The global waterborne coating additives market size was estimated to be 125.0 kilo tons in 2014. Growing infrastructure spending in industrial and residential sectors, particularly in South East Asia and the Middle East & Africa, is expected to drive product demand in architectural and industrial wood segments. VOC emissions in construction and manufacturing industry have steered revisions in regulatory standards.
Recent advances in waterborne technology can be attributed to stringent regulatory restrictions and consumer expectations. Construction and manufacturing industries in mature economies of U.S. and Europe have witnessed growing consumer preference towards eco-friendly products. Regulatory bodies in Europe have made several revisions to industry standards to incorporate low VOC level as a mandatory step for paints and coatings industry.
Stringent REACH and EPA regulations regarding VOC and toxic content in solvent based additives have led to commercialization of water-soluble alternatives with improved performance. Associative thickeners such as HEUR, HMPE, HASE, and HMHEC have gained significant share over last few years owing to improved stability and longevity as compared to conventional modifiers including bentonite, and pyrogenic silica.
Additives play a significant role as the major component for waterborne coating. They chemically enhance the formulation to provide stability and color retention over the long term. This is expected to impact positively global industry growth in next seven years.
Despite moderate overall growth in EU, after market of construction and automotive industries is expected to remain key driver sustaining economic growth in these regions. Demand for high-quality coatings in home interior and automotive components can be attributed to growing consumer awareness about social lifestyle trends. Growing marine activities in the North Sea and Mediterranean are expected to steer demand for durable and protective coatings in regions such as UK and Norway.
Growing high quality finished products with enhanced durability coupled with REACH compliance norms are expected to urge manufacturers to focus on waterborne coatings that suffice above criteria. Increasing requirement for high performance products in construction and automotive is expected to drive requirement of additives for enhancing the product characteristics. Diverse application scope including cars, ships, architectural and packaging is further expected to steer industry expansion over the forecast period.
North America waterborne coating additives market revenue by product, 2012-2022 (USD Million)
Rheology modifiers were the largest product segment and accounted for over 38% of volume share in 2014 and are expected to grow at a CAGR of over 6% from 2015 to 2022. This segment is expected to witness significant growth owing to their formulation characteristics that attribute to increased stability and thickening of the coating. Rheology modifiers primarily constitute of hydroxyl ethyl cellulose (HEC), hydrophobically modified HEC, ethyl HEC, hydrophobically modified polyacetal polyether (HMPAPE), and modified ethoxylate urethane (HEUR).
HEC accounted for over 25% of global rheology modifier demand in 2014 and is expected to gain significant share in near future. HMHEC and HEUR are expected to witness high growth, owing to their versatile formulation characteristics that can be applied to wide surface textures. Recent advancements in rheology modifiers are expected to impart positive growth for cellulosic-based products, owing to their low cost, and high efficiency.
Wetting and dispersing agents tend to stabilize the solid particles upon surface application. Rising requirement for preventing reflocculation of the dispersed particles in coatings is expected to drive demand over the forecast period. Increasing product demand in architectural, wood and furniture coatings is anticipated to drive the segment expansion over the next seven years.
Europe dominated the global demand and accounted for over 40% of total volume share in 2014. The emergence of green building norms is expected to remain a key driver of market growth in this region. Stringent government legislations and REACH regulations to lower VOC content are expected to drive waterborne coatings to demand over the forecast period. Early commercialization along with growing preference towards organically derived associative thickeners may be attributed to high demand in the region.
Asia Pacific, waterborne coating additives market, is expected to grow at a CAGR of over 7% from 2015 to 2022. Growing demand for high performance and eco-friendly coating systems in automobiles and industrial wood sectors are expected to drive product demand over the forecast period. Increasing construction spending, particularly in economies including China, India, Thailand and Indonesia, is expected to drive growth over the next seven years.
Stringent regulations in EU-27 are expected to play a major role in steering demand for environment-friendly products in this region. This affects the various companies in the supply chain, including both manufacturers and resellers. The majority of manufacturers in Asia and the U.S. have shifted their focus towards developing low-VOC and sustainable products.
Global waterborne coating additives market is highly fragmented in nature. The presence of local manufacturers, particularly in China and India, have facilitated in minimizing procurement costs as compared to the imported brands from Europe, and the U.S. This has facilitated industry participants to invest into R&D initiatives for new product development to enhance their market presence globally.
Various companies have adopted differnent strategies for minimizing overall production cost. Companies such as AkzoNobel, Evonik, and BASF have integrated their additive and coating production and have established effective distribution network globally. Other operating in the industry include Byk, Harmony Additive, Dow Coating Belami Fine Chemical, Allnex, Huber Engineered Materials, Falcon Technologies, Shah Patil and Co., Troy Corp, KaMin LLC, Lubrizol Advanced Materials, and Taminco.
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