The coating additives market is expected to grow at a CAGR of 8.12% over the forecast period to reach a total market size of US$11.962 billion by 2027, increasing from US$6.925 billion in 2020. Coating additives are widely used for painting the exteriors of buildings, automobiles, woods, furniture, aviation, and others.
The wide application of coating additives is due to their exceptional performance in maintaining the exterior paintworks efficiently. The major driving factors behind the spur in the demand for coating additives are the high rate of industrial expansion in Asia-pacific, the rise in demand for eco-friendly products, and the growing demand for multifunctional additives. The coating additives market is expected to face challenges in the near future as a result of its environmental effects and various stringent regulatory frameworks in various geographic regions. Manufacturers and suppliers are focusing on the development of eco-friendly bio-based and water-based products for customers, which are foreseen as an opportunity during the next five years. However, the coating additives market is expected to be hampered by stringent regulatory frameworks in various countries.
The automotive industry is expanding, which is driving the growth of the market over the forecast period.
Coating additives are used in the automotive industry for a variety of reasons, including improved pigment effect and coating performance, as well as environmental friendliness and cost savings. Increasing the use of waterborne, solvent-free coatings and high solids in the automotive industry over traditional solvent-borne technologies is expected to boost demand for coating additives during the forecast period. The anticipated revival of the automotive industry in many parts of the world will increase demand for coating additives in the coming years. According to the data from the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production in Brazil has increased from 2,014,055 thousand in 2020 to 2,248,253 thousand in 2021, showing a growth of more than ten per cent. In addition, coating additives are considered a cost-effective solution and enable part-to-part consistency with an excellent surface finish. Such a benefit is attracting automotive manufacturers to invest more in research and development.
The waterborne formulation is expected to grow at an exponential rate in the coming years.
Waterborne formulations contain fewer toxins that do not pollute the air and are also less flammable and hazardous than other forms, making it an ideal product for manufacturers in a variety of industry verticals. The employees also enjoy the healthier ambient conditions, created by the application of waterborne technology, as it produces few toxins in the air. Furthermore, with a high gloss finish at no additional cost, manufacturers prefer this type of formulation in the manufacturing process. Furthermore, waterborne coatings withstand high temperatures and protect automotive body armour from corrosion. They are also highly abrasion resistant and can keep their glossy finish for an extended period of time. Due to the cost and technical benefits of waterborne over other forms of formulations, the market is anticipated to witness exponential growth in the coming year.
Asia Pacific region is expected to have a significant share over the forecast period
By geography, the global coating additives market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. The Asia Pacific accounts for a significant share of the coating additives market in the base year and is projected to maintain its position throughout the forecast period. This expansion can be attributed to the strong presence of key players in the region, as well as the established automotive industry. The region is showing significant growth opportunities owing to the expanding construction industry in the region and favourable government policies for the development of the manufacturing sector. Besides, with the expansion of the aerospace industry and increasing investment in the industrial sector, the demand for coating additives is growing in the coming years. Furthermore, due to the expanding aerospace industry and the presence of major commercial aircraft in North America, the market is growing at a rapid pace. Furthermore, the International Trade Administration (ITA) reports that the United States is the world's second-largest market for both vehicle production and consumption. The recent replacement of NAFTA (North American Free Trade Agreement) by the USMCA (United States-Mexico-Canada Agreement) will have a significant impact on the region's automotive industry, boosting demand for these coating adhesives. Similar trends have been observed in the European region, which is experiencing significant growth as a result of the established automotive industry and increased investment by regional market players.
Prominent key market players in the global coating additives market are adopting various growth strategies such as M&A, new product launches, and partnerships to expand their global footprint. For example, Milliken and the company, a market leader in speciality fabrics, medical products, and flooring, acquired Borcher, a coating additive and speciality catalyst solution provider. The acquisition was made to broaden the company's footprint and bring technologically advanced products and customer knowledge to the paint and coatings industry. Moreover, market players are focusing on improving the quality of coating additives through research and development. Furthermore, companies are investing in technology and manufacturing strengths and capabilities to gain a competitive advantage over their competitors.
The decorative paints and coatings market is segmented by formulation, type, resin type, application, and geography in the research study report. The analysis presents in-depth information regarding the trends, developments, and latest industry policies and regulations implemented in each of the geographical regions. In addition, the market's overall regulatory framework has been covered to provide stakeholders with a better understanding of the key factors influencing the overall market environment during the forecast period.
Recent development and expansion
Covid 19 had an impact on the market for coating additives. Coating additives are mostly used in the automotive, industrial, and architectural industries. The COVID-19 pandemic had a negative impact on the manufacturing and industrial industries due to a scarcity of resources in various parts of the world. Furthermore, the pandemic situation reduced demand for paints and coatings in the construction, automotive, electronics, and white goods industries. After the lifting of restrictions and lockdowns, the market may recover in the near future.
|Market Size Value in 2020||US$6.925 billion|
|Market Size Value in 2027||US$11.962 billion|
|Growth Rate||CAGR of 8.12% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Formulation, Application, End User, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||BASF SE, AkzoNobel N.V, Arkema SA, Ashland, Dow, Elementis PLC, Evonik Industries AG, Momentive, Eastman Chemical Company|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the coating additives market size by 2027?
A1. The coating additives market is expected to reach a market size of US$11.962 billion in 2027.
Q2. What are the growth prospects for the coating additives market?
A2. The global coating additives market is expected to grow at a CAGR of 8.12% over the forecast period.
Q3. What is the size of the global coating additives market?
A3. Coating Additives Market was valued at US$6.925 billion in 2020.
Q4. What factors are anticipated to drive the coating additives market growth?
A4. Major driving factors behind the spur in the coating additives demand are the high rate of industrial expansion in Asia-pacific, the rise in demand for eco-friendly products, and the growing demand for multifunctional additives.
Q5. Which region holds the largest share in the coating additives market?
A5. The Asia Pacific accounts for a significant share of the coating additives market and is projected to maintain its position throughout the forecast period.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Coating Additives Market, By Type
5.4. Metallic Additives
5.5. Acrylic coatings
6. Coating Additives Market, By Formulation
7. Coating Additives Market, By Application
7.3. Wetting & Dispersion
8. Coating Additives Market, By End User
8.3. Architectural Application
8.4. Industrial Application
8.5. Wood & Furniture
9. Coating Additives Market, By Geography
9.2. North America
9.3. South America
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.6. Asia Pacific
9.6.3. South Korea
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. BASF SE
11.2. AkzoNobel N.V
11.3. Arkema SA
11.6. Elementis PLC
11.7. Evonik Industries AG
11.9. Eastman Chemical Company
Evonik Industries AG
Eastman Chemical Company
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