Coating Additives Market Size, Share, Opportunities, And Trends By Type (Fluoropolymers, Urethanes, Metallic Additives, Acrylic Coatings, Others), By Formulation (Water-Borne, Solvent-Borne, Powder-Based), By Application (Anti-Foaming, Wetting & Dispersion, Biocides, Others), By End User (Automotive, Architectural Application, Industrial Application, Wood & Furniture, Others), And By Geography - Forecasts From 2024 To 2029

The coating additives market is expected to grow at a CAGR of 5.87% over the forecast period to reach a total market size of US$12.472 billion by 2029, increasing from US$8.364 billion in 2022. 

Coating additives improve the quality and application of the coating and can change its physical properties and functions. They are widely used for painting the exteriors of buildings, automobiles, woods, furniture, aviation, and others.

The major driving factors for the coating additives market growth are the rise of industrialization in Asia-Pacific, the increase in demand for eco-friendly products, and the growing demand for multifunctional additives. To prevent environmental pollution, the output of synthetic resin coatings has been reduced. The usage of waterborne coatings and solventless coatings has increased significantly, and this trend will continue in the future. Manufacturers and suppliers are focused on developing eco-friendly bio-based and water-based products for customers.

• The number of completed vacant housing units in Spain was 79,935 in 2022 and 80,473 in 2023. These are free housing.
• In Great Britain, the value of construction output of new work for public and private sectors has risen by 15.82% from the previous year and reached £132,989 million in 2022. This increased spending suggests the overall market demand for the construction industry in the country.
• According to Eurostat, annual average construction production in 2023, compared with 2022, increased slightly in the European Union. However, in the EU, building construction increased by 1.1% in 2023 compared to 2022, and civil engineering increased by 4.1%. Countries with significant increases are Romania, Poland, and Belgium, which are the top countries showing significant growth. This increase in the construction industry indicates an overall increase in raw materials for inputs.

COATING ADDITIVES MARKET DRIVERS:

• The automotive industry is expanding, driving the market's growth over the forecast period.

Coating additives are used in the automotive industry for various reasons, including improved pigment effect and coating performance, environmental friendliness, and cost savings. The increased demand for the vehicle market worldwide would expand the demand for coating additives as well by increasing the use of waterborne, solvent-free coatings and high solids over traditional solvent-borne technologies.

According to data from the International Organization of Motor Vehicle Manufacturers (OICA), vehicle production worldwide was 93,546,599 in 2023, out of which 26,413,029 were commercial vehicles and 67,133,570 were cars. This was an increase of 10% from the previous year. In addition, the growth of the electric vehicle demand further propitiated the demand for new vehicles in the market.

• Rising construction activities

The construction and building industry worldwide is showing a significant pace of growth and development. One of the primary reasons for this industry's expansion is the growing global urbanization. The rate of urbanization in the developing part of the world is rising significantly. This includes constructing large urban structures, such as parks, hospitals, hotels, restaurants, houses, buildings, etc., for living. The major part of the urbanization is taking place in the Asia Pacific, Middle East, and Africa regions.

The use of coating additives increases substrate wetting, mar resistance, and gloss retention, as well as chemical, UV, and corrosion resistance. Their flow and leveling properties eliminate defects on the surfaces. Further, the use of coating additives improves wet adhesion, chemical and corrosion resistance, weather ability, pigment dispersion, and scrub resistance.

Coating Additives Market Segment Analysis

• The waterborne formulation is expected to grow exponentially in the coming years.

Waterborne formulations contain fewer toxins that do not pollute the air and are also less flammable and hazardous than other forms, making them ideal for manufacturing in several industries. The employees have ambient working conditions created by applying waterborne technology, which produces few toxins in the air. Thus, it reduces the health hazards within the industry.

Furthermore, with a high gloss finish at no additional cost, manufacturers prefer this type of formulation in the manufacturing process. Waterborne coatings withstand high temperatures and protect automotive body armor from corrosion. They are also highly abrasion-resistant and can keep their glossy finish for an extended period. Due to waterborne's cost and technical benefits over other formulations, the market is anticipated to witness exponential growth in the coming year.

• The coating additives market by end-user is segmented into automotive, architectural, industrial applications, wood & furniture, and others.

The growth of the e-commerce business and developing supply chain caused the increase of different varieties of wood & furniture across the world and coating additive applications in the sector. In the development of different architectural designs through computer modeling, the coating additives could create the likely color and surface for the design. The automotive industry is growing due to the booming economies of Asia Pacific and favorable government policies for electric vehicles in the market.

• The Asia Pacific region will dominate the coating additives market during the forecast period.

The global coating additives market has been segmented by geography into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific region. Major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries.

Asia-Pacific is aiming for the development of its paints and coatings sector. It is developing the sector to become the global supply chain hub. According to the leading paint manufacturer Akzo Nobel India, India's paints and coatings industry is expected to reach US$ 12.22 billion in the next five years. Additionally, the country's economic growth, driven by the increased income levels and infrastructure development, is closely connected to the paints and coatings industry. 

Further, in the Interim Budget 2024-25, capital investment outlay for infrastructure has been increased by 11.1% to US$133.86 billion, which would be 3.4 % of GDP. This would significantly boost the development of infrastructure within the country.

Coating Additives Restraints:

• The coating additives market is expected to face challenges due to rising environmental concerns and various stringent regulatory frameworks in different geographic regions.

Coating additives market key developments:

• In April 2024, Syensqo launched a brand-new solution to its portfolio of Rhodoline® specialty coating additives. Rhodoline® HBR could phase fluorosurfactants in architectural paint formulations. These are used to prevent freshly painted surfaces from sticking together. This provides early hot block resistance without negatively impacting other performance properties.
• In October 2023, The global motion technology company Schaeffler acquired Aerosint SA from U.S. firm Desktop Metal. This would strengthen its market position in additive manufacturing technologies. It was named "Schaeffler Aerosint SA" and integrated into the Schaeffler Group. This would enhance the development of innovative coating technology using power-based laser fusion, making additive manufacturing cost-effective.

The coating additives market is segmented and analyzed as follows:

• By Type
  • Fluoropolymers
  • Urethanes
  • Metallic Additives
  • Acrylic coatings
  • Others
• By Formulation
  • Water-Borne
  • Solvent-Borne
  • Powder-Based
• By Application
  • Anti-Foaming
  • Wetting & Dispersion
  • Biocides
  • Others
• By End User
  • Automotive
  • Architectural Application
  • Industrial Application
  • Wood & Furniture
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Rest of the Middle East and Africa
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Rest of Asia-Pacific

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.1.1. The expanding automotive industry 

4.1.2. Rising construction activities

4.1.3. Waterborne formulation expected to increase in demand

4.2. Market Restraints

4.2.1. Environmental concerns and stringent regulatory frameworks

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. COATING ADDITIVES MARKET BY TYPE

5.1. Introduction

5.2. Fluoropolymers

5.3. Urethanes

5.4. Metallic Additives

5.5. Acrylic coatings

5.6. Others

6. COATING ADDITIVES MARKET BY FORMULATION

6.1. Introduction

6.2. Water-Borne

6.3. Solvent-Borne

6.4. Powder-Based

7. COATING ADDITIVES MARKET BY APPLICATION 

7.1. Introduction

7.2. Anti-Foaming

7.3. Wetting & Dispersion

7.4. Biocides

7.5. Others

8. COATING ADDITIVES MARKET BY END-USER

8.1. Introduction

8.2. Automotive

8.3. Architectural Application

8.4. Industrial Application

8.5. Wood & Furniture

8.6. Others

9. COATING ADDITIVES MARKET BY GEOGRAPHY

9.1. Global Overview

9.2. North America

9.2.1. United States

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Rest of South America

9.4. Europe

9.4.1. United Kingdom

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Spain

9.4.6. Rest of Europe

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. United Arab Emirates

9.5.3. Rest of the Middle East and Africa

9.6. Asia-Pacific

9.6.1. China

9.6.2. India

9.6.3. Japan

9.6.4. South Korea

9.6.5. Taiwan

9.6.6. Thailand

9.6.7. Indonesia

9.6.8. Rest of Asia-Pacific

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. BASF SE

11.2. Arkema SA

11.3. Ashland

11.4. Dow

11.5. Elementis PLC

11.6. Evonik Industries AG

11.7. Momentive

11.8. Eastman Chemical Company

11.9. Allnex GMBH

11.10. BYK (Atlanta)

BASF SE

Arkema SA

Ashland

Dow

Elementis PLC

Evonik Industries AG

Momentive

Eastman Chemical Company

Allnex GMBH

BYK (Atlanta)