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Zero-VOC Coalescent for Coatings Market - Forecast(2023 - 2028)
Zero-VOC Coalescent for Coatings Market Overview
The Zero-VOC Coalescent for Coatings market size is forecasted to reach US$468.5 million by 2027, after growing at a CAGR of 8.2% during the forecast period 2022-2027. The zero-VOC coalescent is a non-yellowing, zero viscosity, a non-hazardous alternative to volatile ester alcohols and glycol ethers that improves moisture resistance. It has superior properties such as superior adhesive and sealants property, very hydrophobic and more. These characteristics make it suitable for the coatings industry. The expansion of the zero-VOC coalescent is being driven primarily by the expansion of the building and construction industry. However, in 2020, the surge in the Covid-19 pandemic negatively impacted the construction and industrial production activities. As a result, zero-VOC coalescent for coatings manufacturers experienced losses, affecting the growth of the zero-VOC coalescent for the coatings industry. In 2021, the increase in new construction activities fueled the demand for coatings, which benefited market growth. Furthermore, the thriving transportation industry is expected to drive up demand for coatings. As a result, demand for zero-VOC coalescent will increase, fueling the growth of the zero-VOC coalescent for coatings market size in the coming years.
Report Coverage
The report: "Zero-VOC Coalescent for Coatings Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Zero-VOC coalescent for coatings Industry.
Key Takeaways
- Asia-Pacific dominated the Zero-VOC Coalescent for Coatings market, owing to the growth of the construction activities in the region. For instance, according to the International Trade Administration (ITA), South Korea's construction industry was valued at US$164 billion in 2020, up 15.5% from 2019.
- The factors such as the surging disposable income of people, the rapid pace of industrialization and others are accelerating the demand for coatings in the automotive industry. This is leading to the zero-VOC coalescent for coatings industry growth.
- Moreover, the stringent regulations related to the VOC content are driving the Zero-VOC Coalescent for Coatings market growth.
- However, the fluctuations in the raw material prices such as acrylic, polyvinyl alcohol (PVA), vinyl acetate/ethylene (VAE) and others impact the overall pricing of Zero-VOC Coalescent for Coatings. This factor may restrict the market growth during the projected forecast period.
Figure: Asia-Pacific Zero-VOC Coalescent for Coatings Market Revenue, 2021-2027 (US$ Million)
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Zero-VOC Coalescent for Coatings Market Segment Analysis – By Formulation
The water-based segment held the largest Zero-VOC Coalescent for Coatings market share in 2021 and is forecasted to grow at a CAGR of 8.3% during the forecast period 2022-2027. Water-based formulations are employed in zero-VOC coalescent for coatings because they have a high degree of flexibility and reduce moisture and solar radiation absorption, resulting in superior environmental resilience and fewer solvent emissions. Moreover, in the water-based formulation, the hydrophobic/hydrophilic balance is used because it provides excellent conditions for being concentrated at the surface area of the polymeric particle in the dispersed stage. The higher the hydrophilicity of the coalescing agent, the better it will disperse in the aqueous phase. Thus, owing to these benefits of water-based formulation its adoption is increasing to ensure high flexibility of zero-VOC coalescent for coatings. This, in turn, is leading to the zero-VOC coalescent for coatings market growth.
Zero-VOC Coalescent for Coatings Market Segment Analysis – By End-Use Industry
The building and construction segment held the largest Zero-VOC Coalescent for Coatings market share in 2021 and is forecasted to grow at a CAGR of 8.5% during the forecast period 2022-2027. The zero-VOC coalescent for coatings is deployed in the building and construction industry to ensure superior support for the film formation at lower temperatures and enhance the adhesive and sealants property of coatings. The surging demand for affordable housing, increasing demand for commercial space and other factors are vital for the growth of the building and construction activities. For instance, according to the United States Census Bureau, in 2020, the total new residential construction projects started in the USA was 1,379.61 thousand units and in 2021 it was 1,610 thousand units, an increase of 16.7%. Moreover, in Q3 of 2021, the development of various offices started in Germany, which included Markisches Zentrum Redevelopment (the completion year 2023 Q4), Minden Headquarters Building (completion year Q3 2024), Kolbenhoefe Mixed-Use Complex (the completion year 2023 Q4) and others. Hence, the surging building and construction industry is boosting the demand for zero-VOC coalescent. As a result of this, the zero-VOC coalescent for coatings market size is expanding.
Zero-VOC Coalescent for Coatings Market Segment Analysis – By Geography
Asia-Pacific is the dominating region as it held the largest Zero-VOC Coalescent for Coatings market share in 2021 up to 40%. The growth of the building & construction activities, transport and other industries are driving the economic growth of the Asia-Pacific region. The key variables such as rising retail store building construction, rising commercial centers and more such variables are creating an opportunity for the construction industry growth in Asia-Pacific. For instance, in August 2021, New Zealand's Auckland Airport announced plans to develop 100 retail stores. The new retail area would entail the construction of a 23,000-square-meter-plus outlet center on undeveloped property near the airport's north-eastern boundary. Moreover, as of May 2022, the construction of the 466 trillion Indonesian rupiahs ($32.3 billion). Indonesia's new capital is in progress. The capital city's construction will be complete by the end of 2024. The construction activities include the construction of offices, residential apartments, shopping centers and more. Also, according to Invest India, there is a total of 115 future construction projects which are under the planning phase in India and the value of these projects is about US$11.63 million. These projects include the construction of hotels & office buildings, shopping complexes and more. Therefore, the growth of the building and construction industry is propelling the demand for zero-VOC coalescent for coatings to enhance adhesion and sealants. This, in turn, is accelerating market growth.
Zero-VOC Coalescent for Coatings Market Drivers
Growth of the Transport Industry
The key advantages of zero-VOC coalescent include better edge coverage, hydrophobic/hydrophilic balance, an extended performance due to the lack of entrapped solvent and more. These advantages result in enhancing the durability of the coatings. Thus, owing to these benefits, it is often deployed in coating the transport vehicles such as passenger cars, commercial aircraft and more. The factors such as the increasing adoption of passenger cars, the booming transport production and other factors are accelerating the growth of the transport industry. For instance, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, the global automotive production was 80,145,988 units, an increase of 2% over 2020. Moreover, according to airbus the widebody aircraft production in the year 2018 was 96 units and in 2019, it was 153 units, an increase of 59.4%. Thus, the growth of the transport industry is accelerating the demand for zero-VOC coalescent coatings, thereby, driving the market growth.
Government Regulation for Zero-VOC Coating Content
A zero-VOC coating contains fewer volatile organic compounds. The regulations imposed by the governments worldwide are promoting the adoption of zero-VOC coalescent for coatings. For instance, the United Nations has implemented a series of 17 "Sustainable Development Goals" (SDGs) to define a blueprint for global sustainability by 2030. Many of these are related to coating sustainability, such as lowering VOCs and greenhouse gas emissions and substituting bio-sourced materials for fossil fuel-based products. Thus, the coating manufacturers are developing new coating products with zero-VOC Coalescent. For instance, in April 2021, a new coalescent technology for waterborne paints was developed by Clariant. This meets the zero-VOC requirement of ASTM D6886 and has a high bio-based carbon content of 96 percent as measured by ASTM D6866. Hence, the government regulations related to the zero-VOC content are boosting the demand for zero-VOC coalescent Coatings, this, in turn, is accelerating the market growth.
Zero-VOC Coalescent for Coatings Market Challenges
Fluctuations in the Raw Material Prices
Price fluctuations in raw materials such as acrylic, polyvinyl alcohol (PVA), vinyl acetate/ethylene (VAE), epoxy and others may limit the market growth. Shortages and lack of availability of key raw materials, combined with significant price increases, are causing havoc in the coatings industries in the United Kingdom, Europe and other parts of the world. For example, According to BCF's monthly raw material price survey, in the first quarter of 2021, the price of epoxy resin increased by 60 percent over the third quarter of 2020. Similarly, the prices of acrylic, polyvinyl alcohol (PVA) and vinyl acetate/ethylene increased (VAE). As a result, fluctuating raw material prices may limit the zero-VOC coalescent for coatings industry growth during the forecast period of 2022-2027.
Zero-VOC Coalescent for Coatings Industry Outlook
Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Zero-VOC Coalescent for Coatings market. The top companies in the Zero-VOC Coalescent for Coatings market are:
- Clariant
- BASF SE
- Solvay
- Jungbunzlauer
- Eastman
- Azelis Americas
- Arkema
- Myriant
- Synthomer Plc
- Dow Chemical Company
Recent Developments
- In October 2021, Arkema launched a Biobased, Zero-VOC Coalescent for architectural and industrial coatings applications. The primary goal of this launch was to ensure sustainable coalescent technological development in the coatings industry.
- In April 2020, Clariant launched Genagen COA, a Zero-VOC Coalescent agent for the decorative coating industry. The main aim of this launch was to expand its market position.
- In April 2020, Solvay, a global specialty chemicals manufacturer, introduced a new line ofproducts at the Indianapolis paint show, including zero-VOC coalescent for coatings, to meet customers' needs in adhesives, color and performance systems.