The Global "Performance Additives Market" is expected to grow at a CAGR of 8.05% during the forecasting period (2022-2029).
Performance additives are the various chemicals that are added to the modern-day automotive gasoline and other propelling fuels to stabilize and elevate their octane level, decrease the propensity of pre-ignition, and allow for more power to be made from increased compression and advanced ignition timing. Growing demand for these chemicals from the automobile and construction industries are likely to play a major role in market growth.
The global Performance Additives market is primarily driven by the rising demand for these additives in packaging and household goods industries, as performance additives enhance the processability, performance, and appearance of the final product. The Asia Pacific is a rapidly growing region of the performance additives market, led by the growth in investments in packaging and construction industries in the region and increase in demand for these additives in end-use industries such as automotive, packaging, household goods, construction, and industrial in major countries such as China and India.
However, volatility in raw material prices is a major challenging factor for the growth of the Performance Additives market.
By type, the global performance additives market is segmented plastic additives, rubber additives, ink additives, pigment additives, and paints and coating additives. In 2018, Plastic additives accounted for the largest share of the global performance additives market, and the segment is expected to grow during the forecast period. However, the paints and coatings additives segment is expected to grow at a higher CAGR during the forecast period. The paint and coatings market is growing owing to the growth in construction activities in developing economies such as APAC and the Middle East.
By end-user industry, the global Performance Additives Market is segmented into Automotive, Construction, Wood & Furniture, Packaging, Household goods, Industrial, and Others. In 2018, the packaging end-user segment accounted for the majority share in the market.
By geography, the global Performance Additives market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
In 2018, APAC was the largest market in the Global Performance Additives Market, mainly due to like rapid economic development in the region. Rapidly growing automotive production with a shift of automobile plants in China and India, the continuous shift of the manufacturing base, and growing construction sector are the major growth drivers of the Asia-Pacific’s market. India and China are the two most populated countries of the world and have been witnessing rapid urbanization. Construction in these countries is at an all-time high because the majority of the population moves to urban areas. This shift will require more residential and commercial building construction; therefore, fueling growth in the market.
North America and Europe also offer sizeable growth opportunities, owing to the recovery of the construction industry in both of the regions. The U.S. construction industry is rising at a rapid pace with annual expenditures of over USD 1,231 billion.
Similarly, in Canada, Residential and mixed-use projects are dominating the local construction industry. It is expected that increased infrastructure spending will trigger additional activity, as more than 300 high-rise buildings projects are up for development.
Performance Additives market is highly competitive, and thus, manufacturers continuously focus on developing new strategies to grab more customers across the globe. Over the coming years, companies are expected to focus on potential growth markets for Performance Additives. To that end, besides expanding their presence, companies are expected to formulate effective distribution strategies to make their presence felt in the upcoming markets for Performance Additives. Merger, acquisition, and product development are key strategies adopted by leading players.
The major players include BASF SE, Akzo Nobel N.V., Altana, Arkema Sa, and Clariant, Other prominent players in the market are Cytec Solvay, Evonik Industries AG, Huntsman, Lanxess AG, and Dow Inc.
In 2019, Arkema acquired ArrMaz, a US-based leader in specialty surfactants for crop nutrition, mining, and infrastructure. The acquisition reinforces the company’s Performance Additives, within the High-Performance Materials division, along with Adhesives and Technical Polymers.
Get your free sample proposal with a single click!