With the expansion of the construction sector, on account of the launch of massive construction and infrastructure development projects, especially in the Middle East and Asia-Pacific regions, the demand for plasticizers is growing rapidly across the world. This is because plasticizers are heavily used as raw materials in the production of construction materials, such as tubes and pipes, building interiors, and roof and wall insulation. Additionally, the global construction sector is witnessing stable growth and recovery, which is being mirrored by the ballooning population and rising urbanization rate all over the world.
In countries, such as India, Brazil, and China, the increasing urbanization rate is predicted to push up the demand for plasticizers, as these materials are required for manufacturing building materials for roofing, cladding, and various other construction applications. Building materials and tools are extensively required in the construction sector. A large number of these tools and materials are produced from polyvinyl chloride (PVC), which is one of the major reasons behind the soaring requirement for plasticizers.
Dioctyl phthalate (DOP), dibutyl phthalate (DBP), dioctyl terephthalate (DOTP), and diisononyl phthalate (DINP) are required in PVC production for imparting softness. Moreover, the ultraviolet (UV) light and temperature resistance of PVC products is also fueling their usage in the construction sector. Owing to these factors, the sales of plasticizers are soaring all over the globe, which is fueling the growth of the global plasticizers market, as a result of which, the value of the industry is expected to rise from $13,967.9 million in 2018 to $16,700.6 million by 2024.
Furthermore, the market is predicted to demonstrate a CAGR of 3.5% from 2019 to 2024. Depending on product, the plasticizers market is divided into phthalates and non-phthalates. Of these, the phthalate category contributed higher revenue to the market in the years gone by. This was because of the large-scale use of these plasticizers in the production of different products, such as plastics and coatings, which are used in the healthcare sector, emulsifying agent, and anti-viscosity agents. The demand for non-phthalate plasticizers is also predicted to shoot up in the coming years, on account of their non-toxic nature.
Geographically, the Asia-Pacific region held the largest share in the industry in the past. Moreover, it will also exhibit the fastest growth in the plasticizers market in the coming years, as per the estimates of the market research company, P&S Intelligence. This will be because of the growing use of plasticizers in the automotive, manufacturing, chemicals, electrical and electronics, and construction industries. In these industries, plasticizers are required for imparting flexibility or smoothening the end products. The industry is highly dispersed in nature, with only one player holding the majority shares.
Hence, it can be said without hesitation that the sales of plasticizers will surge sharply in the coming years, primarily because of the increasing infrastructure development and construction activities and rapid industrialization and urbanization all over the world.