An Incisive, In-depth Analysis on the Iron Oxide Market
This study offers a comprehensive, 360 degree analysis on the Iron Oxide market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Iron Oxide market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Iron Oxide Definition
Iron oxides are commonly available chemical compounds composed of iron (Fe) and oxides and are mainly used in the form of iron ores, pigments, catalysts, etc. Iron oxides are produced from both natural and synthetic resources. Natural iron oxides are mainly derived from (1) hematite (Fe2O3), a red iron oxide mineral, (2) limonites (FeOOH), which in colour vary from yellow to brown, such as ochers, siennas and umbers, and (3) magnetite (Fe3O4), a black iron oxide.
Synthetic iron oxides are largely produced by three production methods. The first is solid state transformations, including the thermal decomposition of iron salts or iron compounds; this method produces red, black or brown pigments. The second is the precipitation of iron salts usually accompanied by oxidation; this method may produce red, yellow, orange or black pigments. The third is the organic reduction process, also termed as the laux or aniline process, which produces black, red or yellow pigments. The iron oxides represented by the chemical formula Fe2O3 are mainly red-coloured and brown-coloured iron oxides.
Global Iron Oxide Market Dynamics
The growing construction industry output is expected to be one of the most significant drivers for the iron oxide market on a global scale. Iron oxide finds a profound rate of application in the construction industry such as in the colouring of various construction materials, including concrete blocks and bricks, ready-mixed concrete and roofing tiles. With the steady growth of the construction industry, stemming from increasing urban and civil infrastructure projects, the demand for iron oxides is expected to increase significantly. Additionally, the use of iron oxide for applications such as paints & coatings, plastics, ceramics and chemicals would necessitate its bulk consumption.
The market growth of iron oxide is additionally expected to be aided by new opportunities in applications such as water treatment and catalysts for chemical processing. This has drawn attention from market participants, who in turn are further venturing into product development towards such novel applications. For example, the iron oxide product line from Lanxess under the brand name, Bayoxide, can be used in applications such as water treatment and high-quality catalysts.
Global Iron Oxide Market Trends
The iron oxide market is witnessing consolidation, driven by the pursuit for sustainability among market participants, owing to the imposition of stringent regulations on the production of iron oxide, which are increasing the overhead costs for iron oxide manufacturers. This has prompted iron oxide manufacturers to consolidate production and business operations through acquisition of external enterprises having a sufficient infrastructure and resources.
Increasing application categories and development of value-added product grades are other prominent trends in the global iron oxide market. With respect to the lucrative growth opportunities offered via new applications, iron oxide manufactures have been consistently developing new grades of iron oxide, which have a diverse as well as specific set of applications thus enriching their product portfolio. To achieve this objective, leading iron oxide manufacturing companies have invested a significant amount in research and development activities over the past five years.
The global iron oxide market is expected to witness a price increase over the forecast period based on fluctuating historical market trends as well as volatile feedstock costs.
Growing Use of Primary Iron Oxides, i.e. red, yellow and black, is expected to drive the Growth of the Global Iron Oxide Market
Red iron oxide is expected to hold the maximum share in the overall iron oxide market throughout the forecast period, owing to its predominant use in construction and paint & coating industries as a pigment with emphasis on colouring concrete bricks and paving stones. The other prominent product types include yellow and black iron oxides, which are estimated to hold significant market value shares during the forecast period.
In terms of application, construction materials is a key segment for the iron oxide market as the compound finds use as a colouring agent in bricks, decorative concrete, tiles, terracotta and others. Iron oxide also finds widespread application as a primer and additive in paints and coatings for aesthetic purposes. Thus, the burgeoning paints and coatings market across automotive and architectural sectors is anticipated to drive the global iron oxide market. Although the mentioned applications govern the consumption of iron oxide significantly, other applications such as plastics and chemicals are also expected to drive the iron oxide market to some extent with current market developments in the initial stages of growth.
Developing economic regions are pegged to be major contributors to the growth of the global iron oxide market over the forecast period
Attributing to economic growth, rapid expansion in urbanization and increasing construction output, APEJ is expected to hold a major share in the global iron oxide market throughout the forecast period. Latin America, Middle East and Africa markets are also expected to witness significant growth, owing to the growth of the domestic economy and investments in infrastructural development, which in turn are driving the high consumption of iron oxide as a raw material. North America and Europe are expected to witness moderate growth rates in terms of the consumption of iron oxide during the forecast period.
Competitive Landscape Overview and Associated Market Participants in the Global Iron Oxide Market
Some of the market participants involved in the production and sales of iron oxide include Lanxess AG, Huntsman International LLC, Cathay Industries, Toda Kogyo Corporation, Alabama Pigments Company,LLC, Jiangsu Yuxing Industry and Trade Co., Ltd., Yaroslavsky Pigment Company, Tata Pigments Company, and Shenghua Group Deqing Huayuan. A high level of consolidation exists in the global iron oxide market and the top 3 players account for close to half of the total iron oxide production and sales. For example, Rockwood acquired Elementis in 2007, and Huntsman International LLC then acquired Rockwood Pigments in 2013 and announced a spin-off of its pigments division. These players are tier-1 chemical companies with global and regional presence that have undergone consolidations in their business operations across the globe to expand their production capacity and sales and distribution footprint. Apart from tier-1 iron oxide manufacturers, the other half of the global iron oxide market share is acquired by tier-2, tier-3 and numerous small-scale manufacturers whose sales is constricted to the domestic market. The trade flow of iron oxide is mainly governed via procurement and sales through bulk level distributors and suppliers in the value chain through the addition of trade margins towards end-user level sales. For tier-1 mining flotation chemical manufacturers, the sales channel is routed through a direct salesforce or through appointed distributors in the region.
Manufacturers of iron oxide are pursuing sustainability in their production processes, which is one of the key strategies being adopted in the market. For example, in December 2014, Huntsman International LLC downsized its workforce in the pigments and additives division by 900 positions so as to gross annual cost savings of over US$ 130 Mn.
This FMI study offers a ten-year analysis and forecast of the global iron oxide for the duration of 2015– 2025. The study on iron oxide considers 2015 as the base year with market values estimated for the year 2015 and a forecast developed for the duration of 2015 to 2025. Compound Average Growth Rate (CAGR) is represented from 2015 to 2025. The study covers various perspectives of the iron oxide market, including market dynamics, industry background and outlook, value chain, market size estimation forecast with analyses on global and regional basis and competition landscape, where consolidated and granular data have been provided to represent the analysis of global iron oxide market in a comprehensive manner.
The global iron oxide market size has been provided by value in US$ Mn and volume of consumption in kilo tons. Iron oxide is a chemical compound composed of iron (Fe) and oxide. Iron oxides are represented by the chemical formula Fe2O3 and are mainly red and brown in color. They are mainly used in the form of iron ores, pigments, catalysts, etc. The global iron oxide market is poised to register a decent growth rate during the forecast period. As per the findings of the study and perspectives of industry participants, the global iron oxide market is projected to grow on a decent note, recording a CAGR of 4.3% between 2015 and 2025 in terms of sales value.
The Future Market Insights report on iron oxide analyses the market individually on a global as well as regional level. Principally, the iron oxide market has been segmented on the basis of key parameters such as product type, application and region. The primary objective of the iron oxide market research and analysis report is to offer key insights on the market scenario and updates, associated trends, competition analysis including key developments and overview of key strategies employed by iron oxide manufacturers, market potential generated from target end-use sectors, growth rates and other relevant information and statistics in a suitable manner to the readers or various stakeholders of the iron oxide market.
Iron Oxide – Market Segmentation
The report on the iron oxide market is structured to facilitate the reader to develop a thorough understanding about the market. It begins with an executive summary that proves an overview of the iron oxide market with a summary of the key findings of the research, market definitions, overall iron oxide market size forecast and absolute dollar opportunity generated during the forecast period. A section in the executive summary also contains FMI’s highlighting and outline of key strategies followed by market participants, which may be useful for the prospective stakeholders to venture in the market afresh or sustain and consolidate their presence in the global/ regional iron oxide market. Following the executive summary, the global iron oxide market report begins with market introduction, market taxonomy and segment definitions.
The next section of the iron oxide market analysis report covers market dynamics, which include the aspects or factors driving or restraining the iron oxide market and their magnitude of impact. The section also includes current as well as upcoming trends. An opportunity analysis for the iron oxide market during the forecast period has been provided separately, which can be of significant interest to stakeholders. The comprehensive scenario analysis includes the growth factors and their nature of impact, i.e. whether they are pegged to be optimistic, likely or conservative. This is followed by a value chain analysis outlining the types of iron oxide market participants involved in product processing, finishing and trading to the end users. Each market participant type of the iron oxide market has been briefed with the help of a few examples of respective companies. Post value chain analysis, a chapter on pricing analysis by product types available in designated geographical regions has been provided. The section concludes with an overall analysis and forecast of the iron oxide market by value and its associated growth trend and estimated generation of absolute dollar opportunity for the period 2015–2025.
The market size estimation, forecast and analysis of iron oxide starts on global level in terms of value (US$ Mn) and volume (Kilo Tons). The iron oxide market analysis has been initially by product type which has been done by associated individual product types mentioned in the abovementioned table of segmentation. A similar analysis has been provided by the other segmentation type i.e. by Application. The analysis framework includes a qualitative and quantitative assessment of the market on the basis of facts, historical developments, projected growth and key opinions collected from industry participants through dedicated interviews and trends in the market. The market information contains market size data in a tabular format along with key facts and insights. It also covers unique analysis frameworks such as absolute $ opportunity analysis, year-on-year growth trend comparison, market share and attractiveness analysis for each of the sub-types covered in each segment.
Following the global analysis of the iron oxide market, the report transcends towards analysis on regional levels where regions as a whole and the prominent countries associated are mentioned. The regional analysis of the global iron oxide market has considered seven prominent regions in the study. The analysis framework is similar as that on a global level, i.e. it includes the market position, growth potential, trends and market attractiveness analysis for each of these regions.
The final section of the report covers a competition analysis including the assessment of leading players, i.e. tier-1 and tier-2 manufacturers in the overall iron oxide market to provide report audiences with a summarized view in the form of a dashboard, which has been categorized on the basis of manufacturer’s level of presence in the iron oxide market, revenue earned and key differentiating factors and strategies. The report then provides credentials of tier-1 iron oxide manufacturers individually where key financials, business overview, product/brand portfolio, key developments and strategies employed have been mentioned. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors on the basis of the in-depth assessment of their capabilities and reputation in the iron oxide marketplace. The key competitors covered in the global iron oxide report include Lanxess AG, Huntsman International LLC, Cathay Industries, Toda Kogyo Corporation, Alabama Pigments Company,LLC, Jiangsu Yuxing Industry and Trade Co., Ltd., Yaroslavsky Pigment Company, Tata Pigments Company, and Shenghua Group Deqing Huayuan.
The report also mentions the following research methodology employed in deriving the estimated market figures with related approach and the type of data sources referred.
In order to offer an accurate forecast, FMI started by sizing the current market (2014), which forms the basis of how the global iron oxide market is expected to develop between 2015 and 2025. Given the characteristics of the market, we triangulated the outcome of three different types of analysis, based on primary research, secondary research and our own analysis. However, forecasting the market in terms of various segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the completion of the forecast exercise.
With respective to FMI’s analysis framework, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyze the market on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the iron oxide market and identify the right opportunities available.
Our qualitative analysis includes Basis Point Share (BPS) to understand each individual segment’s relative contribution to the market growth. This detailed level of information is important for the identification of various key trends witnessed in the iron oxide market. This has been followed by Y-o-Y (year-on-year) growth trend analysis and market attractiveness analysis by each segment, highlighting the causes responsible for the estimated growth trends.
Another key feature of this report is the analysis of all the key segments in the iron oxide market, sub-segments and the regional adoption and revenue forecast in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market; however, the absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources and earnings from a sales and delivery perspective in the Iron Oxide market. In order to understand the key market segments in terms of the growth of iron oxide across concerned regions, Future Market Insights has developed a Market Attractiveness Index, which will help providers identify real market opportunities where each segment has been measured by 3 reference indices, namely CAGR index, current market share index and absolute dollar opportunity generated in the forecast period. All the qualitative analyses have provided in the form of info graphics with citation of key takeaways.
Iron Oxide Market Reports - Table of Contents
1. Executive Summary
2. Assumptions & Acronyms Used
3. Research Methodology