Global Specialty Chemicals Market, which was worth more than USD 830 billion in 2015, is slated to be one of the mega avenues that investors can bet on. Chemicals are vital for the manufacturing of most industrial products, right from construction, agrochemicals, and electronics, to paints, automobiles and paper & textiles, which will undeniably augment specialty chemicals market. Companies such as BASF SE, Bayer AG, The Dow Chemical Company, INEOS Group AG and DuPont are identified as the top five specialty chemicals producers operating across the globe.
Some of the popular product categories of specialty chemicals market include food additives, fragrances, industrial gases, adhesives, agrochemicals, cleaning materials, cosmetic additives and many others. The overall specialty chemicals industry is estimated to account for a marginal 4% CAGR over the period of 2016-2024, as per a report compiled by Global Markets Insights, Inc.
U.S Specialty Chemicals Market size, by production, 2013-2024 (USD Billion)
The surge in the demand for specialty chemicals can largely be attributed to the ever-growing population and rapid industrialization, which have resulted in the loss of cultivable land. In order to feed the rising population, the governments across the globe are likely to promote the use of agrochemicals to meet the demand supply mismatch, which will directly impact specialty chemicals industry.
The construction industry, however is also a huge growth avenue for specialty chemicals market, with a valuation of USD 70 billion in 2015. These specialty chemicals are used for increasing the shelf life of structural components used in construction and also to provide a protective layer against the weather conditions. The globe will witness a slew of several upcoming construction projects, which are likely to stimulate the overall market size.
These chemicals are used as adhesives & sealants, paints & coatings, polymers & plastics additives to impart enhanced characteristics to the automobiles. The global surge in automobile production, especially in the emerging countries of Asia Pacific will thus impel specialty chemicals market. In addition, the growing automotive sector will prompt automakers based in America and Europe to expand their global reach, which will further stimulate the industry trends. In 2015, global personal & commercial vehicles production was around 90 million and is set to increase exponentially, which in turn will augment specialty chemicals industry share from automotive applications. India, Japan, U.S., China, and South Korea led the global automotive industry in 2015 by recording a 55% contribution toward global cars & commercial vehicles production.
Asia Pacific specialty chemicals is projected to grow at an annual growth rate of 6.5% over the period of 2016-2024. A swift rise in construction and automotive industries in the region has propelled the demand for construction chemicals and automotive chemical compounds, which in turn has driven specialty chemicals industry to accumulate lucrative gains from the region. The fact that renowned automakers such as Audi AG, BMW, and Mercedes Benz have planned to expand their operations across APAC can prove beneficial for the expansion of specialty chemicals market in the region.
The specialty chemicals market dynamics are complex and each business segment outlines a different growth chart. Despite the healthy growth of automotive and construction industries in North America and Asia Pacific, the market scenario for the textiles & paper specialty chemicals is witnessing a marked change. The advent of digitalization and Internet are posing a threat to the development of specialty chemicals market from textiles & paper industry. The growing trend of promotional activities on You-Tube, Facebook, Twitter and other such platforms have gradually faded out the traditional marketing tools including pamphlets and catalogues, thus depicting a sluggish growth for this market from the paper & textiles sector.
The massive rise in smartphones demand across the globe have positively impacted the growth of electronic specialty chemicals market. Upsurge in the manufacturing of electronic components due to soaring semiconductors and integrated circuits will contribute to the market share. Electronic specialty chemicals market is set to register a CAGR of 4.5% over the period of 2016-2024.
Rise in lubricants & oilfields chemicals demand in North America, owing to growing oil exploration activities in U.S., have augmented the regional specialty chemicals market size. U.S. specialty chemicals industry generated revenue worth USD 150 billion in 2015, and is estimated to carve an exponential growth chart over the coming years.
The global specialty chemicals industry has given rise to a wide spectrum of business segments and as a consequence, there are large number of companies around the world partaking in the market share. Some of the prominent names operating in this industry include, Arkema S.A., Ashland Inc., Clariant AG, Evonik Industries AG, Solvay, Eastman Chemical Company, Huntsman CorporationSyngenta AG, Akzo Nobel N.V., Chevron Philips Chemical Company, and Chemtura Corporation.
Written By : Ojaswita Kutepatil