The market for mold release coatings is expected to grow at a CAGR of more than 5.5% during the forecast period. Major factors driving the market studied is rapidly growing building and construction industry.
- Low VOC mold release coatings is likely to act as an opportunity to the market.
- Asia-Pacific dominated the market across the globe with the largest consumption in a country such as China, India, etc.
Key Market Trends
Building and Construction to Dominate the Market
- Mold release coatings have a significant application in the construction sector. These coatings are used in concrete molds to reduce adhesion of freshly placed concrete to minimize the number of damaged blocks and waste less concrete, providing improved efficiency and lowered production costs.
- Growing investment in infrastructure and construction industry, in emerging economies, has a huge demand for precast concrete blocks and is expected to rise further in the near future, this, in turn, is anticipated to propel the mold release coatings demand as well.
- •In addition, the competitive pricing scenario in the global market forces the industries to get maximum efficiency in operations. Free-flowing operations coupled with low maintenance cost and longer durability help the industries to maximize the operational efficiency and profit margins.
- The government of China, one of the major building and construction markets globally, is focusing on infrastructural development on priority for gaining more industrial investments. Growing commercial and office construction in Beijing is the strategic step taken by the Chinese government to attract foreign investors in the country.
- In building and construction, mold release coatings are used to produce precast concrete blocks, lintels, pillars, and slabs amongst other, which can be used in various construction activities, such as bridges, roads, building, footpaths, and various other structures.
- The building and construction industry is expected to show significant growth for construction over the next decade propelled from emerging markets in India, China, and other Asia-Pacific regions, South America, Middle East & Africa, and parts of East Europe.
- All the above factors are likely to increase the demand for mold release coatings market over the forecast period.
China to Dominate the Asia-Pacific Region
- China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products, to ensure fuel economy and to minimize emissions (owing to growing environmental concerns due to mounting pollution in the country).
- However, the market witnessed a shrink in 2018, as the production decreased by 4.2%. It was also the first time that the market witnessed a drop in sales after nearly 20 years of growth. The lack of domestic demand and an increase in labor prices has led to a decrease in production. Moreover, the trade war between China and the United States has also affected exports from China.
- However, the production is expected to reach 30 million units by 2020, owing to the ‘Made in China 2025’ initiative support in upgrading the existing low-cost mass production to higher value-added advanced manufacturing. ‘Automobile Mid and Long-Term Development Plan’ was released in April 2017, with an objective to make China a strong auto power in the next ten years.
- Furthermore, building and construction is another key end-user industry for mold release coatings in the country. China has massive construction plans underway, including making provision for the movement of 250 million people to its megacities in the next ten years, despite efforts to rebalance its economy to a more service-oriented base.
- For instance, in April 2019, the government of China invested around USD 72 billion for construction in the country.
- all the aforementioned factors are likely to augment the market over the forecast period.
The mold release coatings market is partially consolidated. Some of the major players include Henkel AG & Co.KGAA, Wacker Chemie AG, Croda International PLC, Daikin Industries Ltd., and Shin-Etsu Chemical Co., Ltd, amongst others.
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