The global specialty chemicals market was valued at $582.3 billion in 2017, and is expected to reach $782.2 billion by 2023, demonstrating a CAGR of 5.1% during the forecast period (2018–2023). The agrochemicals category dominated the market during the historical period.
As per analysis, the electronic chemicals category is expected to witness the fastest growth in the specialty chemicals market during the forecast period. The major application of electronic chemicals is in the production of silicon wafers, integrated circuits (IC), flat-panel display products, and compound semiconductors, and in the field of optoelectronics.
Shifting of Production Base to APAC Is a Major Trend
The major trend witnessed in the specialty chemicals market is the shifting of production base to the APAC region. Driven by strong economic growth and market opportunities, the focus of chemical companies is shifting toward APAC. Stringent environment norms in Europe, North America, and other regions encourage manufacturers to invest in APAC region, which has comparatively less regulations. Also, APAC facilitates cost-effective businesses due to availability of cheaper labors and low-cost location.
Increasing Demand for Specialty Chemicals in Emerging Economies Is Driving the Market
Consistently increasing demand for specialty chemicals in developing countries drives the growth of the market. This is due to the growing middle-class population in these economies and rising industrialization in the fields of food, agriculture, cosmetics, and many other manufacturing sectors. Currently, China, India, Brazil, and several other emerging economies are witnessing increased demand for specialty chemicals.
Segmentation Analysis of Specialty Chemicals Market
The agrochemicals category dominated the specialty chemicals type market during the historical period. It is attributed to the increasing need of crop protection, in order to meet the ever-increasing demand for food products. As farms have become massive in size, the challenges in keeping the crop free of damage have increased. Hand-tilling weeds has become impractical. Thus, agrochemicals have become widely used.
Geographical Analysis of Specialty Chemicals Market
APAC and North America are expected to account for over 70% share in the global specialty chemicals market by 2023. This can be mainly attributed to the presence of established players, increase in demand of construction chemicals, and rise in oil and gas production in these regions.
Europe, LATAM, and MEA, also hold considerable shares in the market, on account of rising demand for agrochemicals in agricultural sector, and rising consumption of crude oil in these regions.
Germany is expected to lead the European market, generating revenue of over $45.6 billion in 2023. This can be mainly attributed growing demand for food, changing agrochemicals usage patterns is driving the market growth in the country.
Mexico is the fastest-growing market in the LATAM region. Growing population of the country is expected to boost the agricultural production, which in turn will encourage the consumption of specialty chemicals used in agricultural sector.
Saudi Arabia is expected to hold a considerable share in the MEA region during the forecast period. This can be attributed to large scale production of crude oil where specialty chemicals are highly used.
Competitive Landscape of Specialty Chemicals Market
Some of the major players operating in the specialty chemicals market are Ashland Global Holdings Inc., DowDuPont Inc., Evonik Industries AG, Akzo Nobel N.V., Eastman Chemical Company, BASF SE, Clariant AG, Huntsman Corporation, China Petroleum & Chemical Corporation, Saudi Basic Industries Corporation, and AECI Ltd.
Browse report overview with detailed TOC on "Specialty Chemicals Market by Type (Agrochemicals, Construction Chemicals, Specialty Coatings, Surfactants, Food Additives, Polymer Additives, Electronic Chemicals, Cleaning Chemicals, Plastic Additives, Paper & Textile Chemicals, Adhesives & Sealants, Lubricant & Oilfield Chemicals) by Geography (U.S., Canada, Germany, France, Italy, U.K., Spain, China, Japan, India, Brazil, Mexico, Saudi Arabia, South Africa) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/specialty-chemicals-market
Several companies in the specialty chemicals are focusing on strategic agreements to expand their business and gain larger share in the specialty chemicals market. For instance, in April 2018, DowDuPont Inc. announced to invest $100 million in the expansion of manufacturing facility at Sabine River Works plant in Orange County, Texas, to meet the growing demand for specialty chemicals. The specialty materials produced at the plant include product lines Surlyn, Nucrel, Fusabond, and Vamac (used in consumer goods and transportation).