Phosphate Ester Market Trends

Growth Drivers

• Widespread Use in Automotive Industry – Used mainly as lubricant additives in vehicles, the global phosphate ester market is expected to expand on the back of the growth in automotive industry. For instance, around 80 million motor vehicles were manufactured worldwide in 2021, a rise of 2% compared to the numbers in 2020.

• Increasing Use in Pesticides – Phosphate Esters are extensively used in agriculture as a pesticide owing to their toxic nature as well as their biodegradability. Over 2.6 million tons of pesticides were used all over the world in 2020, according to the Food and Agriculture Organization of the United Nations.

• Growing Use in Mosquito Control- According to the World Health Organization (WHO), globally around 241 million people were afflicted with malaria in 2020.

• Expansion in Cosmetics Industry – For instance, the global cosmetics industry grew by nearly 12% in 2021 compared to the year before, as per industry research.

• Growth in Construction Industry – Phosphate esters are used in the manufacture of a whole range of products used in construction industry such as PVC, TPU, thermosets and others. The construction industry in India grew by 6% in 2020 and contributed about USD 34 billion to the country’s GDP in 2019, according to a recent study.

Challenges

• Hefty Cost of Phosphate Ester - Phosphate esters are usually five times as expensive than their mineral counterparts. Phosphate esters are an organophosphorus chemical family that consists of a complex mixture of monoester, diester, phosphoric acid, and free nonionic material. The price hike is being caused by the increasing raw material costs. This factor is estimated to lower the growth of the market during the forecast period.
• Health Hazard if Exposed for Longer Period
• Need for Special Handling and Storage