Intermediates for the Paints & Coatings Market Trends
Growth Drivers
- Growing Demand for Paints & Coatings – As the need for paints & coatings is rising across the globe, more intermediates are required for their production. For instance, ingredients such as binders, pigments, thickeners, curing agents, modifiers, humectants, open-time additives, alkyd latex resins, and polymers are used to create finished aqueous or solvent-borne paint and coating products are known as intermediates and are utilized to generate paints and coatings in the final useable form.
Challenges
- Exorbitant Cost of Intermediates - The high cost is one of the major factors predicted to slow down the market growth. For instance, the price of raw materials keeps on fluctuating as the materials are not easily available. This as a result can increase the overall cost of the intermediates.
- Unavailability of Raw Materials
- Strict Environmental Regulations
Intermediates for the Paints & Coatings Market: Key Insights
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Programme), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favourable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labour as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
8.9% |
|
Base Year Market Size (2024) |
USD 295.02 billion |
|
Forecast Year Market Size (2037) |
USD 893.75 billion |
|
Regional Scope |
|
