Coating Solvents Market: Improvement in Performance of Coatings
- Coating solvents are additives used to impart certain properties to coatings such as desired consistency. Coating solvents offer relatively greater benefits than water-borne and bio-based coating solvents used in the production of coatings. Major types of coating solvents include xylene and toluene, ethylene dichloride, chloroethane, acetone, alcohols, and ethyl acetate.
Is something restraining your company’s growth in the Coating Solvents Market? Ask for the report brochure here
Key Drivers of Global Coating Solvents Market
- Increasing demand for coating solvents for use in performance coatings is expected to act as a major driving factor for the global coating solvents market during the forecast period. Performance coatings have witnessed increased demand over the last few years, particularly for use in prevention of damage to installations and transportation equipment.
- However, performance coatings that are being developed currently are associated with high-solid systems, owing to introduction of pigments with high density. On the other hand, future performance coatings are expected to contain water-borne coating solvents. This can be attributed to growing focus on endurance profiles and low-risk applications.
- Due to rising number of end-use applications of coating solvents, manufacturers have actively introduced various coating solvents such as xylene, toluene, and even alcohols. A few top-selling variants of coating solvents collectively hold around 75% of the market share, in terms of volume.
- Growing building & construction sector in countries of Asia Pacific is driving the demand for various equipment and architectural coatings used in the construction of residential as well as commercial complexes. This, in turn, is anticipated to augment the demand for coating solvents in the near future.
Bio-based Segment to Witness Significant Growth
- Properties such as eco-friendliness nature and sustainability have led to evolution of regulations in the coatings industry. This, in turn, has led to increase in usage of bio-based raw materials in the manufacture of solvents in coating formulations.
- Several paints and surface coatings currently available in the marketplace bear labels such as ‘eco-friendly’ and ‘environmental friendly.’ This indicates the rising demand for bio-based solvents. According to the European Solvents Industry Group (ESIG), bio-based solvents are expected to witness rapid increase in the demand in the near future.
Availability of Substitutes and Stringent Regulations to Hamper Market
- Coating solvents are used in various industrial sectors and by a large number of coating manufacturers, owing to their cost-effective nature and durable finish that they offer. However, regulations on VOC content and hazardous impact of solvent-based products on the environment have made end-use industries and manufacturers focus on the use of water-based products.
- Polyurethane dispersions and water-based self-crosslinking emulsions are gradually replacing their solvent-based counterparts in various applications. Additionally, water-borne UV-curable coatings are largely being used in industrial applications, as these ensure excellent block resistance after curing. This, in turn, enables stacking, packaging, and shipping of coated parts directly from production lines.
- Coating solvents are expected to face regulations imposed by environment regulatory authorities such as EPA’s National Emission Standards for Hazardous Air Pollutants (NESHAPs). NESHAPs have listed several solvents according to their environmental footprint, restricting their use in several applications.
Stuck in a neck-to-neck competition with other brands? Request a custom report on competition on Coating Solvents Market here
Asia Pacific Expected to Hold a Significant Share of Global Coating Solvents Market
- In terms of region, the global coating solvents market can be divided into: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- Asia Pacific dominates the global market for coating solvents and the market in the region is estimated to expand significantly during the forecast period. The market in the region is anticipated to be largely driven by increasing investments in the building & construction sector and growing industrial sector in developing countries of Asia Pacific such as China and India.
- The Asia Pacific is expected to acquire significant volume share as compared to other regional markets. Moreover, the coating solvents market in Asia Pacific is expected to be concentrated in China in the near future. Mainstream demand is driven by end-use industries that focus on reducing the count of recoats and increasing the lifespan of their products and structures.
- Several cities in China are working toward restricting the use of solvent-based coatings. This, in turn, is likely to hamper the Asia Pacific coating solvents market in the near future. Manufacturers in China have started using water-based coatings as a substitute for solvent-based coatings. Major cities such as Zhongshan, Taizhou, Nanjing, Shanghai, and Tianjin have implemented the use of water-based coatings.
Key Players Operating in Market
The global coating solvents market continues to remain consolidated among a few large players, which currently account for nearly 50% share of the global market, in terms of revenue. Companies are focusing on the expansion in their regional footprint, which is a key strategy of these players. This has led to several collaborations, partnerships, and acquisition activities with emerging players.
Major players operating in the global coating solvents market, such as BASF SE and The Dow Chemical Company, are strengthening their strategies for reaching large number of target customers. However, the global market is likely to remain moderately fragmented among small and domestic players, wherein strategic partnerships with leading players and product innovation for tapping various opportunities would be key growth strategies.
Key players operating in the global coating solvents market include:
- Exxon Mobil
- Eastman Chemical
- LyondellBasell Industries
- Peng Chen New Materials Technology
Global Coating Solvents Market: Research Scope
Global Coating Solvents Market, by Source
Global Coating Solvents Market, by Application
- Building & Construction
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.