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Polymer Dispersion Market: Key Highlights

The global polymer dispersion market was valued at ~US$ 7.6 Bn in 2018, and is anticipated to expand at a CAGR of ~5% during the forecast period.
The global market is driven by the rise in the demand for polymer dispersions in the paints & coatings industry.
Asia Pacific accounts for a major share of the global polymer dispersion market, led by an increase in the demand for polymer dispersions in paints & coatings and adhesives & sealants in the region.
polymer dispersion market infographic

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Key Drivers of Global Polymer Dispersion Market

Polymer dispersions are primarily used in decorative paints and coatings, owing to their various properties. These include the enhancement of toughness and reduction in the amount of energy required for drying. Polymer dispersions are also employed in protective coatings.
Polymer dispersions are eco-friendly. They offer good adhesion to cellulose-containing substrates such as wood and paper. Polymer dispersions are also employed in wood adhesives.
Water-based polyurethane dispersions (PUDs) are polymer dispersions employed in coatings and adhesives, which use water as a primary solvent. PUDs are used in various industrial and commercial applications to reduce the usage of solvent-based products, in view of the increase in regulations on the amount of VOCs and hazardous air pollutants (HAPs).

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Paints & Coatings Segment to Offer Lucrative Opportunities

Among the applications, the paints & coatings segment accounted for a major share of the global polymer dispersion market in 2018. The paints & coatings industry is shifting toward the use of low-VOC and eco-friendly technologies such as water-based materials. This factor is fueling the demand for polymer dispersions.
Polymer dispersions improve surface properties such as appearance, and enable unique effects. They also enhance resistance to corrosion when used in paints and coatings.
Growing environment-related concerns caused by rising carbon footprint have prompted market players to use water-based polymer dispersion-based adhesives. Polymer dispersions offer environment-related benefits by decreasing the carbon footprint. Also, they reduce the overall cost of the production of adhesives.
Polymer dispersions offer clean runnability and good filler tolerance to minimize the risk of instability on cross contamination of carpet backing. This is expected to fuel the demand for polymer dispersions in the near future.

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Stringent Government Regulations on Solvent-based Products to Hamper Market

Solvent-based polymer dispersions are formulated by using a solvent and a base resin. The solvent material evaporates when employed in applications such as coatings.
Commonly-used solvents contain significant amounts of VOCs, which are toxic to human health. The use of solvent-based polymer dispersions in paints, coatings, and adhesives leads to the deterioration of air quality. It can cause long-term harm to human health. This has resulted in the implementation of stricter norms on the use of solvent-based coatings and adhesives.
Regulatory bodies in the U.S. and Europe, such as the Environment Protection Agency (EPA) and Registration Evaluation Authorization and Restriction of Chemicals (REACH), have implemented stringent rules pertaining to VOC emissions. An apparent shift from solvent-based to water-based coatings has occurred in Europe and North America.

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Asia Pacific a Prominent Polymer Dispersion Market

Among the regions, Asia Pacific accounted for a major share of the global polymer dispersion market in 2018. Its share is expected to increase by 2027, due to large-scale production activities and plant expansions by players operating in the paints & coatings sector in the region.
Growth of the automotive and construction industries in China and India is projected to boost the consumption of polymer dispersions in Asia Pacific in paints, coatings, adhesives, and sealants, in the next few years
North America and Europe held considerable shares of the global polymer dispersion market in 2018. Multinational corporations in North America and Europe are engaged in developing high-performance water-based polymer dispersions coupled with advanced polymerization techniques through research & development activities.

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Top Few Players Accounted for ~60% Market Share in 2018

The global market for polymer dispersions is consolidated and is dominated by large manufacturers across the world. The few top manufacturers accounted for ~60% share of the global market in 2018. These manufacturers include Wacker Chemie AG, BASF SE, Clariant AG, AkzoNobel N.V., The Dow Chemicals, Celanese Corporation, and Huntsman Internal LLC. The market is consolidated with the presence of a large number of polymer dispersion manufacturers, including large, medium, and small companies.

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