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The coating additives market size is forecast to increase by USD 3.54 billion at a CAGR of 5.92% between 2023 and 2028. The market's growth hinges on various factors, notably the heightened demand for paints and coatings offering functional advantages, boosted by the need for enhanced performance and durability. The burgeoning automotive sector in the Asia-Pacific region further fuels market expansion, driven by increasing vehicle production and consumer preferences for high-quality finishes. Additionally, the rising demand for waterborne coating additives, fueled by environmental concerns and regulatory pressures, contributes significantly to market growth. These factors collectively underscore the dynamic landscape of the coatings industry, highlighting the importance of innovation and adaptation to meet evolving consumer needs and industry standards, especially in regions experiencing rapid industrial and economic development like APAC.
The market is driven by increasing demand for eco-friendly products, especially in the building, construction, automotive, and aerospace sectors. Technological advancements, including bio-based additives and chemically engineered materials, cater to conscientious consumers' preferences for environmental friendliness. However, the market faces challenges such as technological difficulties in achieving performance improvements and meeting VOC emission regulations. Additionally, ensuring high-temperature stability and compliance with environmental standards pose significant challenges for industry stakeholders. Despite these obstacles, the market outlook remains positive, driven by the growing emphasis on corrosion protection and the adoption of green coating solutions to minimize environmental impact. In the building and construction sectors, global coating additives sales are driven by the need for improved wettability and rheology in paint systems, with multifunctional additives playing a key role in enhancing performance and meeting the demands of the global coating additives market. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for paints and coatings with functional benefits is a major factor driving the market growth. The paints and coatings industry is witnessing a rise in the demand for paints and coatings that offer functional benefits to end users. The demand for paints and coatings that provide weather ability to buildings and a shield against corrosion, dampness, fungi, and other destructive influences has been notable. The prolonged and continuous contact of buildings with rain and heat causes considerable damage.
Furthermore, additives and protective coatings are essential to avert the growth of fungi and algae, restrict water seepage, and other factors that compromise structural strength. Therefore, the demand for coating additives with functional benefits that can prevent these problems is growing. Manufacturers are also producing paints and coatings that reflect heat rays from the buildings and keep them cool. Moreover, the coating additives also offer effective applications, such as weather-shield paints that enhance the appearance of the building. Such factors are expected to drive the growth of the market during the forecast period.
Increasing focus on bio-based and eco-friendly products is a trend shaping the market. Consumer preference for environment-friendly and sustainable products is trending in the market. Several research works have found significant commercial uses of bio-based resins and polymers in coating additives. In developed regions, the regulations that check and monitor the impact of products on the environment promote the growth of the bio-based and eco-friendly coating additives market.
Furthermore, increasing demand for bio-based recyclable and renewable coating materials in the US and Europe is driving the market for bio-based products. Also, growing environmental and food and drug regulations are fostering the consumption of bio-based polymer coating additives in food packaging, consumer goods, and other products. For instance, Arkema Group provides bio-based coatings raw materials such as resins and polymers to the market. Similarly, BASF SE offers bio-based polyol for volatile organic compound-free 2K polyurethane applications under the Sovermol 830 brand name. Hence, the growing focus of companies on the development of bio-based and eco-friendly coatings raw materials, including polymer coating additives, is expected to drive the growth of the market during the forecast period.
Volatile raw material prices of coating additives is a key challenge that may hamper the market growth. Coating additives are substances added to coatings to enhance their performance, durability, and functionality. These additives are typically derived from various raw materials such as resins, pigments, solvents, and other chemicals.
Furthermore, several factors, including supply and demand dynamics, geopolitical events, natural disaster, and changes in regulatory policies can influence the prices of raw materials used in coating additives. When the prices of these raw materials experience significant fluctuations, it creates uncertainty and increases the price of coating additives. Such a factor is expected to pose a challenge to the growth of the market during the forecast period.
The market share growth by the architecture segment will be significant during the forecast period. In this segment, the coatings are used to protect a surface and enhance its appearance. Coating additives protect the coatings from factors such as UV radiation, moisture, and microbes.
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The architecture segment was valued at USD 3.64 billion in 2018. Over the years, the market has witnessed continuous innovation, such as smart coatings and nanoparticles, as the companies are focusing on the introduction of environment-friendly products and products with functional benefits. The currently available coating additives are developed to meet customer needs and are customized to offer benefits, such as graffiti resistance and self-cleaning characteristics.
APAC is estimated to contribute 42% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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Further, increased focus on development, rapid industrialization, and the flourishing housing and construction sector, especially in China and India, are expected to drive the growth of the market in APAC during the forecast period. In China, many government-driven projects, such as airports, sewer systems, and renewable energy, have been included for funding in 12- and 15-year cycles. India is also focusing on strengthening its infrastructure and witnessing a reform in its legal and fiscal systems owing to the increase in foreign capital inflows, which is expected to strengthen its economic condition during the forecast period. This is expected to pave the way for improved and better infrastructure throughout the country. All these factors are expected to drive the growth of the regional market during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Arkema Group- The company offers coating additives such as Waterborne coatings, and UV coatings.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Akzo Nobel NV, Altana AG, Arkema SA, Ashland Inc., BASF SE, Berkshire Hathaway Inc., Cabot Corp., Clariant AG, Daikin Industries Ltd., Double Bond Chemical Ind. Co. Ltd., Dow Inc., Eastman Chemical Co., Elementis Plc, Huntsman Corp., Lanxess AG, Momentive Performance Materials Inc., Munzing Chemie GmbH, RAG Stiftung, Solvay SA, and The Sherwin Williams Co.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is influenced by diverse factors, including the imperative for eco-friendly products and industrial responsibility in production processes. However, challenges such as cost escalations and navigating a volatile landscape necessitate strategic decisions. Technical hurdles, compatibility issues, and stringent testing characterize progress in the aerospace sector. Wetting and dispersing agents play a crucial role in architectural and construction coatings, enhancing visual appeal and color reproducibility while ensuring weather resistance and chipping prevention. The shift towards environmentally friendly products aligns with advancements in technology, driving growth in the market. This industry serves the needs of various sectors, including the furniture, automotive sector and construction industries, through continuous research and development, offering customized coatings to meet evolving demands.
The demand for eco-friendly products has increased in recent years, driven by growing environmental concerns and regulatory pressures. While prioritizing sustainability, businesses must also consider profit margins. By optimizing solid content and reducing VOC content, manufacturers can produce coatings with lower environmental impact and higher profitability. Pigment dispersing agents play a crucial role in achieving desired coating properties, such as color consistency and durability, while minimizing environmental footprint. These advancements are particularly relevant in architectural structures, where eco-friendly coatings are increasingly favored for their sustainability benefits. Despite the popularity of solvent-borne coatings in the past, the residential construction sector is shifting towards water-based alternatives due to their lower VOC emissions and compliance with stricter regulations. This trend aligns with evolving home renovation practices, where consumers prioritize environmentally friendly materials.
Population growth and rising living standards drive demand for residential construction and renovation, stimulating employment rates and disposable income. Foreign investments in technology advancements and raw material inventories bolster manufacturing output, particularly in the chemical, automotive, wood and furniture, and construction industries. The chemical industry, a key player in eco-friendly product development, benefits from advancements in manufacturing processes and raw material innovation. Collaborations between industries further drive sustainability initiatives, promoting a circular economy and reducing environmental impact. In conclusion, the convergence of technology advancements, raw material inventories, and sustainable practices is reshaping industries worldwide. As businesses adapt to meet consumer preferences and regulatory requirements, the shift towards eco-friendly products is expected to accelerate, driving economic growth and environmental stewardship in tandem.
Market Scope |
|
Report Coverage |
Details |
Page number |
197 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.92% |
Market growth 2024-2028 |
USD 3.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.49 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, India, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Altana AG, Arkema SA, Ashland Inc., BASF SE, Berkshire Hathaway Inc., Cabot Corp., Clariant AG, Daikin Industries Ltd., Double Bond Chemical Ind. Co. Ltd., Dow Inc., Eastman Chemical Co., Elementis Plc, Huntsman Corp., Lanxess AG, Momentive Performance Materials Inc., Munzing Chemie GmbH, RAG Stiftung, Solvay SA, and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Formulation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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