Market Definition
Paint additives are used mainly for imparting additional characteristics & qualities to paints. Adding an adequate amount of additives in the appropriate order & at the right time can yield significant changes in the paint properties like better appearance & durability of coatings and help eliminate all problems associated with the paint application. Paint Additives offer a wide range of benefits like limited growth of mildew, better sticking, improved flow characteristics, and enhanced smell & antibacterial properties of paints.
Market insights
The Saudi Arabia Paint Additives Market is anticipated to grow at a CAGR of around 3.91% during the forecast period, i.e., 2021-26. Paint additives enhance the aesthetics of buildings and protect them from extreme weather conditions & dangerous UV radiations. The most prominent factors contributing to the growth of the Saudi Arabia Paint Additives Market are the booming construction industry and various government initiatives for infrastructural developments in Saudi Arabia.
In addition, the flourishing tourism sector and projects like Saudi Vision 2030, coupled with the construction of megacity Neom, are fueling the construction of more commercial buildings in Saudi Arabia, which, in turn, is driving the production & sales of paint additives.
Furthermore, the rapidly increasing population & growing urbanization are augmenting the demand for new residential buildings, which is another crucial aspect propelling the growth of the paint additives market. Moreover, soaring initiatives by the Saudi government to shift its source of income from the oil industry to other industries like the construction sector are also encouraging the growth of the paint additives market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 3.91% |
| Key Companies Profiled | AkzoNobel N.V., Arkema SA, Asahi Glass Co. Ltd., Ashland Inc., BASF SE, BYK-Chemie GMBH, Cabot Corp., Cytec Industries Inc., Daikin Industries Ltd., Dynea AS |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Saudi Arabia Paint Additives Market
In 2020, the Covid-19 pandemic has adversely impacted the majority of businesses and the economy of Saudi Arabia. The lockdown imposed in the wake of the pandemic led to the shutdown of manufacturing units and supply chain disruptions of companies operating in the paint additives industry.
Moreover, the imposition of lockdown also caused delays & suspension of major construction projects, which negatively influenced the growth of the paint additives market. Additionally, with disruptions in the global trade system, the pandemic also impacted the import & export of paint additives across Saudi Arabia. However, with the upliftment of lockdown, all construction projects resumed, and manufacturing units have reopened with safety measures, which shall propel the Saudi Arabia Paint Additives Market in the coming years.
Market Segmentation
By Formulation:
Based on the formulation, water-based paint additives are expected to witness the fastest growing demand over the forecast years. It is due to their wide-range application in furniture, plastic, automobile, wood, & printing ink industries. Water-based paint additives do not emit Volatile Organic Compounds (VOCs) & other hazardous air pollutants, can dry quickly, and are easy to apply. Hence, these benefits associated with water-based coatings are expected to drive their demand in the years to come.
Further, solvent-based & powder-based paint additives capture a substantial share in the Paint Additives Market. Solvent-based paint additives are used mainly in harsh environments with industrial equipment & metals or exterior coatings of buildings. Moreover, the demand for powder-based coating is also significantly increasing across different applications like industrial machinery, automobiles, & engines since they can produce a thick solution without sagging and provide resistance against scratches, corrosion, & abrasion.
By End-User:
Based on End-User, Building & Construction is expected to remain the dominant sector in terms of revenue & volume over the forecast years. It is due to the extensive benefits of paint additives that make it a necessary element to be added in paints before their application on buildings. Paint additives provide aesthetic looks to both residential & commercial buildings and protect them from UV radiations & harsh environmental conditions, thereby enhancing the life of buildings. Besides, numerous construction projects in line with Saudi Vision 2030 are also likely to boost the demand for paint additives in Saudi Arabia in the coming years.
On the other front, the demand for paint additives is also increasing astronomically in the automotive industry since they provide better color stability, protective film, scratch & abrasion resistance, and corrosion resistance. Furthermore, in the industrial sector, paint additives are being applied widely on machinery & equipment for thermal stability, heat & fire resistance, and electrical resistance.
By Products:
Based on Products, Rheological Modifiers acquired the largest share in the Saudi Arabia Paint Additives Market, mainly due to their ability to modify the flow behavior of the paint formulation. Besides, they help decrease the dripping & spattering of paints, which further facilitates the smooth paint application.
Moreover, rheological modifiers prevent the sedimentation of pigments during the storage & transportation of paints. Sometimes, these additives also act as thickeners and are used widely across the industrial, architectural, & automotive sectors.
On the other hand, the demand for wetting & dispersing agents is also increasing dramatically across Saudi Arabia since they help reduce the dispersion time while enhancing the separation of particles and preventing their settling or clumping.
Key Trends in the Saudi Arabia Paint Additives Market
The concept of sustainability is considered by most businesses while performing their business operations. However, in the paint additives industry, the main focus is to reduce VOC emissions & other pollutants that are harmful to both the environment and humans & animals. As a result, companies are adopting sustainability in their entire value chain for resource conservation, waste minimization, and enhancing process efficiency. With this, they would be able to reduce their carbon footprints. Hence, the usage of water-based additives is gaining immense popularity since they do not emit VOCs and are eco-friendly.
Market Dynamics:
Key Driver: Booming Construction Industry to Favor the Market Growth
The demand for paints is significantly high in the building & construction sector of Saudi Arabia, which eventually fuels the need for paint additives that are used widely in the construction industry. It owes to the several excellent properties of paint additives that make them a crucial component of paints before they are applied to buildings or any structures. Paint additives are used for both the decoration & protection of buildings & infrastructures. The architectural developments in the country are boosting the demand for paint additives since they protect buildings from any damage or extreme weather conditions and, in turn, increase their life.
Furthermore, the industrial sector is also witnessing the surging demand for paint additives that protect industrial machines & equipment from extreme heat exposure and wear & tear damages while providing them electrical & thermal resistance. On the other hand, in the automotive industry, paint additives are applied on the exterior of vehicles or complex parts of engines to provide them scratch & abrasion resistance and aesthetic looks.
Possible Challenge: Harmful Impact of Paint additives on the Environment
Paint additives emit harmful Volatile Organic Compounds (VOCs) that cause headaches after the paint application. The VOC-rich air inside the building can put people at a higher risk of developing asthma or allergies while adversely impacting the environment. Hence, the severe impact of paint additives on the environment & humans might restrain the paint additives market growth in Saudi Arabia over the forecast years.
Competitive Landscape
According to MarkNtel Advisors, the major leading players in the Saudi Arabia Paint Additives market are AkzoNobel N.V., Arkema SA, Asahi Glass Co. Ltd., Ashland Inc., BASF SE, BYK-Chemie GMBH, Cabot Corp., Cytec Industries Inc., Daikin Industries Ltd., Dynea AS.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Saudi Arabia Paint Additives Market is expected to grow at around 3.91% CAGR during 2021-26.
A. The Building & Construction sector holds the largest share of the Saudi Arabia Paint Additives Market, which shall create remunerative growth opportunities for the leading industry players in the coming years.
A. Rising demand for paint additives in construction & automotive industries is the key factor projected to propel the growth of the Saudi Arabia Paint Additives Market during 2021-26.
A. In the coming years, the Saudi Arabia Paint Additives Market is expecting steady growth rate, owing to the resumption of construction projects that will fuel the demand for paint additives.
