The sustainability megatrend and its impact is a much-discussed topic within the A&S industry. Key players, mainly in the developed markets, are adopting technologies and products in line with this trend. However, how far are we with such processes in the emerging markets and how long will it realistically take to embrace them?
Within the global A&S market, Asia Pacific is the fastest growing (CAGR 4.5%) and major market (45% of the global market share). The demand for A&S is driven by the activities in the emerging markets e.g. growing construction and increasing demand from packaging and automotive industries. Compared to mature markets, regardless of the growth, the APAC region is still behind in the technology adoption cycle for sustainable solutions.
Following the sustainability megatrend, A&S producers are pushing and promoting their greener products globally. With the foreseeable more stringent VOC regulation, China is pushing to speed up this adoption. However, many end applicators in the other emerging markets such as India are reluctant to embrace these products and related technological shift due to the required additional investment. Lack of strict regulatory mandates from authorities is the main reason for not investing in sustainable solutions and for persisting with existing non-green solutions. Thus, from a realistic point of view, the well-discussed technological shift is still far behind unless the governing bodies push it further with strong regulations and close monitoring in these highly price sensitive markets.