Coating additives market share is expected to grow at a significant rate during the forecast period 2021-2027. The future trends in the market can be closely tied to the ongoing developments in and the expansion of automotive and construction sectors. Paints and coatings are experiencing robust demand globally as they are abundantly used in automotive and architectural applications. The demand for coatings as well as coating additives across the industrial sector will create a strong outlook for the market expansion.
Coating additives are widely used as raw materials to enhance the quality and application of coating formulations. These additives are typically added to coatings in small quantities and help improve their performance and efficacy. Improved durability, better aesthetic appeal, and resistance against corrosion and other environmental factors are prime benefits of coating additives. These formulations can also enhance the texture and overall finish of the coating applied.
Coating additives are primarily used automotive, architectural, and industrial applications, among others. Among these, the automotive sector contributes towards a massive share of the coating additives industry. In the automotive sector, additives are used in coating formulations to be applied on parts and components for enhanced surface and environmental protection, texture enhancement, scratch resistance, and corrosion resistance. The growing consumer preference for a durable and aesthetic finish and the increasing popularity of customized coatings will accelerate the product demand significantly.
In terms of the regional landscape, the market for coating additives in North America will experience rapid growth and development through 2027. The regional growth can be primarily attributed to the presence of major automakers in the region. North America is one of the leading automobile manufacturers in the world. The rise in vehicle ownership, the growing number of vehicle renovations, and the demand for aesthetic automotive coatings will drive the regional market forward. Additionally, the increasing consumer spending on home renovation and refurbishment will augment the product demand in the future.
BASF, Cabot, Solvay S.A., ANGUS Chemical Company, Lubrizol (Berkshire Hathaway), and Kamin are some of the top players in the coating additives industry. In anticipation of an increasing market demand, these companies are looking to expand their production capacities and setting up new manufacturing facilities. Numerous companies are also adopting approaches such as acquisitions, mergers, and strategic alliances, to build a robust product portfolio and boost their market presence. In June 2021, for instance, BASF had expanded its biopolymer products line-up with the introduction of the new Hydagen Clean, a cold processable rheology modifier.
How has COVID-19 impacted coating additives market forecast?
The impact of the COVID-19 pandemic on the coating additives industry has been monumental. With nationwide containment measures enforced by the respective governments, the coating additives manufacturers witnessed numerous challenges, including workforce shortage and supply chain, and stricter government protocols. In addition, major automotive production, construction, and industrial activities were forced to shut down temporarily, leading to a reduced produce demand.
As the COVID-19 situation improves and industrial activities resume, the coating additives market will certainly bounce back, witnessing a positive growth trend over 2021-2027. Coating additives manufacturers are expected to ramp up production capacities to meet the global market demand.