The coating additives market is anticipated to flourish at a healthy CAGR of 4.8% between 2023 and 2033. The market is expected to hold a market share of USD 17.77 billion by 2033, while the market is likely to reach a value of USD 11.12 billion in 2023.
Growing demand for coatings additives from various industries such as automotive, architecture, wood & furniture, and others is expected to drive the market. Considering this, global coating additives sales are projected to increase by 1.6x in 2022.
These coating additives are technologically advanced with complex formulas and are induced in paints to enhance quality and performance. On the back of the advancements in coating additives technology, demand in the market is predicted to increase steadily over the forecast.
As coating additives are required to comply with stringent zero-VOC emission regulations, several governments across the globe are increasing the demand for eco-friendly additives.
Hence, the emergence of green coating in several industries, such as automotive, industrial, and others, may boost sales in the coating additives market.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 4.8% |
| Coating Additives Market Size (2023) | USD 11.12 billion |
| Coating Additives Market Size (2033) | USD 17.77 billion |
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Sales in the global coating additives market increased at a CAGR of 4.0% between 2018 and 2022, spurred by rising demand from a wide range of industries.
Coating additives are among the most crucial ingredients in a coating formulation as they regulate its performance. These additives are used in various products, including automotive coatings, furniture, and construction.
Coating additives are a subset of chemically engineered materials with numerous use fields. These materials' performance improvements have led to widespread incorporation into coatings formulations.
Improved wettability, rheology, dispersion, UV protection, chemical resistance, and high-temperature stability are some chemical properties that add to the formulation.
Due to these factors mentioned above, and the expansion of industries, the demand in the market is likely to burgeon over the upcoming decade.
Further, the primary focus of the coatings additives market is the development of additives that do not improve performance and allow consumers to create products that adhere to local and international environmental standards.
Hence, key players are developing multifunctional additives to address the issue of using various additives to combat various mechanical properties of coatings.
By streamlining the chemistry of the coating, this new mixture facilitates the application of various additives. They lower the total additive content, which lowers raw material inventories, lowers coating costs, and increases manufacturing output.
Preference for Customized Coatings to Fuel the Demand in Coating Additives Market
Coating additives are substances added to paints to raise their performance and quality. These additives are used to improve product characteristics and eliminate or lessen issues that arise during the production processes for formulating paint systems.
One of the key factors fueling the growth in the market is the rising demand for environmentally friendly products around the world. Ongoing developments in the chemical industry accelerate growth in the market, the expansion of the automotive and construction industries, and the extensive use of raw materials to improve the quality and application of coating formulations.
The coating additives market is also expected to benefit from increased research and development (R&D) activities and rising demand for multifunctional additives. As per the study, key players are likely to capitalize on the rising preference for long-lasting and appealing finishes and the popularity of customized coatings.
One of the key factors that may hamper market growth is the volatility of the pricing of raw materials.
Fluctuations in the cost of raw materials like acrylate, silicones, and urethane are expected to hinder market growth. In addition, strict environmental regulations implemented by government & regulatory bodies are anticipated to slow down the market's growth.
The market for coating additives is expected to face difficulties during the forecast period due to volatile organic compounds (VOC) emissions.
| Country | Revenue Share % (2022) |
|---|---|
| United States | 17.0% |
| Germany | 5.2% |
| Japan | 4.4% |
| Australia | 1.2% |
| Country | CAGR % (2023 to 2033) |
|---|---|
| China | 5.5% |
| India | 5.9% |
| United Kingdom | 3.9% |
Application of Coating Additives in the Construction Industry to Boost Sales
The United States is expected to hold a prominent value share of 15.3% in the global coating additives market by 2022. Coatings are essential products for the protection of a wide range of applications in architecture, construction, and automotive, among others. As the US economy greatly benefits from the construction sector, the coating additives market is likely to benefit from the same.
Further, the development and remodeling of the United States vast infrastructure, including bridges, roads, freight rail, ports, and electrical grids, may push the demand in the market. Demand for coating additives is also propelled by rising investment in the residential construction industry and demand for remodeling aging structures.
Coating Additives Providers Eyeing China Market to Capitalize on Rising Application in Infrastructure
China is a significant paint producer, providing a sizeable portion of the global paint supply. The output of coatings in China has increased, especially as an application in the paint and construction sectors rises. Domestic consumption is rising due to the rapid expansion of industries such as real estate and automotive.
Expanding construction, automotive & industrial sectors in China are favoring the growth, predicts FMI. The growing construction projects in various industries, including residential, commercial, industrial, and power & utility construction, are facilitating the demand.
The development of the residential construction industry is likely to be fueled by a growing focus on affordable housing in the public and private sectors. In the upcoming decade, it is also anticipated that non-residential infrastructure may grow significantly.
This growth may propel the demand for paints & coatings, boosting the demand for coating additives. Based on these factors, China's coating additives market is expected to grow at a CAGR of 5.6% during the projected period.
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| Category | By Formulation Type |
|---|---|
| Leading Segment | Solvent-Based |
| Market Share (2022) | 58.7% |
| Category | By Application |
|---|---|
| Leading Segment | Rheology Modification |
| Market Share (2022) | 33.7% |
Sales of Coating Additives to Surge in Rheology Modification at a Robust Pace
In terms of application, the rheology modification segment is expected to be the leading segment in the coating additives market. In addition to modifying fundamental elements like stability, storage, and film thicknesses, they control flow viscosity. Rheology additive demand is increasing as coating additive manufacturers focus more on raising the quality.
Hence, these leading players are investing in research to make coatings extremely viscous, enhancing their textural qualities, and extending their shelf life may be notable examples. Since the flow behavior of coating compositions greatly affects both application and film formation, application in rheology additives is predicted to rise.
Additionally, rheology modifiers are required to formulate coating additives for architectural coatings to meet the rising demand for soft-texture coatings. The rheology modification application is expected to hold around 29% of the value share for the year 2023.
To meet the growing demand for functional additives, leading coating additive producers are creating novel products and widening their geographic reach. To have a strong presence in the global market, they are also signing long-term supply contracts with raw material suppliers and end users.
Recent Developments
Key Players
The market is expected to be valued at US$ 11.1 billion in 2023.
Akzo Nobel NV, Arkema SA., and Ashland Global Holdings Inc. are the key market players.
From 2018 to 2022, the market registered a CAGR of 4.0%.
Growing demand from various industries such as automotive to boost the market prospects.
The market is forecast to register a CAGR of 4.8% through 2033.
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Coating Additives Market
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