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The market for specialty chemicals is expected to register a CAGR of around 4%, during the forecast period. The major factors driving the growth of the market studied are the robust growth of construction activities, especially in the Asia-Pacific and the Middle East & African regions, and the growth of oil exploration and production activities. On the flip side, increasing environmental regulations and decreasing fossil fuel reserves are the restraints hampering the growth of the market studied.
- Paints and coatings dominated the specialty chemicals market, and is expected to grow during the forecast period, with robust growth in the construction industry, which is majorly driven by the growth in residential construction across the world.
- Growing R&D for developing new products is likely to provide an opportunity for the market studied, over the forecast period.
- Asia-Pacific dominated the market across the world, owing to the huge customer base, leading to high demand for specialty chemicals, increasing industrial production, and robust growth of the construction sector in the region.
Key Market Trends
Paints and Coatings Segment to Dominate the Market Demand
- The paints and coatings segment dominated the share in the specialty chemicals market. The growth of the segment is extensively driven by the robust performance of the construction industry, across the world.
- The Asia-Pacific and the Middle Eastern regions are expected to witness huge demand for paints and coatings, owing to significant investments being made into the construction sector.
- In Asia-Pacific, the growth of the construction sector is majorly driven by rising in residential construction projects, in order to meet the accommodation requirements of the growing population.
- The Middle East & African region, on the other hand, have been witnessing a huge rise in industrial and institutional construction. The Middle Eastern countries, such as Saudi Arabia, the United Arab Emirates, and Qatar, have been trying to expand its tourism, healthcare, and manufacturing industry, with an intention to reduce their economic dependence on the oil and gas industry.
- Besides, increasing renovation projects in North America and the recovery of construction activities in Europe are likely to drive the growth of the global construction industry.
- Hence, all such favorable trends in the global construction sector are expected to drive the demand for, and growth of, the paints and coating market, during the forecast period. This is expected to drive the demand for specialty chemicals.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the specialty chemicals market, and is likely to retain its position during the forecast period, due to robust growth of the construction sector, increasing demand for cosmetic products, growing investment and production in the increasing electrical and electronics industry output, increasing demand for adhesives and plastics from the packaging industry, and increasing installations of water treatment systems from the industries in the region.
- The growth of the Asia-Pacific construction sector is majorly driven by the expansion of the service sector, leading to an increase in the demand for office spaces, an increase in residential construction projects, and inflow of investments from multi-national companies to set up industrial base in the region. Such factors are likely to increase the demand for paints and coatings, adhesives and sealants, construction chemicals, and specialty polymers in the region, during the forecast period.
- The cosmetic industry is also witnessing strong growth in demand in the region, which is fueled by the increased usage of cosmetic products, due to rising demand for anti-aging cosmetic products from baby boomers and X generation, western culture influence on youth, increased women employment, and continuous innovation of products attracting the masses. This is increasing cosmetic production in the region, leading to a rise in demand for cosmetic chemicals.
- Hence, all such favorable trends are collectively likely to drive the growth of the specialty chemicals market in the region, during the forecast period.
The specialty chemicals market is highly fragmented, with numerous players holding a significant share of the market. Some of the noticeable players in the market include 3M, BASF SE, H.B. Fuller, Huntsman International LLC, and Henkel AG & Co. KGaA, among others.
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