The performance additives market is expected to grow from USD 125.501 billion in 2025 to USD 187.056 billion in 2030, at a CAGR of 8.31%.
Performance additives are additives that are lightly weighted and have high-temperature, chemical, and abrasion resistance owing to which they are used for extending the lifespan and durability of products. They find high applicability in paint & coatings, lubricants, and adhesives among other applications. Furthermore, performance additives also form a major ingredient to be used during rubber compounding, for obtaining desired properties in a rubber. The rapid development in the major end users of performance additives such as automotive, building & construction, and aerospace is driving the market growth for such additives. For instance, according to the General Aviation Manufacturer Association’s data, in 2021, worldwide aircraft shipment stood at 2,630 units which represented an increase of 9.6% in aircraft shipment than the previous year. Moreover, the growing rubber production has also pushed the market demand for performance additives. For instance, according to the monthly NR Statistical Report, November 2022 released by the Association of Natural Rubber Producing Countries, in November, global rubber production witnessed a 2.7% growth reaching 1.426 million tons, in comparison to 1.294 million produced in 2021 for the same month.
Based on industry vertical, the performance additives market is segmented into automotive, building & construction, aerospace, energy generation, and others. The automotive sector is projected to hold a decent market share during the forecast period. Performance additives such as fuel & lubricant additives are used in automobiles to prevent wear and tear of the engine and maintain its temperature & pressure bearing capacity. Moreover, additives having anti-degradant functions are also used in tires to improve their durability. Automotive production has shown a rapid progression over the years owing to the flourishing demand for fuel-efficient vehicles coupled with rapid urbanization. For instance, according to the International Organization of Motor Vehicle Manufacturers data, in 2021, global automotive production stood at 80.1 million units which represented a 3% increase over 2020’s production volume. Such an increase in automotive production will simultaneously boost the demand for performance additives in the sector, thereby propelling market growth in the future.
Performance additives are majorly applied in paints & coatings, and adhesives application which constitutes a major part of the building & construction sector. The growing demand for residential units owing to population increase, development of architectural sites, and favorable investment inflows by the government is driving the output in the building & construction sector. For instance, according to Eurostat, in October 2021, building construction activities in European Union increased by 4.6% in major countries like France, Spain, Hungary, and Finland. Also, according to Statistics Canada, in November 2021, investments in multi-unit construction increased to 2.4%, whereas commercial construction investments increased by 1.4%. With such significant growth in the building & construction sector, the demand and usage of performance additives are also anticipated to increase, thereby augmenting the overall market growth during the forecast period.
Segmentation