Understanding Environmental Regulations and Efficiency Trends in Specialty Chemicals
Greater community awareness toward the degradation of the atmosphere is forcing specialty chemical companies to comply with environmental regulations.
When the specialty chemicals industry entered a mature phase in the mid-1990s, innovation came to be characterized by small steps rather than by big leaps.
Companies in the specialty chemical industry have fewer intermediaries in their distribution range as they move from coatings to more specialized chemicals.
The proprietary products and processes developed by specialty chemical firms command a premium and have enabled companies to post high returns on capital.
In 2015, R&D and SG&A expenses were twice as large for specialty chemicals than they were for commodity chemicals for companies domiciled in the US.
Given the rampant extraction of minerals in recent years, ore deposits are getting more complex and have come to rely on specialty chemicals.
Specialty oilfield chemicals are used in the oil and gas industry to improve well performance by making exploration and production more efficient.
The adhesives and sealants markets in the aerospace industry are rising as lightweight trends have pushed aircraft makers to replace traditional fasteners.
The adoption of specialty materials in the aerospace industry is being driven by the rising use of lightweight alternatives over traditional equipment.
While composites have been major players in the high-speed automotive market, new regulations have forced automakers to use composites for passenger cars.
The impact of degradation in air quality across major cities has fueled an incredible amount of research in electric sources of mobility.
The automotive end market constituted close to 14% of the demand in the coatings segment of specialty chemical industry in 2014.
Specialty chemical products play important roles in enhancing the performance of cars. Motor oil cools car engines and keeps moving parts working smoothly.
Specialty chemical companies sell construction admixtures that are ready-to-use liquid compounds added to concrete mixes, either before or during mixing.
Due to the increasing importance of durability and constraints in infrastructures like dams and bridges, the use of construction chemicals is on the rise.
Asia-Pacific is the largest geographical market for the coatings industry, followed by Europe and North America.
Paint companies benefit significantly when titanium dioxide prices enter recessionary cycles.
Even when the house not for sale, the aesthetic appeal of new paint on a house is a strong motivator for repainting, making it a recurring activity.
The specialty chemicals industry is characterized by high product and end-market diversity. Dynamics on the demand side vary significantly across segments.
The specialty chemicals industry caters to diverse sectors through innovative products that are tailored to the specific requirements of end markets.