Vinyl Acetate-Ethylene Emulsions Market - Forecast(2023 - 2028)
Vinyl Acetate-Ethylene Emulsions Market Overview
Vinyl Acetate-Ethylene Emulsions Market size is forecast to reach US$2.9 billion by 2027, after growing at a CAGR of 5.3% during 2022-2027. Vinyl acetate ethylene (VAE) emulsions are made by copolymerizing polyvinyl acetate and ethylene, with the polyvinyl acetate percentage ranging from 60% to 95% and the ethylene content ranging from 5% to 40% of the whole formulation. The emulsion copolymerization of vinyl acetate and ethylene monomers in the presence of a stabilizing system consists primarily of polyvinyl alcohol and polyethylene glycol produces the copolymers. Globally, the rising replacement of conventional emulsions with water-based combinations, due to their good formulation and low cost of usage, could also provide market growth prospects. Rising automotive production in various regions combined with the use of emulsions in door panels and headliners, can boost market revenue. Also, the driving need for low-odor interior paints due to scarcity of microorganisms owing to its coalescing properties and low production cost has been driving the growth of the industry.
COVID – 19 Impact:
Vinyl acetate-ethylene emulsions market was highly affected due to the COVID-19 palindrome. Halt in several ongoing construction projects and huge declination in the automotive sector reduced the demand for paints and coatings, adhesives, and other products, which negatively affected the market growth. For illustration, according to the World Motor Vehicle Production by Country/ Region the automotive production in 2020 declined by -21.6%, -22.1%, -10.2%, and -35.3% in Europe, America, Asia-Oceania, and Africa respectively. However, with the construction and automotive industry coming back on track the market for vinyl acetate-ethylene emulsions is set to rise over the projected period.
The report "Vinyl Acetate-Ethylene Emulsions Market Report – Forecast (2022-2027)" by IndustryARC covers an in-depth analysis of the following segments of the vinyl acetate-ethylene emulsions industry.
- The APAC region dominates the vinyl acetate-ethylene emulsions market due to the rising government investments in the building and construction industries in emerging economies such as China, Japan, India, and South Korea. For instance, by 2022, the Pradhan Mantri Awas Yojana (PMAY) scheme in India is estimated to have built 11.22 million urban homes. 11.3 million houses have been approved since the policy began on March 31, 2021.
- Rapidly rising demand for vinyl acetate-ethylene emulsions owing to its excellent adhesion to a wide range of substrates, such as paper, wood, plastics, metal, and concrete, is estimated to drive the growth of the industry.
- An increase in demand for paints and coatings is one of the primary factors driving the growth of the market. For instance, according to the World Paint & Coatings Industry Association (WPCIA), global sales of paints and coatings was around US$ 173 billion in 2019, owing to the growing construction industry and rising consumer spending.
- Furthermore, fluctuating price of raw materials such as ethylene will hinder the growth of the vinyl acetate-ethylene emulsions market in the forecast period.
Vinyl Acetate-Ethylene Emulsions Market Segment Analysis
– By Application
Paints and Coatings held the largest share in the vinyl acetate-ethylene emulsions market and is expected to continue its dominance over the period 2022-2027. Owing to the alluring characteristics, such as low volatile organic compound (VOC), low odor, excellent scrub resistance, outstanding shielding power, and easy to adjust additives composition, the demand for vinyl acetate-ethylene emulsions in the paint and coating industry has increased. The rising growth of the paints and coatings sector has also uplifted the growth of the vinyl acetate-ethylene emulsions industry. In the upcoming years with the rising growth of the paints & coatings industry, the demand for vinyl acetate-ethylene emulsions is set to rise. This would further drive the growth of the vinyl acetate-ethylene emulsions market.
Vinyl Acetate-Ethylene Emulsions Market Segment Analysis – By End-Use Industry
The buiding and construction sector dominated the vinyl acetate-ethylene emulsions market in 2021 and is projected to grow at a CAGR of 5.8% during 2022-2027. The market in the region is also witnessing expansion with the rising growth of new construction activities in emerging economies such as USA, Canada, and Mexico. For instance, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly developed new residential construction statistics for December 2021, the seasonally adjusted annual rate of privately-owned housing units authorized by building permits in December was 1,873,000 which is 6.5% higher than the December 2020 rate of 1,758,000 units. The rising growth of new construction activities will drive the need for paints & coatings which is further anticipated to boost the vinyl acetate-ethylene emulsions market in the region over the forecast period.
Vinyl Acetate-Ethylene Emulsions Market Segment Analysis – By Geography
The Asia-Pacific region dominated the vinyl acetate-ethylene emulsions market with a share of 37.4% in terms of value in the year 2021. The market in the region is witnessing expansion with the increasing consumption of vinyl acetate-ethylene emulsions in several end-use sectors such as building and construction, textile and apparel, transportation, and others. For instance, in 2021, the Central Sanctioning and Monitoring Committee (CSMC) approved the construction of 1,68,606 new homes in urban areas under the Pradhan Mantri Awas Yojana. Also, the Indian automotive industry (including component manufacturing) is estimated to reach US$ 251 billion to US$ 282 billion by 2026, according to India Brand Equity Foundation (IBEF). With the rising growth of the building and construction and automotive sectors in Asia Pacific region, the demand for paints and coatings would increase in the forecast period. This, is estimated to be the driving factor behind Asia Pacific vinyl acetate-ethylene emulsions market growth.
Vinyl Acetate-Ethylene Emulsions Market Drivers
Advantageous Properties of Vinyl Acetate-Ethylene Emulsions
Vinyl acetate ethylene emulsions are high-performance emulsions with improved flexibility, exceptional moisture resistance, and tack and adhesion in low temperature and damp circumstances. The use of ethylene as a copolymer efficiently decreases the final polymer's glass transition temperature without the use of plasticizers that can migrate. With strong initial adhesion and high wet tack, as well as good creep resistance, VAEs attach well to nonporous surfaces like vinyl and aluminium. Waterproofing coatings, carpet backings, engineered fabrics, paints and coatings, woodworking adhesives, laminating applications, and other uses for these copolymers can be found in both industrial and consumer applications. They also have environmental benefits since they have good film-forming capabilities without the use of coalescing agents, as seen in low VOC paints and coatings. In recent years, the rising demand for vinyl acetate ethylene emulsions has uplifted the growth of the industry.
Vinyl Acetate-Ethylene Emulsions Market Challenges
Hazards Associated With Vinyl Acetate-Ethylene Emulsions
One of the major challenges that the vinyl acetate-ethylene emulsions market faces is health and fire hazards associated with it. According to the U.S. Environmental Protection Agency, Vinyl acetate has been linked to problems with reproduction. It is an irritant to the skin and upper respiratory tract, as well as a depressive to the central nervous system. Exposure caused gradual deterioration of heart muscles. Additionally, as per the ILO International Chemical Safety Cards (ICSC), Vinyl acetate-ethylene emulsions are highly flammable and which is explosive when comes in contact with vapour/air mixtures. Heating also causes a rise in pressure with the high risk of bursting. With such growing effects, the demand for vinyl acetate-ethylene emulsions is estimated to get hindered over the projected period.
Vinyl Acetate-Ethylene Emulsions Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the vinyl acetate-ethylene emulsions market. vinyl acetate-ethylene emulsions top 10 companies include:
- Wacker AG
- Celanese Corporation
- Sinopec Corporation
- Sumika Chemtex
- Shaanxi Xutai and others
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