The global specialty market has maintained steady growth
The "Specialty Chemicals Industry Overview" report released by S&P Global Commodity Insight's Specialty Chemicals Update Program (SCUP) says 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.
Among 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 rate will vary among different segments of the industry. The demand for electronic devices, driven by the likes of smartphones, tablets and wearable technology, will continue to increase, driving the demand for advanced electronic components and creating a growing market for specialty chemicals used in their manufacturing.
The energy transition is currently underway worldwide, with low or even negative growth rates expected for emissions control catalysts and lubricant additives, while key developments such as sustainability and digital transformation are reshaping the market. Due to the increased emphasis on sustainability, the market will invest more in environmentally friendly specialty chemicals. Regulatory pressure and changing consumer preferences will also drive demand growth for more green alternatives. Digital transformation, characterized by the adoption of Industry 4.0 technologies, will increase operational efficiency and reduce costs, and digitalization will also drive demand growth for specialty chemicals such as electronic chemicals and high-performance polymers.
According to the report, the value of the global specialty market declined in 2023, but certain segments showed resilient growth, including rubber processing chemicals, specialty coatings, nutritional ingredients, food additives, construction chemicals, flavors and flavors, mining chemicals, specialty adhesives and sealants, and industrial and institutional cleaners. In the future, challenges related to raw material supply and price volatility are likely to persist, requiring companies to adopt flexible sourcing strategies and maintain strong supplier relationships. Global players will continue to invest through joint ventures, mergers and acquisitions, and will further improve local production capacity, thereby enhancing market competitiveness. Innovation will remain a key driver, with a focus on high-performance and versatile specialty chemicals to meet the changing needs of a variety of industries.
Geographically, the center of gravity of the global specialty industry has been shifting to Asia, with Chinese and Indian manufacturers emerging as key players in several markets. In 2023, Asia will account for 51% of the global specialty market. Accordingly, mature economies such as North America, Western Europe and Japan will continue to see their share of the specialty chemicals market decline. Due to slowing economic growth, North America, Western Europe and Japan together account for 45% of global specialty chemicals consumption in 2023, and their market share is expected to decrease to 42% in 2029.