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HomeScience NewsSpecialty Chemicals Market Latest Trends and Business Scenario 2030 | P&S Intelligence

Specialty Chemicals Market Latest Trends and Business Scenario 2030 | P&S Intelligence

A number of factors, such as the wide application area of specialty chemicals, their increasing demand from developing countries, rising requirement from several end-use industries, surging usage to improve crop quality, and rapid industrialization, are projected to propel the growth of the specialty chemicals market at a CAGR of 5.5% during the forecast period (2020–2030). According to P&S Intelligence, the market revenue is expected to reach USD 980,423.7 million by 2030.

One of the prime factors propelling the demand for specialty chemicals is their diversified application areas. For instance, these chemicals are used as additives as they offer the desired results in product formulations. Due to their compatibility with other substances and diverse features, they are used in several industries, including packaging, automotive, pharmaceutical, and agriculture. For example, the chemicals are widely used as fuel additives in the automotive sector to improve fuel efficiency. Likewise, methyl oleate, a specialty chemical, is utilized as an active pharmaceutical ingredient (API) in creams and lotions.

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Moreover, the surging use of specialty chemicals in developing countries, including India, China, and Brazil, is another key factor driving their market growth. With the significant increase in the urbanization and industrialization rates in these countries, there has been a substantial surge in the living standard and spending power of the people. These have increased the demand for packaged food products, pharmaceuticals, cosmetics, and other consumer goods, thereby boosting the need for specialty chemicals, which are one of the key ingredients of the products.

The type segment of the specialty chemicals industry is categorized into agrochemicals, specialty coatings, construction chemicals, paper & textile chemicals, food additives, adhesives & sealants, surfactants, electronic chemicals, plastic additives, polymer additives, cleaning chemicals, and lubricant & oilfield chemicals. Among these, the agrochemicals category held the largest market share in 2019 owing to the surging need for quality food crops, governments’ support for bio-pesticides and genetically modified seeds, and availability of off-patent molecules. These chemicals offer various advantages to the agrarian community, including increased yield and soil fertility, crop protection, and pest management.

Geographically, the Asia-Pacific (APAC) specialty chemicals market accounted for the largest share in 2019, and it is also projected to record the highest CAGR during the forecast period. This can be attributed to the surging consumption of these chemicals in various industries, including pharmaceutical, personal care & cosmetics, agriculture, electrical & electronics, construction, and automotive. Moreover, several ongoing research & development (R&D) activities, presence of major market players, and rising need for miniaturized and advanced electronic components have generated a high demand for specialty chemicals in the region.

The specialty chemicals industry is fragmented in nature due to the presence of several key market players, including BASF SE, China Petroleum and Chemical Corporation, Dow Inc., Henkel AG & Co. KGaA, Saudi Basic Industries Corporation, and Evonik Industries AG. These companies have been expanding their manufacturing facilities in order to improve their position. For instance, Henkel AG & Co. KGaA invested USD23 million for the development of its hand sanitizer and liquid hand soap production facilities in New York, Pennsylvania, and Geneva, to meet the surging requirement of cleaning chemicals, in September 2020.

Thus, the wide application area of specialty chemicals and their surging use in developing countries are expected to propel the market growth during the forecast period.

SOURCE: P&S Intelligence