Vinyl Acetate-Ethylene Emulsions Market Trends
Growth Drivers
- Expansion of the Construction Industry – The demand for vinyl acetate-ethylene (VAE) emulsions in the construction industry is rising considerably owing to the higher water resistance, great temperature resistance, plasticizers, and superior processing qualities. Furthermore, vinyl acetate-ethylene (VAE) is considered a better option for binding purposes to non-porous surfaces, such as coatings, plastic laminates, vinyl, metals, glass, aluminum, and others. Thus, the expansion of the construction industry is anticipated to bring lucrative opportunities for market growth. For instance, the global construction industry amounted to almost USD 6 trillion in 2020, and it is expected to reach almost USD 14 trillion by 2030.
- Rapid Growth of the Automotive Industry - Vinyl acetate-ethylene (VAE) emulsion is a vital component in the automotive industry for its usage as a high-quality adhesive, plastic, and aesthetic coating. Thus, the rapid growth of the automotive industry is anticipated to generate opportunities for increasing the utilization rate of vinyl acetate-ethylene (VAE) emulsion, thereby aiding a robust revenue generation for market growth in the forecast period. Recently, it has been calculated that the global automotive manufacturing industry amounted to almost USD 3 trillion by the end of 2021.
- The Boom in the Textile Sector – It has been stated that the global textile industry garnered almost USD 2 trillion in 2022, and is further projected to rise with a steady CAGR of around 5%.
- Escalation in the Chemical Industry – As per recent statistics, it has been revealed that the revenue generated by the global chemical industry stood at around USD 5 trillion in 2021 which is forecasted to grow during the near future.
Challenges
- Constant Fluctuation in the Prices of Raw Materials – The manufacturing process of vinyl acetate-ethylene (VAE) emulsions requires a lot of raw materials. Unfortunately, the prices of these raw materials keep on fluctuating owing to the rising government rules and regulations and other factors. As a result, the raw materials become less accessible for small to medium-sized enterprises, which subsequently hampers the growth of the market in the forecast period.
- Rising Stringent Government Rules
- Less Awareness Level about the Advantages
Vinyl Acetate-Ethylene (VAE) Emulsions 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 |
5.3% |
|
Base Year Market Size (2024) |
USD 2.21 billion |
|
Forecast Year Market Size (2037) |
USD 4.32 billion |
|
Regional Synopsis |
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