The Global "Vinyl Ester Market" is expected to grow at a CAGR of 5% during the forecasting period (2022-2029).
Growing infrastructural investments need for corrosion resistance applications in the marine industry, environmental concerns over flue gas desulfurization (FGD) and increasing demand for vinyl esters in chemical and wastewater treatment industries are crucial factors that are contributing to the growth of the market.
According to the North American government, Ocean-based tourism and recreation contribute approximately $116 billion in gross domestic product to the national economy each year and is rising exponentially annually. According to the department of maritime affairs, the European Union, the marine tourism sector generates a total of € 183 billion in gross value added and represents over one-third of the maritime economy. As part of EU's Blue Growth strategy, the coastal and maritime tourism sector has been identified as an area with special potential to foster a smart, sustainable and inclusive Europe. It is the biggest maritime sector in terms of gross value added and employment and, according to the Blue Growth strategy and is expected to grow by 2-3% by 2020. The growth of marine trade and increasing establishments of marine ports is a key opportunity for many manufacturers who are seeking to extract major profits out of this market.
Moreover, the growing global population and rising urbanization levels have increased the demand for water treatment plants in offering clean and hygienic water to people. Vinyl Esters are widely used in the filtration process of wastewater which is anticipated to serve as an augmenting factor for the market in the foreseeable future.
However, the availability of substitutes, low shelf life, and varying raw material prices are important factors that might impede the growth of the market in the forecast period.
Based on the end-user, the market is segmented as Pipes and Tanks, Marine, Building and Construction, Automotive, Aerospace and Defense, Wind Energy, FGD and Precipitators, Others (Pulp and Paper).
Vinyl Ester is majorly used in the Wind Energy sector in the manufacturing of turbine and rotor blades. The growth of the global wind power generation industry is a major factor boosting the global vinyl ester market. Globally, in all the major countries of the world, the amount of energy produced by wind power is rising at a steady pace. According to the global energy statistical yearbook, the total percentage of wind and solar power produced in North America increased from 5.76% in 2015 to 6.91% in 2016 finally reaching 8.13% in 2017. Moreover, according to the Global Wind Energy Council, the total wind power installed capacity in North America was 97,611 MW, in 2016 and the US is the leading in wind power generation in 2016 accounting for 82,184 MW of wind power installed in 2016. Furthermore, China with 206 GW total installations at the end of 2018 is the first market to surpass 200 GW of total installed capacity – reaching its target of 200 GW two years early than 2020. The offshore market in China installed 1.8 GW in 2018, dominating the world for the first time. Moreover, the share of wind in the power mix continued to progress the fastest in the European Union (in Germany and the UK). The total percentage of wind and solar power produced in Europe increased from 11.70% in 2015 to 11.80% in 2016 finally reaching 13.50% in 2017. Major countries of the world emphasizing sustainable energy and green energy is a crucial factor responsible for the growth of the wind power generation industry which is, in turn, increasing demand for vinyl esters thereby positively contributing to the market growth.
Flue gas desulphurization (FGD) application segment is also expected to witness strong growth rates in the forecast period owing to the increasing applications for vinyl ester in this process. FGD is a process in which flue gas-emitting out of fossil fuel producing plants is made Sulphur free. Vinyl ester linings are been applied to various components in flue gas desulfurization plants to protect them from corrosion attacks. Increasing global demand for fossil fuels has spurred the demand for new fossil fuel production units which is an exciting opportunity for vinyl ester manufacturers who are seeking to extract profits out of this market.
The Global Vinyl Ester Market is segmented into North America, Europe, Asia Pacific, South America and the Middle East, and Africa.
The Asia Pacific region is expected to dominate the global vinyl ester market in the forecast period owing to the high urbanization and industrialization rates, increasing demand for oil and gas, well established automotive and chemical markets and rapid growth of the building and construction industries in countries such as India, China, and Japan.
According to the National Bureau of Statistics, China, the number of construction enterprises in China increased from 75722 in 2016 to 81196 in 2017. The gross output value of China's construction industry increased from USD 23 billion in 2016 to USD 26 billion Yuan in 2017. Similarly, according to the India Brand Equity Foundation, industrial investments in India's real estate in 2018 reached USD 5.5 billion, the highest in a decade. The real estate industry in India is expected to reach a market size of USD 1 trillion in 2030 from USD 120 billion in 2017 contributing 25% of the country's GDP by 2025.
Moreover, the presence of major heavy-duty industries in India and China coupled with high manufacturing outputs is also fueling the vinyl ester market in this region. According to the United Nations Industrial Development Organization (UNIDO), the manufacturing output of China rose by 6.4% in 2018, the highest in any country in the world. India's manufacturing output grew by 5.3%, and Indonesia's production increased by 4.6%. China and India rank 1st and 5th respectively in the list of countries with high industrial outputs. This is expected to drive the Asia Pacific regional market to grow at a higher pace in the forecast period.
New product launches, expansion of facilities, mergers, and acquisitions and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve its market growth rate.
In, April 2019, Showa Denko (SDK) and IBM Japan, Ltd. have jointly developed a “Patent Interpretation Support System,” which helps engineers to conduct effective and efficient screening of patent information. SDK will start to utilize this system in the whole company from this July.
In, Jan 2018, The Polynt-Reichhold Group has decided to realign its coatings distribution networks by utilizing exclusive regional partners to carry the full coating lines of each business.
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