The global coating additives market size was valued at USD 8.92 billion in 2022. It is estimated to reach USD 14.08 billion by 2031, growing at a CAGR of 5.21% during the forecast period (2023–2031).
Coating Additives are considered the unique element to improve the materials' operational performance by introducing good flow, leveling, and formulation sustainability. The additives are typically utilized to lessen issues related to the manufacturing process composition of the paint system. It is applied to enhance the substrate's resilience, efficacy, viscosity, durability, and general product-type quality. It is frequently used in construction, furniture, automobiles, and other industrial applications.
Coating additives are specialized solutions applied to paints to enhance their quality and performance. These additives can give paint coatings characteristics, including better UV protection, anti-catering, lowered solids dispersion, reduced wettability, anti-chipping, and gloss control. These additives are only a little necessary, but they have a greater impact because they extend the shelf life of paints, make them shine, and enhance their appearance.
|Market Size||USD 14.08 billion by 2031|
|Fastest Growing Market||North America|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
According to a Boeing report, the global aerospace and defense market is expected to reach USD 8.7 trillion by 2027. Growth in the aerospace industry is surging the demand for coating additives. Air traffic is expected to grow by 4.0% by 2039, and the fleet will grow by 3.2% by 2029. This is expected to increase the demand for coating additives as they are applied to the exterior and interior of spacecraft to give airlines an aesthetic and glossy look and prevent airlines' environmental factors such as acid rain, corrosion, yellowing, and microbial contamination.
With increasing aircraft deliveries, the demand for coating additives will accelerate in the coming years. Growing air traffic, aircraft delivery, international trade, and investments in the aviation sector will drive the demand for coating additives in the aerospace industry. In addition, aircraft in the airline industry undergo periodic recoating as part of their maintenance procedures. Coatings protect aircraft from extreme weather conditions, dirt resistance, corrosion, thermal expansion, and contraction variances. The increase in commercial aircraft deliveries and the introduction of wide-body aircraft are expected to boost the demand for coating additives.
Multifunctional additives are critical advances in the coating sector. They have formulated blends of ingredients that constitute deposit control additives, demulsifiers, anti-foam, diluent-solvents, antioxidant and metal deactivators, lubricity improvers, anti-static, anti-corrosion, and cold flow improvers. The demand for multifunctionality additives is growing rapidly because it provide multiple positive effects in a single product. It imparts excellent antiwear, extreme pressure, corrosion resistance, and antioxidant properties to industrial lubricants and grease.
They also represent a cost-effective and efficient way of delivering multiple benefits in a single additive treatment. Several players, such as BYK, King Industries, and Vanderbilt Chemicals, LLC, are offering the product due to the increasing demand for multifunctional additives. For instance, BYK launched new multifunctional additives, BYK-3520 and BYK-3521, which combine good flow and defoaming properties and help in eliminating surface defects. Such factors boost the market growth.
Volatile organic compounds are present in various products, such as coating, adhesives, sealants, printing inks, organic solvents, and petroleum products. Using VOC-containing products releases VOC, a major cause of air pollution and smog. In order to regulate air quality, the government has adopted rules pertaining to the emission of volatile organic compounds (VOCs). These regulations were passed by the governments of regions such as North America, Europe, and China to regulate the emission of VOCs. VOC regulations and emission standards challenge coatings manufacturing companies, restricting market growth.
The coating industry has been substantially impacted due to the stringent government regulations regarding emission norms, forcing manufacturers to shift from conventional coating to environment-friendly coating. Due to their harmful effect on health and the environment, VOC emissions are strictly regulated for coatings makers. In response to these emission regulations, manufacturers are making technological advances in coating additives and using water-borne coatings. Therefore, the demand for bio-based coatings is providing opportunities for coating manufacturers.
Additionally, manufacturers are making strategies to align with industry demands by expanding the production facilities for a sustainable and VOC-exempted market. Due to stringent government regulations that have resulted in the slow growth of traditional coating additives, North America and Europe are the two largest markets. Manufacturers are also making substantial investments in R&D activities to meet the requirement for low VOC content to meet the growing demand for environment-friendly additives.
Based on region, the global coating additives market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Asia Pacific is the most significant global coating additives market shareholder and is anticipated to exhibit a CAGR of 5.79% over the forecast period. The primary elements contributing to the coating additives market growth in Asia-Pacific include rapid urbanization, increasing disposable income, and living standards that have significantly contributed to the growth of construction activities, demand for modern furniture, the growing trend for home-delivered food, and the presence of the automotive industry. Countries that largely contribute to the coating additives market in the Asia-Pacific are China, India, and Japan. The marine industry is also one of the major end-users of coating additives.
Additionally, the demand for coating additives in the marine industry is growing in Asia-Pacific due to the emergence of China as an influential player in the shipbuilding industry. India, Indonesia, Vietnam, the Philippines, and Vietnam are the major countries for shipbuilding in Asia-Pacific. With the presence of a 95,000 km coastline in Indonesia, the abundance of both renewable and non-renewable resources such as fisheries, offshore oil and gas, ports, and support from the government to boost the marine industry, coating additives vendors have a huge opportunity to flourish in the Indonesian market.
North America is estimated to exhibit a CAGR of 4.96% over the forecast period. The market for coating additives in North America is driven by increased construction, automotive, marine, and aerospace industries and demand for packaged food. In North America, the US is one of the largest construction markets. In the first quarter of 2020, the construction industry contributed more than USD 910 billion to the US economy and employed around 7.63 million people in February 2020. Upon the onset of the COVID-19 pandemic in the United States, the industrial sector experienced a substantial decline, resulting in an approximate loss of USD 60.8 billion in Gross Domestic Product (GDP). Some construction activities were exposed to COVID-19, such as hospitality and retail.
In contrast, a few projects experienced several challenges, such as delays, cancellations, and difficulty gaining permits. The end of the lockdown measures has consequently initiated the commencement of numerous projects that were previously in progress. Moreover, 1,881,000 units got approval for construction buildings, and 1,58,000 housing construction was started in Jan 2021. Therefore, numerous ongoing residential and non-residential projects are expected to drive the need for greenhouses and government funding for non-residential construction initiatives, thereby increasing demand for coating additives.
Europe is widely recognized as one of the most significant and prosperous economic regions globally, with many highly developed nations such as the United Kingdom, France, Italy, and Spain. Europe has had significant growth in standard of life, per capita income, and the adoption of innovation and technology since the advent of the Industrial Revolution. This phenomenon has resulted in the establishment of globally renowned companies in the automotive, construction, furniture, and military sectors. Therefore, the demand for coating additives is expected to experience significant growth over the forecast period.
In Latin America, the construction, automotive, marine, and oil and gas industries drive the market for coating additives. Latin America is home to over 624 million people, and 80% of its population resides in cities. The demand for housing and hotels is accelerating the growth of the construction industry. There were about 228 buildings in the works in 2021, about 106 hotels expected to be finished by 2022, and another 55 hotels planned for 2023. Hence, with the existing opportunities in the construction industry, the market for coating additives will rise during the forecast period.
In the Middle East and Africa, the automotive, construction, and aerospace industries are major factors driving the demand for coating additives. Several residential and non-residential projects are under construction, such as the Red Sea Project, Riyadh Metro, Riyadh Rapid Bus Transit, Akoya by Damac, Dubai Frame, and Dubai Metro Expansion in Saudi Arabia, and UAE will lead the market for coating additives due to their application on walls to prevent corrosion, formation of biofilm, and microbial contamination.
The key global coating additives market players are AkzoNobel NV, BASF, BYK, Evonik Industries, Arkema SA, Sherwin-Williams, King Industries, Inc., Eastman Chemical Company, DOW Chemical Company, The Lubrizol Corporation, Angus Chemical, Lonza Group, Cabot Corporation, Daikin Industries, Solvay Chemicals, and others.
The global coating additives market is segmented by formulation, function, type, and end-user industries.
Based on formulation, the global market is bifurcated into solvent-borne, water-borne, and powder-borne.
The water-borne segment dominates the global market and is projected to exhibit a CAGR of 6.18% over the forecast period. Water-borne coatings are surface coatings that use water as a solvent to disperse the resins added to create coatings. They constitute 80% water and 20% solvents. The outer finish of water-borne coatings is almost like that of solvent-based coatings. The raw material used to manufacture water-borne coating is synthetic resins, pigments, surfactants, and additives.
In addition, the three types of water-borne coating are water-soluble, water-dispersible coatings, and emulsions. Water-borne coatings are used in confined or poorly ventilated spaces because evaporation of solvents can be uncomfortable to workers or can cause fatal diseases and absorb flammable materials that build up in confined spaces. Hence, projects such as storage tanks and railroad tanks use water-borne coatings.
Based on function, the global market is segmented into rheology modification, defoamer, biocides impact modification, wetting and dispersion, and others.
The rheology modification segment owns the highest coating additives market share and is estimated to exhibit a CAGR of 5.98% during the forecast period. Rheology modifiers are vital additives used in paints, coating, and ink to control fluid products' specific properties and characteristics. Rheology modifiers control the spattering of paint, coating, or ink in all directions. Otherwise, it would have been runny as water. Rheology modifiers are important ingredients that play a vital role in the success of painting at every stage, from manufacturing to storage and transportation. For instance, rheology modifiers control the sedimentation of the pigment in the formulation during the storage and transportation of paint. They are vital chemical additives that play an important role in developing high-performance coatings.
Based on type, the global market is divided into acrylic, fluoropolymer, epoxy, urethane, and others.
The acrylic segment is the most significant contributor to the market and is predicted to exhibit a CAGR of 5.94% over the forecast period. Acrylic is the most widely used polymer in the coating industry. Acrylic additives are primarily based on acrylate and methacrylate monomers, providing good weather resistance, color and gloss retention, excellent durability, and remarkable resistance against water and UV rays. It is easy to apply, stable under extremely cold temperatures, and cost-effective compared to other materials. In addition, acrylic-based coating additives are used extensively in dispersants, anti-foaming, and wetting agents, providing properties such as glossy finish, glazing, and other properties. Acrylic paints are mainly used outdoors and are being largely replaced by water-based acrylic coatings due to environmental reasons.
Based on end-user industries, the global market is divided into automotive, construction, furniture, industrial, aerospace, and others.
The construction segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 5.69% over the forecast period. Coating additives have increased due to the number of construction projects in world regions, such as Asia-Pacific, Europe, and North America. Coating additives prevent corrosion and rust of metallic parts of tanks, radiators, fences, and metal furniture. It is also applied to wall paintings, sculptures, furniture, and wood flooring. It is applied on the exterior and interior of houses for a stronger aesthetic appeal, resilience to UV rays, and to prevent the building from microbial contamination as well exterior outlook from fading during rain and intense summer and winter seasons.
Furthermore, the utilization of water-based technology has exceeded that of solvent-based coatings within the building sector. The demand for water-borne coatings in architecture has been driven by stringent government restrictions and a growing awareness of the detrimental effects of volatile organic compounds (VOCs) on the environment.