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Polymer Binders Market Overview
Polymer Binders Market size is forecast to reach US$45.1 million by 2027 after growing at a CAGR of 6.2% during 2022-2027. Polymer binders like vinyl acetate, acrylonitrile copolymer, polyurethane, and styrene acrylic are widely utilized in the construction, electrical and electronics industry as coatings and raw materials, because it improves durability, workability, tensile strength, bending strength, and bonding strength. Polymer binders undergo a process called sintering, as it provides considerable strengthening as particles are bonded together. Polymer binders’ main advantages compared to any other alternative material are their outstanding resistance to water, alkaline abrasion, and pigment binding capacity. The growing construction industry mainly in the developing countries for rapid urbanization and modernization is contributing to the growth of the Polymer Binders Market. Polymer binders are better alternatives to standard conventional resins, which will also act in favor of the market. The Polymer Binders Market is majorly driven by such advantages and increasing industrialization in emerging countries of Asia-Pacific is driving the Polymer Binders Market. However, high investment costs will limit the expansion of the market.
COVID-19 Impact
Currently, due to the COVID-19 pandemic, the core end-use industries of polymer binders like the electrical, automotive, and construction industry were highly impacted. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA) and World Economic Forum Organization, global leading countries in automotive production, firstly being China, Wuhan alone accounted for 50% the of total China’s production, and China experienced a drop of 40% in the year 2020 compared to the year 2019, and secondly being the United States, as well experienced a drop of 19% in total automotive production during this period, which affected the sales of polymer binders as well. Also, due to supply chain disruptions such as raw material delays or non-arrival, disrupted financial flows, and rising absenteeism among production line staff, OEMs have been forced to function at zero or partial capacity, resulting in lower demand and consumption for polymer binders in 2020-2021. These factors changed the revenue trajectory of the Polymer Binders Market during the outbreak and are expected to recover gradually during the forecast period.
Report Coverage
The report: “Polymer Binders Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Polymer Binders Industry.
By Binder Type: Solvent-Based, Water-Based, and Emulsion-Based.
By Product Type: Vinyl Acetate, Acrylics, Latex, Polyurethanes, Polyamides, and Others.
By Application: Coatings, Adhesives and Sealants, Paper and Textiles, Packaging, Building Materials, Consumer Goods, and Others.
By End-Use Industry: Automotive, Paints and Coatings, Building and Construction, Electrical and Electronics, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (the Middle East, and Africa).
Key Takeaways
- Asia-Pacific mainly dominates the Polymer Binders Market, owing to the growing demand in the construction and automotive industry for Polymer Binders, especially in China and India.
- The building and construction segment dominated the Polymer Binders Market and is likely to witness significant growth during the forecast period. Growth in the automotive industries is expected during the forecast period, which cumulatively is set to drive Polymer Binders Market growth, creating a number of latest opportunities.
- By application, the coatings segment dominated the market over the forecast period.
- By binder type, the water-based polymer binders’ consumption from end-use industries is likely to act as an opportunity for the polymer binder market.
- Growing demand for technical textiles and increasing per capita paint utilization will create more growth opportunities for the Polymer Binders Market.
Figure: Asia-Pacific Polymer Binders Market Revenue, 2021-2027 (US$ Million)
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Polymer Binders Market Segment Analysis – By Binder Type
The water-based segment held a significant share in the Polymer Binders Market in 2021. Water-based polymer binders are categorized as an important raw material in the paint and construction industry. For environmental reasons, powder coatings, and ultraviolet and electron beam (UV-EB) treatment systems are being replaced by the dispersion of water-based polymers by conventional resins used in solvent-based coatings. Innovations in the polymer industry offer some of the highest performing polymer binders in the market that are water-based making them safer, easier to work with, and is environmentally friendly. These water-based polymer binders are corrosion-resistant coating for food containers that is inert to inorganic salts, organic solvents, and bases. Water-based polymer binder is useful for automobile components, culinary appliances, hand grills, and laboratory equipment because of its exceptional resistant capabilities. Its electric insulating properties, along with its heat resistance, make it ideal for lamp reflector manufacture. The demand for water-based polymer binders is seen in the majority of industries and will increase significantly, which contributes to increased business growth.
Polymer Binders Market Segment Analysis – By Product Type
The acrylics segment held the largest share in the Polymer Binders Market in 2021. Acrylic polymer binders are increasingly used for their good performance and low cost compared to vinyl acetate and latex polymer binders. It has excellent alkali resistance, water resistance, abrasion resistance, and good pigment binding capacity, making acrylic polymer binders an ideal solution for the low-cost architectural coatings and other industries like the automotive and construction industries because of their strong structural adhesive properties and characteristics. Additionally, the acrylic polymer binders quickly bond with different materials including non-plastics, which are either thermoplastics or thermosetting polymers. Furthermore, the increasing technological developments in the end-use industries, widespread research and development activities, and continuous inventions are hugely contributing to the growth of acrylic polymer binders. Hence, the demand for acrylic polymer binders will increase significantly during the forecast period.
Polymer Binders Market Segment Analysis – By Application
The coatings segment held the largest share in the Polymer Binders Market in 2021 and is forecasted to grow at a CAGR of 7.8% during 2022-2027. Polymeric binders are used as coating raw material or substances that hold together or draw other materials together to make a cohesive whole mechanically, chemically, by adhesion or cohesion. Polymer binder is a crucial ingredient in coatings as it is employed to impart adhesion, gloss, and adaptability to the dried film, also binds the pigment particles together. Paints and coatings made from polymer binders are extensively used in the building and construction sector, for both exterior and interior applications. Growing technological advancements in paints and coatings technologies, mainly in acrylic formulations have enabled a broad range of weatherproof coating solutions. Thus, these multiple advantages and uses associated with polymer binder as a coating are expected to boost the growth of the Polymer Binders Market.
Polymer Binders Market Segment Analysis – By End-Use Industry
The building and construction segment held the largest share in the Polymer Binders Market in 2021 and is forecasted to grow at a CAGR of 9.5% during 2022-2027. Polymer binders used in the building and construction industry are projected to be the fastest-growing application during the forecast period as they are better alternatives to conventional resins. These polymer binders are increasingly being used for tiling & flooring, mortar modification, plastering, and insulation system applications, as it improves the performance of mortars by increasing durability, tensile strength, compressive strength, and flexural strength. The increasing usage of polymer binders in the residential and infrastructure sectors for industrial and architectural coating applications as the waterborne coating formulation will act as a driver for the market. The growth in the construction industry especially in developing countries due to rapid urbanization and modernization will drive the demand for the polymer binders industry. According to Invest India, the Indian building and construction industry is expected to reach $1.4 Trillion by 2025, and the global construction industry is worth $6.45 Trillion. As a result of such a growing focus on the building and construction industry, it is predicted that it will hugely contribute to the Polymer Binders Market over the forecast period.
Polymer Binders Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the Polymer Binders Market in 2021 up to 41%, owing to the rapidly growing infrastructural development to meet public and private infrastructural needs. The presence of rapidly growing urbanization along with growing per capita paint consumption and the rising demand for polymer binders for coatings and adhesives, with the growing construction industries in developing countries of China and India, is predicted to drive the general market demand of the polymer binders in this region. In India, the government has aimed to spice up the development of buildings and infrastructure within the country and has decided to come up with a single-window clearance facility, to provide speedy approvals of the construction projects, and allocate high budgets to such projects. According to the Union Budget of 2020-2021 that was made by the Indian government, allocated US$6.85 billion (Rs. 50,040 crores) to the Ministry of Housing and Urban Affairs, for implementing various construction and infrastructural plans throughout the country. According to the National Bureau of Statistics, China's construction sector is a key player in China's continued economic development. The value of their construction industry accounts for 25.9% of China's GDP in 2020, which went up from 6.2% in 2019. China also accounts for 20% of all construction investment worldwide and is expected to spend nearly USD 13 trillion on buildings by 2030. Additionally, China is the world’s largest consumer of adhesives & sealants, thus making China a notable country for the Polymer Binders Market. Japan’s architectural and infrastructural industry has also grown significantly in recent years, thus making it an important country for paints and coatings. According to Japan's paint manufacturers association, the Japanese coatings market is worth about 5.2 Billion Euros, ranking number two in Asia. Thus, due to the above-mentioned factors, Asia-Pacific dominates the Polymer Binders Market.
Polymer Binders Market Drivers
Increase in the global infrastructure sector
Infrastructure is a crucial driver for the expansion of the economy of any region, polymer binders are widely consumed as coatings in the construction of bridges, large buildings, bridges, dams, pipelines, road networks, ports, railways, and aqueducts. Increasing urbanization plans in developing countries will help boost the infrastructure sector and simultaneously the Polymer Binders Market. For instance, In Union Budget 2021, the government has allocated Rs. 233,083 crore (US$ 32.02 billion) to the infrastructure sector to enhance the Indian infrastructure. Increased spending on infrastructure features a multiplier effect on the general economic process because it demands industrial growth and manufacturing. This, in turn, steers the collective demand, by improving the living conditions of the people. According to the OCED organization, “the present infrastructure spending at the worldwide level is USD 4.1-4.3 trillion per year between 2014 and 2050.” Hence, increasing global infrastructural plans and spending will drive the Polymer Binders Market growth.
Increasing electric vehicles in automotive production
Polymer binders for auto parts in the automotive industry have experienced a larger utilization in recent years, and their applications have been increasing with a tendency for further growth in automobiles. Polymer binders are preferably used compared to other materials, due to their lightweight, affordability, easy manufacturing methods, and relatively lesser fuel consumption in electric vehicles. According to the international energy agency (IEA), electric cars accounted for 2.6% of global car sales and about 1% of global car stock in 2019, which registered a 40% year-on-year increase, despite a pandemic. Proving the capacity of EVs and the automotive industry to recover despite a global crisis, consequently maintaining a market demand for Polymer Binders Market as well.
Polymer Binders Market Challenges
Absence of quality control in developing economies
The absence of quality control in various applications such as in building and construction, paints and coatings, and others in developing countries is the major restraint of the market. Sometimes, when there is increased growth in the infrastructure of developing countries, it leads to compromising the quality of polymer binders. The main reason for this absence of quality is due to the fluctuation in prices of raw materials. So, the vendors try to go for a lower quality raw material to overcome the extra costs they have to pay for the high-quality raw materials. The high investment costs might also limit the growth of the market. Also, the demand for polymer binders will get impacted when the quality is compromised, as there is a threat of consumers shifting to the prevailing alternative of paper and carpet products in the market. Hence, due to the above-mentioned risks, the market growth will be restrained.
Polymer Binders Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Polymer Binders top 10 companies include:
- BASF SE
- Dow Chemical Company
- Celanese Corporation
- Arkema
- Wacker Chemie AG
- Trinseo
- OMNOVA Solutions Inc.
- Dairen Chemical Corporation
- Toagosei Co. Ltd
- Synthomer PLC
Recent Developments
In March 2019, WACKER introduced new a set of polymer binders based on renewable sources. These products are launched with a thought to supply “improved solutions for moisture protection and are known for their lesser emission.” They are produced using two different processes, one process is by using biobased acetic acid, and the other is by using potato starch, and these eco-friendly processes are well matched for the manufacturing of interior paints and plasters.
In February 2019, BASF and Adani Group have signed a Memorandum of Understanding (MoU) on the eve of the Vibrant Gujarat Global Summit 2019 to evaluate a major joint investment in the acrylics value chain. This is looked upon as BASF’s largest investment in India by far.
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