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Paint and Coating Market Reports

New Study Reports Growth in Market for Coating Additives

MarketForecasts-118438237.jpg
February 4, 2019

DUBLIN, Ireland — Rising demand from a multitude of industries is a key factor fueling coating additives sales, and a growing focus on quality is driving demand for coating additives in manufacturing processes. These insights are presented in the latest Fact.MR study, which projects a bullish run for the coating additives market. According to the study, demand for coating additives is likely to reach 1.37 million tons by the end of 2019, up from 1.35 million tons in 2018. The report predicts the coating additives market is poised to expand at a volume CAGR of more than 3.5% over the forecast period of 2018-2027.

According to the report, acrylic-based coating additives will remain the top-selling product type. The popularity of acrylic-based coating additives can be attributed to their ability to enhance product properties and optimize production processes. Urethane and fluoropolymer are the other top-selling additive types.

Demand for rheology additives is likely to reach 449,000 tons in 2018. With the rising demand for low-VOC or VOC-free waterborne coating systems, rheological additives are witnessing increased adoption. Dispersant additives trail the former as the second most preferred function type.

Waterborne coating technology remains the most popular formulation, followed by solvent-based coating technology and powder coating technology. Waterborne coatings are popular due to their ability to offer great resistance to heat as well as abrasion. Additionally, architectural coatings maintain their lead as the largest application segment due in part to the booming number of infrastructure-related projects.

“Robust demand for coatings is poised to be registered from the architectural and industrial applications over the upcoming years. This, in turn, will translate into a significant surge in demand for additives in terms of performance enhancement requirements,” said Fact.MR Research Consultant Pratik Kumar.

Thriving commercial and residential construction activities in Asia-Pacific have propelled the sales of coating additives, making it the most remunerative region for market stakeholders from an investment standpoint. The flourishing automotive sector in the region is also triggering demand for high-performance coating additives, according to the Fact.MR study.

The study also reports that innovative products such as multifunctional additives, silicone-based additives, and green coating additives are expected to witness a spike in demand, giving a major boost to the overall growth of the coating additives market. According to the research study, product developments and technological innovations remain the key factors boosting the bottom lines of companies operating in the market space. Moderate pricing and diverse product portfolios are anticipated to be the major factors driving the industry over the foreseeable future.

The study predicts that the coating additives market will remain a consolidated landscape and predicts the continued influence of leading players with strong product portfolios. The tier 1 players in the coating additives market have been identified to hold approximately 45-50% revenue share and remain highly focused on go-to market strategies aimed at reaching out to the customer segments in a much more efficient manner.

Tier 2 players are focused on development of unique and exclusive products and commercialization of the same at competitive price points to gain substantial revenue benefits. The market players falling into the tier 3 category are shifting their focus toward strategic alliances and partnerships with leading industry players to facilitate expansion. In addition, long-term contracts with domestic manufacturers or suppliers are also a key differential move to tackle volatile pricing as well as uninterrupted supply.

For additional information about the study, visit https://www.factmr.com/report/2427/coating-additives-market.

KEYWORDS: additives for coatings market research firms

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