals, performance hoses, and vibration dampeners, is expected to drive the demand for zinc oxide.
- Some of the factors like high heat capacity, heat conductivity, low thermal expansion, and high melting temperature which thereby increasing the consumption of zinc oxide in ceramic industry.
- Furthermore, the increasing government investments on infrastructural expansion by nations like China, India, and Vietnam are providing a thrust to use of ceramic tiles in the construction industry which is expected to contribute to the demand for the zinc oxide market.
- Hence, all such market trends are expected to drive the demand for zinc oxide market in the region during the forecast period.
The zinc oxide market is fragmented in nature with number of players operating in the market. Some of the major companies are Zochem LLC, EverZinc Canada (GHC), BASF SE, Pan-Continental Chemical, and Hindustan Zinc, among others.
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