These insights are according to the latest Fact.MR study that projects a bullish run for coating additives market. According to the study, the demand for coating additives is likely to reach 1.37 million tons by 2019-end, up from 1.35 million tons in 2018.
As per the report, acrylic based coating additives will remain the top-selling product type. The popularity of acrylic based coating additive can be accredited to its competency in enhancing product properties and optimizing production processes. Urethane and fluoropolymer are the other top-selling additive types.
Demand for rheology coating additives is likely to reach 449,000 tons in 2018. With the rising demand for low-VOC or VOC-free waterborne coating systems, the rheological additives are witnessing revved up adoption. Dispersant additives trail the former as the second most preferred function type and offering prime opportunities for the market players to take into consideration.
The waterborne coating remains the highly sought-after formulation, followed by solvent-based coating and powder coating. Waterborne coatings are being increasingly sought on the back of their competency to offer great resistance to heat as well as abrasion. Moreover, architectural coatings maintain their lead as the largest application segment and the booming number of infrastructure-related projects extrapolate the same.
“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 research consultant Pratik Kumar from Fact.MR.
The thriving commercial and residential construction activities in Asia-Pacific have been spurring the sales of coating additives, making it the most remunerative region for the market stakeholders from an investment-making standpoint. The flourishing automotive sector in the region is also triggering the clamor for high-performance coating additives, finds the Fact.MR study.
The report also indicates 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 coating additives market. According to the research study, product developments and technological innovations remain the key facets boosting the bottom lines of companies operating in the market space. Moreover, moderate pricing and diverse product portfolio are anticipated to be the major factors driving the industry over the foreseeable future.
The study envisages, the coating additives market remains a consolidated landscape and portrays the reign of leading players with strong product portfolios. The tier 1 players in the coating additives market have been identified to hold approximately 45-50 percent revenue share and remain highly focused on go-to-market strategies aimed for reaching out to the customer segments in a much more efficient manner.
Tier 2 players are focused on the 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 giants for affluent expansion. In addition to that, long-term contracts with the domestic manufacturers or suppliers have also been identified to be a key differential move to tackle volatile pricing as well as uninterrupted supply.
As per the report, the coating additives market is poised to expand at a volume CAGR of more than 3.5 percent over the forecast period, 2018-2027.