Coalescing Agent Market Overview
The coalescing agent market
size is forecast to reach US$ 1.6 billion by 2027 after growing at a CAGR of 5.1%
during 2022-2027. Coalescing agents are plasticizers or stabilizers that offer an even dispersion
for resin or polymer. These agents are used in dispersion paints for the
formation of polymeric
films at ambient temperatures and later stabilize the paints when the
water or solvent evaporates. A wide variety of coalescing agents such as methoxy propylene glycol ethers, dipropylene glycol butyl
ether, and ester alcohols are utilized in the formulation of paints and
coatings which are later used in several applications in multiple industries. Coalescing agents find
their extensive use in the construction sector where they are implemented in
exterior wall façade paint, interior flat architectural coatings, flooring, and
other construction products. The construction sector is expanding globally with
increasing construction activities and this is expected to drive the market’s
growth during the forecast period. For instance, according to the report
by India Brand Equity Foundation, India received FDI in the construction
development sector (townships, housing, built up infrastructure, and
construction development projects) amounting to USD 26.14 billion between April
2000 and June 2021. Furthermore, coalescing agents are massively used in the automotive
sector in the production of several auto paint products such as topcoats, automotive
thinners, interior and exterior refinish coating. The automotive sector is
expanding globally with increasing production and sales of vehicles and this is
expected to influence the market’s growth during the forecast period. For
instance, according to the 2021 report by the European Automobile Manufacturers
Association,
passenger car registrations surged 25.2% in the European region in the first
half of 2021. The strict regulations regarding the harmful emission from coalescing agents
might affect the market’s growth.
COVID-19 Impact
The coalescing agent market was severely impacted due to the COVID-19 pandemic. The market came across several challenges in the form of supply chain scarcity and factory shutdown which hampered the market’s growth. The market players had to implement multiple measures to withstand the unprecedented circumstances amid the pandemic. Moreover, the stagnant growth in several end-use sectors such as automotive and construction further restricted the market’s growth. The coalescing agent market grew decently towards the end of 2020. Going forward, the market is expected to have robust growth due to the massive expansion of end-use sectors such as construction and automotive.
Report Coverage
The “Coalescing Agent Market Report - Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the coalescing agent market industry.
By Type: Hydrophobic Coalescing Agents and Hydrophilic
Coalescing Agents
By Form: Liquid and Solid (Powder, Granule, Others)
By Application: Paints
and Coatings, Caulks, Sealants, Adhesives, Inks, and Others
By End Use: Automotive
(Passenger Vehicle, Commercial Vehicle, Light Commercial Vehicles, Heavy
Commercial Vehicles), Construction (Residential, Commercial, Office, Hotels and
Restaurants, Educational Institutes, Others), Packaging, Paper, Textile,
Marine, Personal Care, Pharmaceuticals, and Others
By Geography: North America (USA, Canada, Mexico), Europe (UK, Germany, France, Italy,
Netherlands, Spain, Russia, Belgium, Rest of Europe), Asia Pacific (China,
Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan,
Malaysia, Rest of Asia Pacific), South America (Brazil, Argentina,
Colombia and Rest of South America), and RoW (Middle East and Africa).
Key Takeaways:
- The construction sector is driving the coalescing agent market’s growth. As per the November 2021 stats by Council on Foreign Relations (CFR), the US Congress announced an investment amount of $1 trillion for the up-gradation of physical infrastructures such as bridges and roads.
- The automotive sector is expected to influence the market’s growth during the forecast period. According to the June 2021 stats by European Automobile Manufacturers Association, registrations of passenger cars in the European region surged by 53.4% in May 2021 compared to the same period last year.
- The Asia-Pacific region is expected to witness the highest demand for coalescing agents owing to the booming construction sector in the region. As per the stats by India Brand Equity Foundation, India received FDI in construction (infrastructure) activities amounted to US$25.38 billion between April 2000 and June 2021.
Figure: Asia Pacific Coalescing Agent Market Revenue, 2021-2027 (US$ Billion)
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Coalescing Agent Market Segment Analysis - By Application
The paints and coatings application
segment held the largest share in the coalescing agent market in 2021 and is
growing at a CAGR of 5.6% during the forecast period. Coalescing agents are plasticizers that help in
the formation of polymeric
films during the formulation of paints and coatings and later stabilize
the coating solution. A wide variety of coalescing agents such as methoxy propylene glycol ethers,
dipropylene glycol butyl ether, and ester alcohols are used in the production
of paints and coatings which are later utilized in various other industrial
applications. These agents offer numerous properties, ranging from good
stability, flexibility, enhanced efficiency, surface tension-lowering ability,
water resistance, among others. Owing to such robust properties, developments
regarding the expansion of coalescing agent portfolio is increasing. For
instance, as per the April 2021 journal by URAN Publishing Service Ltd.,
advanced coalescing agent was developed successfully as a replacement to volatile
coalescent in the formulation of paints. Such increasing development of
coalescent agents is expected to increase their use in the paints and coating
application, in turn driving the market’s growth during the forecast period.
Coalescing Agent Market Segment Analysis - By End Use
The construction sector dominated the coalescing agent market in 2021. Coalescing agents are used in the construction sector for the production of a wide range of paint and coating products. Coalescing agents are utilized in the preparation of interior flat architectural coatings, elastomeric roof coating, exterior wall façade paint, and several other construction products. The use of coalescing agents in construction paints and coatings helps in protecting the buildings and large infrastructures from UV, lowers the carbon footprint, and withstands many adverse conditions. The construction sector is booming globally with increasing project announcements and rising investments, and this is expected to influence the market’s growth during the forecast period. For instance, as per the August 2021 report by Eurostat, the building construction segment in the European Union and Euro Area expanded by 3.8% and 3.1% respectively in June 2021. Similarly, according to the July 2020 stats by Engage Communicate Facilitate (ECF), the number of build-to-rent units completed or in development increased seven-fold to over 140000 in the UK in June 2019. Such massive expansion in the global construction sector is expected to increase the requirement of the coalescing agent in the production of construction paints and coatings, ultimately driving the market’s growth during the forecast period.
Coalescing Agent Market Segment Analysis - By Geography
The Asia-Pacific region held the largest share in the coalescing agent market in 2021, up to 32%. The high demand for coalescing agents is attributed to the expanding construction sector in the region. A wide variety of coalescing agents such as methoxy propylene glycol ethers and dipropylene glycol butyl ether are used massively in the region’s construction paints and coatings. The construction sector in the region is exhibiting tremendous growth and this is expected to stimulate the demand for coalescing agents during the forecast period. For instance, as per the stats by InvestIndia, the real estate sector in India is projected to reach USD 1 trillion by 2030, contributing 13% to India’s GDP. Similarly, as per the Q4 2020 Global Construction Monitor report by the Royal Institution of Chartered Surveyors, the construction market in Asia-Pacific witnessed positive momentum (+8). Such a huge boost in the region’s construction sector is expected to catapult the demand for a coalescing agent during the forecast period.
Coalescing Agent Market – Drivers
Expanding automotive sector is driving the market’s growth
The automotive sector is one of the important
markets for coalescing agents. These plasticizers are used in the formulation of topcoats, automotive
thinners, interior and exterior refinish coatings in the automotive sector. The
automotive sector is expanding with increasing vehicle numbers and this is
expected to influence the market’s growth during the forecast period. According to the report by India Brand Equity
Foundation, passenger cars dominated the Indian auto sector in 2020 with a
market share of 12.9% of over 20.1 million
vehicles. Similarly, as per the July 2021 stats by the European Automobile Manufacturers
Association, in June 2021, passenger cars registrations grew, with Germany
witnessing the highest demand in the segment with a 24.5% surge. Such massive
expansion in the global automotive sector is expected to increase the use of coalescing agents in
the formulation of auto paints and coatings, in turn propelling the market’s
growth during the forecast period.
The increasing construction activities influencing the market’s growth
The construction sector is one of the largest markets for coalescing agents. A wide spectrum of coalescing agents such as methoxy propylene glycol ethers, dipropylene glycol butyl ether, and ester alcohols find their extensive use in the production of construction paints and coatings which are later utilized for decorative purposes and offering protection to building surfaces against harsh conditions. The construction activities globally increasing robustly and this is expected to drive the market’s growth during the forecast period. As per the report by Federal Reserve Economic Data, total spending in the residential construction segment in the US stood at USD 657,608 in September 2020 compared to USD 642,031 in August 2020. Similarly, according to the 2021 stats by India Brand Equity Foundation, India is projected to become the world’s third-largest construction sector by 2022. Such increasing activities in the global construction sector is expected to bolster the use of coalescing agents in the formulation of construction paints and coatings, ultimately driving the market’s growth during the forecast period.
Coalescing
Agent Market – Challenges
The strict regulations regarding harmful emission from coalescing agents might hamper the market’s growth
The coalescing agents are associated with the release of volatile organic compounds which has been a challenge and this might affect the market’s growth during the forecast period. Various governing bodies globally regulate the use of coalescing agents in the formulation of paints and coatings. According to the data by European Patent Office (EPO), coalescing agents are the primary source of volatile organic compounds. EPO strictly regulates the use of volatile coalescing agents such as ester alcohols which affect the environment severely. Such strict regulations regarding the harmful emission from coalescing agents might hamper the market’s growth during the forecast period.
Coalescing Agent Market Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the Coalescing Agent Market. Global Coalescing Agent top 10 companies include:
1. Clariant AG
2. Solvay
3. Elementis
4. Oxiteno
5. Evonik Industries
6. Synthomer
Plc
7. The Dow
Chemical Company
8. BASF SE
9. Cargill
10. Arkema S.A
Recent Developments
- In November 2020, Elementis announced its partnership with NXTLEVVEL Biochem for the development and sale of bio-based coalescing agents.
- In October 2020, Oxiteno launched its new coalescing agent, coalescent ULTRAFILM 5000, for high-performance waterborne paint
- In April 2020, Clariant AG launched of its new VOC-free coalescing agent, Genagen COA, for decorative coatings.
Relevant Reports
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LIST OF TABLES
1.Global Coalescing Agent Market, By Type Market 2023-2030 ($M)1.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Global Industry Research
1.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Global Industry Research
2.Global Coalescing Agent Market, By Type Market 2023-2030 (Volume/Units)
2.1 Hydrophilic Coalescing Agent Market 2023-2030 (Volume/Units) - Global Industry Research
2.2 Hydrophobic Coalescing Agent Market 2023-2030 (Volume/Units) - Global Industry Research
3.North America Coalescing Agent Market, By Type Market 2023-2030 ($M)
3.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
3.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
4.South America Coalescing Agent Market, By Type Market 2023-2030 ($M)
4.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
4.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
5.Europe Coalescing Agent Market, By Type Market 2023-2030 ($M)
5.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
5.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
6.APAC Coalescing Agent Market, By Type Market 2023-2030 ($M)
6.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
6.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
7.MENA Coalescing Agent Market, By Type Market 2023-2030 ($M)
7.1 Hydrophilic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
7.2 Hydrophobic Coalescing Agent Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Coalescing Agent Market Revenue, 2023-2030 ($M)2.Canada Coalescing Agent Market Revenue, 2023-2030 ($M)
3.Mexico Coalescing Agent Market Revenue, 2023-2030 ($M)
4.Brazil Coalescing Agent Market Revenue, 2023-2030 ($M)
5.Argentina Coalescing Agent Market Revenue, 2023-2030 ($M)
6.Peru Coalescing Agent Market Revenue, 2023-2030 ($M)
7.Colombia Coalescing Agent Market Revenue, 2023-2030 ($M)
8.Chile Coalescing Agent Market Revenue, 2023-2030 ($M)
9.Rest of South America Coalescing Agent Market Revenue, 2023-2030 ($M)
10.UK Coalescing Agent Market Revenue, 2023-2030 ($M)
11.Germany Coalescing Agent Market Revenue, 2023-2030 ($M)
12.France Coalescing Agent Market Revenue, 2023-2030 ($M)
13.Italy Coalescing Agent Market Revenue, 2023-2030 ($M)
14.Spain Coalescing Agent Market Revenue, 2023-2030 ($M)
15.Rest of Europe Coalescing Agent Market Revenue, 2023-2030 ($M)
16.China Coalescing Agent Market Revenue, 2023-2030 ($M)
17.India Coalescing Agent Market Revenue, 2023-2030 ($M)
18.Japan Coalescing Agent Market Revenue, 2023-2030 ($M)
19.South Korea Coalescing Agent Market Revenue, 2023-2030 ($M)
20.South Africa Coalescing Agent Market Revenue, 2023-2030 ($M)
21.North America Coalescing Agent By Application
22.South America Coalescing Agent By Application
23.Europe Coalescing Agent By Application
24.APAC Coalescing Agent By Application
25.MENA Coalescing Agent By Application
26.Eastman Chemical Company, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.DowDuPont, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.BASF SE, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Evonik Industries AG, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Elementis Plc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Synthomer Plc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Celanese Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Croda International Plc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Cargill, Incorporated, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Arkema Group, Sales /Revenue, 2015-2018 ($Mn/$Bn)