Fischer-Tropsch (FT) Wax Market Analysis

Fischer-Tropsch Wax Market Analysis

The application of FT wax in tires processing sector is projected to witness a CAGR surpassing 6.5% in the forecast timeframe. Flourishing of the automobile industry will provide crucial push to the tire demand, ultimately adding up to the product’s market inclination. Anti-dust and anti-ozone effects of the wax offers an increased consumer preference adding thrust to the overall market demand.

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Favorable schemes & initiatives undertaken by governments along with manufacturers and suppliers of different countries across the world to encourage advanced manufacturing activities which should further raise the product demand. For instance, Key players including Sasol and Shell are focusing on their dealership expansion to increase the net sales.

Resin, plastic, and synthetic rubber segment is expected to grow with a CAGR of 7% through 2028. Potential applications in resins and plastic manufacturing coupled with the rising demand for synthetic rubber will boost the FT wax market upscaling. Owing to high melting point of Fischer-Tropsch products, they are extensively used to formulate adhesive resins. Adhesive resins formulated from FT technology can be used for variety of applications including plastic processing, paints, printing inks, hot melts, technical emulsions, cosmetics, heavy compounds & candle additives, and polishes. Strong functional properties including improved heat resistance and low viscosity of resins derived from FT products will offer growth prospects to the industry participants.

Increasing application of Fischer-Tropsch wax for improving functionality of processing agents for modified plastic products will support the FT wax market development for coming years. FT resins contributes to the dispersion and excellent smoothness of fillers in the production of modified plastics and color masterbatch. It can also be used as an external lubricant for Poly Vinyl Chloride (PVC). Low viscosity can improve the production speed of the product and also helps to disperse pigments and fillers in mixing, especially in extrusion of high viscosity system.

Additionally, Fischer-Tropsch wax is also used in rubber extrusion to improve processing and extrusion properties of rubber. It also works as internal lubricant to reduce friction and also improves overall hardness of the final product. Increasing demand for synthetic rubber from automotive industry for car tire and other sectors including footwear, foam etc. will promulgate the FT wax market size as it is being extensively used for carrying out extrusion process in synthetic rubber industry.

North America FT wax market is anticipated to cross USD 250 million by 2028, growing at a CAGR of around 6%. Further, downward trend in blender and refinery production from the U.S., along with increasing importance of trade, has further propelled the demand for synthetically derived fuels. Shortage in hard and medium compounds with high viscosity has resulted in increased product demand from processing industry for formulating inks, adhesives, and PVC lubrication.

Positive application outlook of FT extracted fuels across processing industry coupled with declining production of waxes derived from petroleum and mineral source will further support the FT wax market expansion across this region. Resin production in North America is anticipated to grow at over 6.5% CAGR through 2028. This will further fuel the market growth across this region owing to application of FT compounds in formulating adhesive resins.