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Market research analysts at Technavio have predicted that the global performance chemicals market will grow at a CAGR of more than 5% by 2020. The limited availability of arable land and growth in the demand for meeting food sufficiency targets have necessitated the improvement of agricultural yields at a faster pace. Such growing requirements to increase the crop yield across the globe is propelling the use of performance chemicals. Herbicides constitute the largest share of the agrochemicals market, accounting for approximately 48% of the total consumption. Factors such as increasing efforts on the production of high-value crops such as horticultural crops will augment the usage of such specialty chemicals during the forecast period. In addition, the performance chemicals and materials also play a significant role in reducing production costs for end-market producers by minimizing wastage and maintenance costs.
At present, the performance chemicals business is in its transition phase. Initially, this industry was controlled by the chemical companies based in Europe, North America, and Japan. However, with trade liberalization, the rapid development of the industrialized economies in Asia, the growth of process technology, and the increasing standards of living in many developing countries, the global chemical industry has shifted towards Asia and the Middle East. These regions have proved a favorable place for this market’s growth mainly due to the availability of cheap feedstocks such as petrochemical, low labor costs, and rapid economic development. Of late, the vendors based in India and China have become major players in the performance chemical market.
The market is highly fragmented due to the presence of several international, regional, and local vendors. The regional and local players regulate the market in many emerging and less developed countries by offering cost-effective and high-performance chemicals for niche applications. However, these small vendors are facing a tough challenge owing to the expansion of global players in these regions. Competition in this market will intensify during the forecast period with the increase in technological innovations and product development. With international vendors showcasing inorganic growth through M&As, small players need to focus on end-user requirements, and modify their business operations to suit the needs of end-users.
Leading vendors in the market are -
Other prominent vendors in the performance chemicals market include Ashland, Bayer, Clariant, Huntsman, and Solvay-Rhodia.
The agrochemicals segment will continue its dominance in the performance chemicals market during the forecast period and is anticipated to occupy more than 16% of the total market share. The rise in global population, decreasing arable land, and the consequent requirement to improve crop yield are the major drivers for the growth of the agrochemicals segment. The use of agricultural products for industrial applications such as polymer production and fuel blending will increase the demand for agricultural commodities, resulting in new opportunities for the application of agrochemicals in the coming years.
APAC will be the largest region in the performance chemicals market and is likely to occupy around 41% of the overall market revenue by 2020. The rise in industrial activities across food, agriculture, cosmetics, and other manufacturing sectors in developing countries, mainly China and India is contributing significantly to the growth of performance chemicals market. In addition, the introduction of improved water treatment technologies such as ion-exchange resins will accelerate the demand for performance chemicals in the industrial water treatment segment in the coming years.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by type
PART 07: Market segmentation by geography
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
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