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Specialty Chemicals Market - Forecast(2023 - 2028)
Overview
Specialty Chemicals Market is
forecast to reach $588.41 billion by 2025, after growing at a CAGR of 5.51% during
2020-2025. The construction industry will boost consumer demand as a
result of increased commercial and residential construction projects. Rising
urbanization in developing regions has resulted in numerous upcoming housing
projects increasing product demand. Further, it enhances the overall market
demand.
Report Coverage
The “Specialty Chemicals Market Report– Forecast (2020-2025)”, by IndustryARC,
covers an in-depth analysis of the following segments of the Specialty
Chemicals Market.
Key Takeaways
- Asia-Pacific, due to its large customer base, has dominated the world economy, leading to high demand for specialty chemicals, rising industrial production and rapid growth in the region's construction sector.
- Growing R&D is likely to provide an opportunity over the forecast period for the market studied to develop new products.
- Paints and coatings dominated the market for specialty chemicals and are expected to grow over the forecast period, with robust growth in the construction industry, driven largely by growth in residential construction worldwide.
- Increasing construction spending in BRIC nations has a positive impact on the size of the market for construction specialty chemicals and has created new opportunities for business growth.
- In addition, the rising automotive sector in the region, such as China, India and Japan, is the main driver of business growth due to high per capita disposable income and improved customer lifestyle.
Type - Segment Analysis
Food Additives segment held the
largest share in the Specialty Chemicals Market. Growing population and need
for food which in turn increases the Food additives specialty chemicals. These
are used to enhance the foods nutrient content, keep the product fresh and make
the food more appealing. Furthermore, it also provides consistent and smooth
texture along with maintaining the wholesomeness of food. Increasing living
standards accompanied by rising consumer’s disposable income would drive growth
for food additives in the next few years.
Application - Segment Analysis
Construction
Chemicals sector has been the primary market for Specialty Chemicals by growing
at a CAGR of 8.89%. The paints and coatings segment have wide range of
applications in this sector, the market is estimated to record significant
changes in respective countries. The top countries in the Construction &
Infrastructure industry are expected to boom over the next five years. Americas
and Europe are estimated to continue to emerge in the global glass landscape.
Construction & Infrastructure end user further segmented into retail
stores, restaurants and hotels, airports, hospitals, arts and exhibition
centers, shopping malls, and others. Airports is the largest segment with the
share of 22.7% followed by restaurants and hotels with 21.2%, and retail stores
with 20.2%. Increase in spending of commercial construction especially in the
developing countries such as China, India, and South Korea, will increase the
demand of construct ion chemicals. Commercial construction will continue to
grow in the future. With more consumer spending and governmental investments in
tourism, office buildings and retail space, commercial construction businesses
will reap the rewards.
Geography - Segment Analysis
APAC dominated the Specialty
Chemicals Market share with more than 38%, followed by North America and
Europe. The economy of APAC is mainly influenced by the economic dynamics of
countries such as China and India, but with growing foreign direct investment for
economic development of South East Asia, the current scenario is changing. In
the developing region such as APAC, the expansion of construction industry
contributes into the growth of Specialty chemicals Market. The Asia Pacific
construction industry is worth $4.95 trillion (excluding India) and is expected
to reach $5.45 trillion by 2021 according to ENG Cranes. The healthy economic
growth in APAC had risen the construction activities in the region.
By 2020, one half of
global construction spending is expected to come from APAC countries with
China, Indonesia, Japan, South Korea, and Malaysia are exhibiting the highest
growth potential. India is expected to grow at twice the rate of China over the
next decade especially into infrastructure sector where government is investing
approximately $376.5 billion over the next three years. Japan’s residential and
infrastructure construction accounts for 28 to 33 percent of construction
activities. Further, the construction activity is expected to rise in next few
years because of upcoming Olympic Games. These factors
are likely to increase demand in the region over the forecast period for paints
and coatings, adhesives and sealants, construction chemicals, and specialty
polymers. Therefore, during the forecast period, all such favourable trends are
collectively likely to drive the growth of the region's specialty chemicals
market.
Drivers – Specialty Chemicals Market
- Advancement
Development in supply chain
management, strategic sourcing, and ecommerce has increased transparency and
awareness of the customer. As a result, in some areas the specialty chemicals
industry is becoming more commodity-like as companies are selling their goods
on cost rather than quality. After imposing price increases to account for
higher costs of R&D, energy and raw materials, the specialty chemicals
industry is now trying to improve its margins. By becoming more
service-oriented, several specialty chemical companies are trying to increase
barriers to accessing their markets. They concentrate less on goods and more on
customer-specific support services. Most specialties chemicals industries,
including automotive coatings, catalytic fluid cracking catalysts,
pharmaceutical additives, antioxidants, and water treatment, has long been
willing to provide services alongside products.
Challenges – Specialty Chemicals Market
- Stringent Regulations Governing the Specialty Chemicals Market
The majority of specialty
chemicals are synthetic, which can adversely effect the environment and
therefore effect chemicals of flora and fauna. Because of their toxic nature,
environmental protection authorities have placed various environmental
restrictions on the use of synthetic chemicals, which can impede the size of
the market for specialty chemicals over the timeframe forecast For example,
atrazine and acetochlor herbicides have been banned by the European Union.
France and Denmark also banned glyphosate for use in lawns and gardens in June
2015.
Market Landscape
Technology launches, acquisitions and R&D
activities are key strategies adopted by players in the Specialty Chemicals
Market. In 2018, the market of Specialty Chemicals has been consolidated by the
top five players accounting for xx% of the share. Major players in the Specialty
Chemicals Market are Henkel Ag & Co. KGAA, BASF SE, AkzoNobel N.V., Evonik
Industries AG and Clariant AG, Huntsman International LLC, The Dow Chemical
Company, Albemarle Corporation, and Ashland Inc. (U.S.), among others.