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Industrial Coatings Market Size, Share & COVID-19 Impact Analysis, By Resin (Acrylic, Alkyd, Polyurethane, Epoxy, Polyester, and Others), By Technology (Solvent-borne, Water-borne, Powder, and Others), By End-use (General Industrial, Powder, Automotive OEM, Automotive Refinish, Protective, Wood, Marine, Coil, Packaging, and Others), and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI101741

 

KEY MARKET INSIGHTS

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The global industrial coatings market size was USD 86.81 billion in 2019 and is projected to reach USD 119.54 billion by 2027, exhibiting a CAGR of 4.4% during the forecast period.


Industrial coatings are used for different applications to ensure resistance to anti-corrosion, surge durability, prevent wear & tear, and increase operational efficiency.


The growing demand for environmentally friendly coatings, as well as the need for efficient processes and durable coatings with better aesthetics, is the major factor driving the industrial coatings market. In addition to that, the rapid urbanization, development of the middle-class, increased infrastructure, rising disposable incomes, increased propensity to spend extravagantly, and others would aid growth. The high demand for these products is mainly attributable to the global GDP, growth of the infrastructure, industrial development, and the rising number of building & construction activities.


COVID-19 Pandemic: Shortage of Skilled Labor May Hamper Production


COVID-19 is considered to be the most disruptive force for the market. While the production process has resumed staggeringly in several coating production units, the ever-increasing number of coronavirus positive cases and the falling demand have generated uncertainty among the leading producers of an industrial type of coatings. The countrywide pandemic and lockdown conditions have caused immense disruption in the entire production and supply chain of the coatings industry. Also, companies are facing a severe shortage of skilled and unskilled labor, where the coatings industry has driven a significant proportion of its workers to their hometowns.


Sales figures for automotive have improved, but various car manufacturers believe that the pandemic-induced economic recession will escalate the situation in the automotive industry. Automotive coatings would continue to be affected by the decline in this sector, as well as by the overall economic slowdown. The prevailing pandemic situation has led to a decline in the demand for coatings from the automotive, manufacturing, electronics, and white goods industries. The marketplace for these coatings and its consumer industries such as machinery, equipment, and automotive industries would face the prospect of working their way through a deep recession in the remainder of this year and 2021.


LATEST TRENDS


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The focus of Manufacturers on Developing Sustainable Products is a Current Trend


Sustainability continues to grow within the coatings industry. Producers of resin, pigments, additives, and final coating formulations have increased their focus on developing greener processes that use lesser energy, as well as fewer waste and emissions. Formal initiatives have been developed by the most successful organizations to promote awareness, foster creativity, and facilitate the ongoing development and enhancement of sustainable operations. Green manufacturing not only helps the environment but also has a significant and observable effect on productivity and profitability. The principles of green chemistry focus on efficacy and hazard avoidance as a way of creating sustainable processes. The usage of energy goes hand in hand with carbon dioxide emissions and so, decreasing the amount of energy is the major objective.


Another primary target of many producers in the industry is to improve the overall resource usage. For several companies in the coatings sector, reducing the usage of energy is a key priority for process development efforts and introducing greener manufacturing processes. Generating more value from fewer resources is important for both the coating manufacturers and their customers to achieve business success. From a manufacturing perspective, that means using more energy-efficient raw materials and products for their operations, ensuring an improved energy quality, enhancing fuel mix for energy-intensive operations, and improving the formulation to minimize the footprint of the product.


DRIVING FACTORS


Rising Usage of Environmentally Friendly Coatings to Drive Growth


There are several manufacturing methods for producing finished products, solvents, and alcohols. Volatile organic compounds (VOCs) are introduced in the environment as a result of the manufacturing process and they must be removed effectively. They are organic chemicals that turn into gases at room temperature and are the main cause of ground-level air pollution. According to several reports, VOCs are known to be harmful to human health and often impact the environment greatly. Coatings are a major source of human-generated VOCs, particularly for industrial coatings.


For example, in automotive coating processes, VOC emissions are produced during the spraying processes via the use of solvent-borne coatings. This type of coating manufacturers, in particular anti-corrosion and heavy-duty protective coatings, are under pressure to reduce their products' VOC emissions.


But, various industries are gradually turning towards water-borne and powder-based coatings due to economic factors, as well as foreign legislation and environmental concerns. Low VOC and air pollution issues remain a huge driving force for these coatings mostly driven by customer preferences, tightening regulations around the world, and "green" certification programs such as LEED v4, EU-Ecolabel, and AgBB. Low-VOC coatings are considered to be an alternative because regulatory agencies are raising concerns regarding the possible harmful effects of VOC spreads and limitations.


Adopting new products is followed by a rising preference for water-borne coating. The popularity of powder-based coatings is also increasing where water-borne paints are undesirable, as they do not produce VOCs while also optimizing the critical properties for demanding end-uses. The push towards sustainability, lower VOCs, and stronger controls on substances are likely to drive the market, especially because of environmental awareness.


Most of the leading manufacturers of paints & coatings in North America now report near zero VOC. This is a voluntary move by the industry, provided that even in the strictest product categories and regions, such as the Southern California Air Quality Management District (SCAQMD), up to 50 g/L VOC is permissible. There is a gradual but very important change in Asia Pacific and China towards the removal of solvents and other additives that are considered to have a harmful impact on human health.


Improved Appearance and Energy Efficiency in Automotive OEM to Propel Growth


Industrial coatings are mostly used on passenger cars and light commercial vehicles (LCVs). Asia Pacific was the leading consumer of automotive OEM coatings. China is a leading country for vehicle sales due to the rising personal disposable income that grew at a double-digit pace. Europe is also a significant consumer of automotive OEM coatings. It manufactured nearly 27.5 million passenger cars and 3.2 million LCVs in 2019, based on The Organization Internationale des Constructeurs d'Automobiles (OICA) data. Growing automotive production and sales is likely to create lucrative opportunities for the market. Overall, the demand is affected by demographic trends where older people drive less and younger people to worry about the effect of auto emissions on the environment.


The U.S. was a major consumer of automotive OEM coatings for LCVs. OEMs use their current equipment and processes to explore new ways to attain premium appearances. Energy consumption not only affects prices but also sustainability. Thus, reducing energy consumption lowers costs and decreases emissions of greenhouse gases. The coatings industry is aiming to reduce energy consumption in several ways. Manufacturers are creating more efficient processes for the production of coating ingredients and formulated paints. Resin manufacturers are innovating their products that would be able to work at lower temperatures. Equipment manufacturers, on the other hand, are improving the efficiency of heating equipment to extend the applicability of alternative healing methods that are more energy efficient.


For instance, In January 2020, Royal DSM launched a bio-based self-matting resin that has been successfully incorporated by coating formulators.


Industrial coatings containing novel resins and pigment chemistries improve the energy efficiency of structures such as vehicles. The reduction in energy consumption during the automotive coatings process is anticipated to boost the global market.


RESTRAINING FACTORS


Effect of Humidity on Drying Time to Hinder Market Growth


Many factors contribute to the rapid drying of coatings. Apart from the structure, the thickness of the coating plays a key role in environmental conditions. Issues related to these type of coatings are mainly due to environmental conditions, humidity, and temperature. For their products, each coating manufacturing industry issues different guidelines. For the applicator, it is often advisable to read the requirements before beginning the coating job. There are certain conditions that are specified for perfect application. The air temperature needs to be above 700C for oil-based coatings. The temperature should be above 1cc for acrylic and latex coatings. At 2 cc, some creative compositions quickly dry out.


The drying time of acrylic and latex coatings and oil-based coatings, get seriously affected in humid regions. To deal with this issue, the oxidation process treats oil-based coatings. But, water-borne coatings have a tough time. As water-borne coatings are dried through the natural drying process, it takes less drying time than solvent-borne coatings. The method becomes more complicated when used on wooden surfaces since wood appears to absorb moisture from the air. This further affects its substrate adhesive properties. This may cause the surface to peel or bubble. Many coatings manufacturing companies are investing a great deal in test chambers for humidity.


SEGMENTATION


By Resin Analysis


Acrylic Segment to Hold a Significant Share of the Global Market


Based on resin, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, and others. The acrylic segment held the major industrial coatings market share due to the growing use of ceramic in the biomedicine industry. Resins or binders hold all components of the industrial coatings together. Resins consist of polymers that are chosen on the basis of the physical and chemical properties desired in the finished product. Acrylics produce a shiny, hard finish with good resistance to chemicals and weather. Naturally, solvent-borne coatings are the biggest field of application for acrylic resins made by solution polymerization.


Alkyds are relatively low in cost and because of their versatility, they are considered a ‘general purpose’ coating. Alkyd resins are used in many coating systems based on solvents. They are a type of polyester made from polyols, acids, and vegetable oils. Epoxies provide excellent water resistance, superior chemical resistance, and abrasion resistance. However, ultraviolet light does lose its gloss. Polyurethanes combine high gloss and flexibility with resistance to chemical stains and show excellent water resistance.


By Technology Analysis


Water-borne Segment to Lead Because of its Low VOC Content


In terms of technology, the market is segmented into solvent-borne, water-borne, powder, and others. The water-borne segment constituted the primary market share. During application, these coatings reduce VOC emissions, are easier to clean, lower the risk of fire, and result in reduced worker exposure to organic vapors. This technology also lowers the cost of the coating process. They are beneficial for coating manufacturers, providing them with cost-effective and favorable payback time for any investment required to adapt the line of application for the use of water-borne coatings. Key properties of these coatings have been brought to a level that satisfies the product demand, such as hardness and resistance to water and chemicals.


Solvents are used for transporting the coating solids to the painted part. They are also added to industrial coatings to aid in their application by reducing viscosity so that the coating can be applied easily. Solvents are a significant source of environmental concern in coating applications because hazardous air pollutants (HAPs) and volatile organic compounds (VOCs) are released as curing occurs.


By End-use Analysis


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General Industrial Segment to Dominate Backed by Ability to Provide Corrosion Protection


On the basis of end-use, the market is classified into general industrial, powder, automotive OEM, automotive refinish, protective, wood, marine, coil, packaging, and others. An anticipated rise in infrastructure construction activities and an expanding middle-class people are creating lucrative opportunities for the market. The growing use of industrial coatings in general industries is due to the high levels of corrosion resistance, chemical resistance, and UV degradation or weather ability with a cost-saving reduction. High durability, chemical resistance, and sustainability, as well as scratch resistance, including low VOC and water-borne systems, are some of the key drivers of the automotive coating industry, both in OEM and refinishing.


Low and ultra-low VOC coatings are of particular interest to the wood furniture and flooring industry, due to tightening regulatory pressures and new sustainability initiatives. Wood product manufacturers are now turning to the high-performance water-based coatings with a variety of curing mechanisms under pressure to reduce emissions and meet the shortened lead times. To adhere to its many unique surfaces, the typical agricultural, construction, and earthmoving (ACE) machine needs a variety of different coating technologies including powder coatings for smaller metal components such as handles, pedals, and wheels. Powder coatings have an additional environmental bonus of producing near-zero waste and no VOCs. Lower VOC requirements are likely to drive the marine coating industry towards more sustainable solutions.


REGIONAL INSIGHTS


Asia Pacific Industrial Coatings Market Size, 2019 (USD Billion)

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Asia Pacific dominated this market and is likely to maintain its position during the forecast period, strongly influenced by government subsidies, automotive production, construction activities, general industrial production, interest rates, and consumer spending, all of which are important components of GDP.


In Europe, developments in the oil & gas sector and infrastructural investments are expected to drive the market. Also, the use of powder coatings is expected to grow as a result of technological advancements made in this sector over the last few years. It will also grow because of the increased awareness of their environmental credentials.


The recovery of the manufacturing sector in North America is projected to expand at a moderate pace. Industrial coatings in the region are experiencing high demand because of the growing industrial manufacturing. Increasing automotive sales, accident rates, rising construction activities, and others are anticipated to fuel the market in this region.


The major multinational coating firms have a strong presence in Latin America and they would continue to invest in the market through organic growth and strategic acquisitions. Increasing car ownership, due to higher spending power and living standards, as well as the presence of poor quality roads and frequent traffic accidents, is likely to boost the growth of automotive refinish coatings in the region.


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In the Middle East & Africa, the demand for the white goods industry is expected to rise due to the lower interest rates. It is further set to create several opportunities for coil coatings, which, in turn, would fuel the market. As coatings manufacturers are creating better awareness of the benefits of using the right coating products for different application sectors such as automotive, marine, packaging, and others. The product demand is driven by trends in industrial production, construction, and infrastructure spending, energy prices, and consumer spending.


KEY INDUSTRY PLAYERS


Companies to Focus on Strategic Planning to Strengthen their Market Share


The market is fragmented in nature with the presence of various major players and some global and regional small-and-medium-sized players worldwide. Many companies are competing on the basis of the offered product quality and the technology used for the manufacturing of these types of coatings. Major players are involved in mergers and acquisitions, developing infrastructure, expanding their manufacturing facilities, investing in research and development facilities, and are looking for opportunities to integrate vertically across the value chain.


LIST OF KEY COMPANIES PROFILED:



  • Akzo Nobel N.V. (Netherlands)

  • Axalta Coating Systems, LLC (U.S.)

  • Industrial Coatings Ltd. (Finland)

  • PPG Industries, Inc. (U.S.)

  • The Sherwin-Williams Company (U.S.)

  • Nippon Paint Holdings Co., Ltd. (Japan)

  • Kansai Paint Co., Ltd. (Japan)

  • RPM International Inc. (U.S.)

  • BASF SE (Germany)

  • PPG Asian Paints Pvt Ltd (India)

  • Hempel A/S (Denmark)

  • The Chemours Company FC, LLC. (U.S.)

  • Jotun A/S (Norway)

  • Other Key Players


KEY INDUSTRY DEVELOPMENTS:



  • In February 2021, PPG introduced a digital styling software that allows automotive designers to create extremely accurate three-dimensional modeling of automotive colors and effects on virtual automobile designs and surfaces. The PPG patented "speed form," which combines all the complicated shapes, edges, curves, and flat surfaces seen in any type of car, is unique to the program.

  • In February 2021, Nippon Paint Marine introduced a new antifouling technology that, improves antifouling performance to a degree and consistency never previously seen. In comparison to conventional hull coatings, it also reduces the amount of time and film thickness necessary for application. FASTAR is a self-polishing antifouling paint with a novel nano-domain resin structure that reduces the impact of seawater temperatures, vessel speeds, and other environmental variables on coating performance.

  • In December 2020, PolyPREMIER, a new platform for Sherwin-Williams' polyester innovations, launched. Many of the company's high-performance polyester coil coatings have been unified under this master brand, making it easier for clients to request coatings for a range of applications. In the future, the PolyPREMIER line will be further developed and improved, with an emphasis on innovation. PolyPREMIER offers a wide range of polyester coil coating formulas that may be tailored to satisfy specific application and end-use needs.

  • In June 2021, PPG announced an increase in coatings manufacturing capacity for packaging applications in Europe. The investments in the Netherlands and Poland will help meet the region's rising demand for the latest generation of coatings for aluminum and steel cans used in beverage, food, and personal care packaging. The projects include a 30 percent increase in manufacturing capacity for PPG INNOVEL non-BPA interior coatings for beverage cans at the company's Tiel, Netherlands, facility.


REPORT COVERAGE


An Infographic Representation of Industrial Coatings Market

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The industrial coatings market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and applications. Also, it offers insights into the industrial coatings market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years. It includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the latest market dynamics and opportunities in the industry.


Report Scope & Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



  2016-2027



Base Year



  2019



Forecast Period



  2020-2027



Historical Period



  2016-2018



Unit



  Value (USD Billion) and Volume (Kilo Tons)



Segmentation



  Resin; Technology; End-use; and Geography



By Resin


 




  • Acrylic

  • Alkyd

  • Polyurethane

  • Epoxy

  • Polyester

  • Others



By Technology


 




  • Solvent-borne

  • Water-borne

  • Powder

  • Others



By End-use


 




  • General Industrial

  • Powder

  • Automotive OEM

  • Automotive Refinish

  • Protective

  • Wood

  • Marine

  • Coil

  • Packaging

  • Others



By Geography


 




  • North America (By Resin, By Technology, By End-use and By Country)



    • The U.S. (By End-use)

    • Canada (By End-use)




  • Europe By Material, (By Resin, By Technology, By End-use and By Country)



    • Germany (By End-use)

    • UK (By End-use)

    • France (By End-use)

    • Spain (By End-use)

    • Russia & CIS (By End-use)

    • Rest of Europe (By End-use)




  • Asia Pacific (By Resin, By Technology, By End-use and By Country)



    • China (By End-use)

    • India (By End-use)

    • Japan (By End-use)

    • South Korea (By End-use)

    • ASEAN (By End-use)

    • Rest of Asia Pacific (By End-use)





  • Latin America (By Resin, By Technology, By End-use and By Country)

    • Brazil (By End-use)

    • Mexico (By End-use)

    • Rest of Latin America (By End-use)




  • The Middle East & Africa (By Resin, By Technology, By End-use and By Country)



    • The Middle East (By End-use)

    • South Africa (By End-use)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 86.81 billion in 2019 and is projected to reach USD 119.54 billion by 2027.

In 2019, the market value stood at USD 86.81 billion.

Registering a CAGR of 4.4%, the market will exhibit steady growth in the forecast period (2020-2027).

The water-borne segment is the leading segment based on technology in the market.

Improved appearance and energy efficiency in automotive OEMs to propel the market.

PPG Industries, Inc., The Sherwin-Williams Company, Akzo Nobel N.V., Axalta Coating Systems, LLC, Nippon Paint Holdings Co., Ltd., and others are some of the leading players in the global market.

Asia Pacific dominated the global market in terms of share in 2019.

The robust growth of environmentally friendly coatings is expected to drive the adoption of these products.

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