Market Trends of Butylated Triphenyl Phosphate Industry
This section covers the major market trends shaping the Butylated Triphenyl Phosphate Market according to our research experts:
Growing demand for Lubricants
- Butylated triphenyl phosphate is widely used as lubricant owing to its thermal stability and is expected to grow rapidly during the forecast period.
- Butylated triphenyl phosphate is often used as a lubricant because of its outstanding operational performance and excellent fire-retardant properties in defense, naval, automotive, and other industrial applications.
- In automotive, the increase in repair and servicing activities of old automobiles is expected to drive the market. However, the slowdown of the automotive sector and due to the COVID-19 outbreak across various countries is expected to hinder the growth of the market.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), the worldwide automotive production in 2019 is about 91.78 million vehicles which declined by 5.2% compared to the previous year 2018.
- The growing demand for lubricants from various industries is expected to drive the market for butylated triphenyl phosphate during the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for butylated triphenyl phosphate during the forecast period as a result of the increase in demand from countries like India and China.
- Butylated triphenyl phosphate is used as a plasticizer in polyvinyl chloride manufacturing and other modified polymers and alloys. In 2019 alone, China produced about 75 million tons of plastic which are about 20% of the total world's plastic production. Plastic is mainly used in the packaging industry for its lightweight and durability. The increasing e-commerce market is expected to drive the demand for plastics which accounts for around 30% of total plastics consumption. The growing plastics industry is expected to drive the market for butylated triphenyl phosphate.
- Furthermore, the Indian e-commerce industry is expected to reach USD 120 billion by 2020. The increase in penetration of the internet and the change in government policies allowing 100% foreign direct investments in the e-commerce sector is expected to boost the plastics market.
- The growing use of lubricants in construction machinery, engines, and other high-performance equipment used in construction industry in countries like India and China is expected to drive the market.
- According to the National Development and Reform Commission, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion in 2019 which are estimated to be completed by 2023. Moreover, the Indian government has allocated USD 63 billion for the infrastructure sector in 2019-20 and is planning to spend USD 1.4 trillion over the next five years.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for butylated triphenyl phosphate in the Asia-Pacific region during the forecast period.
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