GMI: Pigments Market to Exceed $18.98B by 2024

Pigments Market share is estimated to surpass $18.98 billion by 2024, according to a new research report by Global Market Insights, Inc. Organic pigments market size dominated product base and accounted for over 40% of total share in 2015. These are favored more than inorganic counterparts, by stringent government regulations regarding environmental and human health hazards.

Specialty products are anticipated to expand at greater rate at over 5% CAGR. Customers are inclining towards high quality metallic luster paints and phosphorescents are widely used in public places such as underground railway stations as safety way guidance owing to drive demand.

In terms of applications, the industry is categorized as paints and coatings, printing inks, plastics, construction materials, and others. Paint & coatings was the largest application market for pigments in 2015 and accounted for over 35% of the global pigments market share. Paint applications require micronized and dispersible grades in order to enhance the paint film strength and get optimum effect. In addition, technological advancements have introduced have brought latest additions to diversify paint portfolio such as waterborne paints. This is forecast to positively influence global pigments market for paint and coatings application up to 2024.

Growing construction sector significantly complements the industry owing to its widespread application in manufacturing colored asphalt, shingles, metal panels, wood construction, and cooler tiles. One of the most important applications in construction industry is concrete colorization due to properties such as high dispersability and good tinting property.

However, major raw material required for production are carbon molecules, which are petrochemical derivatives such as toluene, benzene, ethylene, and naphthalene. Oscillating crude oil prices and bottleneck raw material supply way negatively influence pigments market growth from 2016 to 2024.

Inorganic products are projected to witness gains at over 3.5% CAGR between 2016 and 2024. However, stringent government regulations are likely to hamper the pigments market demand. Titanium dioxide pigments market size dominated the inorganic product landscape. Classic organic was largest contributor for specialty products and is anticipated to experience gains exceeding 5% CAGR over the forecast timeframe.

In 2015, North America, dominated mainly by U.S. pigments market, was valued at over $3.2 billion. Geographical growth is mainly driven by growing customer demand for specialty product and is directed by EPA.

Asia Pacific was largest regional pigments market in 2015 and is anticipated to maintain its global share up to 2024. Enhanced customer lifestyle has further boosted demand in high quality metallic paints for automobiles and luster paints for residential buildings thus propelling regional growth.

Construction material applications are forecast to surpass $1.2 billion by 2024. Booming construction industry on account of rapid commercialization and growing population is likely to boost construction pigments market size. Plastic applications in 2015 were valued over $1.5 billion.

Global pigments market share is fairly consolidated. Major industry participants include Huntsman Corporation, CRISTAL, Clariant AG, Lanxess AG, and BASF SE. Other prominent industry players are DIC Corporation, Tokan Material Technology Co., Ferro Corporation, Pidilite Industries Limited, and Tronox.

Consolidation is led by a strong trend of joint ventures and merger & acquisitions. For instance, Clariant announced the opening of a new pigment production plant in DaGang, in Tianjin city, China. This is a joint venture between Clariant and Tianjin Bohai Chemical Industry Co which will give customers access to a wider choice of products.