Polymer Dispersion Market

Polymer Dispersion Market Analysis

The Polymer Dispersion Market is expected to register a CAGR of greater than 8% during the forecast period.

The COVID-19 pandemic in 2020 had a negative impact on the market. However, the industry has since recovered. Since then, steady growth in the paint and coating, automotive, and other end-use industries has driven the market.

• The rising demand for decorative and protective coatings due to the growing construction industry worldwide is expected to drive the market forward. The demand is also expected to grow due to the increasing adhesives and sealants market.
• However, the environmental-related concerns and the high costs due to the limitation on VOC content in paints and coatings will likely hinder market growth.
• The development of emulsion polymerization techniques is likely to act as an opportunity for the market studied.
• The Asia-Pacific region accounts for the highest market share and is expected to dominate the market during the forecast period.

Polymer Dispersion Market Trends

Construction Industry to Dominate

• Polymer dispersion of different resin types is utilized the most in the construction industry due to the advantages it inherits over other materials. In the construction industry, it is used in floor coatings, concrete coatings, outdoor glazing in architecture and construction, and many other applications.
• Polymer dispersions are frequently employed in coating formulations to provide strong performance benefits such as hardness, chemical resistance, and corrosion inhibition. They are generally employed in decorative and protective paints and coatings, which are then used in the building industry.
• The World Paint and Coating Industry Association (WPCIA) estimated that the worldwide construction industry was worth around USD 8.4 trillion by the end of 2022. Decorative paints and coatings were widely used in the building industry to provide both aesthetic and corrosion protection. In 2022, the global decorative paints & coatings market was expected to be worth roughly USD 70.28 billion.
• Furthermore, the annual research noted that the residential sector was the fastest-growing application category of the worldwide decorative paints and coatings industry. This expansion was primarily due to an increase in residential construction activity and a rise in homeownership rates in emerging nations.
• On the other hand, the United States Census Bureau estimated that the United States spent USD 1,809.8 billion on construction-related expenses in December 2022. Comparing December 2022 to December 2021, when the total amount spent was USD 1,681.0 billion, the construction sector showed a rise of roughly 7.7%. This in turn would have helped the market for phase change materials to grow.
• According to the Bureau of Economic Analysis, the total value added by the construction industry at seasonally adjusted rates in the year 2022 in the United States was approximately USD 4,028 billion, about 6% more than the value added in the prior year.
• Additionally, Germany had also approved the construction of 25,399 dwellings for October 2022. Also, 297,453 residential building licenses were issued between January and October 2022.
• All these building and construction activities in various locations throughout the world increase the demand for polymer dispersion in the industry, propelling the market ahead.

China to Dominate the Asia-Pacific Region

• The Asia-acific region is expected to have the highest growth during the forecast period, owing to the increase in demand from the end-user industries, including construction, automotive, consumer goods, paints and coatings, and many more.
• Polyurethane dispersion is a resin kind of polymer dispersion that is used in industrial coatings, UV coating resins, floor coatings, hygiene coatings, wood coatings, adhesives, concrete coatings, automotive coatings, transparent coatings, and anticorrosive applications. This dispersion provides a unique mix of toughness, mechanical characteristics, and durability not seen in conventional polymer chemistries.
• According to the World Paint and Coating Industry Association (WPCIA), the Asia-Pacific paints and coatings market was estimated to be around USD 63 billion in 2022, with East Asia being the most lucrative market for paints and coatings worldwide.
• Moreover, China accounts to have the market share of the paints and coatings industry in East China accounting for close to 80% of the market. The annual report by WPCIA also stated that China's total sales of paints and coatings exceeded USD 45 billion in the year 2022.
• The country's ever-growing construction industry is one of the key reasons for having the greatest market share in the paints and coatings business in China. The construction industry in China is rapidly increasing and is the largest in the Asia-Pacific region. According to the National Bureau of Statistics of China, construction output in China in the fourth quarter of 2022 was valued at roughly CNY 276 billion (USD 40 billion), marking a 50% increase over the previous quarter (USD 27.6 billion).
• Furthermore, polymer dispersion is used in the automotive industry, and because China is the world's largest buyer and producer of automobiles, demand for polymer dispersion is likely to rise in tandem. According to the China Association of Automobile Manufacturers, the country's automobile production in 2022 reached 27.02 million units, an increase of around 3.4% over the 26.08 million vehicles produced in 2021.
• Additionally, automotive production in the country has already surpassed 3.5 million units in the first two months of 2023. Similarly, the sales of vehicles in the first two months of 2022 was about 3.62 million units in China, as stated by CAAM.
• Hence, with the rapidly growing end-user industries in country of the Asia-Pacific region, the country is expected to dominate the global market during the forecast period.

Polymer Dispersion Industry Overview

The polymer dispersion market is partially consolidated in nature with a few players dominating the market and holding the major share. The key players in the market include (not in any particular order) BASF SE, DIC Corporation, Arkema, Eastman Chemical Company, and Covestro AG, among others.

Polymer Dispersion Market Leaders

Polymer Dispersion Market News

• January 2023: BASF SE announced its investment to increase its polymer dispersion production at its site in Merak, Indonesia which comes in response to the growth of high-quality packaging in the Association of South-East Asian Nations that has several paper and board manufacturers. The expansion which will provide additional styrene-butadiene dispersions will be operational from the second half of the year.
• July 2022: BASF SE to double its polymer dispersion production at its Dahej plant in India, following the fast-growing industries in South Asia. The new line of state-of-the-art acrylic dispersions production line in Dahej, India will be serving the coatings, construction, adhesives, and paper industries in the South Asian markets.