March 1, 2024

Increasing Usage In Coatings Industry To Accelerate The Growth Of Dimethylolpropionic Acid Market

Dimethylolpropionic acid, also known as DMPA, is an organic compound used as an intermediate in resins and coating formulations. It is a polyol compound that provides various advantages like improved flexibility, adhesion, hardness and weather resistance in coating applications. DMPA based polyester and polyurethane resins find widespread use in wood coatings, paper coatings, leather coatings and various industrial coatings. The unique chemical structure of DMPA enables versatile reactivity and solubility, making it a preferred intermediate in producing high-performance coating polymers.

The global 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:
One of the key trends driving the dimethylolpropionic acid market growth is its increasing demand from the coatings industry. DMPA acts as a branching agent to synthesize branched polyester and polyurethane resins that exhibit enhanced properties like flexibility, scratch resistance and weatherability. This makes DMPA incorporated coatings suitable for applications in general industrialcoatings, automotive coatings, furniture coatings and more. With rise in coatings consumption globally coupled with the formulation advantages offered by DMPA, its demand from the coatings segment is projected to surge substantially over the forecast period.

Porter’s Analysis

Threat of new entrants: Low economies of scale in production and well-established players in market pose barrier for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated product offerings from existing players.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated manufacturing process and dependency of buyers on few major suppliers for raw materials.

Threat of new substitutes: Substitutes offer better properties or performance posing threat to product.

Competitive rivalry: Intense due to innovation and brand positioning of major established brands.

Key Takeaways

The global Dimethylolpropionic Acid market Growth is expected to witness high growth, exhibiting CAGR of 6.4% over the forecast period, due to increasing use in construction chemicals industry. Dimethylolpropionic Acid acts as dispersing agent in concrete admixtures and improves the workability of concrete mixtures.

Regional analysis: Asia Pacific dominates global Dimethylolpropionic Acid market owing to growing construction sector in China and India. China represents major share in regional as well as global market due to presence of leading Dimethylolpropionic Acid producers.

Key players operating in the Dimethylolpropionic Acid market are BASF SE, Perstorp Holding AB, Chemoxy International Ltd. Key players are focusing on capacity expansion plans and strategic joint ventures to strengthen market position and gain competitive advantage. BASF SE is the global market leader in Dimethylolpropionic Acid with wide product portfolio and strong distribution network across regions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it