The competitive landscape offers an analysis of the key developments by the companies operating in the market in the last 3 years. The market for global textile coating is projected to witness healthy growth during the forecast period, owing to the increasing demand from the transportation and building & construction industries. For instance, the coated fabrics used in automobiles are corrosive-resistant, water-resistant, UV-resistant and oil-repellent. The demand for polymer coated fabric, which is largely utilized in automobile soft tops, seat coverings, upholstery, interiors of light cars, and airbags, may increase as global automotive output and per-capita disposable income rise. Furthermore, textiles are used in aerospace industry for applications such as wings, body parts, curtains, upholstery fabrics, wall covers, headset, floor carpet/covering, seat covers, evacuation slides, air bags, parachutes, space costumes, life jacket, etc.
The players in the global textile coating market include Elkem Solutions, Covestro AG, Solvay, Clariant, BASF SE, Sumitomo Chemical Company, The Lubrizol Corporation, Omnova Solutions Inc., Formulated Polymer Products Ltd, and TANATEX Chemicals B.V.
The major competitors in this market have extensive services and a large number of stores both domestically and abroad. The top competitors in the global textile coating market are Elkem Solutions, Covestro AG, Solvay, Clariant AG, BASF SE, and The Lubrizol Corporation. This can be attributed to their global presence, manufacturing capabilities, broad product portfolio, and strong distribution network. Additionally, they adopt various strategies such as expansions, collaborations, and mergers acquisitions to increase revenue and achieve long-term growth.
The market has not witnessed a much aggressive approach towards strategic key developments, which has resulted in a moderate competitive nature in the market. However, with the inclination towards the bio-based products along with technological advancements, the rivalry among the players is expected to increase during the assessment period.
Threat of New Entrants
The threat of new entrants in the global textile coating market is expected to be moderate during the forecast period. This can be attributed to the highly capital-intensive nature of the market. Moreover, the stringent regulations implemented on coatings production coupled with raw materials fluctuating costs and associated environmental concerns are expected to hinder the entrance of new players. Furthermore, the market's major producers have long-term contracts with raw material producers or are vertically integrated, making it difficult for new entrants to enter the market. The industry requires advanced knowledge of materials science, chemistry, and engineering to develop and manufacture high-quality textile coatings. This level of expertise is developed over time and is difficult for newcomers to replicate. Furthermore, established businesses have developed strong relationships with suppliers and customers over time, creating additional barriers to entry.
However, as the market shifts towards bio-based and sustainable coatings, the market is expected to see a surge in new entrants, increasing the threat of new players entering the market.
Bargaining Power of Buyers
Buyer bargaining power is expected to be moderate during the forecast period. This can be attributed to the large number of buyers in the key end-use industries. The presence of a large number of suppliers in the market, combined with the availability of similar products with similar functionalities, increases buyers' bargaining power. Furthermore, the major raw material buyers are vertically integrated, giving them a competitive advantage in terms of bargaining power. However, the potential adoption of bio-based products is likely to reduce their bargaining power.
Threat of Substitutes
The threat of substitutes in the global textile coating market is expected to be low. There are no alternatives available in the market for textile coatings. Textile coatings face some competition from alternative products, such as laminates, films, and spray coatings. However, textile coatings offer unique benefits, such as durability, breathability, and water resistance, which make them difficult to substitute. Additionally, the high level of technical expertise required to develop and produce textile coatings creates a barrier to entry for substitute products. However, increasing demand for bio-fibers such as cotton, wool, jute, silk, chitosan, cellulose derived from algae, collagen, and castor oil is expected to increase the threat of substitutes in the overall synthetic textiles market.
Bargaining Power of Suppliers
Supplier bargaining power is expected to be moderate in the global textile coating market due to the market's abundance of suppliers with a broad distribution network. The surplus options available in the market at a comparable rate provide buyers with options which are expected to reduce suppliers' bargaining power. The presence of vertically integrated business, which is easily achievable for chemical vendors, further reduces suppliers' bargaining power.
Intensity of Rivalry
The global textile coating market is likely to witness a low intensity of rivalry during the forecast period. Companies differentiate themselves based on product quality, customer service, and price, and may specialize in certain niche areas of the market. This fragmentation allows for a wide range of products and prices, which benefits buyers. However, the competitive landscape can also create pricing pressure for manufacturers and limit their ability to increase prices. Furthermore, the market has not witnessed an aggressive approach towards the strategic growth initiatives, and therefore is expected to witness a low intensity of rivalry. However, the key companies focus on investments for enhancing their production and processing facilities.
