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Polymer Dispersion Market: Key Highlights
· Theglobal polymer dispersion market wasvalued at ~US$ 7.6 Bn in 2018, and is anticipated to expand ata CAGR of ~5% during the forecast period.
· Theglobal market is driven by the rise in the demand for polymer dispersions inthe paints & coatings industry.
· AsiaPacific accounts for a major share of the global polymer dispersion market, ledby an increase in the demand for polymer dispersions in paints & coatingsand adhesives & sealants in the region.
Key Drivers of Global Polymer Dispersion Market
· Polymerdispersions are primarily used in decorative paints and coatings, owing totheir various properties. These include the enhancement of toughness andreduction in the amount of energy required for drying. Polymer dispersions arealso employed in protective coatings.
· Polymerdispersions are eco-friendly. They offer good adhesion to cellulose-containingsubstrates such as wood and paper. Polymer dispersions are also employed inwood adhesives.
· Water-basedpolyurethane dispersions (PUDs) are polymer dispersions employed in coatingsand adhesives, which use water as a primary solvent. PUDs are used in variousindustrial and commercial applications to reduce the usage of solvent-basedproducts, in view of the increase in regulations on the amount of VOCs andhazardous air pollutants (HAPs).
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Paints & Coatings Segment to Offer LucrativeOpportunities
· Among theapplications, the paints & coatings segment accounted for a major share ofthe global polymer dispersion market in 2018. The paints &coatings industry is shifting toward the use of low-VOC and eco-friendlytechnologies such as water-based materials. This factor is fueling the demandfor polymer dispersions.
· Polymerdispersions improve surface properties such as appearance, and enable uniqueeffects. They also enhance resistance to corrosion when used in paints andcoatings.
· Growingenvironment-related concerns caused by rising carbon footprint have promptedmarket players to use water-based polymer dispersion-based adhesives. Polymerdispersions offer environment-related benefits by decreasing the carbonfootprint. Also, they reduce the overall cost of the production of adhesives.
· Polymerdispersions offer clean runnability and good filler tolerance to minimize therisk of instability on cross contamination of carpet backing. This is expectedto fuel the demand for polymer dispersions in the near future.
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Stringent Government Regulations on Solvent-basedProducts to Hamper Market
· Solvent-basedpolymer dispersions are formulated by using a solvent and a base resin. Thesolvent material evaporates when employed in applications such as coatings.
· Commonly-usedsolvents contain significant amounts of VOCs, which are toxic to human health.The use of solvent-based polymer dispersions in paints, coatings, and adhesivesleads to the deterioration of air quality. It can cause long-term harm to humanhealth. This has resulted in the implementation of stricter norms on the use ofsolvent-based coatings and adhesives.
· Regulatorybodies in the U.S. and Europe, such as the Environment Protection Agency (EPA)and Registration Evaluation Authorization and Restriction of Chemicals (REACH),have implemented stringent rules pertaining to VOC emissions. An apparent shiftfrom solvent-based to water-based coatings has occurred in Europe and NorthAmerica.
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Asia Pacific a Prominent PolymerDispersion Market
· Among theregions, Asia Pacific accounted for a major share of the global polymerdispersion market in 2018. Its share is expected to increaseby 2027, due to large-scale production activities and plantexpansions by players operating in the paints & coatings sector in theregion.
· Growth ofthe automotive and construction industries in China and India is projected toboost the consumption of polymer dispersions in Asia Pacific in paints,coatings, adhesives, and sealants, in the next few years
· NorthAmerica and Europe held considerable shares of the global polymer dispersionmarket in 2018. Multinational corporations in North Americaand Europe are engaged in developing high-performance water-based polymerdispersions coupled with advanced polymerization techniques through research& development activities.
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Top Few Players Accounted for ~60% Market Share in2018
The global market for polymer dispersions is consolidated and isdominated by large manufacturers across the world. The few top manufacturersaccounted for ~60% share of the global market in 2018.These manufacturers include Wacker Chemie AG, BASF SE, Clariant AG,AkzoNobel N.V., The Dow Chemicals, Celanese Corporation, and Huntsman InternalLLC. The market is consolidated with the presence of a large number ofpolymer dispersion manufacturers, including large, medium, and small companies.