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The global industrial coatings market size was USD 149.72 billion in 2023 and is projected to grow from USD 157.18 billion in 2024 to USD 210.15 billion by 2032 at a CAGR of 3.7% during the forecast period (2024-2032). Asia Pacific dominated the industrial coatings market with a market share of 42.9% in 2023.
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 growth. 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.
The impact of COVID-19 pandemic has a negative impact on the coatings industry as the sales are mostly impacted by the GDP movement. Most of the production units were shut because of low labor force and lockdown situations which has resulted in the uncertainty among various producers and supply chain constraints. The automotive industry showed sluggish sales, structural slowdown, and sputtering economy in 2019-2023. During the second peak of COVID-19 in India the sales of new vehicles were shrunken as most of the auto plants and dealers were forced to close down. However, easing of lockdowns in many European countries along with incentive packages to support economic revival seems to benefit the regional automotive industry. Whereas, the automotive industry in the U.S. remains fragile due to limited inventories and fewer incentives.
Manufacturers are Focusing on Sustainability Which Will Bolster Market Trend
Within the coatings sector, sustainability is becoming increasingly important. Additives, pigments, resins, and final coating formulation manufacturers have increased their attention on producing greener techniques that consume less energy, produce less waste, and emit fewer pollutants. Few of the organizations have created formal efforts to raise awareness, inspire innovation, and support the continual growth and upgrading of sustainable operations. Green manufacturing has a large and demonstrable impact on productivity and profitability, in addition to helping the environment. As a means of building sustainable processes, green chemistry principles emphasize effectiveness and hazard avoidance. Because energy use is linked to carbon dioxide emissions, reducing energy consumption is a top priority. Also, manufacturers are improving the overall resource usage. For instance, companies in the coatings sector are focusing on reducing the energy usage which is an important process for development and introducing greener manufacturing techniques. This will create new opportunities in the industry growth.
Adoption of Green Chemistry to Promote Sustainability in the Market
The concerns related to the impact on human health and the environment have led to the need for the adoption of green chemistry in industrial coating. However, the transition to green chemistry faces several challenges related to achieving regulatory compliance, low costs, and better functionality. The growing stringent government norms or rules and consumer awareness may create a wider adoption of "green chemistry" or "sustainable chemistry" in coatings.
Green chemistry is extensively used in industrial and consumer end-user industries such as automotive, aerospace, marine, electronics, consumer goods, and construction & buildings in the industrial coatings industry. Thus, green chemistry aims to reduce the volatile organic compounds (VOCs), enable process efficiency, use feedstock, and minimize waste. However, owing to increasing concerns, key players are adopting green chemistry, efficiently promoting sustainable product development.
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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.
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 industrial 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 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 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 the 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 healing equipment to extend the applicability of alternative healing methods that are more energy efficient.
The product contains novel resins and pigment chemistries which improves 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.
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 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.
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Acrylic Segment to Control a Significant Global Market Share Due to Rising Adoption
Based on resin, the market is segmented into acrylic, alkyd, polyurethane, epoxy, polyester, and others. Acrylics provide a glossy, durable surface that is resistant to chemicals and weather. Due to the general increased usage of ceramics in the biomedical sector, the acrylic segment held the majority of the industrial coatings market share. Resins, or binders, are polymers that are chosen based on the physical and chemical qualities desired in the finished product to keep all components of the product together. Naturally, solvent-borne coatings are the most common application for solution polymerized acrylic resins.
Alkyd resins are employed in many solvent-based coating systems. Polyols, acids, and vegetable oils are used to create this form of polyester. Alkyds are generally more affordable and are referred to as "general purpose" coatings due to their versatility. Epoxies are very water resistant, chemically resistant, and abrasion resistant. It does, however, lose its shine when exposed to UV radiation. Polyurethanes have a high gloss and flexibility, as well as chemical stain resistance and water resistance.
Water-borne Segment Held Majority Share Owing to its Low VOC Content
In terms of technology, the market is segmented into solvent-borne, water-borne, powder, and others. The majority market share was held by the water-borne segment. These type of coatings decrease VOC emissions during application, can be easily cleaned, minimize the danger of fire, and result in lesser worker exposure to the organic vapors. Key features of these coatings, such as hardness and resistance to water and chemicals, have been enhanced to meet product demand. This coating technology not only reduces the cost of the coating process for customers, but it also benefits coating producers by offering a cost-effective and attractive payback period for any investment necessary to convert the line of application to the use of water-borne coatings.
Solvents are utilized to transfer coating solids to the painted surface. They are added to coatings to help in reducing viscosity and making the coating easier to apply. However, solvents are an important source in coating applications due to the emission of hazardous air pollutants (HAPs) and volatile organic compounds (VOCs) during curing process.
General Industrial Segment Expected to Lead Due to its 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. The rising usage of these type of products in general industries is due to its high degrees of corrosion resistance, chemical resistance, and UV or weather protection ability which is crucial in cost reductions. A rising trend in infrastructure development activities, as well as an expanding middle-class population, are providing promising market growth prospects. Some of the primary drivers of the automobile coating industry, both in OEM and refinishing, include high durability, chemical resistance, and sustainability, as well as scratch resistance, including low VOC and water-borne systems.
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.
Asia Pacific Industrial Coatings Market Size, 2023 (USD Billion)
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Asia Pacific dominated the industrial coatings market, and is expected to hold this position during the forecast period. Government subsidies, rising automobile production, building activities, general industrial output, low interest rates, and high consumer spending, all major components of GDP, are anticipated to drive market growth.
The European market is likely to be driven by advancements in the oil and gas industry as well as infrastructure initiatives. The rising usage of powder coatings is expected to expand as a consequence of technical improvements in this technology in recent years. Furthermore, an increase in environmental consciousness is projected to boost market expansion.
The North American industrial sector is expected to recover at a moderate pace. Due to the general rising industrial production, the region is expected to generate high demand for coatings. Increasing car sales, increased building activity, and other factors are expected to drive the market growth in this region.
The major multinational coating manufacturers have a significant presence in Latin America. These key players have been continuously investing in the region through organic expansion and strategic acquisitions. Over the last few years, the region has seen an increase in automobile ownership as a result of increased purchasing power and living standards. Additionally, the prevalence of poor road condition and frequent traffic accidents is likely to fuel the growth of automotive refinish coatings in the region.
The Middle East and Africa's markets are expected to expand due to the region's growing demand for white goods, fueled by lower interest rates on borrowing. As coatings producers raise awareness about the advantages of employing the proper coating materials for various application sectors such as automotive, marine, packaging, and others, it is also expected to generate many prospects for products such as coil coatings, which will drive the market's growth. Furthermore, developments in industrial output, building and infrastructure investment, lower energy pricing, and rising consumer spending are anticipated to benefit and fuel product demand.
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Companies to Focus on Strategic Planning to Strengthen their Market Share
Major firms are pursuing mergers and acquisitions, constructing infrastructure, expanding manufacturing facilities, investing in research and development, and seeking vertical integration possibilities across the value chain. These companies compete on the basis of the product quality they offer and the technology they employ to manufacture it. The market is fragmented, with several major competitors as well as numerous global and regional small-and-medium-sized players operating globally.
An Infographic Representation of Industrial Coatings Market
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The 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 key 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.
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ATTRIBUTE | DETAILS |
Study Period | 2019-2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024-2032 |
Historical Period | 2019-2022 |
Growth Rate | CAGR of 3.7% during 2024-2032 |
Unit | Value (USD Billion); Volume (Kiloton) |
Segmentation | By Resin
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By Technology
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By End-Use
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By Geography
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Fortune Business Insights says that the global market worth was USD 149.72 billion in 2023 and is projected to reach USD 210.15 billion by 2032.
In 2023, the Asia Pacific market size stood at USD 64.23 billion.
Growing at a CAGR of 3.7%, the market will exhibit steady growth during the forecast period (2024-2032).
The water-borne segment is the leading technology in the market.
Improved appearance and energy efficiency in automotive OEMs is one of the major drivers of the market.
PPG Industries, Inc., The Sherwin-Williams Company, AkzoNobel N.V., Axalta Coating Systems, LLC, and Nippon Paint Holdings Co., Ltd. are the top players in market.
Asia Pacific dominated the global market in 2023.
The robust growth of environmentally friendly coatings shall drive adoption of Industrial Coatings.
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