Coating Additives Market Assessment, By Type [Catalysts, Wetting Agents, Coupling Agents, Defoamers, Rheology Modifier, Anti-caking Agents, Others], By Formulation [Water-based, Solvent-based], By Application [Architectural Coatings, Industrial Coatings,

Coating Additives Market Assessment, By Type [Catalysts, Wetting Agents, Coupling Agents, Defoamers, Rheology Modifier, Anti-caking Agents, Others], By Formulation [Water-based, Solvent-based], By Application [Architectural Coatings, Industrial Coatings, Special Purpose Coatings], By End-use Industry [Building and Construction, Furniture, Transport, Packaging, Others], By Region, Opportunities, and Forecast, 2016-2030F

Global Coating Additives Market was estimated at 1246.73 KT in 2022, expected to grow to 1772.98 KT in 2030 with a CAGR of 4.5% during the forecast period between 2023 and 2030. The rise in the construction activities related to residential projects and the rapid advances in the production of electric vehicles are the prime variables accelerating the revenue growth of the coating additives market. Furthermore, the recent product innovations associated with water-based additives will boost the adoption of water-based coating additives with superior properties, thereby creating a favorable potential for the growth of the coating additives market size during the projected forecast period.

The growth of the building and construction industry is attributed to factors such as increasing public-private partnerships for infrastructure development and the increasing demand for leisure construction projects in developing economies. Also, the government initiatives for the development of electric vehicle manufacturing hubs, production expansion of aircraft, and the ongoing development of new marine vessels are some prominent aspects driving the transport sector growth. Thus, the revenue expansion of industries, including building & construction and transport are fueling the demand for coating additives to enhance the visual appearance of the coatings which, in turn, is fostering the market growth. However, the health implications associated with coating additives are restraining the market growth.

The Rapid Increase in the Construction Activities is Fostering the Market Growth

The coating additives have vital properties such as improved wet adhesion, chemical resistance, and superior pigment dispersion. The above-mentioned properties of coating additives ensure superior moisture-initiated crosslinking for coating products. Thus, coating additives are ideal for building & construction projects, including residential, commercial, and infrastructure. The rising demand for larger living spaces, construction of infrastructure projects, and government investments in healthcare building projects are propelling the growth of the building & construction industry.

For instance, according to the recent data published by the Construction Products Association (CPA), the global construction industry registered an annual growth rate of 2.0% in 2022. Likewise, the global construction sector will have a year-on-year growth rate of 2.2% in 2023. Hence, the rapid rise in construction activities due to the factors above is spurring the utilization of coating additives to prevent gas fading, thereby proliferating the market growth.

The Rise in the Adoption of Rheology Modifiers in various Coatings Applications is Accelerating the Market Growth

Rheology modifiers are an ideal solution for applying the coatings to ensure sag and sedimentation resistance. The increasing employment of rheology modifiers in coatings is prompting manufacturers to develop a new range of products to increase the product offering in the global market.

For exemplifier, in March 2023, Elementis, headquartered in the United Kingdom, launched RHEOLATE PHX 7025, a new range of solid urethane rheology modifiers for coatings. RHEOLATE PHX 7025 is highly sustainable. Thus, the new product developments of eco-friendly rheology modifiers are bolstering the adoption of coating additives, this, in turn, is supplementing the market growth.

Dominant Share of the Asia-Pacific in the Coating Additive Market

The key end-use industries driving the economy of the overall Asia Pacific region include building & construction, transport, and packaging. The above-listed industries are the primary end users of the coating additives. Thus, the growth of the building & construction industry is accelerating the demand for coating additives.

For illustration, the overall infrastructure investment in China during the 14th Five-Year Plan (2021-2025) will reach about USD 4.2 trillion. The 14th Five-Year Plan in China emphasizes increasing green building development, more than 350 million square meters of buildings renovation, and the 50 million square meters of buildings construction with net zero energy consumption. Therefore, the increase in investment in infrastructure development will enhance the demand for coatings, thereby accelerating the adoption of coating additives. As a result, the rise in the demand for coating additives in Asia-Pacific is driving the market growth.

Future Outlook Scenario

The future anticipated growth of the building & construction industry will be driven by determinants such as increasing demand for larger living spaces and the rapid pace of institutional project development. For illustration, according to the Construction Products Association (CPA), the global construction economy will register an average growth rate of 1.8% during the forecast period of 2013-2025. Thus, the construction activities expansion in the coming years will create a lucrative growth opportunity for the coating additives market in the long run.

The increasing investments in the expansion of coating additives labs will boost the research & development of a new range of products. For instance, in June 2022, Milliken & Company, a global materials and additives manufacturer, expanded the coating additives lab in Ohio, the United States, to design a new range of coating additives. Hence, expanding coating additives labs will create a favorable growth outlook for the industry in the upcoming years.

The coating additives manufacturers are leveraging their technological expertise for a new range of product development. For exemplifier, in June 2023, Evonik, a leading manufacturer of coating additives, introduced TEGO Rad 2550 slip and defoamer additive for application in coatings to ensure excellent slip and scratch resistance. As a result, a new range of coating additives development will create a potential for market growth during the projected timeline.

Key Players Landscape and Outlook

The key players, including Allnex GMBH, BYK (ALTANA), BASF SE, and The Lubrizol Corporation hold a strong market position in the coating additives industry as the companies have technologically advanced manufacturing facilities. Furthermore, the manufacturers offering coating additives products globally are increasing their market share by launching new products.

In May 2023, Gerdau Graphene, a Brazil-based provider of coating additives, launched NanoDUR and NanoLAV, a new range of graphene additives for application in paints and coatings. The prime focus of the launch was to offer a new range of graphene additives for paints and coatings with a cost-effectiveness benefit.