Iron Oxide Market 2017–2027
Iron oxides are the most popular chemical compounds contain iron (Fe) and oxides and are mainly used in the form of iron catalysts, pigments, ores, etc. Iron oxides can be manufactured from both natural and synthetic resources. Natural iron oxide is mainly extracted from hematite (Fe2O3), red iron oxide mineral and magnetite (Fe3O4), black iron oxide whereas synthetic iron oxide is produced by chemical production methods such precipitation of iron salts due to oxidation, thermal decomposition of iron salts, and aniline process.
The Global Iron Oxide market is projected to reach US$ 3.1 billion by the end of 2027, in terms of revenue, growing at CAGR of 4.4% during the forecast period (2019 to 2027).
Growing demand for iron oxide pigments (IOP) across decorative concrete applications due to its cost-effectiveness, durability, and cement compatibility is expected to fuel the market growth of iron oxide. Therefore, rising adoption of iron oxide pigments as compared to other types of pigments, propelling the demand for IOP significantly for architectural applications, in turn augmenting the market growth of iron oxide.
Increasing the adoption of iron oxide in the paints &coating industry is estimated to foster the market growth of iron oxide. Iron oxide pigments are mostly used in the production of paints and coatings, to serve across various end-use industries such as marine, building & construction, automotive, and aerospace, etc. Booming these end-user industry is projected to create a substantial demand for iron oxide pigments around the globe, thereby fueling the market growth of iron oxide.
Regionally, Asia-Pacific dominated the global iron oxide market in 2018, reporting 35.5% market share in terms of revenue, followed by Europe and North America, respectively. Rapid urbanization and extensive infrastructural development in emerging economies of Asia-Pacific region is expected to foster the market growth in upcoming years.
Figure 1. Global Iron Oxide Market, Revenue Share (%), By Region, 2018
Strict government rules and regulations regarding the production of iron oxides are expected to hinder the market growth of iron oxide. Hazardous effluents released during the production of iron oxides have a negative impact on the environment as well as human health. Therefore, such environmental impact associated with the production of iron oxide is estimated to restrict the market growth of iron oxide over the forecast timeframe.
Lack of professionals for handling the iron oxide as a person needs to be properly trained on handling and storage of iron oxide is expected to limit the usage of iron oxide. Moreover, the powder form iron oxide requires special storage such as tight container and a well-ventilated area away from heat. The aforementioned factors are expected to restrain the market growth of iron oxide over the forecast period.
The growing focus of manufacture in the development of next-generation iron oxide is expected to propel the market growth in the near future. For instance, in September 2017, Specialty chemicals producer LANXESS has introduced a range of iron oxide red pigments to serve the rising demands across the paints& coatings industry. The company noted that the new pigments have been introduced to the market after an intensive testing phase by the inorganic pigments (IPG) business unit.
Increasing number of infrastructure projects around the globe is fueling the demand for different blends of iron oxide pigments is projected to foster the market growth of iron oxide. Moreover, iron oxide pigment manufacturers are highly focused on the adoption of environmentally friendly processes for the production of pigments due to stringent environmental regulations around the globe. This factor is projected to foster the market growth of iron oxide.
Figure 2. Global Iron Oxide Market – Opportunity Analysis
Market Trends/Key Takeaways
The growing trend of acquiring small companies by a large organization in the iron oxide market is expected to accelerate the market growth of iron oxide over the forecast period. For instance, in July 2018, Sun Chemical and its parent company, DIC Corporation, have acquired the high-purity iron oxides business of Cathay Industries, located in Valparaiso, Indiana, U.S.A. Moreover, the acquisition offers the commitment of DIC and Sun Chemical to sustainability, as these ultra-high-purity iron oxides are COSMOS (COSMetic Organic Standard) certified.
Growing demand for iron oxide from the cosmetic industry where they are used in the production of cosmetic products such as eye shadow and talcum powder is projected to propel the market growth of iron oxide. They are safe and gentle for the skin surface and do not cause any allergic reaction. Moreover, iron oxide doesn't even cause any allergy to people with sensitivity. Therefore, the rising demand for iron oxide from the cosmetic industry is expected to foster market growth.
Figure 3. Global Iron Oxide Market, Revenue Share (%), By Product Type, in 2018
On the basis of product type, in 2018, Red iron oxide accounted the largest market share of 43.6% in terms of revenue, followed by yellow and black iron oxide, respectively. The rise in demand for red iron oxide as pigment in construction and paints & coating industry is anticipated to foster the growth of the segment in the next few years.
Figure 4. Global Iron Oxide Market – Value Chain Analysis
Key players operating in the market are LANXESS AG, Huntsman International LLC, Cathay Industries, Toda Kogyo Corporation, Alabama Pigments Company, LLC, Jiangsu Yuxing Industry And Trade Co., Ltd., Gotcha Pigments, Shenghua Group Deqing Huayuan, Pigment Co., Ltd, Hunan Three-Ring Pigments Co., Ltd., Yaroslavsky Pigment Company And Tata Pigments Company
Few Recent Developments
- In 2016 LANXESS completed commissioning of its inorganic pigments plant in Ningbo, (25,000 MT), with an additional facility for milling and mixing (70,000 MT); production is anticipated to commence during the first quarter of 2016.
- In April 2015 – LANXESS expanded its portfolio of iron oxide pigments by introducing the Bayferrox brand