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The global protective coatings market size was USD 12.0 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with protective coatings witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 3.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 12.9 billion in 2021 to USD 21.2 billion in 2028 at a CAGR of 7.3% during the 2021-2028 period. The sudden decline in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Construction, oil and gas, aerospace, industrial, marine, automotive, power generation, mining, and other end-use sectors employ the protective coating extensively. The coating is applied to a variety of surfaces to protect them from elements, which might harm an item's function or integrity. The global expansion of the construction sector has contributed significantly to the demand for the product. The increased need for these coatings in emerging regions, as well as the surging demand for industrial equipment & machinery in the automotive, infrastructure, and construction industries, are driving the market.
Less Availability of Raw Materials to Constrain Market Growth amid COVID-19 Pandemic
The impact of COVID-19 on the protective coatings market will have a cascade effect as the market continues to be severely hit. The emergence of COVID-19 has caused a halt in the production of raw materials used in the manufacturing of these coatings. These coatings manufacturing centers in Asia Pacific include India, China, Japan, Singapore, and Thailand, as well as important suppliers of raw materials. The coronavirus epidemic in Asia Pacific has disrupted the availability of these basic materials. COVID-19 has caused a significant amount of large-scale development and construction projects to be delayed or postponed across the world. Customer closures, record-low consumer spending, and a lack of capital expenditures are the phenomena that are negatively impacting the market. Construction, automotive, and transportation sectors have been particularly affected.
Asia Pacific is expected to hold the major share of the construction industry. According to the RICS Global Construction Monitor, conditions in the Asia Pacific construction industry continued to deteriorate in Q2 2020. In Q2, the region’s Construction Activity Index was -26, which was in line with the worldwide weighted average of -24. However, there is a wide range of values among markets, with values ranging from -8 in China to -65 in Malaysia.
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Robust Growth in Electronics Industry is a Prominent Trend
The size, performance, and mobility of electronic gadgets have changed dramatically. Electronics are omnipresent, from consumer devices, such as smartphones, tablets, and wearables to specialist industrial equipment, namely, automation controls. When exposed to pollutants, components within these devices can corrode if they are not properly protected. This reduces the performance of electronic devices and can lead to electrical shorts and device failure. Electronic protective coatings are being put to greater use by smaller, more sophisticated, densely printed circuit boards (PCBs) with high-performance components, LEDs, and a range of tiny components.
The electronic protection device coating assists in protecting electronics from pollutants that might limit their lifespan. Coating materials, such as organic and inorganic chemicals, polymers, and metals, are used in this industry. Material consumption is determined by the device's function and application. Electrical, magnetic, optical, mechanical, and thermal aspects benefit from coatings. Coatings, on the other hand, help with circuit board manufacturing, device protection, and decoration. When compared to conventional conformal coatings, 3M Novec Electronic Grade Coatings offer corrosion protection for delicate inside components of devices while being ultra-thin. 3M electronic grade coatings protect against moisture, salt-water immersion, sulfur, oils, humidity, and pollutants. These are easy to work with, reworkable, and may be applied without masking or curing.
Rising Demand for Corrosion Protection of Concrete to Propel Market Growth
Concrete is a strong and long-lasting material that is commonly utilized in civil engineering structures. Buildings must also achieve the owner's and architect's visions for their appearance and attractiveness. Protective coating solutions may improve the aesthetics and introduce additional colors to the concrete, as well as boost the concrete's longevity by preventing water infiltration, sealing, and accommodating surface fractures. Concrete structures are exposed to a wide range of environmental conditions, ranging from normal atmospheric carbonation to aggressive influences in polluted urban and industrial environments as well as marine atmosphere and liquid or gaseous chemicals that can damage or attack the concrete and embedded steel reinforcement, depending on their location and use. Carbonation and chloride attack are the two most common causes of reinforcing corrosion and concrete degradation.
Concrete with a protective coating to safeguard it against chemical and physical damage from the external environment. Coating concrete increases its look, ease of maintenance, and reflectivity of light. Coatings can extend the life of a structure if they are applied properly to a well-prepared concrete surface. Protective surface coatings are generally used to safeguard new or repaired concrete surfaces against chemical assault and the infiltration of hostile liquids and gases in the future. Water-repellent by impregnation and pore-blocking; elastic and crack-bridging; chemically resistant; or abrasion and wear resistance are the options for this concrete surface protection.
The C-FLOOR PU280 WB, a new water-based polyurethane coating for concrete floors and surfaces, has been launched by CIN, S.A in 2020. In addition to being approved with CE Marking, the new CIN product meets the LEED v4 certification criteria and has an A+ grade for indoor air quality, according to European standards EN 1504-2 and EN 13813.
Surging Concern of Corrosion in Various End-use Industries to Drive Market Growth
According to NACE International IMPACT, worldwide corrosion costs over US$2.5 trillion annually, accounting for around 3.4 percent of world GDP. It is projected that implementing the existing corrosion management measures might save between 15 and 35 percent of the cost of corrosion annually on a worldwide scale. Metals have a natural inclination to shift to a low energy state, which means they strive to create oxides, hydroxides, carbonates, sulfides, and other compounds depending on the sort of environment to which they are exposed. In a variety of sectors, lightweight metals have emerged as the preferred material. Aluminum, titanium, and now even magnesium have become indispensable in the automotive, aerospace, and consumer goods industries. They are a favorite option for product engineers all around the world due to their abundance availability, remarkable strength-to-weight ratios, and adaptability.
Protective coatings are a way of isolating the surfaces that are prone to corrosion from the environmental elements that cause the same. The most extensively utilized corrosion prevention method is protective costings. By restricting the metal's exposure to a corrosive environment, these coatings are a straightforward technique to minimize corrosion. When it comes to these coatings, it's crucial to make sure they're effectively adherent to the metal and that they stay intact or are fixed and recoated on a regular basis.
Stringent Regulations Regarding Volatile Organic Compound to Hamper the Market
The market is concerned not only with safeguarding structures and objects but also with safeguarding the environment. This involves designing environmentally friendly and non-polluting manufacturing techniques, as well as products that reduce emissions of volatile organic compounds (VOCs) and harmful air pollutants (HAPs). These coatings are composed of liquefying substances that evaporate when exposed to oxygen in a chemical process. The evaporation of solvents from the coatings, which releases VOC emissions and increases ground-level ozone formations and air pollution. It is the most damaging environmental consequence of solvent-borne coatings. Companies have been compelled to minimize the amount of VOCs they produce due to strict environmental regulations.
As a result of their significant VOC emissions, more nations will enact legislation prohibiting the use of solvent-borne solutions. Environmental laws that are carefully implemented in European nations and North America have a significant impact on the market. These policies are also being quickly implemented in developing nations, particularly in Asia Pacific. Various regulatory bodies around the world regulate the protective coatings product landscape. Product manufacturers must carefully and proactively formulate products that address the reduction of VOC emissions or the use of toxic heavy metals, such as hexavalent chromium or tin and ensure that these formulations are sustainable in the future.
Epoxy Segment to Generate High Revenue in Forthcoming Years
Based on the resin type, the market for protective coatings is segmented into epoxy, polyurethane, alkyd, acrylic, inorganic zin, and others.
The epoxy segment held the major share of the market and is likely to maintain this trend during the forecast period. Epoxy coatings are prized for their ability to withstand extreme cold and heat. Another advantage of epoxy is that it dries rapidly, resulting in minimal production delays while the coating cures. Epoxy is also resistant to chemical exposure, oil leaks, and scratches on the surface. This helps to keep the coating from wearing out and requiring repairs.
The polyurethane segment is expected to witness an expansion of the market at a rapid pace during the forecast period. Chemical resistance, corrosion resistance, and physical wear resistance are the features of polyurethane coatings. These coatings may also be used to protect metal surfaces by creating a thin gloss coating that looks good and protects them from harm.
Solvent-based Segment be Lead in the Near Future
Based on the formulation technology, the market is segmented into solvent-based, water-based, powder, and others.
The solvent-based segment held the prime share of the market in 2020. they are very widely used. The organic solvents facilitated application, drying, the formation of a long-lasting, even paint layer much easier. When the solvents evaporate, however, they emit Volatile Organic Compounds (VOCs) into the atmosphere, giving off a strong odor and presenting a risk to the environment.
The water-based segment is expected to be the fastest-growing segment. Currently, advances in this coatings technology mean that water-based coatings are comparable to or better than their solvent-based counterparts. Water-dispersed acrylic emulsions of high grade have great durability, short drying periods, and emit considerably less odor.
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Infrastructure & Construction Segment to Account for Major Share
Based on the end-use industry, the market is classified into infrastructure & construction, oil & gas, industrial, marine, automotive, power generation, mining, and others.
In terms of volume and value, the infrastructure & construction segment held the prime share of the market in 2020. Protective coatings are used to improve the structure's endurance and to protect it from fire, corrosion, and UV radiation. They're employed in industrial constructions to improve heat resistance and lessen the influence of corrosive gases. The rising construction sector and the requirement of these coatings on equipment to prevent them from wear and tear and to improve their performance in susceptible areas. This factor is likely to drive the market during the forecast period.
Corrosive fluids, high temperatures, and gases may all wreak havoc on industrial machinery. Boilers, heat exchangers, containers, transformers, and material handling equipment have these coatings to protect them from humidity and heat. Because of their impermeability, they increase the equipment's abrasion and impact resistance.
Asia Pacific Protective Coatings Market Size, 2020 (USD Billion)
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Asia Pacific stood at USD 5.0 billion in 2020, owing to a rise in the demand from end-use industries, such as infrastructure & construction, power, automotive, oil & gas, industrial, and marine. The infrastructure & construction industry is anticipated to expand in developing Asia Pacific nations, such as India and China owing to the increasing government investments in infrastructure development projects. These projects include bridges, railroads, airports, and harbors, among other things. Protective type of coatings that are utilized in preventing and inhibiting corrosion induced by intense weather cycles are in great demand. These coatings are required to make the structures and constructions more durable and maintenance-free. The market in the region is anticipated to be driven by the growth in the demand from the infrastructure & construction industry.
The automotive sector in North America is projected to expand at a rapid pace, which is likely to drive the market. The automotive industry is expected to expand as the demand for electric vehicles is increasing among consumers. The non-residential construction sector in the U.S. is predicted to expand owing to the country's robust economy and positive growth in the commercial real estate sector. Also, there is a rise in federal and state spending for public works and institutional buildings. The increasing demand from the commercial construction and automobile industries is anticipated to drive the market.
Europe held a strong position in the market and is expected to expand moderately owing to the rising demand from the automotive industry. Corrosion protection, friction reduction, wear protection, increased strength, and scratch resistance are the advantages of protective coatings in the automotive industry. The market is also anticipated to be driven by the presence of regional manufacturing facilities of major vehicle manufacturers, such as Volkswagen, Daimler, BMW, Peugeot, and Renault.
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The market in Latin America is predicted to expand significantly due to the growing demand in the residential and commercial construction industry, which is fueled by the increased purchasing power and improvement in the standard of living. The market in the Middle East & Africa is anticipated to expand due to the usage of these coatings as corrosion inhibitors in crude oil processing units and pipelines. The rising demand from major oil-producing nations, such as Saudi Arabia, Iran, Iraq, and the United Arab Emirates, is expected to drive the protective coatings market growth.
Companies Adopt Strategic Planning to Strengthen Their Market Share Worldwide
Global companies are competing fiercely with each other, as well as regional firms who have well-established supply chain networks and are well-versed in their market's rules and suppliers. The market is fragmented, with a number of significant companies, as well as numerous global and regional small- and medium-sized businesses. Major companies are pursuing mergers and acquisitions, constructing infrastructure, expanding manufacturing facilities, investing in research and development, and seeking vertical integration possibilities across the value chain. In February 2020, the Sherwin-Williams Corporation announced its finalizing plans to build a new global headquarters and a research and development facility in Brecksville's Cleveland area.
Some of the market players operating in the global market are the Sherwin-Williams Company, PPG Industries, Inc., Jotun, Akzo Nobel N.V., and Kansai Paint Co., Ltd.
An Infographic Representation of Protective Coatings Market
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The global protective coatings market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and products. Also, it offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. It further includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and growth opportunities.
Value (USD Billion) and Volume (Kilo Tons)
Resin Type; Formulation Technology; End-use Industry; and By Region
By Resin Type
By Formulation Technology
By End-use Industry
Fortune Business Insights says that the global market size was USD 12.0 billion in 2020 and is projected to reach USD 21.2 billion by 2028.
In 2020, the Asia Pacific market size stood at USD 5.0 billion.
Registering a CAGR of 7.3%, the market will exhibit steady growth during the forecast period (2021-2028).
The infrastructure & construction segment is expected to lead this market during the forecast period.
The increased need for protective type of coatings in emerging regions and the rising demand from industrial equipment & machineries in the automotive, infrastructure, and construction industries are driving the market.
The Sherwin-Williams Company, PPG Industries, Inc., Jotun, Akzo Nobel N.V., and Kansai Paint Co., Ltd. are the major players in the market.
Asia Pacific dominated the market in terms of share in 2020.
The global expansion of the construction sector is expected to drive the adoption of these coatings.
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