Nanoclay Reinforcement Market Size, Share & Trends Analysis Report By Application (Packaging, Coatings), By End-Use (Automotive, Construction), By Region, And Segment Forecasts, 2016 - 2022

Industry Insights

Global nanoclay reinforcement market size was estimated at USD 822.3 million in 2014, and is expected to grow at a CAGR of 23.3% over the forecast period. Increasing products owing to their superior characteristics including toughness, stiffness, dimensional stability, thermal resistance, chemical resistance, enhanced barrier properties, and flexibility at high temperatures is expected to propel industry growth.

The ease of availability of these materials and low manufacturing cost has prompted plastic producers to increase the consumption of these materials and therefore has resulted in continuous growth over the forecast period. Nanoclays are the most consumed nanomaterial commercially and account for approximately 70% of revenue.

Asia Pacific is expected to be the fastest-growing region for nanoclay reinforcements in the next seven years. North America is the largest market followed by Europe. Government initiatives across the world to support various investments for research and development of nanotechnology are expected to boost growth for nanoclay reinforcement materials.

A high concentration of suppliers coupled with an integrated value chain is expected to pose high barriers of entry to the new players in the industry. However, government support for research & development for in nanotechnology is expected to encourage new entrants in the industry over the forecast period.

Application Insights

The packaging was the largest segment accounting for USD 343.0 million in 2014. Owing to its high barrier properties, it has become an important part of the packaging industry and is used in various food packaging applications. Growing demand for low cost, flexible packaging is expected to stimulate growth over the forecast period.

Coatings are expected to grow at a CAGR of 26.0% from 2015 to 2022, in terms of volume. Rising consumer awareness regarding the benefits of nanoclay reinforced products on account of its various performance-enhancing characteristics is expected to promote growth. Regulatory support to increase production output for nanotechnology-based products is likely to play a key role in fuelling growth.

End-Use Insights

Increasing applications of nanoclay reinforced materials in the cosmetics industry owing to their abilities to enhance various characteristics including good coverage and color retention for lipsticks, eye-shadows, and nail lacquers. This is expected to stimulate demand for nanoclay from the cosmetics industry in the next seven years.

The rapid growth of construction and furniture industries in emerging sectors of China, India, and Brazil has contributed towards the rising demand of nanoclay from these sectors. Rising demand for liquid silicone rubber or LSR from various end-use industries including medical, electrical, aerospace, and automotive has resulted in boosting the growth of nanoclay reinforcement.

The Military & defense and energy sectors are expected to witness substantial growth over the forecast period. These materials are being increasingly used on account of their ability to improve the efficiency and performance of renewable energy devices as well as improve the level of safety in various aerospace and military applications.

Regional Insights

North America was the largest market accounting for 34% of global market share owing to the growing importance of nanotechnology and government support for the development of nanoparticles. Asia Pacific is expected to be the fastest-growing market in the next seven years owing to the robust manufacturing base and government support for research and development.

Rapid urbanization in emerging economies is driving demand from the construction industry which is contributing towards growth in these regions. Another key sector in this region is the electronic sectors, which has witnessed an increasing need for nanoclay reinforced material owing to their excellent barrier properties and mechanical properties.

Nanoclay Reinforcement Market Share Insights

The increasing importance of raw material is expected to force the suppliers to adopt forward integration. The increasing importance of raw material is expected to force the suppliers to adopt forward integration. In October 2013, BYK additives acquired Southern Clay Products, Inc. and are now on focusing on expanding its share.

Nanophase Technologies, BYK Additives, Nanocor Incorporated, Elementis Specialties Inc, Axson Technologies SA dominate the global nanoclay reinforcement market share. 3M ESPE, Laviosa Chimic Mineraria Spa, Powdermet, Inframat Corporation, Hybrid Plastics, Zyvex Technologies, Evonik Degussa GmbH are other prominent players in the market.

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