Demand for construction chemicals in the U.S. is projected to expand 5% per year to $12.5 billion in 2022, according to a report from The Freedonia Group.1 The growth is reportedly being stimulated by:
- Healthy growth in new transportation infrastructure construction spending, as well as in the industrial and institutional segments
- Gains in improvement and repair spending for residential and nonresidential buildings
- Consumer preferences for more windows, larger kitchens, and decks in new home construction
- A shift in the product mix toward higher value, more sustainable, cost-effective, and user-friendly products due to growing concerns regarding the environmental and health impact of construction chemicals
Protective coatings and sealers will continue to comprise the largest share of construction chemical sales, but will experience below-average growth through 2022. The maturity of the overall construction market in the U.S. and a slowdown in industrial construction expenditures will restrain stronger gains. However, increases will be supported by ongoing maintenance requirements, in particular for highways and streets.
Demand growth for construction chemicals in the non-building market will be supported by increased spending on U.S. transportation infrastructure and a shift to more environmentally friendly protective coatings and sealers, such as heavy-metal-free traffic marking paint. Cement and asphalt additives will benefit from the maintenance and repair of the country’s highways, roads, and bridges, while an emphasis on highway safety will support demand for traffic marking paint.
The pigments market size is forecast to exceed $18 billion by 2025, according to a research report by Global Market Insights Inc.2 The market is expected to witness promising gains during the forecast period due to rising demand from the construction industry. Concrete, an indispensable part of the construction industry, is produced from cement; iron oxide is primarily used for coloring concrete. In 2017, U.S. cement production was 86.3 million tons, up from 85 million tons in 2016. Furthermore, prominent growth is expected during the forecast period due to increased spending from the U.S. government on public infrastructure.
The colorant market is highly regulated by environmental and construction organizations. There are various safety concerns regarding pigment handling and storage. Increasing regulations favoring low volatile organic compounds (VOCs) as ingredients in coatings have impacted global pigments market size.
The coatings industry generated the maximum revenue for the pigments market in 2017. This application segment is slated to witness maximum gains in the overall colorant market during the forecast period.
Regionally, Asia-Pacific led the global pigments market in 2017 in terms of volume and revenue. A steadily growing construction industry in the region will drive product demand over the next few years. The increase in per-capita income of consumers, particularly in the BRICS region, has resulted in increased spending in the real estate industry, which has fueled construction industry growth in these countries. This will augment colorant demand in construction over the forecast timespan.
The global mineral fillers market is expected to post a compound annual growth rate (CAGR) of close to 6% from 2018-2022, according to a market research report from Technavio.3 A key factor driving this growth is the increasing demand for mineral fillers from developing countries. This high demand, due to the growth of the construction, packaging, and automotive industries, is expected to positively impact the market. Developing economies, such as China, India, Brazil, Mexico, the Philippines, and Indonesia, are expected to contribute highly toward the growth of the global mineral fillers during the forecast period.
The growing innovation and product development of filler technologies is expected to drive the market to 2022. In developed countries such as the U.S., Germany, the UK, France, and Canada, rising investments for the production of new mineral fillers products will drive market growth.
“The increasing R&D activities in transparent ultrafine mineral filler technologies is expected to drive the demand for mineral fillers during the forecast period,” according to a senior analyst for research on specialty chemicals. “The technology uses nepheline syenite, a unique and versatile functional filler for coating applications. The ultrafine grades offer better performance and assist the ultra-violet curing in paints and coatings applications.”
By market application, the paper segment held the largest market share in 2017, accounting for nearly 33% of the market. This application segment is expected to dominate the global market throughout the forecast period.
The global plastisols market was estimated at $26.3 billion in 2017 and is expected to witness a CAGR of 7.5% during the forecast period of 2013-2023, reports P&S Market Research in a recent study.4 The growing use of plastisols in industries such as textiles, automotive, and construction is a major factor driving the growth of the market.
Plastisols are suspension mixtures of polyvinyl chloride (PVC) materials and plasticizers. They are not water-soluble and have many favorable properties such as fire, chemical, and corrosion resistance, which make them ideal for use in applications including adhesives and sealants, coatings, screen printing, and moldings.
On the basis of application, the plastisols market is categorized into coatings, adhesives and sealants, textile screen printing, and moldings. Of these, coatings represents the largest category, with an estimated revenue contribution of more than 25% in the global market in 2017. These mixtures are frequently used in coating applications due to their excellent insulation, corrosion resistance and outstanding chemical resistance.
In terms of industry, the plastisols market is categorized into textile, automotive, construction, and others, which include medical and recreational industries. During the forecast period, demand from the textile industry is expected to witness the highest growth. This is mainly attributed to the increasing preference toward printed fabrics and aesthetic home furnishings (cushion and furniture covers).
Of all regions, Asia-Pacific has been holding the largest share in the plastisols market, mainly due to the high textile ink production capacity of manufacturers in the region. In addition, the sales of plastic inks in the Asia-Pacific are expected to advance at a CAGR of 8.1% in terms of value during the forecast period, as a result of the high consumption of screen printing inks. Moreover, the expanding textile industry in the region is expected to give an impetus to market growth in the coming years.
The increasing use of plastisol in various industries such as textile, automotive, and construction is the major trend witnessed in the plastisols market. High-performance plastisol is gaining momentum over water-based inks due to its superior thermal conductivity, anti-corrosive properties, and excellent performance when exposed to high temperatures and reactive chemicals. In addition, the mixture does not dry when exposed to air and can therefore be easily reused for multiple purposes. These and other characteristics of plastic inks have increased their adoption among various industries.
The global bio-polyols market is projected to grow at a CAGR of 9.64% during from 2018-2022, according to a recent research report from Technavio.5 Bio-polyol compounds are commonly produced from different natural and sustainable sources, such as vegetable oils and their derivatives, sucrose, and others. Increasing environmental concerns regarding the use of conventional polyols are likely to drive the demand of bio-polyols during the forecast period.
Increasing demand for adhesives and sealants is among the drivers for the market. Adhesives and sealants are widely accepted to replace rivets, welded parts and other mechanical parts in various equipment. Polyurethane adhesives reduce the costs of the entire manufacturing process by exhibiting superior product performance and reliability while increasing the lifespan of the product.
The high cost of bio-polyols in comparison to conventional polyols is reportedly a main factor that would curb the growth of the global bio-polyols market. The cost of bio-polyols can be 60-90% more than conventional polyols.
The water-based resins market is projected to reach $52.7 billion by 2023, growing at a CAGR of 6.3%, according to a study from Markets and Markets.6 Growth in the water-based resins market can be attributed to increasing demand from the coatings, adhesives and sealants applications. Governments of various economies have established stringent regulations for permissible amounts of VOCs, which has caused a reduction in the use of solvent-based technology and promoted the use of water-based technology.
Based on type, the water-based resins market has been segmented into acrylic, epoxy, alkyd, polyurethane and others. The acrylic resins segment accounted for the largest share of the water-based resins market in 2017 and is projected to grow at the highest CAGR during the forecast period. These resins are mainly used in coatings applications.
Adhesives and sealants applications are projected to grow at the highest rate during the forecast period, due to increasing demand for water-based adhesives in building and construction and paper and packaging industries. The good bonding power of water-based adhesive with polar substrates has triggered the growth of water-based resins, and water-based sealants are widely used in the construction industry as waterproof coatings on concrete surfaces.
The growth of the water-based resins market in the Asia-Pacific region can be attributed to the increasing demand from the building and construction industry, as well as automotive and textiles. Countries in Asia-Pacific utilizing water-based technology on a large scale include China, India, Japan, South Korea, and Indonesia. ASI
1. “Construction Chemicals in the U.S. by Product and Market, 7th Edition” (published February 2018), Freedonia Group, www.freedoniagroup.com.
2. “Pigments Market Size by Product (Inorganic [Titanium Dioxide, Iron Oxide, Cadmium Pigments, Carbon Black, Chromium Oxide], Organic [Azo, Phthalocyanine, Quinacridone], Specialty [Classic Organic, Metallic, High Performance Organic, Light Interference, Complex Inorganic, Fluorescent, Luminescent, Thermochromic]), by Application (Paints & Coatings, Printing Inks, Plastics, Construction Materials), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, Australia, Malaysia, Indonesia, Brazil, Mexico, South Africa, Saudi Arabia, UAE), Application Potential, Price Trends, Competitive Market Share & Forecast, 2018-2025” (published June 2018), Global Market Insights Inc., www.gminsights.com.
3. “Global Mineral Fillers Market 2018-2022” (published July 2018), Technavio, www.technavio.com.
4. “Plastisols Market by Application, by Industry, by Geography-Global Market Size, Share, Development, Growth, and Demand Forecast, 2013-2023” (published April 2018), P&S Market Research, www.psmarketresearch.com.
5. “Global Bio Polyols Market 2018-2022” (published July 2018), Technavio, www.technavio.com.
6. “Water-Based Resins Market by Type (Acrylic, Epoxy, Polyurethane, Alkyd), Application (Paints & Coatings, Adhesives & Sealants, Inks), and Region (Asia-Pacific, Europe, North America, South America, and Middle East & Africa)-Global Forecast to 2023” (published June 2018), Markets and Markets, marketsandmarkets.com.
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