(I-BusinessNews.Com, June 09, 2021 ) Paint Additives Market size is forecast to reach $10.5 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. Additives are used to overcome defects in the paint like foaming to enhance their performance, efficiency, and functionality. The development of construction sector coupled with the rising population is driving the demand of paints and coatings that further propels the growth of paint additives market. Whereas, the growing transportation sector also contribute towards the market growth. The additives are used as a coating for the application on passenger and container ships to help them from the harsh environment at sea, this will likely drive the markets growth. Furthermore, the additives present in solvent-based paints provide a protective coating for the industrial machine from moisture, chemicals, and erosion this enhances the life of the equipment and reduces the maintenance cost for the manufacturer. This will further boost the demand for the paint additives in the forecasted period.
Paint Additives Market Segment Analysis - By Formulation
The Water Based segment is projected to witness the highest CAGR of 8.3% during the forecast period in the paint additives market during the forecast period. This growth is attributed to the growing demand for environment-friendly paints and stringent environment safety norms globally. For instance, according to an Australian Bureau of Statistics report, around 77% of paint used in Australia is water-based. Water-based paints contain microscopic plastic particles of binder and fillers that are water-soluble but they become water-resistant when dry. The use of water-based paint has many advantages such as they emit fewer organic fumes compared to oil paints, water-based paints don’t need an organic-based solvent. Moreover, water-based paints are more suitable for application on furniture and wooden materials, as they allow the wood to shrink and expand without letting cracks occur. Besides, the growing demand for low VOC paints and environment-friendly paint solution drive the demand for water-based paints, which in turn propels the growth of this market.
Paint Additives Market Segment Analysis - By Additives Type
Rheology Modifier segment held the largest share of more than 25% in the paint additives market in 2020. The growing uses of Rheology Modifier in architectural, industrial, and automotive applications drive the market growth. Rheology Modifier enable formulators to change the structure or flow of materials along with it also improves the viscosity and thickness of coated surfaces. In addition, Rheology Modifier offers smooth finish and functionality to the substrate surface and has wetting properties that provides health or environmental benefits such as suitability for formulations free of VOCs, odors, APEOs, and heavy metals. Such benefits, will aid the demand of Rheology Modifier, which further drive the paint additives market.
Paint Additives Market Segment Analysis - By End Use
Building & Construction segment held the largest share of more than 40% in the paint additives market in 2020. Architectural coatings are meant to protect and decorate the surface features. The growing uses of paint additives in the residential and commercial buildings to improve corrosion resistance, water resistance, thermal resistance, and abrasion resistance drive the market growth. The growth in the building and construction, highway, dams, and smart cities in the developing nations also contribute to the growth of architectural industry, which further propels the growth of paint additives market. The Oxford Economic has forecasted the volume of construction output will rise by 85% to $15.5 trillion globally by 2030, with China, the United States, and India together accounting for 57% of all global growth. Besides, improvements in the living standards of people and rapid urbanization also contribute to the growth of the architectural sector. This growth in the architectural segment further creates an opportunity to the growth of paint additives industries.
Paint Additives Market Segment Analysis - By Geography
Asia-Pacific dominated the paint additives market with a share of more than 45% in 2020 followed by the North America and Europe region. The increase in construction activities and growth of the automobile sector especially electric vehicles in the region drive the market growth. According to the United Nation report, in 2019, around 60% of the global population resides in Asia, this creates an opportunity and demand for residential spaces in the region. The presence of developing economies and surging government’s spending on infrastructure projects, also contribute to the growth of the market in APAC region. Besides, the Automobile sector is showing a positive sign in India in a post-COVID-19 situation. For instance, as per vehicle registration data published by (Federation of Automobile Dealers Associations) FADA in 2020, the passenger car sales in September 2020 were 1,95,665 units which registered a positive YoY growth of 9.8%. As compared to 1,78,189 units sold in September 2019, which is showing an economic recovery in the region and a positive sign for the growth of paint additives market during the forecasted period.
Growing demand for low VOC paints globally is driving the growth of global paint additives market. Low VOCs enables cleaner air, easy cleanup, and cost-effectiveness along with more durable & long-lasting. Moreover, Strict regulation of VOC emissions and favourable government measures to promote the use of Low VOC Paint coupled with accelerative demand for manufacturing of Architecture & Decorative paint in Asia-Pacific and Europe are some key variables influencing the industry. Furthermore, increasing concerns towards environmental and health is expected to encourage the adoption of water-based paint additives. Therefore, an increase in the adoption of water-based paint systems across various end-use sectors is expected to boost the paint additives market in the forecasted period.
Growth of Paint and Coating Industry
The paint and coating industry is expected to drive market growth due to an increase in demand from the automotive, manufacturing, and construction sector. Rapid urbanization and industrialization in developing economies especially in China, India, and Brazil are boosting the demand for paint and coatings in different applications. According to American Coating Association (ACA), APAC is dominating the market with 53% of share in the global market in 2018, while China, India, Japan, and South Korea accounting for 87% of share in the region. The growth in paint and coating industry will have a positive effect on paint additives market.
Paint Additives Market Challenges
Regulations on VOCs & Price Volatility
VOCs are solvents that get released into the air as the paint dries, this causes health and environmental concerns. Exposure to VOCs such as toluene, xylene, acetone, formaldehyde, and benzene leads to short or long-term health effects. As there is growing health and environmental concern regarding the emission of VOCs, the governments around the world have put certain regulation on VOCs. For instance, The U.S. EPA regulates VOCs at Federal level in 40 CFR 59, which is the National Volatile Organic Compound Emission Standards for consumer and commercial products. Such, regulations are likely to hamper the market growth. Furthermore, the volatile raw material prices and the high cost associated with producing low VOC paints is the main challenge faced by manufacturers. Manufacturers are struggling with three criteria of stable pricing, enhanced usability, and green chemistry in low VOC layers, which is hampering the markets growth.
Emergence of the Covid-19
The COVID-19 pandemic continues to unfold everyday with severe impact on people, communities, and businesses. The growth in several industries will be impacted significantly while numerous other markets may remain unscathed and show promising growth opportunities. The growing pandemic situation has led to the weakening demand for paints and coatings in construction and automotive industries. This is mainly due to the global lockdown and decline in production. Besides, the decline in passenger vehicles demand is expected with discretionary spend taking a backseat. All the factors will have adverse effect on paint additives market in the forecasted year and will likely slow the growth of the market.
Paint Additives Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Paint Additives Market report. Major players in the Paint Additives Market are Evonik Industries AG, Daikin Industries Ltd., Arkema SA, Arch Chemicals, Lonza Group AG, Asahi Glass Co., Ltd., BYK-Chemie GmbH, BASF SE, AkzoNobel N.V., Ashland Global Holdings, Inc., and among others.
In April 2020, Evonik Industries AG launched TEGO® Foamex 9, a new mineral-oil-based defoamer and dispersants for architectural paints and pigment concentrates. With this new launch, Evonik strengthened its products offering across various end-use applications.
In November 2019, AkzoNobel N.V. completed the acquisition of French aerospace coatings manufacturer Mapaero. With this acquisition, AkzoNobel strengthen its global position in aerospace coatings, which further contribute to the growth of paint additives market.
Key Take away
North America region is projected to witness a significant growth due to the growing construction, aviation, and automobile industry. Furthermore, an increase in government spending on renovation or construction of residential and commercial buildings, especially in Canada, will propel the markets growth.
The rapid industrialization in developing economies like India, Brazil, and Bangladesh further propels the demand for industrial paint, which in turn drive the growth of this market during the forecast period.
Increasing demands for eco-friendly and zero volatile organic compound (VOC) also contribute to the growth of this market.
The outbreak of COVID-19 acts as a major challenging factor to the growth of this market.
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