Paints and Coatings Additives Market Size, Share & COVID-19 Impact Analysis, By Type (Dispersing Agent, Rheology Agent, Leveling Agent, Anti-foaming Agent, Adhesion Promoting Agent, and Others), By Application (Automotive, Architectural, Wood, Industrial, and Others), and Regional Forecast, 2024-2032

The global paints and coatings additives market size was USD 8,299.7 million in 2019 and is projected to reach USD 12,659.4 million by 2027, exhibiting a CAGR of 5.9% during the forecast period. Asia Pacific dominated the paints and coatings additives market with a market share of 45.38% in 2019.

Paints and coatings additives are used as raw materials that enhance the quality and application of paints & coatings. A small number of additives added to paints as well as coatings greatly improve their efficacy and performance. These additives offer a wide range of properties such as enhanced appearance, durability, and anti-corrosiveness to paints and coatings. The major applications of additives include surface and environmental protection, decoration, and texture enhancement.

In the current global scenario, the use of multifunctional additives is a growing trend, accounting for the beneficial properties of a single additive. For instance, Troy Corporation introduced Troysol ZLAC, a substrate wetting and flow additive that subsidizes volatile organic compounds (VOC) emissions from the substrate during and after application of paints and coatings. Additionally, the increasing use of paints and coatings in automotive, architectural, wood, industrial, aerospace, and marine applications is another market trend driving growth.

COVID-19 to Decline Paints & Coatings Adoption Owing to Suspended Production Activities

The Covid-19 pandemic has significantly affected the paints & coatings market due to the containment measures that caused the closure of automotive and industrial production activities. This has severely impacted the paints & coatings additives consumption in 2020. However, the market is expected to witness substantial growth from the construction industry owing to the do-it-yourself (DIY) sector. Various customers performed DIY projects in their house, apartment, and garden while utilizing the time during and after the lockdown. This led to increased consumption of paints and further supports the key market growth in 2020.

LATEST TRENDS

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Rising Demand for Water-based Paints & Coatings from the Construction Industry to Favor Market Growth

The rising demand for water-based paints & coatings from the construction industry stands as an opportunity for the growth of additives in the market. Water-based coatings are expected to dominate the market during the forecast period. Environmental regulations have led to a drastic shift from solvent-based to water-based products for architectural and industrial applications, especially in North America and Europe. Water-based paints & coatings do not produce cleanup solvents that reduce the hazardous waste generation and minimizes the emission of VOCs during the application making it less harmful to humans and animals. Hence, its rising adoption is anticipated to provide opportunities for global paints and coatings additives market growth.

GROWTH FACTORS

Growing Demand for Additives from Paints & Coatings Industry to Aid Market Growth

Paints and coatings additives are mainly used for enhancing the paints and coatings performance and providing surface protection. The rise in the consumption of these products from the construction industry will effectively influence the growth of the market. In the construction industry, paints and coatings additives are used as thickeners, emulsifiers, dispersants, deformers, leveling agents, photo-stabilizers, and curing catalysts. They provide corrosion protection to substrates of buildings & infrastructures, increase substrate durability, and shelf life of coatings.

The production of paints & coatings is expected to be high due to its increasing application in construction, automotive, aerospace, equipment manufacturing, and consumer durables which, in turn, will lead to the increasing demand for additives. Moreover, the growing residential segment in Asia Pacific and the increasing demand for multifunctional additives in paints is expected to support market growth.

RESTRAINING FACTORS

Stringent Regulation over Solvent-Based Paints & Coatings Restricts Utilization of Additives

The stringent regulations by various governments and associations over the adoption of solvent-based paints & coatings having volatile organic compounds (VOCs) content, restrict the utilization of additives. These regulations are developed for both producers and consumers of paints & coatings. For instance, the U.S. Environmental Protection Agency (EPA) has set regulations over the use of VOCs under the National Volatile Organic Compound Emission Standards for Consumer and Commercial Products.

The rising health awareness and inflexible policies over VOC content in different regions have forced the manufacturers to reduce the content of VOCs in paints & coatings. In addition to this, various environmental regulations have caused a high rate of the shift towards greener constructions. This will further decrease the use of solvent-based products, which will decrease the paints and coatings additives market growth.

SEGMENTATION ANALYSIS

By Type Analysis

Rheology Control Agent to Exhibit a Significant CAGR during the Forecast Period

Based on type, the paints and coatings additives market is segmented into dispersing agent, rheology control agent, leveling agent, anti-foam agent, adhesion promoting agent, and others.

Among all these, the rheology control agent accounts for the largest market share owing to its use in adjusting thickness during paints application on the substrate, prevention sagging, facilitating painting, and prevention sedimentation. The increasing demand for rheology control agents from industrial, construction, automotive, and wood applications is expected to drive the market globally. 

Similarly, an anti-foaming agent reduces the formation of foam, and dispersing agents prevent settling or clumping, while enhancing the separation of particles. Leveling and adhesion promoting agents provide uniformity and superior adhesion during application.

The other types of paints and coatings additives include scratch-resistant, UV protector, corrosion inhibitor, curing accelerator, texturizer, preservatives, and flame retardants that offer surface protection in various applications. Hence, the increasing demand for paints and coatings additives from various applications will boost the market substantially.

By Application Analysis

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Architectural Segment is Expected to Generate the Highest Revenue

The paints and coatings additives market is segmented into automotive, architectural, wood, industrial, and others, on the basis of application.

Among all these, the architectural segment is expected to remain dominant during the forecast period. In this segment, paints are used for surface protection, corrosion inhibition, and decoration of buildings and infrastructure. The growing construction industry has led to a rise in the consumption of paints, which, in turn, is expected to lead to increased consumption of paints & coatings additives.

Paints & coatings have industrial applications in metal equipment and machinery coating, plastic coating, and paper coating. The rising demand for surface protective agents from industrial applications has led to the demand for additives. In the automotive industry, additives are added in paints & coatings for covering the parts of automobiles with the intent to provide surface protection, scratch resistance, texture enhancement, and prevention of corrosion.

REGIONAL INSIGHTS

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Asia-Pacific accounted for the largest paints and coatings additives market size of USD 3,766.8 million in 2019 and is expected to remain the largest during the forecast period. This is attributed to the increasing paints & coatings demand from construction, automotive, furniture, and industrial applications. According to the American Coatings Association, Asia Pacific was the largest region in the production of paints & coatings, accounting for around 47% market share in 2018. The growing construction industry is a key driver for the market in this region. China, Japan, and India are the major countries contributing to the market growth in the region owing to the rising demand for paints from the construction industry in these countries.

Europe is projected to witness substantial growth in the market. The increasing demand for paints, as well as coatings, from the industrial and automotive applications, would contribute to the growth of the market in this region. Moreover, the use of paints for the decoration of buildings and infrastructure is another factor driving the market in Europe.

The paints and coatings additives market in North America is anticipated to grow at a significant CAGR. The U.S. is one of the major consumers of paints & coatings for automotive and construction applications, which will aid market growth.

In Latin America and the Middle East & Africa, the high demand for paints and coatings from architectural and industrial applications is the major factor influencing the growth of the market. These additives are widely used for surface protection from varying temperatures and environmental conditions in these regions. The rising demand for surface protective agents further will surge the market growth during the forecast period.

KEY INDUSTRY PLAYERS

Key Players to Strengthen Positions by Providing Paints & Coatings Additives Solutions to the Construction Industry

The major producers of paints and coatings additives are spread out over the globe leading to a diversified market. The producers located in North America and Europe region are aiming to increase their presence in China and other countries in Asia Pacific, to strengthen their market positions and drive the business growth of the organization. Key players in the market are focusing on developing a strong regional presence, distribution channels, and enhanced product offerings.

LIST OF KEY COMPANIES PROFILED IN PAINTS AND COATINGS ADDITIVES MARKET:

• Dow (U.S)


• Evonik Industries AG (Germany)


• BYK-Chemie GmbH (Germany)


• Clariant AG (Switzerland)


• Kyoeisha Chemical Co., LTD. (Japan)


• Arkema S.A. (France)


• BASF SE (Germany)


• Lubrizol Corporation (U.S.)


• ELEMENTIS PLC. (UK)


• Kusumoto Chemicals, Ltd. (Japan)


• ALLNEX NETHERLANDS B.V. (Germany)


• Shin-Etsu Chemical Co., Ltd. (Japan)


• Shamrock Technologies (U.S.)


• King Industries, Inc. (U.S.)


• Troy Corporation (U.S)


• Solvay S.A. (Belgium)


• San Nopco Limited (Japan)


• keim additec surface GmbH (Germany)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• September 2020: Lubrizol developed advanced 100 % active dispersants, without water or biocide, to give formulators more flexibility in avoiding hazardous additives. These dispersants retain the protective and aesthetic benefits in a paint formulation.


• February 2020: BYK inaugurated a production and research facility in Texas, U.S. for manufacturing high-quality GARAMITE additives and organoclays. These products are used as specialty rheological additives in a wide range of applications.

REPORT COVERAGE

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The paints and coatings additives market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading major companies, types, and applications. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation