Performance chemicals: Key market research findings
- APAC dominates the market geographically
- Agrochemicals account for a majority share of the market’s revenue
- Key vendors – AkzoNobel, Arkema, BASF, Dow Chemical, and Evonik
Technavio’s market research analysts predict the global performance chemicals market to grow at a CAGR of over 5% between 2016 and 2020. The market’s growth is augmented by the reduced production costs in the end-markets. Performance chemicals and materials play a key role in reducing the production costs for end-market producers by minimizing wastage and maintenance costs. Manufacturers in the market are trying to develop durable and economical alternatives such as composites used in the transportation industry. During 2015, APAC dominated the global performance chemicals market by accounting for about 39% of the overall market space. The increasing industrial activities in the field of food, agriculture, cosmetics and other manufacturing sectors in developing countries, mainly China and India coupled with a rise in disposable income in the developing countries is expected to propel growth in the performance chemicals market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the performance chemicals market based on the type.
“Globalization of value chains is a trend that will play a vital role in the growth of this market. Manufacturing capability is expected to persist in North America, Europe, and China while the demand grows in emerging markets. Western Europe and North America have been the largest markets and also manufacturing hubs for construction chemicals previously. These regions have well-established construction chemical value chains,” saysChandrakumar Badala Jaganathan, Lead Analyst, Chemicals & Materials, Technavio Research.
By 2020, the agrochemicals segment is expected to continue its market dominance by accounting for almost 17% of the revenue from the global performance chemicals market. The rise in global population, declining arable land, and subsequent necessity to enhance crop yield are some of the factors fueling growth in this segment. The use of agricultural products for industrial applications such as polymer production and fuel blending and the resultant rise in the demand for agricultural commodities is also expected to contribute to the growth in the global agrochemicals market in the coming years.
The prominent players in the market include AkzoNobel, Arkema, BASF, Dow Chemical, and Evonik. The market is highly fragmented due to the presence of several international, regional, and local vendors. The regional and local players regulate the market in many emerging and less developed countries by offering cost-effective and high-performance chemicals for niche applications. However, these small vendors are facing a tough challenge owing to the expansion of global players in these regions. Competition in this market will intensify during the forecast period with the increase in technological innovations and product development. With international vendors showcasing inorganic growth through M&As, small players need to focus on end-user requirements and modify their business operations to suit the needs of end-users.
A more detailed analysis is available in the Technavio report, Global Performance Chemicals Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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