Market Trends of Dispersing Agents Industry
Increasing demand from the Paints and Coatings Industry
- Dispersing agents have been used to wet, disperse, and stabilize the solid pigments in the binder solution and to prevent flocculation. These agents are widely used in the paints and coatings industry and are expected to grow rapidly during the forecast period. Paints and coatings are used across industries such as construction, automotive, textiles, industrial, and others.
- The construction sector in the Asia-Pacific region is the largest in the world. It is increasing at a healthy rate, owing to the rising population, increase in middle-class income, and rapid urbanization.鈥� The highest growth for housing is expected to be registered in the Asia-Pacific region, owing to the expanding housing construction markets in China and India.
- The construction sector is one of the significant contributor to China's continued economic development. China is amid a construction mega-boom. According to the National Bureau of Statistics of China, the value of construction output accounted for CNY 31.2 trillion (USD 4.5 trillion) in 2022, up from CNY 29.3 trillion (USD 4.2 trillion) in 2021.
- Moreover, as per the forecast given by the Ministry of Housing and Urban-Rural Development, China's construction sector is expected to maintain a 6% share of the country's GDP into 2025. The growth in the construction industry is expected to drive the market for paints and coatings.
- Similarly, the increasing production of automotive vehicles is driving the market for automotive paints and coatings. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), global automotive vehicle production grew by 6% and reached 85 million in 2022, compared to 80.2 million manufactured in 2021. China, the United States, and India are the most prominent automotive vehicle markets globally.
- China is the world's biggest automobile market in terms of production and sales. According to OICA, vehicle production in China reached a total of 27.02 million units in 2022, which is an increase of 3% over 2021 for the same period.
- Thus, the growth in the construction and automotive industries is expected to drive the market for paints and coatings, thereby driving the market for dispersing agents.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is likely to dominate the market due to increased presence and development in various end-user industries in countries like India, China, and ASEAN Countries.
- Dispersing agents are widely used in the paints and coatings industry. The increase in demand for paints and coatings in the building and construction is expected to drive the market. In the construction industry, dispersing agents are used in various concrete mixtures, such as ready-mixed concrete, underwater concrete, and self-compacting concrete.
- China is among the largest construction market in the world, encompassing 20% of all construction investments globally. China is expected to spend nearly USD 13 trillion on buildings by 2030, creating a positive market outlook for dispersing agents.
- The Indian government has been actively boosting housing construction to provide houses to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years, including the construction of 60 million new houses in the country. The availability of affordable housing in the country is expected to increase by around 70% by 2024.
- Dispersing agents are used in dying textiles made of cotton, cellulosic fiber, and synthetic fiber. It helps the dispersion of dyestuff in the bath properly and thus provides uniform color for the fabric. The rapid growth of the textile market in countries like India and China has been driving the market studied.
- India鈥檚 textile and apparel exports (including handicrafts) stood at USD 44.4 billion in 2022, a 41% increase compared to the previous year. Moreover, according to IBEF, the Indian textile and apparel industry is expected to register around 10% CAGR from 2019-20 to 2025-26 reaching USD 190 billion by 2025-26.
- The factors above and government support have contributed to the increasing demand for dispersing agents in the Asia-Pacific region during the forecast period.
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