Dimethylolpropionic acid (DMPA) is a hydroxy acid compound that possesses unique reactive properties owing to the presence of two ester-link carboxyl groups and a hydroxyl group. It is used as a crosslinking agent in the production of coatings, adhesives, and composites. DMPA enhances the overall performance of the final product by improving water resistance, hardness, and binding strength. Its low volatility and high reactivity make it an ideal substitute for formaldehyde-based resins.
The Dimethylolpropionic Acid Market is estimated to be valued at US$ 524.0 Mn in 2023 and is expected to exhibit a CAGR of 6.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing paints and coatings industry is one of the major factors fueling the demand for DMPA. It is increasingly being used as a hardener and crosslinker in waterborne wood coatings and floor polishes. The rising environmental consciousness and stringent regulations regarding formaldehyde emissions have led coatings producers to adopt DMPA resin technology. Furthermore, the booming construction industry in Asia Pacific and growing infrastructure development projects in North America and Europe are augmenting the consumption of various coatings, which in turn is driving the DMPA market.
Porter's Analysis
Threat of new entrants: New entrants face high capital requirements to build manufacturing plants. Established players have significant economies of scale and brand reputation.
Bargaining power of buyers: Buyers have moderate bargaining power as Dimethylolpropionic Acid has applications in diverse industries. Buyers can choose from various substitutes as well.
Bargaining power of suppliers: A few major players control the global supply of raw materials. Suppliers thus enjoy moderate bargaining power.
Threat of new substitutes: Substitutes like polyols and glycerin provide competition. However, Dimethylolpropionic Acid has distinct properties making it difficult to completely replace.
Competitive rivalry: The market is moderately competitive with presence of large multinationals and regional players. Companies compete based on pricing, production capacity and quality.
SWOT Analysis
Strengths: Wide applications in coatings, construction, automotive industries. Usage as polyurethane dispersant favors market growth.
Weaknesses: Regulations regarding emissions during production. Fluctuating raw material prices affect profit margins.
Opportunities: Rising demand for powder coatings and adhesives in construction industry. Market potential in Asia Pacific due to infrastructure growth.
Threats: Growing environmental concerns hamper market. Easy availability of substitutes is a challenge.
Key Takeaways
The global Dimethylolpropionic Acid market forecast is expected to witness high growth, exhibiting CAGR of 6.4% over the forecast period, due to increasing demand from construction and automotive industries. The market size is projected to reach $824.3 Mn by 2030.
Asia Pacific dominates the global market and is estimated to maintain its lead throughout the forecast period. Factors such as rapid urbanization, growth in construction spending and rising vehicle production in China and India will drive the regional market.
Regional analysis
North America is expected to exhibit significant growth, registering a CAGR of 5.2% during the analysis period. Favorable regulations regarding power coatings and stringent emission norms in the US and Canada are supplementing the regional market growth.
Key players analysis
Key players operating in the Dimethylolpropionic Acid market are BASF SE, Perstorp Holding AB, Chemoxy International Ltd., and Merck Group. BASF is one of the leading producers with wide product portfolio and global presence. Perstorp specializes in polyurethane dispersants and holds a significant market share
Get more insights on this topic: https://www.newswirestats.com/emerging-trends-in-construction-industry-to-boost-utilization-of-the-global-dimethylolpropionic-acid/
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