Specialty Chemicals Market

SKU: DMCH171 | Last Updated On: Aug 26 2022 | Available Formats

Specialty Chemicals Market Expected to reach a high CAGR of 4.7% By 2029

Specialty Chemicals Market is segmented By Category (Adhesives & Sealants, Cosmetic Chemicals, Dyes, Inks, & Pigments, Construction Chemicals, Food Additives, Industrial & Institutional Cleaners, Foundry Chemicals, Electronic Chemicals, Lubricants & Oil Additives, Oilfield Chemicals, Rubber Processing Chemicals, Textile Chemicals, Water Treatment Chemicals, Specialty Polymers, Plastic Additives, Paints & Coatings, Mining Chemicals, Flavors & Fragrances, Catalysts), By End User (Automotive & Transportation, Construction, Agriculture, Industrial Manufacturing, Consumer goods, others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Specialty Chemicals Market is expected to grow at a CAGR of 4.7% during the forecasting period (2022-2029). Specialty chemicals are renowned for their exceptional outputs, excellent performance, and high functional qualities. These compounds can be formulated to impact the final product's composition, functionality, and processing or they can exist as distinct chemical entities. Chemicals, in particular, can be further divided based on the end-user industries. Furthermore, unlike the commoditized chemical sector, these substances result from substantial research and development, which is a key distinction. A specialty chemical may be limited to one or two primary applications instead of a commodity with hundreds of different applications. Depending on how well they perform, these compounds are used. The market's ongoing R&D has aided in creating goods with top-notch and cutting-edge features.

According to the report, the global specialty chemicals market is major divided into five regions such as North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among all regions, the Europe region is one of the largest producers in the global Specialty Chemicals Market. Major countries include the European region such as the UK, Germany, Russia, Italy, and Spain. Specialty chemical is one of the largest export markets of the European region, holding over 1/3rd of the overall chemical exports.

Among all regions, the North American region is projected to grow at the highest share in the global specialty chemicals market. In this region, major countries include the United States and Canada.

The Middle East and Africa are projected to be major markets for oilfield chemicals due to the importance of oil & gas companies in the Middle East Countries. Quick development in construction initiatives of GCC, Qatar, UAE, and Oman is projected to aid the specialty chemicals market.

The Asia Pacific registered for a maximum revenue share in 2020, in the global market for specialty chemicals. In the Asia Pacific region, prominent countries include Malaysia, China, India, Japan, South Korea, and Singapore. Furthermore, the increasing industrialization and diversification in countries such as Malaysia, Singapore, Thailand, and India are projected to produce profitable opportunities in the specialty chemicals market.

Speedy enhancement of construction actions in Latin American countries such as Brazil, developments will aid the growth of the market for specialty chemicals during the forecast period 2022-2029. Countries in the Latin America region include Brazil, Mexico, and Argentina.

Specialty Chemicals Market Growth Dynamics

The demand for agrochemicals is rising, leading to the growth of specialty chemicals. Another primary factor driving the global market for specialty chemicals is the demand created by emerging countries in various end-use sectors. 

The growing demand for agrochemicals

Due to the growing population and rise in food consumption, agrochemicals are becoming increasingly necessary for enhanced crop protection and production, causing the market to expand over the forecasted years. Farmers' growing awareness regarding the usage of agrochemicals in farming is causing the market to grow.

A loss in agricultural land due to higher urbanization and industrialization leads to a growing need for agrochemicals to raise crop yield per acre of land, driving the market growth throughout the forecast period.

Diversified applications of specialty chemicals in emerging economies

To give items or substances the intended effect, specialty chemicals are added. Therefore, specialty chemicals find employment across various end-use sectors, including consumer products, packaging, food processing, automotive, and pharmaceuticals, due to their numerous properties and compatibility with many other chemicals and substances. For instance, specialty chemicals are widely utilized as fuel additives to improve the quality of gasoline in the automotive industry. 

Similarly, many lotions and creams use specialized compounds, such as methyl oleate, as active medicinal ingredients. Due to these countries' rapid industrialization and urbanization rates, specialty chemicals are predicted to have a strong market in emerging economies like India, Brazil, and China. Additionally, urbanization has significantly increased people's living standards and purchasing power in these nations.

Procurement of raw materials 

After COVID-19, one of the main obstacles for manufacturers of specialized chemicals is acquiring raw materials. Before the start of the 2019 pandemic, the majority of producers in the specialty chemicals market relied on China for the supply of raw materials. Manufacturers are reducing their reliance on China as a source of raw materials because of concerns about future uncertainty from the country since it is where the virus originated.

To procure raw materials, manufacturers are expected to use the 1+1 hypothesis (different sourcing techniques). However, as viral transmission spread to many countries throughout the world, it has become crucial for producers to pinpoint alternative supply possibilities. There is a possibility of scarcity in the production of raw materials after COVID-19.

Specialty Chemicals Market COVID-19 Impact Analysis

The COVID-19 epidemic in 2020 had a detrimental effect on the market. A pandemic scenario caused numerous countries to go into lockdown, which caused supply chains to get disrupted, work stoppages, and a labor shortage. Construction, mining, automotive, cosmetics, food & beverage, and other businesses were badly impacted. OICA estimates that in the first three quarters of 2020, worldwide automotive output was around 17.9 million units, 31.1 million units, and 52.1 units, respectively, down about 23.1%, 32.4 percent, and 22.9 percent from the same period the previous year. 

In the first ten months of 2020, car sales declined in Europe, the U.S., Japan, Brazil, India, and China in comparison to the same period in the previous year by 27.3 percent, 17 percent, 14.7 percent, 30.9 percent, 24.6 percent, and 10 percent, respectively. Similar to that, numerous industries suffered significant losses. However, the situation is estimated to improve, fueling market expansion over the projection period.

Specialty Chemicals Market Scope

Metrics

Details

Market CAGR

4.7%

Segments Covered

 By Type, By End-User, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Specialty Chemicals Market Segment Analysis

By end-user, the specialty chemicals market is segmented into cosmetic chemicals, dyes, inks, & pigments, construction chemicals, food additives, industrial manufacturing & institutional cleaners, foundry chemicals, electronic chemicals, lubricants & oil additives, oilfield chemicals, rubber processing chemical, textile chemicals, water treatment chemicals, specialty polymers, plastic additives, paints & coatings, mining chemicals, flavors & fragrances, and pharmaceutical chemicals.

The rapidly growing pharmaceutical industry 

The majority of the market share is anticipated to belong to pharmaceutical chemicals. The wide range of pharmaceutical industry explains its uses, including the creation of medications for Hughes syndrome, skin conditions and cardiovascular ailments. Pharmaceutical ingredients are essentially the active components found in pharmaceuticals.

They are created from fundamental chemical compounds in sizable reactors at various manufacturing facilities. The base or chemical compound is transformed following intermediary processing and thus creates the medicinal ingredient in the end. The number of intermediates used in manufacturing a certain medicinal ingredient ranges from 1 to 10.

Specialty Chemicals Market Geographical Analysis

The rise in demand from end-use industries in Asia-Pacific

Due to important emerging economies like China, India, and Japan in this region, which recorded the greatest market share in the specialty chemicals industry, Asia-Pacific is predicted to have the largest market share overall. For international investors, the region offers significant investment options. Due to China's position as one of the top manufacturing hubs for most industries, including pharmaceuticals & nutraceuticals, personal care & cosmetics, automotive, and electrical & electronics, Asia-Pacific has emerged as one of the world's fastest-growing markets for specialty chemicals.

Furthermore, the market for specialty chemicals is anticipated to offer attractive prospects due to the economies of Singapore, Malaysia, Thailand, and India's increasing industrialization & diversification. Another factor driving the expansion of the specialized chemicals sector in India is the unprecedented use of chemicals for water treatment. Trade liberalization, rising demand for electronics, improvements in process technology, and rising standards of living in most developing nations all contribute to the specialty chemical industry's expansion.

Competitive Landscape 

The global market for insulating materials is very competitive as a result of reliable rivals. The market players' most well-known operational tactics include positioning in high-growth nations like China, strategic alliances, extensive R&D for sustainable, effective product development, and adopting new technologies. Axalta, in November 2019, announced that it had successfully acquired Capital Paints LLC, a producer of thermosetting powder coatings in UAE.

Dexmet Corporation, a producer of specialty materials for surfaces used in aerospace, automotive and industrial applications, was acquired by PPG in August 2019 after a successful tender process.

In July 2019, Arkema acquired ArrMaz, a leader in specialty surfactants for the infrastructure, mining, and crop nutrition markets.

Major global specialty chemical companies include BASF SE, Evonik Industries AG, Henkel AG & Co. KGaA, Solvay S.A., Albemarle Corporation, PPG Industries, Uniseal Inc, AkzoNobel, H.B. Fuller, and Ashland Inc.

PPG Industries, Inc.

Overview: Formerly known as the Pittsburgh Plate Glass Company (1883–1968), PPG Industries, Inc. is a well-known domestic and foreign manufacturer of coatings, flat glass, chemicals, and chemical products. The Pittsburgh Plate Glass Company was the name under which the business was founded in 1883. It has an experience in business for over 140 years, with operations in over 75 countries and recorded net revenues of US$16.8 billion in 2021. Its headquarters are in Pittsburgh. The business provides clients in construction, consumer goods, aftermarket, and industrial areas.

Product Portfolio: PPG provides coatings and specialty materials to customers for a variety of end uses, including coatings for other industrial and consumer products as well as industrial equipment & components, packaging, aircraft & marine equipment, original automotive equipment, automotive refinish pavement marking products and coatings for original automotive equipment. It offers photochromic dyes, organic light emitting diode (OLED) materials, TESLIN® substrate, amorphous precipitated silica, and optical lens materials.

Key Development: During the Adhesives & Bonding Expo in Novi, Michigan, June 28–30, 2022, PPG Industries said it would display its expanding array of automotive and aerospace adhesives & sealants as its additive manufacturing (AM) capabilities for 3D-printed parts. PPG will showcase various adhesive and sealing solutions for automotive OEM & electric vehicle (EV) battery pack clients in booth #506 at the Suburban Collection Showplace. The systems have low-temperature curing, lightweight, impact protection, vibration dampening, structural reinforcement, durability, and serviceability.

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