Treated Distillate Aromatic Extracts (TDAE) Market Analysis

Treated Distillate Aromatic Extracts (TDAE) Market Overview:

The Treated Distillate Aromatic Extracts Market Size was valued at USD 799.75 Million in 2023. The treated distillate aromatic extracts industry is projected to grow from USD 849.90 Million in 2024 to USD 1358.56 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 5.90% during the forecast period (2024 - 2032).

The market for treated distillate aromatic extracts (TDAE) has been gaining momentum, largely due to their functionalities in rubber softening. It has been witnessing considerable growth over recent years, especially with respect to consumption. Treated distillate aromatic extracts have found applications for a wide variety of finished products in manufacturing and chemical industries. The most common application of TDAE is found in the form of a softening additive for manufacturing rubber compounds. The value of treated distillate aromatic extracts is evident in the higher aromatic content, which prevents any frictional heat buildup that arises due to using tires. The applications of TDAE in manufacturing other automotive parts such as battery containers, belts, hoses and many other extruded products also show the value of TDAE.

The major growth factors for rise in treated distillate aromatic extracts market prices focus on rise in crude oil production and effective demands for crafting efficient tires with lower power consumption. At the same time, the increasing maritime trade is also a comprehensive factor for boosting the growth of the market for treated distillate aromatic extracts. In addition, the escalating scale of urbanization accompanied with continuously improving per capita disposable income in developed and emerging economies can create opportunities for growth of the market in the forecast period, 2021 to 2027.

Despite the promising prospects for growth of TDAE market, environment concerns have played a crucial role in changing the regulatory implications pertaining to TDAE. The toxic effects of chemicals used along with TDAE have led to the introduction of many strict regulations pertaining to the market. The European Union has imposed strict regulations on the use of TDAE alongside many other non-European countries following the same norms. So, the presence of toxic substances such as high polymeric hydrocarbon content and the regulatory standards can result in restraints for TDAE market.

Market Restraints

The foremost restraint for the TDAE market is evident in the highly toxic content of TDAE. In addition, the regulatory restrictions on TDAE also create notable concerns for growth of the TDAE market. Furthermore, the COVID pandemic had a formidable negative impact on the market, especially in terms of production and sales targets.

COVID 19 Analysis

The impact of COVID-19 has been a clear influence in the latest trends in the TDAE market. The shutdown of various manufacturing industries has been one of the prominent factors for a dip in sales of TDAE. The COVID pandemic has influenced TDAE production considerably while disruptions in the supply chain became evident due to global shutdowns. Most important of all, the COVID 19 pandemic affected the rubber manufacturing industry thereby slowing the demand for TDAE.

Therefore, governments and industry leaders all over the world are thinking of various strategies that can help the TDAE industry find its footing once again. The business strategies would focus on alignment with the growth plans for treated distillate aromatic extracts market share in the forecast period. Potential relaxation from regulatory perspectives and international trade barriers could foster the opportunities required for growing the TDAE market.

Competitive Landscape of TDAE Market

• Royal Dutch Shell Plc


• Total SA, H&R Group


• ATDM


• CPC Corporation


• Lanxess, Nynas


• Eagal Petrochrm

Companies are looking at expansions and new investments in R&D activities for revising the standards of toxic materials in the TDAE products. The competition in the TDAE market is also facing the impact of regulatory changes that call for new improvements in production and marketing.

Market Dynamics

Major Market Drivers

The growth of the transportation industry and maritime trade are the foremost factors that promote the growth of treated distillate aromatic extracts market. The use of TDAE as rubber softening additive in rubber processing is the foremost reason that will drive the growth of TDAE market. The escalating levels of industrial manufacturing with diversity in applications would also drive the growth of TDAE market.

Significant Opportunities for the Market

The market demand for TDAE is increasing substantially due to unavoidable market factors. The TDAE market size was estimated at a value of USD 796.5 million in 2016. Over the years, advancements in rubber manufacturing and industrial manufacturing have contributed to drastic growth of the market.

The number of significant players in the TDAE market is also increasing substantially. Therefore, the rising competition among major players in the market could promote the adoption of new growth strategies. At the same time, the rising demand for treated distillate aromatic extracts will also support the competition among key players for opening up new avenues in production and sales of TDAE.

Market Growth Challenges

The most prominent challenge for the treated distillate aromatic extracts market would be the ability of businesses to resume their capacity for the market after a global pandemic. Other than the impact of notable supply chain revisions such as new channels of product delivery, the regulatory concerns will also present challenges for the growth of TDAE market.

Cumulative Growth Analysis

According to the TDAE market analysis, the growth of TDAE market depends on the abilities of major players in the market for implementing suitable measures to achieve expansion to new markets and coping with regulatory challenges. The understanding of key factors driving the demand dynamics for TDAE products can also ensure that all players could achieve cumulative growth over the forecast period.

Value Chain Analysis

The value chain for the treated distillate extracts market is largely concentrated in the rubber manufacturing and processing industry. The constantly growing demand for TDAE products over the course of time since 2016 clearly indicates the potential for generating higher revenue by the end of 2027. Furthermore, the use of TDAE in other industrial manufacturing tasks other than the tires and tubes segment such as maritime trade is also one of the factors expected to boost the value of TDAE market.

Segment Overview

The overall segmentation of the TDAE market follows the factors of application and region.

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  By Application

  
  

The Treated Distillate Aromatic Extracts market focuses on different applications. The foremost application segment for TDAE is applicable for tires and tubes. TDAE is applied in this segment primarily for the rubber softening properties.

The other important segments for TDAE in terms of application include belting and houses as well as extruded products and battery containers. These segments clearly showcase the variety of markets that TDAE could enter into.

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  By Region

  
  

The treated distillate aromatic extracts market share also includes many regions in its scope. The global market for treated distillate aromatic extracts focuses on North America, Latin America, Africa, the Middle East, Europe and Asia Pacific.

The global presence of TDAE in these vast markets can present a potential boost for the industry in the forecast period. Furthermore, new and diverse sales channels can also improve the overall scope for revenue generation in the market.

Regional Analysis

The foremost highlight about the TDAE market size directly refers to the different regions it presently covers.  North America, Latin America, Africa, the Middle East, Europe and Asia Pacific are the prominent regions where TDAE has found a stronghold. Asia Pacific region has shown promising growth as a regional market with 4.12% and 3.7% growth in value and volume.

The regional growth of the TDAE market largely depends on the constantly growing tire manufacturing industry. The demand for rubber goods and increasing diversity of rubber products is also increasing the consumption of TDAE in Asia Pacific region. China has become one of the formidable regional markets throughout the globe. Additionally, the growth of FMCG sector in India is driving the demand for TDAE.

Another prominent region that has show promising growth is North America, which accounts for almost one-fifth of the global treated distillate aromatic extract market share. The region relies on faster adoption of consumer and commercial vehicles. However, Europe, which was once the most prominent market for TDAE is slowly responding to regulatory changes for TDAE.

Recent Developments

• October 2020: Sulzer supplied a customized mass transfer solution to PT Enerco RPO Internasional's grassroots facility in Batam, Indonesia, which produces treated distillate aromatic extract (TDAE). Sulzer created and built the world's largest agitated extraction column, the KuhniTM (ECR). This piece of equipment is critical in the production of environmentally friendly rubber process oils (RPOs) for the tire and rubber industries. This column, which measures 2.8 m (9 ft 2 in.) in diameter and 34 m (111 ft 6 in.) in height, is the largest of its kind and enables PT Enerco RPO International to distribute significant volumes of TDAE.


• China has become one of the major countries generating revenue in the TDAE market for the Asia-Pacific region. The revenue of USD 133.1 million in 2016 shows its rising growth.


• Europe has come under the influence of many regulatory precedents in recent times. Therefore, the strict regulations have resulted in major strategic reforms by key players in the existing market.


• The global TDAE market would most probably reach around USD 1027.1 million by 2027 at an expected CAGR of 3.71%.


• The tires and tubes segment accounted for around 70% of the overall TDAE market size.


• Asia Pacific region is the dominant market leader emerging in recent times with around 45% of the global share.

Report Overview

• Market overview and highlights of the global TDAE market


• Analysis of the TDAE market in response to COVID 19


• Explaining market dynamics of the TDAE market


• Value chain analysis for TDAE market research


• Analysis of the competitive landscape


• Overview of market segmentation


• Analysis of regional market for TDAE


• Recent developments in the market

The report points out the scope for growth of the market for treated distillate aromatic extracts for the forecast period from 2021 to 2027.