Global Coil Coatings Market - 2024-2031

Overview

Global Coil Coatings Market reached US$ 1.5 billion in 2023 and is expected to reach US$ 2.1 billion by 2031, growing with a CAGR of 4.4% during the forecast period 2024-2031.

The construction industry is continuously expanding as a result of improved commercial real estate markets and rising federal and state investment in public and institutional structures. One of the largest building construction projects in North America is the East River Mixed-Use Development project, which is valued US$ 2.5 billion. The project, which is scheduled to be completed in 2040, intends to improve Texas' residential and office facilities. As a result, rising investments in the building and construction industries are likely to boost demand for coil coatings.

Furthermore, the significant increase in investments in R&D activities aimed at exploring new potentials for coil coatings, their use in various industries and the presence of stringent environmental regulations encouraging the development of low-VOC and sustainable coatings are expected to generate enormous growth potential for the market in the near future. For example, in May 2023, Chemcoaters announced a thin-film coating entitled 'FeGuard,' which is primarily designed for cold-rolled and hot-rolled pickled and oiled steel.

In 2023, North America is expected to be the second-dominant region with over 20% of the global coil coatings market. North American market growth was driven by an increased emphasis on energy-efficient construction materials and methods, which mostly entail the use of coated materials to improve thermal performance. For example, in July 2023, 3A Composites USA revealed its new unique coil coating production line, which is a dedicated aluminum line with new innovations and advanced automation.

Dynamics

Growing Focus on Energy-Efficiency

Recent advancements in coating technology have transformed the applicability of coil coatings. The developments have not only improved the performance and longevity of coil coatings, but have also broadened their range of applications across industries. One such improvement is the development of high-performance polymer coatings that are highly resistant to corrosion, UV radiation and extreme weather conditions. VOCs are subject to a range of legislative rules and legislation.

VOCs are controlled by international and national regulatory organizations to ensure their legal compliance and environmental significance, as well as to examine the raw materials utilized in their development using ecotoxicological and toxicological data. The European Chemical Industry Council, the German Chemical Industry Association and a number of scientific organizations are continually striving to assess and produce coil coatings with low-VOC content for diverse industries.

Growing Investments in Construction Industry

Coil coatings are utilized in the building and construction sector for ceiling grids, doors, roofing and siding, windows and other applications due to their superior aesthetics and long-lasting value. One of the continuing construction projects is the Eight Office Tower project, which is valued US$ 476 million and involves the construction of a 25-story office tower in Bellevue, Washington, U.S.

As a result, increased building and construction industry expenditure is likely to boost demand for coil coatings. The majority of Western European countries, including France, Germany, UK and Italy, are actively participating in the coil coatings market. For example, according to Trading Economics, building output in France rose by 3.1% in December 2022 over July 2022. With expanding building construction activity, the need for coil coatings has greatly expanded.

High Costs

The high cost of the operations involved in coil coating production is a major impediment to the market's expansion. The prices of essential raw materials like steel, aluminum and polymers can be quite variable. The changes affect the production costs of coil coatings, making it difficult for manufacturers to maintain consistent pricing and profitability. Global emergencies like the COVID-19 pandemic and political conflicts disrupted supply chains, causing shortages and increasing raw material costs.

Coil coating is manufactured using a coil coating line, which contains a variety of cleaning, heating and coating tools and equipment. Higher maintenance costs for these equipment raise the whole cost of the process, including the cost of coil coatings. Due to the expensive cost of pre-coated metal, consumers choose household appliances that require fiber or plastic for production, limiting market growth.

Segment Analysis

The global coil coatings market is segmented based on material, product, application, end-user and region.

Rising Application in Construction Sector Drives the Segment Growth

Automotive is expected to be the dominant segment with more than 30% of the market during the forecast period 2024-2031. With an increasing number of building standards promoting energy-efficient constructions, house builders and consumers are gradually shifting toward building solutions that provide long-term performance and energy savings. The increased demand from the construction industry is a key driver of the coil coatings market.

One of the world's largest continuing building construction projects is the Magnolia Mixed-Use Complex in Texas, which is anticipated to be finished in Q1 2025. Another project scheduled for completion in 2026 is Tokyo's Minamikoiwa 6-Chome District Type One Urban Redevelopment. Such construction projects are expected to require coil goods for roofing, steel doors, aluminum panels, rubber, metal lamination bonding, repair work and others.

Geographical Penetration

Rising Construction Activities in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global coil coatings market covering over 30% of the market. Coil coatings are used in the building and construction sectors for their outstanding aesthetics and long-term value in applications like ceiling grids, doors, roofing & siding and windows. Construction projects and investments in Asia-Pacific are rapidly expanding, propelling the coil coating industry.

For example, in 2019, the Chinese government funded 1.9 billion in 13 public housing projects. In addition, in February 2020, the Asian Development Bank approved a loan of US$ 631 million to establish the Vishakhapatnam-Chennai industrial corridor. Furthermore, construction initiatives such as '100 smart cities' and 'Housing for All by 2022' in India are impacting the coil coating market expansion.

Competitive Landscape

The major global players in the market include Akzo Nobel N.V., ALCEA, Axalta Coating Systems, Becker Group, Dura Coat Products Inc., Eastman Chemical Corporation, Henkel AG & Co. KGaA, Huehoco GmbH, Jotun Group and Kansal Paint Co. Ltd.

COVID-19 Impact Analysis

During the early stages of the pandemic, significant industry shutdowns occurred, disrupting coil coating production and raw material supply such as steel and aluminum. Transportation restrictions and international trade obstacles generated considerable delays and increased shipping costs, interfering with the timely delivery of coil coatings to end customers.

The construction industry, which is a significant consumer of coil coatings, has seen project delays and cancellations, resulting in decreased demand. However, as the lockdowns lifted, there was an increase in construction operations aimed at economic recovery, largely offsetting the initial decline. The automobile industry also experienced a substantial dip during the pandemic, lowering demand for coil coatings used in vehicle manufacture.

Russia-Ukraine War Impact

Russia and Ukraine are key exporters of raw materials such as steel and aluminium, which are required for coil coating. The violence has affected supply of key goods, resulting in delays and shortages. The war has impacted transportation routes and logistics, causing delays and increasing shipment prices. It has an influence on the global availability of coil coatings.

The dispute has resulted in severe price fluctuation for raw materials. For example, steel and aluminium costs have risen sharply, hampering coil coating firms' cost structures. Higher raw material costs translate into greater production costs for coil coatings, which may result in higher prices for end users.

By Material

• Polyester
• Epoxy
• PVC
• Plastisol
• Acrylic
• Polyurethane
• Silicone
• Others

By Product

• Topcoats
• Primers
• Backing Coats
• Others

By Application

• Steel
• Aluminum

By End-User

• Construction
• Transportation
• HVAC
• Metal Furniture
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2022, BlueScope Steel Limited has signed a formal deal to buy Cornerstone Building Brands Inc's Coil Coatings division for US$ 500 million. Coil coatings is the second largest metal painter in U.S., having a capacity of over 900,000 tons per year across seven plants, majorly supplying commercial and industrial building applications.
• In January 2022, The Beckers Group worked with steel and aluminum coil coating customers to design and trial the essential solutions to decarbonize the steel and aluminum coating industries.

Why Purchase the Report?

• To visualize the global coil coatings market segmentation based on material, product, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of coil coatings market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key product of all the major players.

The global coil coatings market report would provide approximately 70 tables, 69 figures and 207 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies