Client’s Goal

Our Client wanted to grow new revenues by introducing new products. For the purpose, Markets and Markets engagement entailed defining and solving a series of problems for the client to attain requisite Revenue potential from the new product opportunity. Three key problems defined and solved were:

1. Understand the potential global demand for water-borne PU coatings and PU dispersions.
2. Understand the application-wise market size of the end-use industry.
3. Identify the most lucrative industry to be tapped and what the most widely demanded products of that particular industry would be.

How We Did It?

We provided an in-depth insights on the water-borne PU coating and PU dispersion market, wherein the global market assessment was provided along with detailed end-use industry analysis and further analysis of the application-wise market size in each end-use industry. Further, we supported the client with detailed profiling of top suppliers of water-borne PU coatings along with their major product offerings, recent mergers & acquisitions, developments undertaken by them, and their market share in the water-borne PU coating market.

Our analyst hours were used to expand the understanding from KnowledgeStore and conduct very sensitive primary interviews with participants across the value chain to understand the market needs, customer behavior, product performance, and willingness to enter into new market collaborations.

Detailed market trends related to competition, technology, R&D activities, potential opportunities, product drawbacks, price, etc. were also provided.

As a part of our engagement model, detailed insights on all high-growth niche PU coatings and PU dispersions markets was provided to help client identify the revenue opportunity accurately. Based on the KnowledgeStore insights and further studies around problems defined above, in-depth market intelligence on sources causing revenue shifts in client’s and client’s clients’ ecosystem was offered. In addition, unknowns emerging out of the interconnected ecosystems were also assessed.

Revenue Shifts Identified

PUD technology is a consumer- and environmentally-friendly technology, and is being used in various end-use industries such as automotive, textile, wood, fiber glass sizing, and in leather production process. Waterborne dispersion technology allows ease of formulation, application and clean-up as well as environmental advantages such as the elimination of monomers, odour and production of volatile organic compounds (VOC). The water-based PUDs are the fastest-growing segment, as it abides by the government’s environmental laws and policies.

Interconnections

Europe and US follow stringent rules for health and environmental safety. The growing automotive industry is driving demand of PUDs, especially for coatings and adhesives application, and is expected to increase at a very fast pace. This is one of the major disadvantages for this industry as polyols and isocyanates are derived from crude oil. The fluctuations in the prices of crude oil affects the prices of TDI and MDI, which are the main isocyanates preferred for the production of PUDs.

Unknowns Identified

Water-based PUDs are greatly used, as the government banned the use of VOCs in coatings and adhesives applications in countries like the US, Germany, France and the UK. Middle East market for PUDs is growing at a rapid pace. The availability of feedstock and energy are conducive for growth of the PUDs market in the Middle East. Waterborne PU demand will grow rapidly in decorative paints because of increasing disposable income and growing expenditure on the interior of the building.

Revenue Impact (RI)

Our findings helped the client to understand the most lucrative segment and most demanded products to be targeted. The client used our insights and analysis reports to enter the US$ 6 billion market with a revenue opportunity of US$ 120 million.