The ongoing growth in the urbanization and construction industry, especially in the Asia-Pacific region, is likely to drive the consumption of iron oxide pigments. The rate of urbanization in the Asia-Pacific region is around 1.5% per year, the highest in the world. It is estimated that by the year 2030, over half of the population in the region will be urban. In 2019, more than half of the world’s population lived in urban areas, and the urban population is estimated to reach 2.5 billion by the year 2050. These trends are mainly observed in Asian countries.
According to the United Nations, as of 2020, 33 megacities in the world require planned habitation for the rapidly growing urban population. More than 50% of the global GDP is generated in cities, and urbanization can lead to sustainable growth if managed well by increasing productivity. Urbanization has expanded immensely in recent years. Due to urbanization, there has been a rise in the number of construction projects, high-rise buildings, and other construction types. Thus, as urbanization rapidly increases, the number of construction projects increases, leading to the growth in the usage of iron oxide pigments.
Chemists at Washington University have successfully transformed ordinary red brick into a battery by injecting gases that enable the material to store electricity. The brick-battery depends on the iron oxide pigment present in the brick to produce a network of plastic fibers. These microscopic fibers coat the empty spaces inside the bricks and conduct electricity.
The outbreak of COVID-19 and imposed lockdowns and restrictions on the full-functioning of supply chains has led to the decline in the revenues generated by the companies in the first two quarters. 2020 is an uneasy year for the iron oxide pigments industry. The industry is in eventful autumn. From the beginning of this year to the present, the price of raw material, energy costs, labor costs, etc., have been affected by the "pause button" of the prevention and control of the coronavirus pandemic and the suspension of production. The rise has brought an unprecedented blow to the development of enterprises. The high costs that enterprises need to bear have seriously affected the daily operation and product development of enterprises and greatly weakened the competitiveness of my country's iron oxide pigments in the global market.
The global Iron Oxide Pigments market is segmented on the basis of Type and End-User Industry. The type segment is further segmented as Synthetic and Natural and the end-use segment is further segmented as Construction, Coatings, Plastic, Paper, and Others. In terms of type, synthetic iron oxide pigment dominated the market over natural iron oxide pigments with a share of about 72% globally.
Construction is the largest end-user of iron oxide pigments. In the construction industry, they are used as a colorant and also to enhance the properties of concrete and other cementitious products. Iron oxide pigments can produce vibrant and durable colors in concrete. Iron oxide pigments are tested and certified by the American Society for the Testing of Materials to be light-fast, insoluble, and alkali resistant (ASTM C-979), i.e., iron oxide pigments do not deteriorate over time and will be readily visible in the concrete. Owing to their small size (ten times smaller than cement particles), iron oxide pigments disperse in the mix and give the appearance of uniform coloration.
Iron oxide pigments do not affect the strength of concrete when used in standard doses. In addition to this, they offer benefits to the concrete contractor, architect, ready mix concrete producer, and manufactured concrete product producer. Iron oxide pigments are capable of drastically improving the value of concrete. With the addition of color, concrete gets more attractive aesthetically and provides color-related properties such as solar reflectiveness. Iron oxide pigments are an invaluable tool in the construction industry, lending earth tone hues and a number of other beneficial characteristics to producers and users, such as reduced dust, improved flowability, and reduced product.
Based on geography, the global Iron oxide pigments Market is segmented into Asia Pacific, North America, South America, Europe, and Middle East & Africa. The Asia Pacific region was found to be dominating the global pigments market, owing to the presence of vast construction industry and planned infrastructure projects in the region.
The United States is the world's largest economy. The country's GDP has decreased at an annual rate of 5% in the first quarter and 9.5% in the second quarter of 2020 due to the ongoing coronavirus pandemic. In 2019, residential construction, in which iron oxide pigments are commonly used to color concrete block and brick, roofing tiles, and ready-mixed concrete, remained about the same during the first three quarters of 2019 compared with that of the same period in 2018. Housing starts decreased slightly. According to Associated General Contractors of America, construction is a major contributor to the US economy. The construction industry has more than 680,000 employers with over 7 million employees and creates nearly USD 1.3 trillion worth of structures each year. The construction industry in the region is growing due to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings.
In 2020, construction spending in the first two months combined increased 8% from the same period in 2019, spurred by a 13% jump in single-family construction, an 11% rise in public construction, and the lowest 1% increase in private non-residential spending. Moreover, growing infrastructure activities in the United States, which is one of the major consumers of architectural coatings, is further boosting the market for iron oxide pigments. The construction industry in the United States continued to expand, owing to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings. The iron oxide pigments market in the country is mainly driven by rising investment in the residential construction segment and growing demand for remodeling old buildings. However, due to the ongoing global crisis and the pandemic, the demand in the region will be on the lower side in the year 2020 due to the dampening of construction activities.
In 2019, the global iron oxide market was found to be partially consolidated. Major key players in the market were found to be Lanxess, Venator Materials Plc, BASF SE, and Ferro Corporation among others.
Our Global Iron Oxide Pigment Market research report provides deep insight into the current and future state of the Iron Oxide Pigments market across various regions. Also, the study comprehensively analyzes the Iron Oxide Pigments market by segments based on Type (Synthetic and Natural), End-use (Construction, Coatings, Plastic, Paper, and Others), and by Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints, along with the impact of Covid-19 are influencing the market growth in detail. The study covers & includes emerging market trend, market developments, market opportunities, market size, market estimates, market forecast, market swot analysis, market dynamics, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of major companies including their market share and projects.
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