Decorative Coating Additives Market Size Forecast to Reach $8.3 Billion by 2026
Decorative Coating Additives Market is forecast to reach $8.3 billion by 2026, after growing at a CAGR of 5.2% during 2021-2026. The increase in the use of paints & coating in the building & construction industry for new construction or for the repair & maintenance work, which in turn will lead to an increased demand for decorative coating additives. Further, rising public and private investment in the construction sector is fueling the demand of decorative coating additives. In addition, the growing market for environmentally friendly products is driving new prospects in the forecast era for the development of the decorative coating additives industry.
Impact of Covid-19
COVID-19 has exposed challenges for the decorative coating additives market by impacting the construction sectors. Each country across the globe are affected due to pandemic and resulted in a slowdown in construction activities owing to which declination in revenue is expected in the year 2020.
Decorative Coating Additives Market Segment Analysis – By Formulation
Water based segment held the largest share in the decorative coating additives market in 2020. In order to improve viscosity, reduce foam, control shine, control flow, add anti-chipping capacity, and allow the coating to be more impact resistant to improve its performance, water-based coating additives change the properties of coatings. Formulations for water-based coatings increase performance by adding long-term water repellency to the paint itself. It also increases the life, value, and efficacy of all decorative coating additives in an additive manner. The development of water-based coating additives continues to target high performance in the forecast timeframe for long-term, multi-use, environmental protection and safety purposes.
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Decorative Coating Additives Market Segment Analysis – By Additive Type
Rheology Modifiers held the largest share in the decorative coating additives market in 2020. During roller or brush application, rheology modifiers quickly remove the spattering and dripping of coatings. In addition, pigment sedimentation is often reliably stopped by rheological modifiers during the preparation and transport of coatings. Coating additives for Rheology modifiers are available in different forms such as powder, paste, and liquid to suit the manufacturing restrictions of the formulators. It also has added functions, such as wetting properties, and environmental or health benefits, such as free APEO, VOC, odor and heavy metal formulations. The market for decorative coating additives is therefore predicted to grow in the forecast period with an increase in demand for rheological modifier additives.
Decorative Coating Additives Market Segment Analysis – By Application
Residential construction segment has dominated the decorative coating additives market in 2020, and is growing at a CAGR of 5.8% during the forecast period 2021-2026. The residential industry is the main end-user market for decorative coating additives. The rising middle-class population, along with increased disposable incomes, has encouraged a rise in the middle-class housing market. For example, the government launched the ‘Housing for All by 2022’ scheme in India, which is expected to substantially drive the low-cost residential construction segment of the country over the coming years. Furthermore, under the Pradhanmantri Awas Yojana, the Indian Government has taken a decision to give interest subsidies of 3% and 4% for loans, to the lower strata of society in relation to the purchase and building of homes. In fact, the growing demand for construction provides a continuous boost to the residential industry, pushing the demand for additives for decorative coating in the residential sector.
Decorative Coating Additives Market Segment Analysis – By Geography
Asia Pacific dominated the decorative coating additives market in 2020 in terms of revenue with a share of 42.5% and is projected to dominate the market during the forecast period (2021-2026) followed by Europe and North America. This is due to the rising need for additives for decorative coatings in construction of residential, commercial, and industrial buildings. Asia Pacific is the largest producer of paint & coatings in 2020, accounting for about 47% of the market share. Thailand government announced plans to allocate THB4 billion (US$125.6 million) in the first half of 2019 to fund five low-cost housing projects in the region, while the government allocated THB650 billion (US$20.4 billion) to capital spending in the 2020 budget, which promotes business growth.
Singapore total construction demand is valued based on construction contracts, is expected to range between $28 billion and $33 billion in 2020, led by public sector building projects including public housing, as well as private sector projects such as the continued redevelopment of en bloc residential sites and berth facilities at Jurong Port and Tanjong Pagar Terminal. The construction sector accounts for about 4 per cent of Singapore’s total gross domestic product. With investment in infrastructure both a priority and necessity for governments and firms are collaborating on urban solutions and infrastructure projects as they seek to boost trade flows and connectivity, which supports the growth of that Malaysia’s decorative coating additives market. Therefore, demand for the decorative coating additives market is expected to increase over the forecast period in the APAC region.
Decorative Coating Additives Market Drivers
Increasing demand for water-based paints & coatings from the construction industry
The rising demand from the building industry for water-based coatings serves as an incentive to expand the market for decorative coating additives. In the expected timeline, water-based coatings are anticipated to dominate the market. Environmental regulations have led to a drastic transition, especially in North America and Europe, from solvent-based to water-based materials for architectural and industrial applications. Water-based coatings do not contain cleaning solvents that reduce toxic waste generation and eliminate VOC pollution during use, making them less harmful to humans and animals. As a result, its growing adoption is expected to generate opportunities for business growth over the forecast period in the global market for decorative coating additives.
Growth in the residential and the construction industry will drive the market
The residential construction industry with escalating renovation and new infrastructural projects are expected to enlarge the decorative coating additives business. Europe has experiencing strong growth in the construction industry after APAC. This has stimulated the product demand for decorative coating additives across the region. The significant rise in remodeling and renovation projects across the residential sector has driven the decorative coating additives market.
Decorative Coating Additives Market Challenges
Strengthening regulations on solvent-based paints & coatings limits on the use of additives
The use of additives is forbidden by the strict regulations of various governments and organizations on the adoption of solvent-based coatings containing volatile organic compounds (VOCs). For both manufacturers and users of coatings, these regulations are being formulated. For example, the U.S. In compliance with the National Volatile Organic Compound Emission Requirements for Industrial and Consumer Goods, the Environmental Protection Agency (EPA) has established regulations for the use of VOCs. Increasing health awareness and inexorable VOC material policies in different regions have forced producers to reduce the quantity of VOCs in paints and coatings. Moreover, numerous sustainability initiatives have led to a high degree of transition into greener buildings. This will also restrict the use of products dependent on solvents, which will reduce the increase in consumer demand.
Fluctuating prices
However, economic allocation holds the main drawback of being highly dependent on market shifts in time and by region. The price reliance applies to the material’s local supply. Low prices and low economic allocation coefficients are indicated by high supply. Under certain conditions, from an environmental point of view, the more intensive use of supplementary cement materials is interesting. If they are locally unavailable and need to be imported, due to the rise in price, their advantage easily declines by economic allocation.
Decorative Coating Additives Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Decorative Coating Additives Market. Major players in the Decorative Coating Additives Market are AkzoNobel, BASF, Sherwin-Williams, Dow Chemical, Eastman Chemical, DuPont, Encore Coatings, Dynea, PPG Industries, Nippon and among others.
Acquisition/Product Launches:
In 2018, AkzoNobel has developed a biomass-based performance additive with Renmatix, which improves the properties of decorative paints.
Key Takeaways
High production prices, regulatory problems with volatile organic compounds (VOC), durability and the need for more eco-friendly products are the major reasons for rising the market demand for decorative coating additives leading to the innovation of different additives in this sector.
Increasing demand for decorative coating in homes, for greater aesthetics look, is expected to raise the demand for additives in decorative coating over the next few years at a substantial pace.
The investments by government are expected to improve the construction industry rapidly, further boosting coating consumption which resulted in increased demand of additives
Related Reports :
A. Decorative Coating Market
https://www.industryarc.com/Report/11716/decorative-coating-market.html
B. Coating Additives Market
https://www.industryarc.com/Report/11678/coating-additives-market.html
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