The global specialty chemicals market size reached at USD 721.06 billion in 2019 and projected to hit USD 957.30 billion by 2027, with a CAGR of 4.9% from 2020 to 2027.
Increased research and development of the specialty chemical products with advanced and optimum features is the major factor that drives the market growth. Increasing demand from ASEAN countries such as China and India due to rapid industrialization has uplifted the specialty chemicals market growth.
Construction and infrastructure projects have significantly grown over the past few years in the Asia Pacific region. This makes the region as the most preferred destination for the manufacturers of specialty chemicals, thereby propelling the market growth. Whereas, stringent government regulations along with fluctuation in price of raw materials projected to hamper the market growth for specialty chemical.
In 2019, pharmaceutical ingredients led the global specialty chemicals market with significant revenue share and expected to continue the same trend over the forecast period. The prime factors attributed to the prominent segment growth are large number of applications in pharmaceutical industry such as drugs manufacturing for skin disorder, cardiovascular diseases, and Hughes syndrome. These are usually active ingredients that are found in the medical products. Pharmaceutical ingredients are manufactured in large reactors sing basic chemical compounds. After the processing of chemical compound or base it turns into an intermediate that finally forms pharmaceutical ingredient. Depending on the number of intermediates specific type of pharmaceutical ingredient is being manufactured. The number of intermediates varies from 1 to 10.
On the other hand, agrochemical projected to account for nearly 12-15% of revenue share in the global specialty chemicals market in 2019. Increasing population coupled with rising demand for good quality food boosts the demand for agrochemicals market. Crop protection and high yield products are the major market trend shaping the agrochemicals market. Increased awareness among farmers for the application of agrochemicals in their farms predicted to fuel the market growth for agrochemicals in the near future. Furthermore, increase in industrialization and urbanization has degraded and decreased the agricultural land, however the demand of food is increasing at the same rate. This triggers the demand for agrochemicals to surge the crop yield production per acre of land, thereby accelerating the market growth of specialty chemicals during the forecast period.
The Asia Pacific accounted for 36% global revenue share, holding the leading market position across all regions. Prime factor attributed to this is presence of key emerging economies in the region such as China, Japan, and India that accounted the largest revenue share for the specialty chemicals in the year 2017. In the Asia Pacific region specialty chemicals are used for various applications such as water treatment, paints & coatings, electronics, personal care ingredients & cosmetics, agriculture, and many other applications.
China held the leading market position in the Asia pacific region, accounting for nearly 39% revenue share in the year 2019. India followed China with a market value of approximately 23% in the overall Asia Pacific market. India is the most dynamic country and exhibits lucrative growth in the specialty chemicals market during the forecast period. The specialty chemicals market in India is highly fragmented and comprises of several small and medium scale companies. Moreover, the unimaginable growth in the application of water treatment chemicals has significantly propelled the growth of specialty chemicals in the country.
Key Companies & Market Share Insights
The global specialty chemicals market is highly fragmented due to the presence all scale of players that is small, medium, and large manufacturers in the market. These market players adopt both inorganic as well as organic growth strategies for sustaining their position in the market.
Some of the prominent players in the specialty chemicals market include:
Segments Covered in the Report
This research study evaluates market revenue growth at global, regional, and country levels and proposes comprehensive exploration of the up-to-date industry trends in all of the sub-segments from 2016 to 2027. This research report categorizes global specialty chemicals market depending on application, and region:
By Application Outlook
By Regional Outlook
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