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The wood protection coatings and preservatives market size is forecast to increase by USD 3.57 billion at a CAGR of 5.93% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for lumber in residential and commercial construction projects. This trend is driven by the need to protect wood from various environmental factors, such as sap stains, fungal rot, molds, and wood-destroying insects. Outdoor applications, including fence posts and utility poles, are major consumers of wood protection coatings and preservatives. Solvent-based products, such as sap stains and creosote solutions, continue to dominate the market. Creosote-coal tar and creosote-petroleum formulations are commonly used for utility poles and fence posts due to their high durability. However, the volatility in raw material prices poses a challenge to market growth.
Oil type preservatives, such as linseed oil, are gaining popularity due to their eco-friendliness and low toxicity. companies are forming strategic alliances to expand their product offerings and enhance their market presence. In summary, the market is driven by the increasing demand for lumber in construction activities. Solvent-based products continue to dominate the market, but the volatility in raw material prices and the growing popularity of eco-friendly alternatives pose challenges. Strategic alliances among companies offer opportunities for growth.
The construction sector in emerging countries is experiencing significant growth due to rapid urbanization and increasing disposable income. This trend is particularly noticeable in the residential sector, where modern interior design is becoming increasingly popular. Wood, as a natural and aesthetically pleasing material, continues to be a preferred choice for various structure components, including walls, flooring, trim, skirting lines, balusters, armrests, and ceilings. Wood preservatives play a crucial role in ensuring the longevity and durability of these wooden elements. With growing environmental concerns and regulations, there is a shift towards the use of emerging technologies in wood protection.
For instance, micronized copper azoles and water-based products are gaining popularity due to their low environmental impact and effectiveness in preventing decay and insect infestation. Interior design trends, such as wooden murals and wood carving, are also driving the demand for wood protective coatings. These decorative elements require specialized coatings to maintain their appearance and protect the underlying wood from damage. Rules and regulations set by environmental agencies are influencing the wood preservatives market. Hazardous chemicals, such as chromium, arsenic, and creosote, are being phased out due to their negative impact on the environment and human health. This has led to the development of alternative preservatives that offer similar protection without the associated risks.
In the context of wood flooring, the use of protective coatings is essential to maintain the floor's appearance and longevity. These coatings prevent wear and tear, protect against spills and stains, and provide a barrier against UV rays and moisture. The wood preservatives market is expected to grow steadily in the coming years, driven by the increasing demand for sustainable and eco-friendly products. The use of advanced technologies, such as nanotechnology, is also expected to revolutionize the market by offering superior protection and longer durability. In conclusion, the market is an essential component of the construction industry, particularly in emerging countries where urbanization and modern interior design trends are driving demand.
The market is being shaped by factors such as environmental regulations, interior design trends, and emerging technologies, and is expected to continue growing in the coming years.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The residential segment is estimated to witness significant growth during the forecast period.In the realm of residential interior design, wood protection coatings and preservatives play a pivotal role in safeguarding and enhancing the beauty of various wooden furniture and structure components. With the ongoing trend of rapid urbanization and increasing disposable income, the demand for wood-based furniture and decorative elements is surging in emerging countries. In this context, wood protection coatings and preservatives are essential for both interior and exterior applications. For instance, they are used in the manufacturing of furniture for living rooms, bedrooms, kitchen spaces, dining rooms, bathrooms, and other areas. Some common residential wooden furniture products that necessitate the use of these coatings and preservatives include sofa sets, tables, chairs, entertainment furniture sets, decorative side tables, shelves, beds, dressing tables, wardrobes, and study tables.
Moreover, wood protection coatings and preservatives are also utilized in the creation of intricate wooden murals, wall bodies, wood carvings, wood trim, skirting lines, balusters, and other ornamental elements that add charm to modern interior spaces. These coatings not only protect the wood from decay, moisture damage, and other environmental factors but also contribute to the overall aesthetic appeal of the furniture and interior design elements. In conclusion, the demand for wood protection coatings and preservatives in residential applications is on the rise due to the increasing popularity of wooden furniture and decorative elements in contemporary interior design.
These coatings and preservatives are vital for ensuring the longevity and preservation of wooden furniture and structure components, making them an indispensable part of the residential interior design industry.
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The Residential segment accounted for USD 4393.90 million in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 59% 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.
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The market in APAC caters to various industries, including construction and infrastructure, sports equipment, furniture and flooring, and automotive. The construction industry's growth in APAC, driven by investments in infrastructure and non-residential sectors, is a significant factor fueling the demand for these products. In 2023, the APAC construction industry experienced substantial growth and is projected to maintain its leading position in the global construction industry throughout the forecast period. Wood protection coatings and preservatives play a crucial role in preventing decay, insect infestations, and environmental threats in wooden furniture, doors, cabinets, roofs, staircases, beams, and other wooden structures. Two common types of preservatives are oil-based and water-based.
Oil-based preservatives, such as creosote oils and copper-based chemicals, offer superior protection against decay and insects but have environmental concerns. In contrast, water-based preservatives, like borates, are eco-friendly and effective against insects but may not provide the same level of decay protection. 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.
Increasing residential and commercial construction activities is the key driver of the market. The market is experiencing significant growth due to the expanding real estate sector and increasing construction activities worldwide. In the United States, substantial investments are being made in infrastructure development as part of the President's 2024 budget, which includes USD20 billion for the Federal Aviation Administration (FAA), USD16.6 billion for the Federal Transit Administration (FTA), USD2.9 billion for the Federal Railroad Administration (FRA), USD3 billion for Airport Infrastructure Grants, and USD1 billion for Airport Terminal Grants, among other allocations for federal highways. These investments will drive the demand for wood protection coatings and preservatives in various applications, such as engine use, fencing products, and agricultural use.
Two major categories of wood protection coatings and preservatives are Chromated Arsenicals and Pentachlorophenol. However, due to concerns regarding human health and environmental impact, there is a growing trend towards using non-hazardous alternatives, such as water-based products and metallic salts, including copper, fluoride, and others. Physical barriers are also gaining popularity as an alternative to chemical preservatives. These trends are expected to shape the market dynamics in the coming years.
Increase in strategic alliances amomg companies is the upcoming trend in the market. The global market for wood protection coatings and preservatives is witnessing significant growth due to increasing demand from both residential and commercial construction industries. Tung oil is a popular choice for wood protection, particularly in residential applications such as columns, straight beams, glue-laminated beams, lintels, purlins, trusses, and tied rafters. In the commercial sector, mass timber construction and wood frame construction are gaining popularity for shopping malls and restaurants. Major players in the market are expanding their production capacity to meet the rising demand for waterborne coatings. For instance, in October 2022, Koppers Performance Chemicals, a leading player, expanded its production capacity to increase its market share in industrial and commercial wood preservation technology markets.
Similarly, in December 2022, Sherwin Williams announced an agreement to acquire Industria Chimica Adriatica S.P.A., an Italian company specializing in industrial wood coatings, to broaden its product offerings and customer base. These strategic moves reflect the competitive landscape of the market, with companies focusing on innovation and expansion to gain a larger market share. The US government's support for sustainable construction practices is also expected to boost the demand for wood protection coatings and preservatives in the coming years.
Volatility in raw material prices is a key challenge affecting the market growth. Wood protection coatings and preservatives are essential for safeguarding lumber, fence posts, and other seasoned building materials from damage caused by fungal rot, molds, wood-destroying insects, and outdoor applications. These coatings and preservatives are primarily manufactured using petrochemical feedstocks, which include binders and solvents such as polyesters, alcohols, and epoxy resins. Crude oil and natural gas serve as the fundamental raw materials for producing these binders. The cost of feedstock is directly influenced by various factors, including the demand and supply of feedstock, the manufacturing process, and the region of production. Fluctuations in crude oil prices can significantly impact the cost of petrochemical feedstock, leading to volatility in resin prices.
Polymeric materials are the foundation for manufacturing wood protection coatings and preservatives. These materials include oil type preservatives, such as creosote solutions, creosote-coal tar, and creosote-petroleum formulations, as well as sap stains and linseed oil. The selection of the appropriate preservative or coating depends on the intended use, such as utility poles or outdoor applications. The use of these products is crucial for ensuring the longevity and durability of wood structures, making them a vital component of the construction industry.
The market forecasting 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 market growth analysis strategies.
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.
Akzo Nobel NV - The market for wood protection coatings and preservatives encompasses a range of products, including industrial-grade coatings utilized in the production of furniture and flooring in the United States. These coatings and preservatives safeguard wood from deterioration, enhancing its durability and longevity. By utilizing advanced formulations, these offerings effectively shield wood from environmental elements, ensuring its continued beauty and functionality.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is experiencing significant growth due to the rapid urbanization and increasing disposable income in emerging countries. With the rise in modern interior design trends, the demand for wood as a structural component and decorative element in interior spaces is on the rise. Wood is used extensively in various applications such as wall bodies, wooden murals, wood carving, wood trim, skirting lines, balusters, wood floor, armrests, ceilings, and more. Wood preservatives play a crucial role in protecting wood from decay, insects, and environmental threats. Emerging technologies such as micronized copper azoles and water-based products offer advantages over traditional oil-based preservatives.
These preservatives not only provide effective protection but are also eco-friendly and non-hazardous in nature. The construction & infrastructure industry, including residential, commercial, and industrial construction activities, is a significant consumer of wood preservatives. Fencing, decking, and other outdoor applications are major segments of the market. However, the use of wood preservatives is not limited to construction activities but also extends to furniture, doors, cabinets, roofs, staircases, beams, and more. Rules and regulations set by environmental agencies and growing awareness of human health and environmental concerns are driving the demand for non-hazardous wood preservatives. The market is also witnessing the emergence of new product types such as solvent-based and water-based preservatives. Government initiatives, seminars, exhibitions, and media-based advertisements are creating awareness about the importance of using wood preservatives and the advantages they offer. The market is expected to grow further due to the increasing infrastructural development and the growing popularity of mass timber construction, wood frame construction, and other modern construction methods.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
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 3573 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.75 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 59% |
Key countries |
China, US, Japan, Germany, and India |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Apollo Paints Pvt. Ltd., Arkema Group, Asian Paints Ltd., Axalta Coating Systems Ltd., BASF SE, Benjamin Moore and Co., Brillux GmbH and Co. KG, Dow Chemical Co., Eastman Chemical Co., Engineered Polymer Solutions and Color Corp. of America, Evonik Industries AG, IVM SRL, Jotun AS, Kansai Paint Co. Ltd., KAPCI Coating, Koppers Holdings Inc., Lanxess AG, Nippon Paint Holdings Co. Ltd., PPG Industries Inc., and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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