Pigments Market - Segmented by Type, End-user Industry, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global pigments market (henceforth referred to as the market studied) is expected to reach USD 21,784.51 million in 2018. It is estimated to reach USD 28,816.35 million by 2023, an estimated CAGR of 5.75% over the forecast period of 2018-2023 (henceforth referred to as the forecast period).
Increasing Demand for Paints and Coatings in the Automotive Industry in Europe and Asia-Pacific
Pigments are majorly used in paints and coatings application. These are engineered enabling them with properties to withstand the tough demands, without compromising on the coating performance. In the automotive sector, paints and coatings are used in interior as well as exterior parts of the vehicle, as they impart protection and appeal to vehicles. They are used in metallic parts, as well as plastic vehicle components of automobiles. The primary reason for using automotive coatings is to protect the vehicle parts against various aggressive environmental agents, such as sunlight, corrosive materials, and environmental effects, such as acid rain, hot-cold shocks, stone chips, UV radiation, car washing, and blowing sand, among others. In addition, these coatings are used in automotive body shops and repair centres for vehicle refinishing. Moreover, industrial coatings are mainly used by vehicle manufacturers during production processes in automotive OEM coatings. Inorganic pigments, such as titanium dioxide-based pigments are widely used in the automotive industry, in order to provide a glossy appearance to the vehicle. The shifting trend toward glossy colours by automotive users is driving the pigments demand. In addition, increasing foreign investments and expansion of existing manufacturing facilities are prevalent in these countries, in order to meet the demand from the domestic as well as the export markets. This scenario is expected to boost the demand for paints and coatings in the automotive industry, which, in turn, is likely to drive up the demand for pigments at a significant rate in the coming years.
Plastics Segment is Expected to Grow
The selection of colourants is an important part of the plastics industry. They act as an important parameter in the function of strengthening the plastic. With a wide range of plastics, polymers and resin systems, each with unique physical requirements, the correct selection of colourants play a vital role. In plastics, pigments exhibit colour through the process of visible light absorption and scattering. Generally, colour formulations have four colourants. Of these, black and white are used basically to control the value and chroma, while two coloured pigments are used to establish the hue. Pigments offer a wide range of choices to the plastic manufacturers, due to their opacity, heat stability, and broader chroma range for most of the resins. It is usually the base polymer that dictates the colourant to be selected. In some applications, pigment serves as a better alternative to dyes. For instance, pigments are primarily used for polyolefins, as most of the dyes show a tendency to migrate in the polyolefin. Moreover, the demand for plastics has been increasing due to continuous innovation and development in various industries, which in turn increases the demand for plastics and plastic packaging. Hence, with the growing demand for plastics from a wide range of industries, and continuous innovations that further add to the demand for plastics, the market for pigments is expected to grow over the forecast period.
Asia-Pacific Region to Dominate the Market
In 2017, the Asia-Pacific region dominated the global market share. Owing to the increasing demand for paints & coatings, plastics, and printing inks from various end-user industries in the countries such as China, India, and Japan, the usage of pigments is increasing in the region. China is the largest manufacturer of coatings in the Asia-Pacific region, even when the entire coating industry was more or less slowing down in most of the regions. 2016 was the first year of China’s 13th Five Year Plan. It was an important year for the country’s engineering, procurement, and construction (EPC) industry, as it ventured into new business models domestically and internationally. The construction sector had slowed down after 2013, but it is still a major contributor to the GDP of China. In 2017, China’s construction industry developed rapidly, due to the central government’s push for infrastructure investment, as a means to sustain economic growth.
India is still a developing economy, the construction sector is one of the booming industries in the country. The infrastructure sector is an important pillar for the growth of the Indian economy. The government is taking various initiatives to ensure the time-bound creation of excellent infrastructure in the country. The government has announced a target of USD 376.5 billion investment in infrastructure, over a period of three years, including USD 120.5 billion for developing 27 industrial clusters, and USD 75.3 billion for the road, railway, and port connectivity projects. All the aforementioned factors, in turn, projected to increase the demand for pigments in the region during the forecast period.
Key Developments in the Market
- January 2018 - BASF SE has increased the prices of its pigments, dyes and preparations by 15% globally due to the increase in the raw material prices.
- December 2017 - Clariant has hiked the global prices of master batch and other compounds which contain pigments and dyes, by about 8%.
Major Players -BASF SE, DIC CORPORATION, ALTANA, Huntsman International LLC, and Clariant among others.
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