According to a new report published by Allied Market Research titled, "Specialty Chemicals Market by Application: Global Opportunity Analysis and Industry Forecast, 2020–2027," the global Specialty Chemicals market size was valued at $711 billion in 2019, and is projected to reach $953.9 billion by 2027, growing at a CAGR of 5% from 2020 to 2027.
In 2019, the pharmaceutical ingredients segment dominated the market with more than 17.3% share in terms of revenue and more than one-sixth share in terms of value.
Specialty chemicals, being a knowledge-driven industry has witnessed an increase in R&D activities.
An increase in competition in the end-user markets has led to product innovation. The market players have heavily invested in R&D activities to introduce and develop new products with more advanced and new features.
This industry has strived to reduce its dependency on petrochemicals and has focused on bio-based or renewable materials. For instance, in 2015, Ashland Inc. (U.S.) launched a new product “Culminal Plus Cementitious” adhesive for the construction industry in the European market.
This factor is estimated to have a medium impact on this industry. With a rise in demand for customized products, chemical manufacturers are paying great attention to the innovation and various R&D processes that are expected to help them meet the customers' demands.
Though performing R&D activities involves high investment and processing costs, but it has become imperative for the companies to maintain their foothold in the industry.
Technological advancements in the system performances have led to the growth of semiconductor technologies; thereby, driving the market for specialty chemicals.
The introduction of new and advanced products in the end-user industries such as smartphones, tablets, and wireless devices with developed and better technologies supports the specialty chemicals market for electronic chemicals. In addition, in the automotive electronics market, technological development focuses on the introduction of highly efficient automated products.
These developments in the end-user markets are increasing the demand for electronic chemicals; thereby, driving the growth of the specialty chemicals market in upcoming years
The demand for Specialty Chemicals market is expected to grow at a CAGR of 5% in terms of revenue, owing to the rise in population is expected to have a medium impact on this industry.
With an increase in population and surge in awareness among consumers, demand for healthy, safe and environment-friendly products is on the rise.
To cater to such demands, manufacturers are bound to include various specialty chemicals for numerous end-user industries such as oil & gas, construction, printing inks, and cosmetics among others. Geographically, in specialty chemicals market share, Asia Pacific is expected to hold major share.