Wood preservative chemicals and coatings active ingredient is used to preserve the wood from insects or fungus and in turn extending shelf-life of the wood. These chemicals offer resistance to degradation and destruction from living organism in wood. The insects and fungi that degrade the wood contents are hemicelluloses, starches, celluloses, and other susceptible materials. However, applying preservation treatments can easily prevent the decomposing and feeding of this insect on wood contents. Wood coatings active ingredients are used to paint wooden surfaces in order to provide surface protection and aesthetic appeal. Moreover, these coatings provide resistance to wear and tear from the external environmental factor.

The global wood preservative chemicals and coatings active ingredient market was estimated to be valued slightly less than US$ 200 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 3.6% during the forecast period (2019 to 2027)

Drivers

Wood preservative chemicals and coatings active ingredients market is mainly driven by the rising number of infrastructure projects across developing countries such as Asia-Pacific, Europe, and North America. Moreover, growth in the construction of commercial and residential buildings and commercial building such as healthcare centers and educational institutes is further anticipated to accelerate the demand for wood-based products and thereby creating a huge demand for wood preservative chemicals and coatings active ingredients. Furthermore, governments of developed economies are taking initiatives for the development of infrastructure. For instance, in December 2015, the U.S. Congress passed a US$ 305 billion five–year highway and transit bill to strengthen the country’s infrastructure. Several infrastructure projects such as the construction of office buildings, light rail corridor, and shopping centers are underway in North America.

Market Opportunities

Increasing usage of eco-friendly alternatives for wood preservative chemicals is expected to offer a potential opportunity to the market of wood preservative chemicals. Growing usage of eco-friendly active ingredients such as borates, propiconazole, copper azole, tebuconazole, etc. to offer protection against wood-decaying fungi is propelling the market growth. These eco-friendly wood preservatives are readily soluble in hydrocarbon solvents and also possess excellent stability and leach resistance in wood. Hence, these factors are expected to foster market growth over the forecast period.

Market Restraints

Health challenges associated with the wood coatings active ingredients is estimated to hamper the market growth of wood preservative chemicals and coatings active ingredient. According to the Coherent Market Insights, there has been a significant rise in incidences of carcinomas, adenomas, malignant phenochromocytomas and hemangiomas owing to growing exposure to pentachlorophenols present in the wood preservatives. Creosote has high chances of causing cancer and arsenicals have been proven to cause cancer in humans. Therefore, aforementioned factors are expected to hinder the market growth.

Key Takeaways

Among active ingredient type, organic segment dominated the global wood preservative chemicals and coatings active ingredient market in 2018 with around 86% of market share in terms of revenue, followed by inorganic and others, respectively.

Market Trends

A rising number of partnership among key players for the development of infrastructure is anticipated is a major trend that has been observed in the market and this trend are anticipated to accelerate the market growth of wood preservative chemicals and coatings active ingredient. For instance, in June 2019, India and the UK enter into partnership for infrastructure development with a commitment of US$ 156 million each. This is the largest fund between the two countries and can further the joint ambition to accelerate investments in clean energy and green infrastructure sectors.

Increasing focus of producers to replace chromated copper arsenate (CCA) with EPA is expected to fuel the market growth of wood preservative chemicals and coatings active ingredient. This is a major trend observed in the market for almost all residential applications. This shifting trend is expected to propel the market growth of wood preservative chemicals and coatings active ingredient over the forecast period.

Regulations

In the United States, Federal and State regulations establish standards that one must meet before one can legally use certain pesticides. Federal regulations administered by the environmental protection agency (EPA) have registered the sale and use of certain preservatives to ensure that only properly trained applicators have access to them. Wood preservatives affected by these regulations are creosote, pentachlorophenol, and inorganic arsenicals

Competitive Section

Key players operating in the global wood preservative chemicals and coatings active ingredient market are Lanxess AG, Janssen Pharmaceutica NV, Lonza Group AG, Akzo Nobel N.V., PPG Industries, Inc., BASF Wolman GmbH, Kurt Obermeier GmbH & Co. KG, RUTGERS Organics GmbH, Sarpap & Cecil Industries, Koopers Holdings Inc., and Troy Corporation

Market Taxonomy

By Active Ingredient Type

  • Inorganic
  • Organic
    • Azoles
    • Propiconazole
    • Tebuconazole
    • Others (Cyproconazole, etc.)
  • Others

By Use Class

  • UC 1/2 – Indoor 
  • UC 3 – Outdoor 
  • UC 4 – Outdoor with ground contact
  • UC 5 – Marine 

By Region

  • North America
  • Latin America 
  • Europe
  • Asia- Pacific
  • Middle East & Africa
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