Global Performance Chemicals Market 2016-2020

Overview of the global performance chemicals market

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.

Competitive landscape and key vendors

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 -

• AkzoNobel
• Arkema
• BASF
• Dow Chemical
• Evonik

Other prominent vendors in the performance chemicals market include Ashland, Bayer, Clariant, Huntsman, and Solvay-Rhodia.

Segmentation by type and analysis of the performance chemicals market

• Agrochemicals
• Polymer additives
• Construction chemicals
• Electronic chemicals
• Industrial and institutional cleaners
• Surfactants
• Specialty coatings
• Lubricant and oilfield chemicals
• Textile chemicals
• Food additives

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.

Geographical segmentation and analysis of the performance chemicals market

• Americas
• APAC
• EMEA

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.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global performance chemicals market?
• What are the key market trends impacting the growth of the global performance chemicals market?
• What are the challenges to market growth?
• Who are the key vendors in the global performance chemicals market?
• What are the market opportunities and threats faced by the vendors in the global performance chemicals market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global performance chemicals market?

Technavio also offers customization on reports based on specific client requirement.

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