Reactive Diluents Market is forecast to reach $1.5 billion by 2025, after growing at a CAGR of 6% during 2020-2025. Reactive diluents enhance flexibility and workability by diluting high viscous epoxy resins. The consumption of reactive diluents-based epoxy resins such as paints & coatings, composites, and adhesives from various industry include electronics, automotive, marine, and construction, growing disposable income, and growing public interest towards sustainable and environment-friendly products are driving the overall market demand for reactive diluents during the forecast period.
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Type - Segment Analysis
Segmentation based on type, the aliphatic segment hold the largest share in the global market throughout the study period and expected to witness a highest growth of around 8% during the forecast period. This growth is attributed to the wide use of aliphatic reactive diluent across various industries due to its low raw material cost and easy production process. Besides, aliphatic reactive diluents offers various benefits like superior non-yellowing characteristics related to aromatic mono-functional reactive diluents, better property retention, and excellent wetting characteristics.
Function Type - Segment Analysis
Among the function type, the multi-functional segment is projected to witness a highest growth rate over the forecast period. The multi-functional diluent provide various benefits like electrical insulation, weather, moisture, and impact resistance. Furthermore, the increasing consumption of cycloaliphatic epoxy resin in heavy electric equipment industry is anticipated to be the major driving factor for rising adoption of multi-functional reactive diluents in electric and electronic industry.
Application - Segment Analysis
Among the applications, the paints and coating segment dominated the global market with a share of around 40% in 2019 and is projected to dominate the same market over the forecast period. This growth is due to growing residential and commercial activities in emerging country. Additionally, growing demand for environmentally friendly and solvent free anticorrosive coatings and UV curable coatings and inks will further propel the growth of this segment, which in turn drives the global reactive diluent market share during the forecast period.
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Geography - Segment Analysis
In 2019, APAC dominated the reactive diluents market with a share of more than 35%, followed by North America and Europe. The growth in APAC region is attribute to the growing transportation, urbanization, and population along with large industrial base across the region. Furthermore, the growing renewable energy sector primarily solar and wind energy in emerging economies of APAC includes China, India and South Korea, owing to availability of ample amount of sunlight, will also contribute for the growth of reactive diluent market industry in APAC region during the forecast period.
Drivers – Reactive Diluents Market
Growing uses of reactive diluent across various end-use industries
Rising adoption of sustainable and environment-friendly products from end-users and customers is expected to boost the demand for reactive diluents. In marine industry, reactive diluent are used to prevent the corrosion of hull caused by sea water and external environments. The growing use of electro deposition coatings from automotive bodies to construction materials and steel furniture. As electro deposition coatings offer various advantages like it helps to improve anticorrosive properties and uniformed paint films. Furthermore, due to anticorrosive and heat resistance properties of reactive diluent is widely used in the field of electricity and electronics. In addition, the due to excellent insulation properties, reactive diluents are also used in the medium- and high-voltage insulation fields of heavy electric equipment includes gas insulated switchgear, transformers, and heavy electric insulators. Hence, due its excellent properties, reactive diluents are widely used across various end-use industries accelerate the growth of global reactive diluent market over the forecast period.
Need for solvent free or environment friendly anticorrosion reactive diluents
The growing environmental concern drives the demand for solvent free anticorrosion reactive diluent coatings, which in turn drives the global reactive diluent market size from 2020 to 2025. The solvent free anticorrosion coating is based on epoxy resins which contains minor or do not contain volatile organic solvent of high solid coatings and helps to reduce the environment pollution. The reactive diluent coatings have the features of environmental protection, security, economy, and chemical resistance.
Challenges – Reactive Diluents Market
Volatile raw material prices and unstable economy
There are various micro- and macro-economic factors responsible for the fluctuation of raw material prices and economy growth. The trade war between two largest economies of the world include China and the USA, the geopolitical issues between the US, Saudi Arabia, Russia, Iran, and Iraq, decline in the production and sales of diesel based automobiles globally, and the growing impact of COVID-19 worldwide are the key factors responsible for the fluctuation of raw material prices such as crude oil, natural gas, and other commodity prices and lowering economic growth.
Acquisitions/Technology Launches
In February 2020, Sartomer, a business line of Arkema is featuring its high-performance liquid resin solutions at JEC World. This resin solution helps to enhance the performance properties of composite materials.
In 2019, BASF has introduced Vinyl methyl oxazolidinone (VMOX) as a reactive diluent in UV-curing coatings and inks for the Printing, Coatings Industry at the European Coatings Show 2019 in Nuremberg.
Key Takeaways
Among the regions, in 2019, Asia-Pacific dominates the reactive diluents market owing to rapid urbanization, growing population, increasing construction and aviation activities, and growing renewable energy sector across the country.
The growing popularity of solvent free paint and coating compounds, better diluent, and retention of chemical resistance products, is likely to aid in the market growth of Reactive Diluents
Increasing adoption of sustainable and environment friendly products, will increase the market demand for Reactive Diluents in the near future.
Growing popularity of an alternative products to reactive diluent like phenolic, owing to its properties like excellent resistance to heat, toxic gases, chemical, and fire will create hurdles for the growth of global Reactive Diluents market industry.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Reactive Diluents market. In 2019, the market of Reactive Diluents has been consolidated by the top five players accounting for xx% of the share. Major players in the Reactive Diluents Market are Hexion, Huntsman Corporation Corporation, BASF SE, Olin Corporation, Aditya Birla Chemicals, Sachem, Kukdo Chemical, Evonik Industries, Adeka Corporation and Cargill, EMS-Griltech, among others.
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According to ChemAnalyst report, “Reactive Diluents Market Analysis: Plant Capacity, Production, Operating Efficiency, Technology, Demand & Supply, End-User Industries, Distribution Channel, Regional Demand, 2015-2030”.
Global Reactive Diluents market witnessed a strong demand of 0.78 million tons in 2020 and is forecast to reach 1.490 million tons by 2030, growing at a healthy CAGR of 6.75% until 2030 owing to its utilization as additives in various end use industries.Reactive diluents are glycidyl ethers of short-chain aliphatic alcohols.
Reactive diluents also use to optimize performance properties such as thermal stability, adhesion, impact and tensile strength, filler loading, volatility reduction, flexibility and solvent resistance.
They are utilized in stabilization against degeneration reactions, in solvent free paint and coating compounds preparations or as an adhesive along with other polymers to enhance adhesion.
Moreover, its use as substitutes for various plasticizers is also going to boost its market growth.In the first half of 2020, Coronavirus outbreak had serious repercussions on the global Reactive Diluents market.
Construction sector was majorly hit due to the lockdown restrictions across various economies implied to prevent the spread of virus lead to the decline in demand of Reactive Diluents amid crises.
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