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The wood protection coatings and preservatives market size is estimated to increase by USD 3.57 billion, at a CAGR of 5.93% between 2023 and 2028. The market is experiencing significant growth, driven by increasing residential and commercial construction activities worldwide. This trend is fueled by the rising demand for sustainable and eco-friendly building materials, leading to a surge in demand for wood protection coatings and preservatives. Waterborne coatings, in particular, are gaining popularity due to their low environmental impact and efficiency. Additionally, the growing market for wooden furniture further drives the need for advanced wood protection solutions. Furthermore, strategic alliances among key players in the market are enhancing their product portfolios and expanding their geographical reach. However, the market faces challenges, including the volatility in raw material prices, particularly for key ingredients such as biocides and resins. Additionally, stringent regulations regarding the use of certain preservatives, such as chromated copper arsenate (CCA), are limiting their usage and forcing manufacturers to explore alternative solutions. Despite these challenges, the market is expected to continue its growth trajectory, driven by the increasing demand for durable and sustainable wood protection solutions.
The market share growth by the residential segment will be significant during the forecast period. In residential applications, wood protection coatings and preservatives are used in a variety of interior and exterior applications. Furniture is used in the living room for convenience and beauty. In particular, the trend of moving houses has increased the demand for portable wood furniture, which has increased the demand for wood protective coatings and preservatives in residential applications. At home, wood protection coatings and preservatives are used in the manufacture of furniture such as living rooms, bedrooms, kitchens, dining rooms, and bathrooms. Common residential wood furniture products that require protective wood coatings and preservatives include sofa sets, tables, chairs, recreational furniture sets, decorative end tables, shelving, beds, dressing tables, wardrobes, and worktops.
The residential segment was valued at USD 4.39 billion in 2018. Increasing demand for premium home furnishings is likely to boost the demand for wood protective coatings and wood preservatives in the residential segment during the forecast period. Increasing construction of prayer rooms, gymnasiums, children's playrooms, and study rooms will increase the demand for wooden furniture in the residential segment during the forecast period. In addition, rising levels of disposable income and increasing demand for quality, furnished housing will drive the growth of the residential segment of the market during the forecast period.
APAC is estimated to contribute 59% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Major end-use industries for the market, such as construction and infrastructure, sporting goods, furniture and flooring, and automotive, are thriving in APAC owing to the region's significant economic growth. Investments in both the infrastructure and non-residential sectors are expected to boost the growth of the APAC construction market, which is expected to increase the demand for wood protective coatings and preservatives during the forecast period. The APAC region's construction industry will grow significantly and will continue to hold the largest share of the global construction industry during the forecast period.
The increasing number of residential and commercial construction is notably driving the market growth, although volatility in raw material prices may impede the market growth. The Wood Protection Coatings and Preservatives Market is witnessing significant growth, fueled by the rising demand for eco-friendly solutions in the construction and interior design industries. With increasing concerns about environmental sustainability and restrictions on plant cutting, there is a growing emphasis on using wood preservatives that are safe for both humans and the environment. Emerging countries experiencing rapid urbanization and increasing disposable incomes are driving the demand for wooden structures and interior spaces, further boosting the market. Wood preservatives such as micronized copper azoles and water-based products are gaining traction due to their effectiveness and compliance with environmental regulations. However, challenges persist, including the use of hazardous chemicals like chromium, arsenic, and creosote. As the market embraces emerging technologies and adheres to stringent rules and regulations set by environmental agencies, the Wood Protection Coatings and Preservatives Market is poised for continued growth. Eco-friendly wood preservatives chemicals are revolutionizing the treatment of wooden structures, ensuring their longevity while minimizing environmental impact. These chemicals penetrate the structure component, preserving them against decay and pests without harmful toxins. Within interior space, wooden elements such as walls, floors, and ceilings serve as focal points, enhanced by decorative features like Wall body, Wooden mural, carvings, skirting lines, balusters, and armrests. The display of craftsmanship in these components adds character and charm to any interior, creating a warm and inviting atmosphere. Whether it's a rustic wooden floor or intricately carved balusters, each element contributes to the overall aesthetic appeal and functionality of the space.
An increasing number of residential and commercial construction is notably driving the market growth. The significant factor in the growth of the market is the growth of the real estate industry and increasing residential and commercial construction activity around the world. Developed countries like the United States are planning to invest billions of dollars in infrastructure expansion. Emerging markets like India will see increased demand for timber products during the forecast period due to its 100% Foreign Direct Investment (FDI) potential in townships and settlement projects. In India, government initiatives such as the Smart City Mission, Pradhan Mantri Awas Yojana (PMAY), and Sardar Patel National Urban Housing Mission are estimated to increase the number of people living in urban areas and boost urban growth.
Further, the Growing investment in infrastructure and real estate development, along with increased construction of new homes and offices, will boost sales of new wood products and furniture. In addition to new construction, the growing demand for wood products is complemented by an increase in renovation and refurbishment projects in major countries such as the United States, China, and India. It is estimated that the number of multinational and global companies, technology, and industrial parks will increase due to good trade relations between countries and government measures. Along with this, the demand for office space in different parts of the world is estimated to drive the growth of the market during the forecast period.
Increased demand for applications on medium-density fiber products is a key trend influencing the market growth. MDF is wood that is obtained when hardwood and softwood residues are broken down into wood fibers under high temperature and pressure. It is a composite material that combines wood fiber and resin. Suppliers and end-users of MDF prefer wood preservative coatings over other coating products, such as paints, not only because of the superior product performance and quality finish of MDF products, but also because of their durability, reliability, and short curing times. and prefer preservatives.
Moreover, wood protection coatings and wood preservatives on MDF prevent the yellowing of wood products and protect them from UV rays, chemicals, and other harmful substances. MDF products are mainly used to manufacture furniture for offices, homes, and hospitals. Growing demand for office and home furnishings, coupled with demand for hospital, hotel, and other commercial purpose furnishings, has increased the consumption of MDF, directly driving the growth of the market. Therefore, economic benefits, high operational efficiency, and superior product performance are expected to drive the application of wood preservative coatings and preservatives on MDF, driving the market growth during the forecast period.
Volatility in raw material prices is challenging the market growth. The petrochemical raw materials required to manufacture most coatings include binders and solvents such as polyesters, alcohols, and epoxy resins. Petroleum and natural gas are the basic raw materials for binder production. Fluctuations in crude oil prices are directly linked to raw material costs. Each petrochemical product has a different correlation with oil prices and is affected by factors such as product supply and demand, manufacturing processes, and production areas. Price fluctuations in petrochemical feedstocks contribute to resin price fluctuations. Polymeric materials are used in the production of protective wood coatings and preservatives. Polyurethanes (PU) and acrylics are some of the main polymer raw materials used in the production of wood coatings.
Further, most of the raw materials used to manufacture wood protection paints and wood preservatives are derived from crude oil. Fluctuations in oil prices can adversely affect raw material prices for wood protection paints and wood preservatives. Most raw materials for the production of PU are obtained from crude oil. The oil and gas (O&G) industry is a major supplier of raw materials such as polyols, toluene diisocyanate (TDI), and methylene diphenyl diisocyanate (MDI). Rising crude oil prices will increase raw material prices, which may affect the production of wood protection paints and wood preservatives. Such factors will adversely affect the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors 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 witnessing significant growth propelled by factors such as rapid urbanization, increasing disposable income, and the surge in construction activities worldwide. As urbanization accelerates and emerging countries develop, the demand for wood preservatives rises, particularly in the interior design and construction sectors. Eco-friendly wood preservative chemicals are gaining traction due to stringent environmental regulations and growing awareness about sustainability. Various wood preservation methods, including micronized copper azoles and water-based products, are being employed to combat decay, insects, and environmental threats while complying with rules and regulations set by environmental agencies like the USEPA. With applications ranging from residential to commercial and industrial construction, the Wood Protection Coatings and Preservatives Market is poised for robust growth in the coming years.
Moreover, the market is witnessing significant growth, driven by the increasing demand for eco-friendly wood preservative chemicals in residential, commercial, and industrial construction activities worldwide. Modern interior design trends emphasize wooden murals, wood carvings, and wood trim, boosting the need for effective wood preservation solutions. Emerging technologies and stringent regulations on plant cutting drive the adoption of non-hazardous wood preservatives like borates and copper-based chemicals. The market caters to various applications, including decking, fencing, doors, cabinets, and roofs. With a focus on environmental sustainability, water-based preservatives gain traction, offering non-toxic alternatives for wood surface protection against fungal rot, molds, and wood-destroying insects. As infrastructural development surges, wood preservatives play a vital role in ensuring the longevity and safety of wooden structures in both indoor and outdoor applications.
Additionally, the market is witnessing substantial growth, fueled by the demand for eco-friendly solutions to preserve wooden structures. With a focus on sustainability, there's a rising preference for environmentally friendly wood preservative chemicals in the construction and infrastructure industry. These chemicals effectively protect wooden components such as beams, staircases, and fence posts from decay, sap stains, and fungal attacks. In response to restrictions on plant cutting and hazardous chemicals like chromium, arsenic, and creosote, the market is shifting towards non-hazardous, water-based products. The United States Environmental Protection Agency (USEPA) regulations drive the adoption of safer wood preservation methods, emphasizing human health and environmental safety. As residential and commercial construction activities surge, the market expands with innovations in oil-based, solvent-based, and water-based preservatives, catering to the diverse needs of the industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
Market growth 2024-2028 |
USD 3.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.75 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 59% |
Key countries |
China, US, Japan, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Apollo Paints Pvt. Ltd., Arkema Group, Asian Paints Ltd., Axalta Coating Systems Ltd., BASF SE, Benjamin Moore and Co., Brillux GmbH and Co. KG, Dow Chemical Co., Eastman Chemical Co., Engineered Polymer Solutions and Color Corp. of America, Evonik Industries AG, IVM SRL, Jotun AS, Kansai Paint Co. Ltd., KAPCI Coating, Koppers Holdings Inc., Lanxess AG, Nippon Paint Holdings Co. Ltd., PPG Industries Inc., and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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