Dimethylolpropionic acid is a versatile and white crystalline molecule that has odorless properties. It is mainly used in the manufacturing of water-soluble resins that have a wide range of applications across various end-use industries. It is also used in polyurethane dispersions for enhancing its hydrophilic properties. Furthermore, dimethylolpropionic acid also finds applications across powder coatings to enhance the gloss and flow properties. In addition to this, dimethylolpropionic acid is also used in the electro-deposition coatings for improving cures response and make resins water-soluble. Automotive, construction, leather, textile, furniture, and agriculture are some of the major end-user industries of the dimethylolpropionic acid
The global dimethylolpropionic acid market was estimated to be valued more than US$ 285 million in terms of revenue in 2019 and is predicted to grow at a CAGR of 8.0% during the forecast period (2020 to 2027)
Drivers
Rising demand for polyester resin around the globe is expected to foster market growth. Increasing urbanization and changing lifestyle of the consumer due to the rise in the disposable income is expected to accelerate the market growth of the dimethylolpropionic acid over the forecast period. Moreover, growth in the various manufacturing industries such as textile and furniture, electronic, and construction is further anticipated to accelerate market growth over the forecast period.
Market Opportunities
The increasing focus of the manufacturer to invest in increasing the production capacity of the polyurethane dispersion in response to the rising demand across various end-user industries is projected to accelerate the market growth of dimethylolbutanoic acid over the forecast timeframe. For instance, in January 2020, BASF announced a single-digit million-euro investment in the capacity expansion of water-based polyurethane dispersions at its Castellbisbal site in Spain. The expansion will allow BASF to increase its production capacity by 30 percent.
Market Restraints
The availability of a low-cost and wide range of substitutes for DMPA such as TME, TMP, and DMBA is projected to hinder the growth of the global DMPA market. The growing use of dimethylolbutanoic acid in the polyurethane dispersion industry is further expected to hamper the market growth of the dimethylolbutanoic acid.
Key Takeaways
On the basis of application, polyurethane dispersions dominated the global dimethylolpropionic acid market in 2019 with around 80% of market share in terms of revenue, followed by resin coatings and others, respectively
Market Trends
The rising trend of using protective coatings where polyurethane dispersion and epoxy resins are widely used is expected to accelerate the market growth of dimethylolbutanoic acid. Substantially increased in the consumption of polyurethane dispersion across furniture and interiors industry is further projected to fuel the market growth of dimethylolbutanoic acid.
Increasing use of polyurethane dispersions and resins in printing inks and photographic chemicals is anticipated to foster the market growth of the dimethylolbutanoic acid over the forecast period. Moreover, the rising demand for functional finishes of the surface is further anticipated to accelerate the market growth of dimethylolbutanoic acid. Furthermore, growth in the coating industry is also expected to accelerate the market growth of the dimethylolpropionic acid
Competitive Section
Key players are operating in the global dimethylolpropionic acid market are Geo Specialty Chemicals, Inc., Perstorp Specialty Chemicals AB, Henan Tianfu Chemical Co. Ltd., Jiangxi Nancheng Hongdu Chemical Technology Development Co., Ltd., and Shenzhen Vtolo Chemicals Co., Ltd.
Henan Tianfu Chemical Co. Ltd.
Strategy:
With the primary objective towards quality, the company has developed over 500 compounds since its inception in 2009.
The company has a presence primarily in four product families:
- Industrial Chemicals
- Noble Metal Catalyst
- Electronic Material
- Intermediates
Shenzhen Vtolo Chemicals Co., Ltd.
Strategy:
- The company focuses on the production and export of raw material for Surface-Mount Technology (SMT).
- The company primarily produces DMPA and dihydroxy methyl butyric acid (DMBA), which is used in water soluble coatings.
- Around 30% to 40% of the products manufactured by the company are exported globally.
Market Taxonomy
By Application
- Polyurethane Dispersions
- Resin Coatings
- Others
By Region
- North America
- Latin America
- Europe
- Asia-pacific
- Middle East & Africa
