Expansion in Paints and Coatings
The zinc oxide market in Asia Pacific region is highly influenced by fast growth in the paints & coatings industry on account of substantial construction, infrastructure development and urbanization activities taking place in countries like China, India, Southeast Asia and some parts of East Asia. Zinc oxide finds extensive applications in coatings owing to its anti-corrosive, UV resistant and anti-fungal properties. China continues to be the leading producer and consumer of zinc oxide, considering the substantial construction activities taking place in the country along with extensive industrial manufacturing activities.
India too is emerging as an important growth region, backed by growing residential housing constructions, development of smart cities and improvement in transport infrastructure. Cities like Mumbai, Delhi and Bengaluru continue to have strong construction activities where zinc oxide based coatings are employed in residential buildings, bridges and industrial structures to enhance their resistance against high humidity and temperature conditions. Economies of Southeast Asia like Vietnam, Indonesia and Thailand are also developing their infrastructural networks.
Applications of the industrial type are no less significant in the region, including those related to marine coatings, automotive refinishes, and heavy equipment protection. The coastal economy in China's eastern provinces and Vietnam uses extensively zinc oxide-containing coatings to protect from corrosion in their ports, shipyards, and offshore structures. Furthermore, increased environmental consciousness is making manufacturers use environmentally friendly coatings which use zinc oxide as an active component and stabilizer. Such a wide-ranging growth in construction and industrial sectors is boosting the demand for zinc oxide in the APAC paints and coatings industry.
Increasing Electronics Production
The Asia Pacific region's market for zinc oxide is largely impacted by the dominance of the region in electronics manufacturing across the globe, especially in China, South Korea, Japan, Taiwan, and the rising Southeast Asian centers. The use of zinc oxide in electronics includes varistors, semiconductors, transparent conducting films, and piezoelectric devices, owing to its special electrical and optical properties. China is the largest producer of electronics in the world, with many manufacturing centers in provinces like Guangdong, Jiangsu, and Zhejiang that consume large amounts of zinc oxide for their electronics production.
High purity zinc oxide is used in high-tech applications by companies in South Korea and Taiwan, which are key players in semiconductor and display manufacturing. High purity zinc oxide finds applications in thin film transistors, sensors, and optoelectronic devices in innovative companies based in these regions. Japan is another leading innovator in specialized electronics, where zinc oxide is used in specialized electronic components and advanced materials. Collectively, these nations are the key drivers behind high-end purity of zinc oxide products.
Southeast Asia is becoming an emerging region where electronics manufacturing is developing at a fast pace, with Vietnam, Malaysia, and Thailand being some of the countries that attract substantial FDI in semiconductor assembly, consumer electronics, and manufacturing of electrical equipment. This development can be attributed to the adoption of supply chain diversification strategies by electronics companies, leading to increased demand for zinc oxide in electronics and its support materials. With the growth of digitalization, 5G, and manufacturing of electric devices in the region, zinc oxide demand will remain robust.
