Increased usage of zinc oxide nanoparticles in a variety of applications, increased use of zinc oxide in the cosmetic and pharmaceutical industries, expanding automobile production and sales, and increased focus on skincare and skin protection are the main factors driving market revenue growth. Furthermore, the expanding medical demand for zinc oxide in the pharmaceutical and cosmetics industries are boosting market revenue growth. The rubber industry, which is continuously expanding due to its extensive use in tyre production, provides the bulk of the market support for zinc oxide. Since the automotive industry is one of the biggest sectors worldwide, using rubber in automobiles is fueling market expansion.
The recession will have a significant effect on the market for zinc oxide. A number of variables, including the length and intensity of the recession, the demand for zinc oxide across different industries, and the cost and accessibility of raw materials, can all impact how a recession affects the zinc oxide market. The automotive, construction, and electronics industries—three major consumers of zinc oxide—may all see a drop in demand during a recession. It's possible that this drop in demand may result in less zinc oxide being produced, which could lead to an oversupply and lower pricing.
Use of Zinc Oxide in Rubber Manufacturing is a Major Market Driver
An efficient activator that speeds up the vulcanization of rubber is zinc oxide. The production of tyres and interior car parts like airbags, radiator seals, and ventilation flaps consumes over 65% of rubber annually. It has strong heat resistance, good UV light absorption, and excellent foam gelation. The rubber sector has a greater need for ZnO powder as a result of these qualities. The demand for rubber has increased as a result of the automobile industry's need to make tyres and other rubber products.
Fluctuating Raw Material Prices to Limit Market Growth
Fluctuating raw material prices can severely hamper the zinc oxide market in a number of ways. Manufacturers of zinc oxide may experience changes in production costs as a result of fluctuating raw material prices. Zinc oxide production will become more expensive if the price of zinc metal rises. This may have an effect on zinc oxide producers' bottom lines and restrict their capacity to compete with alternative chemicals or materials. Furthermore, there might be a limited supply of the raw material if the price of zinc metal rises dramatically. This might have an effect on the makers of zinc oxide and restrict their ability to generate the necessary quantity of zinc oxide. Additionally, zinc oxide manufacturers may find it challenging to invest in R&D projects or increase production capacity due to fluctuations in raw material prices. This may reduce the zinc oxide market's capacity for innovation and expansion.
Based on process, the zinc oxide market is segmented into indirect, direct, wet chemical and others. The wet chemical category dominated the market in 2022. Wet-chemical synthesis methods deal with chemical reactions in the solution phase when using precursors under acceptable experimental circumstances. While each wet-chemical synthesis method is distinct from the others, developing a general standard for these methods is hard. In contrast to top-down methods, these synthesis strategies have been used to produce 2D nanomaterials.
Based on application, the zinc oxide market is segmented into rubber, ceramics, chemicals, cosmetics and personal care, paints & coatings, pharmaceuticals, agriculture and others. The paints & coatings category dominated the market in 2022. This is explained by the high zinc oxide consumption rate in the tyre sector, which results from increased tyre production. In order to boost the potency of the vulcanization accelerator, ZnO is utilized as a vulcanizing activator, a chemical used in small concentrations. Moreover, it is a cross-linking or curing agent for halogen-containing elastomers such as polysulfides and neoprene.
The Asia Pacific is projected to hold the largest share of the zinc oxide market over the forecast period. This is explained by the region's substantial manufacturing sector, which includes a number of end-use industries like ceramics, rubber, and pharmaceuticals. Furthermore, the region's market is projected to develop as a result of rising tyre production in China and India and rising skincare product demand. On the other hand, North America zinc oxide market is anticipated to grow significantly due to the industry's presence of large manufacturers. In the upcoming years, the market expansion is anticipated to be aided by the rising elderly population and the consequent rise in ZnO demand from the pharmaceutical and cosmetics industries.
LIST OF KEY COMPANIES PROFILED:
- U.S. Zinc
- Zinc Oxide LLC
- Grupo Promax
- Weifang Longda Zinc Industry Co., Ltd.
- Yongchang Zinc IndustryCo. Ltd.
- In February 2022, at its site in Dickson, Tennessee, Zochem declared that it would increase its zinc oxide production capacity. The Central Tennessee facility's capacity will increase by 15,000 metric tonnes due to the additional furnace.
|Market Size in 2022
|USD 4.5 Billion
|Market Forecast in 2030
|USD 7.3 Billion
|Compound Annual Growth Rate
|Revenue (USD Million) and Volume (Kilo Tons)
|By Process, By Application and By Geography