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The coalescing agents market size is estimated to grow at a CAGR of 5.93% between 2023 and 2028. The market size is forecast to increase by USD 441.43 million. Several factors play a crucial role in the market's growth, such as the increasing demand due to stringent environmental regulations promoting low-VOC coatings, the increase in demand due to expanding construction industry, and the increasing preference for water-based coatings over solvent-based alternatives.
The report offers extensive research analysis on the Coalescing Agents Market, with a categorization based on Application including paints and coatings, adhesives and sealants, links, and others, Type segment including hydrophilic, and hydrophobic. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data for 2018-2022, and future projections are presented in terms of value (in USD million) for all the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand due to stringent environmental regulations promoting low-VOC coatings is the key factor driving market growth. The objectives of laws are to limit the environmental impact of high-VOC coatings, minimize health concerns, and reduce air pollution. Coaling agents that help paint and coating producers create low-VOC formulas that abide by these laws while preserving or enhancing coating performance are in high demand.
Moreover, the EPA in the US, the VOC Directive of the European Union (EU), and comparable laws in other countries are some of the specific rules that are driving this need. Thus, the increasing demand due to stringent environmental regulations promoting low-VOC coatings is likely to drive the growth of the global coalescing agents market during the forecast period.
The growing trend towards bio-based coalescing agents is the primary trend shaping market growth. The usage of bio-based coalescing agents is on the rise fueled by environmental concerns and sustainability objectives. The use of bio-based coalescing agents has risen in popularity as environmental solutions become increasingly important to the world. Since these agents are made from renewable resources such as plant-based feedstocks, coatings, and paints, they have a smaller carbon footprint and depend less on fossil fuels.
In addition, to make sustainable coalescing agents, Dow, Eastman, and BASF are actively investing in R&D. For instance, Eastman provides bio-based coalescing agents under the Saflex EcoGreen brand that come from natural feedstocks such as pine trees. Hence, such factors are expected to drive the growth of the global coalescing agents market during the forecast period.
Volatility in raw material prices of coalescing agents is a challenge that affects market growth. Solvents, specialized chemicals, and petrochemical derivatives are a few of the raw materials that are needed for the economical manufacturing of coalescing agents. Due to variables such as supply and demand dynamics, geopolitical events, and market speculation, these materials frequently show price volatility. Major market players had difficulties when the pricing of essential raw ingredients, including aliphatic hydrocarbons or glycol ethers fluctuated.
Moreover, to mitigate these challenges and ensure cost-effective production, companies must maintain supply chain resilience and explore alternative sourcing options. Such volatility can disrupt cost structures, affect profit margins, and necessitate continuous adjustments in pricing strategies. Thus, such factors are expected to impede the growth of the global coalescing agents market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Coalescing Agents Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The paints and coatings segment is estimated to witness significant growth during the forecast period. The global coalescing agent market is expanding significantly, with paints and coatings being the most prevalent applications. The rising automotive and construction sectors, which have a strong need for premium paints and coatings, are the main drivers of this growth.
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The paints and coatings segment was the largest segment and was valued at USD 425.33 million in 2018. Leading companies, including Dow and Eastman, are leading the way with cutting-edge coalesce agents customized for different formulations. By 2028, the paints and coatings segment is predicted to continue to dominate due to factors such as increasing urbanization, environmental concerns, and the demand for long-lasting coatings. This will drive the growth of the global coalescing agent market during the forecast period.
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APAC is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Environmentally conscious consumers and the growing construction and automotive sectors in APAC are driving increasing demand for eco-friendly paints and coatings. The usage of coalesce agents in architectural paints has increased due to the region's growing population and urbanization, which has also caused a spike in construction activities.
Furthermore, the expansion of the automobile industry, especially in China and India, is increasing demand for coatings that need coalescing agents to function better and emit less volatile organic compounds. Companies such as Dow and Eastman are making use of this potential by offering creative coalesce agents to meet the varied demands of the industry while guaranteeing adherence to environmental laws. Hence, such factors are expected to drive market growth in this region during the forecast period.
The COVID-19 pandemic negatively affected the APAC coalescing agent market in 2020. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Besides, the increasing need for low-VOC coatings to comply with environmental standards, the expansion of infrastructure projects, and the strong construction industry are expected to fuel the growth of the APAC coalescing agents market during the forecast period.
The coalescing agents market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Coalescing Agents Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.93% |
Market Growth 2024-2028 |
USD 441.43 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.61 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACS Technical Products, Arkema Group, BASF SE, Cargill Inc., Celanese Corp., Clariant International Ltd., Dow Chemical Co., Eastman Chemical Co., Elementis Plc, Evonik Industries AG, Huntsman International LLC, Issuu Inc., Krishna Antioxidants Pvt. Ltd., Lamberti SpA, Michelman Inc., Solvay SA, Stepan Co., Synthomer Plc, The Lubrizol Corp., and Wacker Chemie AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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