The coating additives market is expected to grow at a CAGR of 5.98% over the forecast period to reach a total market size of US$10.593 billion by 2025, increasing from US$7.476 billion in 2019.Coating additives are widely used for painting exteriors of buildings, automobiles, woods & furniture, aviation, and others. The wide application of coating additives is due to their exceptional performances in maintaining the exterior paint works efficiently. Major driving factors behind the spur in the coating additives demand is high rate industrial expansion in Asia-pacific, rise in demand for eco-friendly products, and growing demand for multifunctional additives. The coating additives market is anticipated to face challenges over the near future due to its effects on the environment, and various strict 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 and are foreseen as an opportunity during the next five years. However, stringent regulatory frameworks in various countries are anticipated to impend the market growth of the coating additives market.
Expanding the automotive industry is driving the growth of the market over the forecast period.
The automotive industry utilizes coating additives on account of various advantages ranging from improving the pigment effect and enhancing coating performance to environmental friendliness while reducing cost. Increasing the use of waterborne, solvent-free coatings and high solids over and above traditional solvent-borne technologies in the automotive industry is expected to boost the demand for coating additives during the forecast period. The revival of the automotive industry in many parts of the world is anticipated to boost the demand for coating additives in the coming years. According to the data by the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production in Brazil has increased from 2,429.463 thousand in 2015 to 2,879.809 thousand in 2018, showing a growth of more than eighteen percent. In addition, coating additives are considered as a cost-effective solution and enable part-to-part consistency with excellent surface finish such benefit is attracting automotive manufactures to invest more in research and development.
The waterborne formulation is growing at an exponential rate in the coming years.
Waterborne formulations contain fewer toxins that do not pollute the air compared to other forms and are also less flammable and hazardous making it a perfect product for manufacturers across different industry verticals. The employees also enjoy the healthier ambient condition while the application of waterborne technology as it produces few toxins in the air. In addition, with high gloss finish without an increase in the level of cost the manufacturers ideally prefer this type of formulation in the manufacturing process. Furthermore, waterborne coatings hold up well to heat and protect the automotive body armor from corrosion; they are also highly abrasion resistant and can maintain their glossy finish for the long term. Due to such cost and technical benefits of waterborne over other forms of formulations the market is anticipated to witness exponential growth in the coming years.
The Asia Pacific is estimated to grow at a significant rate during the forecast period.
By geography, the global coating additives market has been segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific regions. The Asia Pacific accounts for the significant share of the coating additives market in the base year and is projected to maintain its position throughout the forecast period. This growth is attributed to the strong presence of key players in the region and established the automotive industry. The region is showing significant growth opportunities owing to expanding the construction industry in the region and favorable government policies for the development of the manufacturing sector. Besides, expanding the aerospace industry and increasing investment in the industrial sector the demand for coating additives is growing in the coming years. In addition, in North America, due to the expanding aerospace industry and the presence of major commercial aircraft the market is growing at a substantial rate. Also, according to the International Trade Administration (ITA), the U.S. is the world’s second-largest market for both vehicle production and consumption. Recent replacement of NAFTA (North American Free Trade Agreement) by USMCA (United States-Mexico-Canada Agreement) will significantly impact the region's automotive industry which, in turn, will bolster the demand for these coating adhesives. Similar trends have been noticed in the European region, which is witnessing significant growth on account of the established automotive industry coupled with increasing investment by market players in the region.
Prominent key market players in the global coating additives market are adopting various growth strategies such as new product launches, M&A, and partnerships to expand their global footprint. For instance, recently Milliken and the company a market leader in specialty fabrics, medical products and flooring acquired Borcher a coating additive and specialty catalyst solution provider. The acquisition was made to expand the company’s footprint and bring technologically advanced products, and customer knowledge in the paint and coatings industry. In addition, companies in the market are focusing on improving the quality of coating additive through research and development. Furthermore, companies are investing in technology and manufacturing strengths and capabilities to hold a competitive advantage over their competitors.
The research study report categorizes the decorative paints & coatings market based on formulation, type, resin type, application, and geography. The analysis presents in-depth information regarding the trends, development, and latest industry policies and regulations implemented in each of the geographical regions. Also, the overall regulatory framework of the market has been covered to offer stakeholders a better understanding of the key factors affecting the overall market environment during the forecast period.