The tin catalyst market is expected to reach USD 318.03 million by 2029, with a CAGR of around 5.65%. Tin is an important ingredient in a wide range of manufacturing sectors, including consumer goods, packaging, construction, and automobiles, among other industries. Catalyst are the chemicals that reduce the energy of activation and allow reactions to occur faster and at lower temperatures than otherwise possible. Tin catalysts are preferred because they are effective and efficient. They are commonly used as favored catalysts owing to their high activity and good compatibility in most of the formulations.
Growth of the Automobile Industry
The global automobile industry is taking huge strides and evolving at an unparalleled rate. With increasing disposal incomes and low-cost EMIs and ever-changing technologies in the industry attracting the newer generation, the demand for automobiles has been growing. The pandemic has raised unprecedented challenges in the industry, and demand has plummeted amid uncertainties as to when economic activities will entirely recover. But the industry is expected to gain pace once again as circumstances return to normalcy.
The U.S. automobile industry is one of the biggest in the world. As per the International Trade Administration (ITA), the U.S. Department of Commerce, the total sales of light vehicles were pegged at around 17 million units in 2018. Furthermore, total foreign direct investment in the automotive industry reached USD 115 billion in 2018, and investment in R&D activities amounted to USD 105 billion. These factors indicate a favorable scenario for the growth of the automobile industry.
High-performance plastics are finding widespread application in the automobile industry. The use of plastics in automobile manufacturing is poised to expedite owing to their many advantages, such as durability, strength, resistance to chemical environments, and cost-effectiveness, among others. It is a well-documented fact that a 10% reduction in vehicle weight can result in around a 5–7% decline in fuel consumption. The prevailing economic and environmental concerns make fuel efficiency a top priority, which has made tin catalysts role more important in the automobile industry. These catalysts are used in the manufacturing of automobile components, such as foaming that is used in car interiors, adhesives, and sealants.
Growth of the Construction Industry
Construction plays a crucial role in the prosperity of societies globally and is expected to be one of the most dynamic sectors in the coming years. As per the data by Oxford Economics, the global construction sector is likely to reach USD 8 trillion, driven by China, the U.S, and India. India’s construction market is pegged to grow twice as fast as China’s, as the Indian government is undertaking a smart city mission that aims to foster sustainable and inclusive cities.
The U.S. spends around USD 1,293 billion on construction activities every year. Currently, Canada is focusing on improving its transport infrastructure. In line with this, the country plans to spend around USD 25.3 billion over the next decade on developing public transit infrastructure.
The U.S.-China Trade war has proved beneficial for South America in terms of foreign investments. China has invested over USD 140 billion in this region since 2005, and most of these investments have been in Venezuela, Brazil, Ecuador, and Argentina. These investments are also a part of China’s Belt and Road Initiative (BRI), which will make its presence felt in South America. These developments will lead to an increase in construction activities in this region, leading to an upsurge in demand for tin catalysts.
South America is also known for the various start-up venture, which is led by new-age millennials and has been gaining considerable investments. These investments are likely to facilitate the building of commercial infrastructure in South America, engendering a higher demand for plastics, adhesives, sealants, and coatings. However, the region’s unstable political scenario is expected to restrict market growth.
Apart from construction, South America is home to the most prominent mining industry. The conversion of some large open-pit mining operations to underground operations in Chile is projected to offer significant opportunities for market growth. Recently, a community in the Salt Lake City area is all set to benefit from a recent announcement from Rio Tinto that invested an additional USD 1.5 billion in its Kennecott copper mine to extend its life until at least 2032.
New investments in the mining industry are expected to provide a fillip to the growth of the tin catalyst market. In 2019, Latin America attracted more exploration capital than any other region in the world. It received 28% of the total global mining exploration budget. In all, there were six countries, Peru, Mexico, Chile, Brazil, Argentina, and Ecuador, that together contributed 90% to the region’s total budget
Tin Catalyst Market: Segmentation
Organic Tin Catalyst Segment to Hold the Largest Market Share during the Forecast Period
The organic tin catalyst segment is expected to reach a volume of 19276.6 tons in 2029, from 13095.4 tons in 2019, with a CAGR of 5.38%. Organic tin catalysts are the most widely used compounds across the globe in umpteen industries. They are crucial elements in the manufacturing of several significant raw-materials. Some examples of organic tin catalysts include monobutyltin oxide, dibutyltin oxide, dibutyltin diacetate, and dibutyltin dilaurate.
Several manufacturers are inclined to use organic tin catalysts due to their high solubility in esters compared to inorganic tin catalysts. Organic tin catalysts find applications in processes and products where they are not required to be removed. They provide a stable and non-turbid end product, which fosters the segment's growth.
Dibutyltin diacetate and dibutyltin dilaurate are the most commonly used tin catalysts in the manufacturing of silicone rubber and PVC products. The use of organic tin catalysts is expected to reduce due to the rising concerns over their sustainability in Europe. Several leading producers in Europe are compelled to either shift to the inorganic tin catalysts or alternative materials. However, there is substantial demand for dibutyltin catalysts from developing markets, such as Asia-Pacific, which presents business opportunities for these players.
Plastics Segment to grow the fastest during the assessment period
The plastic segment is projected to reach USD 7,417 million in 2029, from USD 2,994.35 million in 2019. The global demand for plastic is growing rapidly due to its application in industries, such as building and construction, packaging, medical devices, automotive, and consumer goods.
The growing population, coupled with the rising consumer spending on various products and increasing government spending on infrastructure development in emerging markets, drives the demand for plastics. Tin has been increasingly used as an alternative to other materials for innovative technologies in recent years. It is widely used in the plastic manufacturing process as a PVC stabilizer to protect the product against damage caused by heat.
Asia¬-Pacific to Hold the Lion’s Share in the Tin Catalyst Market Due to Rising FDI and Government Efforts
Asia-Pacific is expected to reach USD 147.26 million by 2029, with a CAGR of 7.68 %. The region is pegged to be the fastest-growing market for tin catalysts globally. The region's ever-growing population and rapid urbanization provide an impetus to the demand for these catalysts across industries. More than 60% of the world's population lives in Asia-Pacific, with over 2 billion people living in urban areas.
As per estimations by the United Nations (UN), the region's urban population is projected to reach 3.3 billion by 2050. The growing burden on urban cities is projected to drive the constriction activities in emerging economies, such as India, China, and Vietnam, supported by government funding. The flourishing construction industry will simultaneously bolster the demand for tin catalysts in paints, coatings, and PVC production.
Asia-Pacific is attracting significant FDI in terms of value, strongly supported by favorable government initiatives and easy resource availability. The region's burgeoning industrial sector is contributing to the demand for industrial coatings and other adhesives. However, paint and coating producers in India face raw-material procurement challenges, presenting potential opportunities for the tin catalysts market. The region's strong electronics sector is also aiding the market growth. The presence of key electronic players and continuous innovation of smart technologies drive the demand for tin catalysts in Asia-Pacific.
Asia-Pacific has abundant tin reserves and large ongoing mining projects, particularly in China and Indonesia, which gives the region a competitive edge. China appears to have great potential for tin catalysts and compounds owing to the growing exploration activities in the country. As per statistics published by the National Bureau of Statistics, China, and the China Mineral Resources Report, in 2018, the country recorded 4.5 Mt of tin resources, of which 1.2 Mt were reserved. Indonesia remains the second-largest producer of tin globally, with a 23% increase in total reserves from 2017.
Tin Catalyst Market: Segmentation
Tin Catalyst Market: Regions Covered
Central and South America and the Caribbean
The Middle East and Africa
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