Dispersing Agents Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

Dispersing Agents Market Dynamics - (DRO) :

Key Drivers :

The expanding construction sector and government support for the construction sector are fostering a higher dispersing agents market demand

The agents such as plasticizers, and water reducers are the primary agents used in the preparation of various raw materials used in the construction procedure including concrete mixtures, mortars, grouts, and cementitious coatings. The expanding construction sector is one of the prominent reasons fuelling the requirement for these agents which is driving the expansion of the market across the globe. Rising urbanization and infrastructure development are fueling the need for concrete which uses these agents.

Based on the analysis, these agents make sure that the cement particles and other materials are evenly distributed, improving the strength, and adhesion of the material and improving its resistance to cracking the cement. Thus, such agents are an important component in construction materials.

Additionally, the escalating construction sector is significantly contributing to the market trends.

For instance,

• According to the data provided by India Brand Equity Foundation, the Dubai government and India signed a contract in October 2021 to build infrastructure in Jammu and Kashmir, including industrial parks, IT towers, multipurpose towers, logistics centers, medical colleges, and specialized hospitals.

Consequently, government support for the construction sector and the rising construction sector is driving the dispersing agents market trends.

For instance,

• According to the data provided by the National Bureau of Statistics, in February 2023, the value-added output of the construction sector in China accounted for USD 1172.92 billion in 2022, which increased by 5.5 % over 2021.

Moreover, government support in the construction sector is creating a significant gain in the requirement for dispersing agents market.

Surging use of dispersing agents in the automotive industry is significantly contributing to the market.

Dispersing agents play a crucial role in the automotive sector, contributing to various aspects of vehicle performance, functionality, and aesthetics. The range of these agents that serve pivotal aspects in this sector for adhesives and sealants, coatings and paints, lubricants and greases, and polymers among others. These chemicals provide certain characteristic advantages such as hydrophobicity, flexibility, increased strength and durability, protection against corrosion and scratches, and reduced friction and wear, among others further enhancing the overall performance and efficiency of the automotive parts and vehicles.

Additionally, based on the analysis in fuel and engine additives, these agents prevent deposit formation and optimize the performance and emission of the engine. Owing to this, commendable efforts are being made by the leading players to expand their portfolio.

For instance,

• In May 2022, LANXESS, a leading dispersing agent manufacturer, and Advent, announced a joint acquisition of a materials business from DSM for a purchase price of around USD 4.02 billion. Under this agreement, LANXESS is contributing its High-Performance Materials (HPM) business unit to the joint venture. HPM is one of the leading suppliers of high-performance polymers, which are used primarily in the automotive sector. This joint venture and acquisition is expanding the automobile high-performance polymer portfolio of LANXESS.

Moreover, based on the analysis, these factors lead to the use of these agents in the automotive sector which is driving the automotive market which includes electric vehicles, and passenger cars.

For instance,

• According to the data provided by the Germany Trade and Invest in September 2022, German passenger car and light commercial vehicle OEM generated foreign market revenue of almost USD 274 billion in 2021, a 10 % increase over 2020. Thus, the use of these agents in the automotive sector is propelling the expansion of the market.

Overall, the critical role played by these agents in the automotive applications is augmenting the market.

Key Restraints :

Environmental effects associated with the use of dispersing agents are limiting the market.

The significant environmental impact associated with the use of these agents is the potential factor restraining the market. Traditional dispersing agents normally contain chemicals such as ethylene glycol, alkylphenol ethoxylates, phosphates, and ethylenediaminetetraacetic acid among others that possess adverse effects on the environment. These chemicals generally lead to toxicity to aquatic organisms and bioaccumulation. These substances seep into the water and soil, causing contamination and upsetting natural ecosystems. Furthermore, based on the analysis, the production process for some dispersing compounds releases harmful emissions or byproducts, which worsens the negative effect on the environment. Thus, the negative effect of these agents on the environment are the factors hindering the dispersing agents market growth.

Future Opportunities :

A growing focus on sustainable dispersing agents is expected to propel the market expansion in the upcoming years

The demand for advanced and eco-friendly solutions in the chemical sector has led to an increase in the demand for sustainable dispersing agents. The demand for these agents with improved sustainability profiles is rising because of the increase in awareness about environmental issues and various regulations designed to lessen the environmental impact of these substances. As these agents, including polymers, surfactants, and complexing agents are widely used in various industries, it has become essential to adopt a sustainable approach towards them. As per the analysis, sustainable dispersing agents offer superior alternatives to traditional agents. This is because they possess environment-friendly attributes and regulatory compliance benefits.

These chemicals are typically derived from renewable sources like biomass and agricultural waste, which reduces dependence on fossil fuels and lowers carbon emissions. They also exhibit characteristics like low toxicity, reduced carbon footprint, renewable sourcing, and biodegradability. Many chemical solutions with sustainable properties that are not harmful to the environment have been introduced.

For instance,

• Dow is launching EcoSense™ 2470 surfactant in September 2023, which is a sustainable solution that harnesses innovative carbon capture technology for the home care market, providing customers with an eco-friendly option to meet their formulation goals.
• Additionally, in November 2023, Clariant announced the showcasing new portfolio of wetting and these agents for water-based formulations dedicated to industrial coating applications in containers, transportation, and construction. Ceridust 8170 M is an addition to the growing portfolio of PTFE-free (polytetrafluoroethylene) additives. On display, it offers safer, more sustainable options for paints and coatings.

Thus, the growing focus on these is driving the market in the forecast year.

Top Key Players & Market Share Insights :

The global dispersing agents industry is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The market is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market share through mergers, acquisitions, and partnerships. The key players in the market include-