The coatings additive market

The coatings additive market

The global coating additives market size was EUR 6.99 billion in 2018 and is projected to register a CAGR of 6.14% between 2018 and 2023. Currently, the Asia Pacific region leads, in terms of coating additives demand, and the trend is expected to continue in the coming years.

By Annirban Bhattacharya, Markets and Markets

The consumption of coating additives in Asia Pacific was around 41 % in 2018, which was more than that in North America, in the same year (Figure 1). The major contributors to the market growth in the region are the fast-growing economies, including China, India, and South Korea that constituted more than 80 % of the total regional consumption in the same year.

Additives are used in small quantities in solvent-borne, water-borne, and powder-based coatings. Additives constitute an average of 0.1–5 % of a formulation’s concentration, which controls properties like rheology, slip & rub, wetting & dispersion, and foam reduction, making it an essential part of the formulation.

The water-borne coatings segment is estimated to generate around half of the total demand for coating additives. This is due to the growing awareness about environmental-friendly products that reduce the VOC and APEO emissions, which is expected to drive the demand for water-borne as well as powder-based coatings in the next five years. Subsequently, the demand for additives is also expected to increase.

Acrylics to dominate the coatings additives market

The major types of coating additives used are acrylics, metallic additives, urethanes, fluoropolymers, and others that include polyalkyds, amides, paraffin-modified, calcium sulfonate, and epoxy. The acrylic-based additives include polyacrylates, acrylic amides, and vinyl. The additives with metallic base are titanium dioxide, zinc sulfide, and barium sulfate, among others. Under the fluoropolymers category, polytetrafluoroethylene (PTFE), polyvinylidene fluoride (PVDF), and fluorinated ethylene propylene (FEP) are the commonly used additives.

The growing construction and other manufacturing industries such as automotive and paints and coatings in Asia Pacific are expected to drive the market for acrylics. The low cost of acrylics is also a key factor driving the market in Asia Pacific.

The global coating additives market is witnessing an increasing demand from various end-use industries. Coating additives are a specialised group of chemically engineered materials, which find applications in a number of industries. Their use in coating formulations is increasingly becoming popular due to the performance enhancements that these materials offer. They impart excellent chemical properties to the formulation, including improved wettability, dispersion, rheology, UV protection, chemical resistance, and high-temperature stability. They are widely used in many industrial fields under severe conditions. The anti-microbial property of these additives is beneficial in numerous applications. Owing to their special function and lower production volume when compared with formulation, their prices are relatively high.

Architectural application to dominate

Architecture is the largest application of coating additives, which enhance the quality of building structures for a longer period, which reduces the intermittent maintenance of the structure.

The architectural application is the major segment of the coating additives market. The high growth of the segment is mainly driven by the rapidly growing construction industry due to rising investments in infrastructural activities. Hence, the demand for coating additives is increasing with growing construction activities. The industrial applications such as offshore platforms, underground pipelines, and towers are subjected to the maximum stressful environment. Thus, additives are used in such applications to provide resistance to corrosion, heat, and moisture. Economic expansions in different regions will gradually lead to more industrial activities, which is likely to help the coating additives market.

On the other hand, the growing automotive industry, along with the wood and furniture industry, presents significant opportunities for coating additives manufacturers. High-performance coating additives are used in furniture to extend their life. The requirement of a high level of customisation in the automotive industry is also a key driver for the coating additives market.

Multifunctional additives for multiple applications

At present, most of the end-use applications require coatings with differentiated performances, not only during processing, but also in the end-product. Along with the required properties for high performance, aesthetic appearance is an important characteristic for all types of substrates, due to which additives are modified to work effectively in solvent-borne, powder-based, and water-borne coatings. Moreover, due to environmental regulations, coating manufacturers are emphasising on reformulating their products, which, in turn, is driving the demand for innovative additives. Surging demand for multifunctional additives is a major factor favoring the growth of the global coating additives market. Utilised in coating formulations, multifunctional additives offer a performance level similar to that of individual additives with reduced cost, simplified formulating process, high performance of aqueous solutions, and compliance with safety standards.