Recently, the Specialty Chemicals Industry Overview report released by S&P Global Commodity Insights' Specialty Chemicals Update Program (SCUP) stated that after a 1.6% decline in market value in 2023, the global specialty chemicals market will continue to grow at a compound annual growth rate of 3.0% from 2024 to 2029.
In various industries, specialty chemicals used in the electronics industry such as semiconductors, silicon, and integrated circuit process chemicals are expected to achieve high growth, and the growth rates of different segmented markets in this industry will vary. Driven by technologies such as smartphones, tablets, and wearable devices, the demand for electronic devices will continue to increase, driving the growth of demand for advanced electronic components and creating a growing market for specialty chemicals used in their manufacturing processes.
At present, the world is undergoing an energy transition, and it is expected that emission control catalysts and lubricant additives will have low or even negative growth rates, while key development trends such as sustainability and digital transformation are reshaping the market. As people place greater emphasis on sustainability, the market will invest more in environmentally friendly specialty chemicals. Regulatory pressure and constantly changing consumer preferences will also drive the growth of demand for more green alternatives. The digital transformation characterized by the adoption of Industry 4.0 technology will improve operational efficiency and reduce costs. Digitization will also drive the growth of demand for specialty chemicals such as electronic chemicals and high-performance polymers.
The report points out that the global market value of specialty chemicals will decline in 2023, but some market segments will still show elastic growth, including rubber processing chemicals, special coatings, nutritional ingredients, food additives, construction chemicals, spices and essence, mining chemicals, special adhesives and sealants, and industrial and institutional cleaners. In the future, challenges related to raw material supply and price fluctuations may persist, requiring companies to adopt flexible procurement strategies and maintain strong supplier relationships. Global participants will continue to invest through joint ventures and mergers and acquisitions, which will further enhance local production capabilities and strengthen market competitiveness. Innovation will remain a key driving factor, with a focus on high-performance and multifunctional specialty chemicals to meet the constantly changing needs of various industries.
Geographically, the focus of the global specialty goods industry has been shifting towards Asia, with Chinese and Indian manufacturers becoming key participants in several markets. In 2023, Asia will account for 51% of the global specialty goods market. Correspondingly, the market share of mature economies such as North America, Western Europe, and Japan in the specialty chemicals market will continue to decline. Due to the slowdown in economic growth, North America, Western Europe, and Japan together account for 45% of global specialty chemical consumption in 2023, and it is expected that their market share will decrease to 42% by 2029.
Mr.Kevin