Market Trends of Polyacrylate Industry
This section covers the major market trends shaping the Polyacrylate Market according to our research experts:
Soaring Demand from the Paints and Coatings Segment
- The paints and coatings segment is the major consumer of the polyacrylate market. The increasing construction activities across the world are boosting the demand for polyacrylate in the coatings sector.
- The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby driving the residential construction.
- In 2019, the total value of new construction put in place was about USD 1365 billion in the United States and reached about USD 1430 billion in 2020, with a growth rate of about 4.5%, which, in turn, increases the consumption of polyacrylate.
- According to Eurostat, the construction production of EU-27 member countries increased by 22.1% in May 2020 compared to the previous month, considering the unprecedented decline in months of March and April due to the COVID-19 impact. Furthermore, the construction production decreased by 3.3% in December 2020 compared to November month.
- The United Kingdom monthly construction output was decreased by 2.9% in December 2020 compared with the previous month, decreasing to about USD 18.76 billion, registering a first monthly decline in growth since the unprecedented fall of 40.7% in April 2020, which in turn likely to impact the market demand for polyacrylate in the near future.
- The Asia-Pacific region is expected to witness the highest growth in new residential construction projects due to the expanding housing construction market in developing countries, like China, India, and ASEAN countries.
- In North America and Europe, with the increase in the government regulations related to VOC emissions, there has been an increase in water-borne coatings from the past few years due to their zero/low solvent content coupled with desired characteristics.
- Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region dominated the market during the forecast period primarily due to the rising construction sector.
- China, India, and Japan are the major contributors to the increasing demand for polyacrylates across the region as well as the globe.
- According to deliberations on the 14th five-year plan (2021-26), China has intended to increase the permanent urban residents to 65% by 2025, with no specific GDP growth target set for the period under this plan.
- China was leading in the construction industry with market size of USD 1092.9 billion in the year 2019, registering a growth rate of 14.71% compared to the previous year, thus increasing the demand for polyacrylate used in the construction industry material such as coatings and adhesives.
- Also, the Indian government has been actively boosting housing construction, as it aims to provide a home 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 and is likely to witness the construction of 60 million new homes in the country. The availability of affordable housing in the country is expected to rise by around 70% by 2024.
- In Japan, in 2019, a sudden rise in residential construction and projects related to the Tokyo Olympics 2020 prompted the construction industry's growth. However, with the outbreak of coronavirus, the Tokyo Olympics is further postponed to 2021.
- The total new construction in Japan was accounted for about 127.55 million square meters in 2019 and reached about 113.74 million square meters in 2020, with a decline rate of about 10.5%, thus led to a decrease in consumption of polyacrylate from the construction segment used in products such as paints, coatings, and adhesives.
- Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
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