Dimethylolpropionic Acid Market is Estimated to Witness High Growth Owing to Rising Consumption in Paints & Coatings Industry and Increasing Demand from the Construction Sector
The dimethylolpropionic acid market is estimated to be valued at USD 510.3 Mn in 2024, exhibiting a CAGR of 6.7% over the forecast period (2024-2031). There has been significant growth in the consumption of dimethylolpropionic acid owing to its extensive usage in manufacturing paints, coatings, adhesives, and sealants. Furthermore, it is also widely used as a curing agent for thermoset resins that are used in applications such as the construction, automotive, and aerospace industries.
Market Dynamics:
Rising consumption in paints & coatings industry: Dimethylolpropionic acid acts as an important intermediate in manufacturing various alkyl and polyester resins that are extensively used in paints and coatings. With growing construction activities along with increasing automotive production, the demand for paints and coatings has witnessed a considerable rise over the past few years. This, in turn, has provided an impetus to the consumption of dimethylolpropionic acid.
Increasing demand from construction sector: The global construction industry has experienced steady growth on account of rapid urbanization, rising income levels, and growing population. Dimethylolpropionic acid-based formulations find wide application in manufacturing sealants, adhesives, exterior insulation, and finish systems.
Increasing Demand from Construction Industry is driving the Dimethylolpropionic Acid Market
The construction industry has been witnessing steady growth over the past few years. Dimethylolpropionic acid or DMPA finds wide application in construction chemicals used for flooring, tile adhesives, grout, and other cementitious systems. It is primarily used as a curing agent and hardener in cement and concrete formulations. DMPA promotes quicker strength development and improved adhesion in cement mixes. With rapid urbanization and growing infrastructure development activities worldwide, the demand for cement and concrete is rising exponentially. This, in turn, is fueling the consumption of DMPA in the construction sector. Moreover, renovation and retrofitting of existing infrastructure are further stimulating product demand. Thus, the overall growth of the construction industry acts as a prominent driver for the dimethylolpropionic acid market.
Increasing Demand from Coatings and Adhesives Industry is Propelling Market Growth
Dimethylolpropionic acid serves as an important crosslinking agent and hardener in various coating and adhesive formulations. It increases the hardness and improves adhesion, chemical and weather resistance of coatings. DMPA finds usage in wood coatings, metal coatings, automotive OEM coatings and maintenance coatings. The global coatings market has been witnessing steady growth on account of burgeoning automobile production and rising paints & coatings demand from various end-use industries including construction, consumer goods, and others. Adhesives are also finding increasing application in packaging, furniture, footwear, electronics, and other industries. This widespread use of coatings and adhesives has created huge demand for DMPA as a crosslinking agent. Thus, growth of the coatings and adhesives industry acts as a key growth driver for the dimethylolpropionic acid market.
Stringent Environmental Regulations May Restrain Market Growth
DMPA is moderately toxic and its exposure can cause eye, skin, and respiratory tract irritation in humans. Thus, several regions have established strict regulations regarding its safe handling and transportation. For instance, the United States Environmental Protection Agency (EPA) has listed DMPA as a toxic chemical under Emergency Planning and Community Right-to-Know Act (EPCRA). This requires OSHA HazCom standard labeling and safety data sheet (SDS) documentation for DMPA. Moreover, various regions are promoting zero/low VOC coatings, which use only eco-friendly crosslinkers excluding DMPA. Such stringent environmental and safety norms may restrict the growth of the dimethylolpropionic acid market to some extent. High production and transportation costs incurred in meeting these regulatory standards can also negatively impact the overall demand-supply dynamics.
Availability of Bio-Based Substitutes Can Challenge Market Growth
Manufacturers are looking at sustainable and bio-based alternatives for DMPA to comply with stringent environmental regulations. For instance, researchers are developing epoxy and polyurethane formulations using natural bio-based crosslinkers like cardanol, soybean oil, and derivatives as substitutes of DMPA. These green crosslinkers exhibit similar reactivity and performance as compared to DMPA. They provide formulations with enhanced biodegradability and reduce volatile organic compound (VOC) emissions. Several coating producers have already started adopting these bio-based substitutes to emphasize on green and sustainable offerings. This can weaken the market position of DMPA over the long run.
Growing End-Use Industries in Emerging Nations Offer Huge Market Opportunities
Developing Asian countries like India, Indonesia, Vietnam, etc. are witnessing rising activities in the construction and automotive sectors. These industries lay high importance on infrastructure development projects and increasing automobile production. This will substantially boost the consumption of coatings, adhesives, cement and concrete, thereby augmenting the demand for DMPA in these regions. Moreover, rapid urbanization and growing per capita income have led to higher spending on consumer goods, electronics, furniture, etc. The coatings and adhesives demand from such end-use sectors is significantly rising in emerging nations. This offers huge growth opportunities for dimethylolpropionic acid market players looking to tap the untapped potential of developing Asian markets.
Increase in Infrastructure Development Projects in Latin America Creates New Avenues
Countries like Brazil, Argentina, Mexico, and others are investing heavily in public infrastructure like roads, railways, dams, and urban mass transit systems. This is attracting substantial foreign investments and offering lucrative business opportunities. Growing construction activities positively influence the paints, coatings, cement and adhesives consumption in these nations. Rising per capita income has also raised the standards of living and spurred the demand for consumer goods.
Link: https://www.coherentmarketinsights.com/market-insight/dimethylolpropionic-acid-market-3804
Key Developments
- In January 2022, Perstorp took over GEO's Di-Methylolpropionic Acid (DMPA) business, reflecting the company's ambition to establish itself as a sustainable supplier of specialty solutions within the resins and coatings sector. Perstorp specializes in manufacturing and selling a diverse range of specialty chemicals. Its product portfolio includes acids and alcohols.
Key Players
Geo Specialty Chemicals, Inc., Perstorp Specialty Chemicals AB, Henan Fianfu Chemical Ltd., Jiangxi nancheng Hongdu Chemical Technology Development Co., Ltd., Shenzhen Vtolo Chemicals Co. Ltd., Lemman Laboratories International Co.,Ltd, Biosynth Carbosynth, Yigyooly Enterprise Limited, and Jiangxi Selon Industrial Co.,Ltd.
