The market for reactive diluents is expected to grow at a CAGR of about 3% globally during the forecast period. Increasing application in paints and coatings, adhesives and sealants, and growing demand owing to its wide range of applications are driving the market growth. On the flip side, environmental and regulatory concerns are expected to hinder the growth of the market.
- The reactive diluents market is expected to grow during the forecast period owing to the increasing application in paints and coatings.
- Asia-Pacific region dominated the market across the globe with the largest consumption from countries, such as China, India, and Japan.
Key Market Trends
Increasing Application in Paints and Coatings
- Reactive diluents are substances that reduce the viscosity of lacquer for processing and become part of the lacquer during its subsequent curing via copolymerization.
- The increasing buildings and construction sector is attributing to the growing application of reactive diluents in paints and coatings, thereby increasing its market.
- These reactive diluents are added to paints and coatings to decrease viscosity, improve nonflammability, smell, reduce the risk of causing skin irritation, and increase environmental compatibility by lower or no VOC emissions.
- It is estimated that around 27,000 - 50,000 new homes in the United Kingdom are to be built by 2022, which in turn increases the scope for this market.
- The growing demand for paints and coatings from the automotive sector is increasing the application of reactive diluents.
- Hence, owing to the growing application of paints and coatings in buildings & construction, especially in Asia-Pacific and North American countries, the demand for reactive diluents is expected to increase over the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for reactive diluents during the forecast period. Due to the high demand from countries like China, India, and Japan, the market for reactive diluents has been increasing.
- The largest producers of reactive diluents are located in the Asia-Pacific region. Some of the leading companies in the production of reactive diluents are Arkema Group, Huntsman International LLC, Olin Corporation, Kukdo Chemical Co., Ltd, Epoxy Division, and Aditya Birla Chemicals (Thailand) Limited.
- The Indian government has announced an investment worth USD 31,650 billion for the construction of 100 cities, under the smart cities plan. 100 smart cities and 500 cities are likely to invite investments worth INR 2 trillion (~USD 28.18 billion) over the coming five years, creating scope for the application of reactive diluents in paints and coatings.
- The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for construction activity.
- Apart from paints and coatings, these reactive diluents are also used in adhesives & sealants, composites, and others with multiple applications in various end-user industries like automotive, electrical & electronics, and others.
- Aliphatic group is the most common type of reactive diluent unit which is widely used in multiple applications
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for reactive diluents during the forecast period.
The global reactive diluents market is fragmented, with players accounting for a marginal share of the market. Few companies include Arkema Group, Huntsman International LLC, Olin Corporation, Cardolite, Epoxy Division, and Aditya Birla Chemicals (Thailand) Limited.
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