The global Fischer-Tropsch (FT) wax market is set to grow from its current market value of more than $750 million to over $1.2 billion by 2025, according to a recent research report by Global Market Insights, Inc. Rising demand for FT wax is attributed to factors such as low production efficiency from mineral- and petroleum-derived sources, increasing fuel prices, and declining output by refineries and blenders.
Increasing production of coal- and natural gas-derived products over conventional petroleum will support FT wax market growth. Favorable policies and implementation of advanced processing technologies in the U.S., China, and Germany that use coal reserves for producing FT wax are fueling industry development.
North America is displaying robust growth in the FT wax market due to the rapid expansion of automobile and resin processing sectors, along with a rise in research and development activities. The U.S. is among the major contributors to industry growth due to increasing crude oil demand and a supply gap, as well as favorable government policies formulated for facilitating production of synthetic waxes. With rising involvement and direction from government authorities and mounting demand for ecofriendly products, it is expected that the product will continue to experience substantial growth in the North America region.
FT wax market participants are focusing on increasing production capacity of their existing plants in order to meet growing global demand. Industry players are also engaged in developing newer varieties of hard and medium waxes to cater to the diverse needs of different industries. Manufacturers are expected to compete on the basis of product efficiency, cost, and distribution as competition increases in the FT wax market.
Additional details are available at www.gminsights.com.