ResearchAndMarkets.com04.08.20
The coating additives market is expected to grow at a CAGR of 5.98% between 2020-25 to reach $10.59 billion by 2025, according to ResearchandMarkets.com.
The market was worth $7.47 billion in 2019, per ResearchandMarkets.com.
Coating additives are widely used for painting exteriors of buildings, automobiles, woods & furniture, aviation, and others. The wide application of coating additives is due to their exceptional performances in maintaining the exterior paint works efficiently. Major driving factors behind the spur in the coating additives demand is high rate industrial expansion in Asia-pacific, rise in demand for eco-friendly products, and growing demand for multifunctional additives.
The coating additives market is anticipated to face challenges over the near future due to its effects on the environment, and various strict regulatory frameworks in various geographic regions. Manufacturers and suppliers are focusing on the development of eco-friendly bio-based and water-based products for customers and are foreseen as an opportunity during the next five years. However, stringent regulatory frameworks in various countries are anticipated to impend the market growth of the coating additives market.
The automotive industry utilizes coating additives on account of various advantages ranging from improving the pigment effect and enhancing coating performance to environmental friendliness while reducing cost. Increasing the use of waterborne, solvent-free coatings and high solids over and above traditional solvent-borne technologies in the automotive industry is expected to boost the demand for coating additives during the forecast period. The revival of the automotive industry in many parts of the world is anticipated to boost the demand for coating additives in the coming years.
Waterborne formulations contain fewer toxins that do not pollute the air compared to other forms and are also less flammable and hazardous making it a perfect product for manufacturers across different industry verticals. The employees also enjoy the healthier ambient condition while the application of waterborne technology as it produces few toxins in the air. Also, with high gloss finish without an increase in the level of cost the manufacturers ideally prefer this type of formulation in the manufacturing process. Furthermore, waterborne coatings hold up well to heat and protect the automotive body armor from corrosion; they are also highly abrasion resistant and can maintain their glossy finish for the long term. Due to such cost and technical benefits of waterborne over other forms of formulations the market is anticipated to witness exponential growth in the coming years.
By geography, the global coating additives market has been segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific regions. The Asia Pacific accounts for the significant share of the coating additives market in the base year and is projected to maintain its position throughout the forecast period. This growth is attributed to the strong presence of key players in the region and established the automotive industry. The region is showing significant growth opportunities owing to expanding the construction industry in the region and favorable government policies for the development of the manufacturing sector.
