Market Trends of Iron Oxide Pigments Industry
Increasing Demand from the Building and Construction Industry
- Iron oxide pigments are often used as colorants in the building and construction industry, and the market is expected to grow at the fastest rate during the forecast period. Because of their opacity, uniform color distribution, and stability, they are commonly used in mortar, concrete, bricks, roof and floor tiles, pavers, and blocks.
- Due to the value that the United States adds, the North American region is one of the top regions in the construction industry. Apart from the United States, Canada and Mexico also significantly contribute to the construction sector's investments.
- According to the United States Census Bureau, the annual value of new construction put in place in the United States accounted for USD 1.79 trillion in 2022, compared to USD 1.62 trillion in the previous year. Moreover, the annual value of residential construction put in place in the United States was valued at USD 908 billion in 2022, which is an increase of approximately 13 % as compared to USD 803 billion in the previous year.
- Several government programs, such as the Affordable Housing Initiative (AHI), the New Building Canada Plan (NBCP), and Made in Canada, are expected to help the construction industry in Canada grow a lot.In August 2022, the Canadian government pledged a large amount of money (more than USD 2 billion) to support three important programs that would help build over 17,000 homes for families across the country, including thousands of affordable housing units.
- According to Eurostat, residential construction alone contributed 7.1% to Germany's GDP, the highest share in the past decade. Germany approved the construction of 25,399 dwellings for October 2022, according to the Federal Statistical Office (Destatis). From January to October 2022, 297,453 dwelling building permits were issued, representing a 4.7% decrease or a 14,564 decrease from the previous year for the same period.
- The Office for National Statistics (UK) reports that the construction sector's contribution to the United Kingdom's GDP decreased in the third quarter of 2022 from GBP 32,188 million (USD 39.1 million) to GBP 32,120 million (USD 37 million). Still, the country's Affordable Housing Program has a guaranteed budget of GBP 11.5 billion (about USD 15 billion), which will be used to build almost 180,000 new homes between 2021 and 2026.The program is also due to unlock an additional budget of GBP 38 billion (USD 46 billion) for public and private investment in affordable housing.
- Aesthetics add natural and aesthetic value to modern residential and non-residential buildings. The building and construction industry's increased need for contemporary residential architecture and aesthetics propels the iron oxide pigments market forward.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for iron oxide pigments during the forecast period as a result of the increase in demand from countries like India and China.
- Iron oxide pigments are preferred over other pigments because of their non-toxicity, stability, lightfastness, inertness, and resistance to chemicals. Iron oxide pigments have high stability to UV light, so they don't fade away like organic pigments.
- The growing construction activities across the world are mostly dominated by the Asia-Pacific region, owing to increasing disposable middle-class incomes and urbanization. The construction activity in Asia-Pacific is dominated by China and India, followed by growing infrastructure projects to provide sustainability.
- China has been experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in the fourth quarter of 2022, the construction output in China was valued at approximately CNY 276 billion (USD 40 billion), a growth of approximately 50% when compared with the previous quarter (USD 27.6 billion).
- Further, the Indian government, in its Union Budget 2022-23, allocated INR 48,000 crores (USD 6.4 billion) for its 'PM Aawas Yojana' scheme, reiterating its commitment to implementing 'Housing for All,' which aims to build 80,000 affordable homes for the urban and rural poor in FY 2022-23. In December 2022, the government extended the timeline for the 'PM Aawas Yojana' scheme for rural areas and revised the target to 29.5 million houses.
- Micronized iron oxide pigments provide bright color, transparency, and high tinting strength. Because of their high transparency, they are also used in paints and coatings for various industries. China's total sales of paints and coatings exceeded USD 45 billion in 2022, giving the country a 78% market share in East Asia, according to the World's Paint and Coatings Industry Association. China's paints and coatings market was estimated to have grown by 5.7% during 2022.
- The market for iron oxide pigments is expected to grow over the next few years because of the above factors and the support of the government.
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