TDAE Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Tire Production, Belts & Tapes, Shoe Manufacturing, Cable Manufacturing, Others), By Region and Competition, 2020-2030F

Market Overview

Global TDAE Market was valued at USD 320.30 Million in 2024 and is expected to reach USD 463.09 Million by 2030 with a CAGR of 2.90%. As a non-carcinogenic, eco-friendly alternative to conventional aromatic oils such as Distillate Aromatic Extract (DAE), TDAE has gained widespread acceptance, particularly in regions with stringent environmental regulations such as Europe and North America.

In addition to tires, TDAE is gaining traction in other end-use applications, including industrial rubber products, footwear, automotive components, and adhesives. Its favorable properties such as low volatility, high viscosity index, and minimal environmental impact make it suitable for a wide range of rubber processing applications. Despite its growing popularity, the market faces certain challenges, including fluctuations in crude oil prices and supply chain disruptions affecting the availability of feedstock materials. Nevertheless, ongoing R&D efforts aimed at enhancing the performance characteristics of TDAE and developing bio-based variants are expected to create new opportunities for market participants.

Key Market Drivers

Growing Demand of TDAE in Automotive Industry

In 2024, global automobile sales totaled 74.6 million units, reflecting a 2.5% growth over 2023. Driven by a robust rebound in the final quarter, China contributed nearly 23 million units, representing approximately 31% of total global sales. The automotive industry is a key driver propelling the growth of the global TDAE market. As automakers and parts manufacturers increasingly prioritize environmental sustainability and compliance with international safety standards, TDAE has emerged as a preferred processing oil for automotive rubber components. Its low polycyclic aromatic hydrocarbon (PAH) content and excellent compatibility with synthetic and natural rubber make it ideal for manufacturing tires, seals, hoses, belts, and other under-the-hood applications.

In particular, tire manufacturers are shifting toward TDAE as a replacement for carcinogenic DAE to meet the European Union’s REACH regulations. Sulzer has provided a tailored mass transfer solution for PT Enerco RPO Internasional’s new TDAE (treated distillate aromatic extract) production facility in Batam, Indonesia. The plant is equipped with the world’s largest Kuhni (ECR) agitated extraction column, engineered and constructed by Sulzer. This advanced equipment is instrumental in producing environmentally friendly rubber process oils (RPOs), serving the tire and rubber industries. The growing global vehicle parc, increasing production of electric and hybrid vehicles, and the rising demand for high-performance tires have amplified the use of advanced rubber formulations, in which TDAE plays a vital role. Additionally, the demand for lightweight, durable, and heat-resistant materials in modern vehicle designs is boosting the adoption of TDAE in automotive rubber goods.

Growing Demand of TDAE in Footwear Industry

The expanding application of TDAE in the footwear industry is emerging as another key driver of growth in the global TDAE market. Footwear manufacturers are increasingly utilizing TDAE as a plasticizer in the production of rubber soles and synthetic leather components due to its non-toxic nature and favorable processing characteristics. The global footwear market is projected to generate revenues of USD 500.55 billion by 2025. With the rising global emphasis on sustainability, countries such as Italy and Spain are at the forefront, driving innovation through the adoption of eco-friendly materials and sustainable manufacturing practices. With heightened awareness around product safety and environmental sustainability, there is a growing shift toward the use of non-carcinogenic raw materials in consumer goods, including footwear.

TDAE improves the flexibility, durability, and abrasion resistance of rubber used in shoes, making it an ideal alternative to conventional aromatic oils. In regions such as Asia-Pacific, where large-scale footwear manufacturing is concentrated, the demand for TDAE continues to grow in response to both regulatory pressures and consumer preferences for eco-friendly products. This trend is expected to play a pivotal role in boosting global TDAE consumption across the footwear industry in the coming years.

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Key Market Challenges

Volatility in Crude Oil Prices

Volatility in crude oil prices poses a significant challenge to the global TDAE market, as TDAE is derived from petroleum-based feedstocks. Fluctuations in global crude oil prices directly impact the cost structure of TDAE production, leading to unpredictable raw material expenses for manufacturers. This volatility complicates pricing strategies and affects profit margins across the supply chain.

When crude oil prices surge, the cost of refining and distillation processes used to produce TDAE also rises, putting financial pressure on producers. In contrast, sharp declines in crude oil prices can disrupt long-term supply agreements and reduce incentives for investment in refining infrastructure. These price swings make it difficult for manufacturers and end-users particularly in the tire and rubber industries to maintain stable procurement strategies and forecast production costs accurately.

Key Market Trends

Growing Use of TDAE in Construction Industry

The Australian building and construction industry undertakes projects valued at over USD 162 billion annually, contributing approximately 10% to the nation's GDP and ranking as the fifth-largest sector in the economy. The increasing use of Treated Distillate Aromatic Extract (TDAE) in the construction industry has emerged as a notable trend shaping the trajectory of the global TDAE market. Traditionally utilized in tire manufacturing, TDAE is now gaining traction in the production of rubber-based construction materials due to its superior plasticizing properties and environmental compliance. Its ability to enhance flexibility, durability, and resistance to wear has made it a valuable additive in the manufacture of rubber sheets, sealing systems, expansion joints, and other critical components used in modern infrastructure.

As the global construction sector expands driven by rapid urbanization, smart city initiatives, and infrastructure development projects in emerging economies the demand for high-performance materials has grown significantly. TDAE is increasingly being incorporated into waterproofing membranes, vibration-dampening materials, and elastomeric components essential for structural integrity and long-term performance. Its eco-friendly nature, low PAH content, and compatibility with both synthetic and natural rubber align with the industry’s growing focus on sustainability and regulatory compliance.

Segmental Insights

Sales Channel Insights

Based on Sales Channel, Direct have emerged as the fastest growing segment in the Global TDAE Market in 2024. This is primarily due to the increasing demand for customized solutions and the need for streamlined procurement channels among end-use industries. Manufacturers and large-scale consumers, particularly in the automotive and footwear sectors, are increasingly opting for direct sourcing of TDAE to ensure consistent quality, timely delivery, and cost efficiency. This approach minimizes dependency on intermediaries and allows for better negotiation on pricing and technical support.

End Use Insights

Based on End Use, Belts & Tapes have emerged as the fastest growing segment in the Global TDAE Market during the forecast period. TDAE is widely used as a processing oil in the production of rubber-based belts and industrial tapes, particularly in automotive and manufacturing sectors. The shift toward high-performance rubber products that maintain elasticity, tensile strength, and resistance to wear under mechanical stress has significantly contributed to the adoption of TDAE in this segment. As global industrial and logistics activities expand, the demand for reliable conveyor belts, V-belts, and adhesive tapes is rising in parallel, thereby boosting consumption of TDAE as a preferred processing oil.

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Regional Insights

Based on Region, North America have emerged as the dominating region in the Global TDAE Market in 2024. A key contributor to North America’s dominance is the region's stringent environmental and occupational health regulations, particularly in the United States and Canada. Agencies such as the U.S. Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA) have imposed strict guidelines limiting the use of carcinogenic and high-PAH aromatic oils in rubber manufacturing. As a result, industries have increasingly shifted toward REACH-compliant alternatives such as TDAE, which meet safety and sustainability standards without compromising on performance.

Recent Development

• In May 2025, Nuberg EPC and EDL Anlagenbau Gesellschaft mbH entered into a Technical Collaboration Agreement (TCA) aimed at jointly pursuing engineering and sustainable development opportunities across various sectors, including fuel oil refineries, petrochemical industries, and sustainable process technologies. The collaboration is intended to advance technological innovation while promoting environmental stewardship. A key focus of the partnership will be the extraction of high-value products from refinery residues commonly referred to as ‘bottom of the barrel’ through advanced technologies such as Solvent Deasphalting (SDA), solvent extraction for lube cut recovery to produce TDAE/TRAE, dewaxing and deoiling, production of complex greases, and re-refining of used oil. This initiative is designed to convert waste into valuable resources, thereby reducing environmental impact.
• In May 2025, USA Global Trade LLC, a Miami-based sourcing and trade firm, announced a strategic initiative aimed at deepening commercial and manufacturing ties between the U.S. and Latin America. While traditionally focused on supporting small and medium-sized textile enterprises by sourcing high-quality yarns such as DTY polyester, poly/cotton blends, viscose, nylon, spandex, and rubber threads, the initiative is also expected to open new avenues for the distribution and use of specialty materials such as Treated Distillate Aromatic Extract (TDAE). Given TDAE’s growing relevance as a non-carcinogenic plasticizer in rubber thread and elastomer production, its integration into regional supply chains could support sustainable manufacturing practices and enhance product performance in the textile and footwear industries. USA Global Trade’s collaboration with key partners like VANITEX, a leading Peruvian exporter of knitted fabrics, further positions the company to foster demand for TDAE-based solutions across Latin America.
• In March 2024, Allianz Trade launched Allianz Trade Pay, a comprehensive payment solution designed to support B2B e-commerce operations. This platform offers a range of services, including instant financing through trusted partners, digital buyer onboarding, online fraud risk management, and trade credit insurance at checkout. For players in the TDAE (Treated Distillate Aromatic Extract) market where transactions often involve bulk volumes and cross-border trade such a solution can enhance transaction security, improve cash flow, and reduce credit risks. By facilitating smoother and safer digital transactions, Allianz Trade Pay is well-positioned to support the evolving financial needs of TDAE suppliers, distributors, and manufacturers operating in the global B2B landscape.
• In May 2024, Hindustan Petroleum Corporation Limited (HPCL) successfully commissioned India’s first Solid Oxide Electrolyser (SOE) for green hydrogen production at its HP Green R\&D Centre (HPGRDC) in Bengaluru. This pioneering technology delivers green hydrogen with a purity of 99.99%, powered by an integrated captive solar and wind energy system. HPGRDC has also made significant advancements in refining technologies, including Hydrogen PSA (Pressure Swing Adsorption), HiGas (Process Intensification), HP-DAK (low-aromatic solvent production), Hp-Trijet (Sustainable Aviation Fuel), Crude-to-Chemicals conversion, and HP-TDAE (Treated Distillate Aromatic Extract).

Key Market Players

• LANXESS AG
• BEHRAN OIL CO.
• REPSOL, S.A.
• ENI S.P.A.
• GAZPROMNEFT LUBRICANTS, LTD.
• ATDM CO LTD
• H&R GROUP US, Inc.
• NYNAS AB
• CPC CORPORATION
• ERGON, Inc.

Report Scope

In this report, the Global TDAE Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• TDAE Market, By Sales Channel:

o   Direct

o   Indirect

• TDAE Market, By End Use:

o   Tire Production

o   Belts & Tapes

o   Shoe Manufacturing

o   Cable Manufacturing

o   Others

• TDAE Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global TDAE Market.

Available Customizations:

Global TDAE Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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