Global Industrial Coatings Market - 2024-2031

Overview

Global Industrial Coatings Market reached US$ 109.23 billion in 2023 and is expected to reach US$ 142.37 billion by 2031, growing with a CAGR of 3.37% during the forecast period 2024-2031.

The industrial coatings industry is experiencing significant expansion due to the strong need for achieving exceptional durability, barrier properties and visual appeal in several sectors. Industry sectors such as automotive, aerospace, construction and manufacturing always seek cutting-edge solutions to withstand harsh conditions and enhance the durability of their products, hence driving the high-performance coatings market.

Increasing sustainability and regulatory considerations are fueling expansion through advancements in the coating technologies range. The increasing investment in research and development within the industrial coatings sector indicates a promising growth potential for both companies and investors seeking to exploit this market. Sustainability is gaining growing significance within the coatings industry.

Manufacturers of additives, pigments, resins and final coating formulations have intensified their focus on developing more environmentally friendly methods that optimize energy use, minimize waste generation and reduce pollutant emissions. Only a small number of organizations have established institutional initiatives to increase awareness, stimulate creativity and facilitate the ongoing development and improvement of sustainable operations.

Dynamics

Environmental Regulations Boost Demand

An eminent advancement in the coatings industry within the last decade has been the increasing need for ecologically sustainable characteristics. The primary factor for this tendency has been the stringent regulations implemented by the European Union (EU) regarding the mitigation of volatile organic compound (VOC) emissions during the whole lifespan of coatings. As a result, consumers' interest in environmentally friendly goods such as powder and aqueous coatings has increased compared to solventborne coatings.

The Eco-product Certification Scheme (ECS) is a recent regulation established by the European Commission and other administrative bodies at the federal level. These regulations ensure the creation of a sustainable and environmentally friendly environment with minimal or no release of dangerous volatile organic pollutants. The imposition of limitations by the governments of the United States and Western Europe, especially those related to air pollution, is expected to continue driving the advancement of novel coating technologies with low environmentally impact.

Adoption Of Green Chemistry To Promote Sustainability

The concerns related to the effects on human health and the environment have necessitated the implementation of green chemistry in industrial coating materials. Nevertheless, the shift towards green chemistry encounters various obstacles pertaining to attaining regulatory conformity, cost efficiency and enhanced functionality. The increasing strict government regulations and consumer consciousness may lead to a broader acceptance of "green chemistry" or "sustainable chemistry" in coatings systems.

The industrial coatings business utilizes green chemistry widely in several end-user sectors including automotive, aircraft, marine, electronics, consumer goods and construction & buildings. Therefore, the objective of green chemistry is to decrease the presence of volatile organic compounds (VOCs), enhance process efficiency, optimize feedstock utilization and minimise waste. Nevertheless, due to growing apprehensions, major stakeholders are embracing green chemistry, effectively the advancement of sustainable product creation.

Effect of Humidity on Drying Time

Primary causes of problems are mostly attributed to environmental factors such as humidity and temperature. Individual coating manufacturing industries provide distinct guidelines for their products. Prior to commencing the coating task, it is well recommended for the applicator to thoroughly review the requirements. Specific conditions are dictated for optimal use.

Oil-based coatings require an air temperature consistently exceeding 700°C. Acrylic and latex coatings should be applied at temperatures over 1cc. At 2 cc, certain innovative mixtures rapidly dehydrate. The drying time of acrylic, latex and oil-based paints is significantly prolonged in humid environments. In order to address this problem, the oxidation process purifies oil-based coatings. Nevertheless, water-borne coatings have significant challenges.

Water-borne coatings require less drying time than solvent-borne coatings since they are dried exclusively through the natural drying process. The technique gets more intricate when applied to wooden surfaces due to the known tendency of wood to absorb moisture from the atmosphere. Furthermore, this impacts the adhesive characteristics of its substrate. Such action may result in the surface peeling or bubbling. Many coatings manufacturing firms are making significant investments in humidity test chambers.

Segment Analysis

The global industrial coatings market is segmented based on type, application, end-user and region.

The General Industrial Dominated The Market

The increasing adoption of these goods in conventional industries is attributed to their exceptional levels of corrosion resistance, chemical resistance and UV or weather protection capability, which are essential for cost reduction. An increasing trend in infrastructure-building activities, together with a growing middle-class population, is offering favorable market growth opportunities.

Key factors driving the automotive coating sector, both in original equipment manufacturer (OEM) and refinishing, include exceptional durability, chemical resistance, sustainability, scratch resistance, low volatile organic compound (VOC) levels and water-borne system compatibility. Low and ultra-low VOC coatings are highly sought after by the wood furniture and flooring sector because of increasing regulatory requirements and the introduction of new sustainability targets.

In order to conform to its many distinct surfaces, the prototypical agricultural, construction and earthmoving (ACE) machine requires a range of coating processes, including powder coatings for smaller metal parts like handles, pedals and wheels. An added environmental advantage of powder coatings is their little waste generation and absence of volatile organic compounds (VOCs). Reduced VOC legislation is expected to propel the maritime coating sector towards more environmentally friendly alternatives.

Geographical Penetration

The Growing Industrial And Manufacturing Demand In Asia-Pacific

The expansion in Asia-Pacific can be ascribed to the swift industrialization and increasing manufacturing demand from the automotive and vehicle refinish industries in nations like India, Japan and South Korea. The low stringency of regulations on volatile organic compound (VOC) emissions in the region, as compared to other regions, together with the abundant supply of raw materials, are anticipated to generate significant prospects for the application of industrial coatings.

Affordability of labor in the developing countries of Asia-Pacific has enticed numerous international investors to establish their production plants in the area. Hence, the increasing proliferation of manufacturing plants is stimulating construction developments in the area. Nevertheless, the imminent implementation of stringent government limits on VOC emissions due to increasing environmental concerns is expected to impede the expansion of the industry.

Competitive Landscape

The major global players in the market include Akzo Nobel N.V., Axalta Coating Systems, LLC, Industrial Coatings Ltd., PPG Industries, Inc., The Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., RPM International Inc., BASF SE, PPG Asian Paints Pvt Ltd., Hempel A/S, The Chemours Company FC, LLC and Jotun A/S.

Russia-Ukraine War Impact Analysis

The protracted hostilities between Russia and Ukraine have had a profound impact on the industrial coatings industry in both nations, with Ukraine experiencing far more severe consequences. The paint and coatings sector in Ukraine was thriving before the invasion, with an annual production of 300,000-400,000 tons, mostly catering to the local market.

Nevertheless, the conflict has resulted in substantial disturbances, such as the loss of enterprises, the devastation of warehouses and a severe scarcity of raw supplies. By mid-2022, around 40% of Ukraine's paint facilities were inactive and those located in zones under occupation have encountered significant operational difficulties. This disruption has resulted in a severe shortage of vital resources, impacting the manufacturing of partially completed goods required for both civilian and military applications.

By contrast, the paint and coatings industry in Russia, although similarly impacted by sanctions and the resulting loss of Western supply, has achieved a certain level of stability. The country has redirected its procurement of raw materials from Western countries to suppliers in China and other areas, therefore alleviating some of the immediate consequences of the sanctions.

By Type

• Acrylic
• Alkyd
• Polyester
• Polyurethane
• Epoxy
• Fluoropolymer
• Others

By Technology

• Solventborne Coatings
• Waterborne Coatings
• Powder Coatings
• Others

By End-User

• General Industrial
• Protective
• Automotive OEM
• Industrial wood
• Automotive Refinish
• Coil
• Packaging
• Marine
• Aerospace
• Rail

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

Key Developments

• In August 2022, PPG announced its intention to invest US$ 11 million in order to increase its production capacity of powder coatings at its San Juan del Rio, Mexico facility by twofold.The expansion initiative is expected to be completed by mid-2023. Implementing this will enable the facility to satisfy the projected need for powder coatings in Mexico in the next years.
• In June 2022, Sherwin-Williams Co. announced the completion of its acquisition of Sika AG's European industrial coatings division. The purchased firm will be integrated into the operational component of the company's Performance Coatings Group.
• in April 2022, the acquisition of Arsonsisi, an industrial coatings company headquartered in Milan, Italy and its powder coatings business, was finalized by PPG. As part of the deal, PPG will acquire a powder manufacturing facility in Verbania, Italy, that is highly automated and capable of producing both small and big batches.
• In March 2022, AkzoNobel introduces the Interpon ACE powder coating line to cater to the specific requirements of the Agricultural and Construction Equipment (ACE) manufacturing industry.

Why Purchase the Report?

• To visualize the global industrial coatings market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel spreadsheet containing a comprehensive dataset of the industrial coatings market, covering all levels of segmentation.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global industrial coatings market report would provide approximately 71 tables, 67 figures and 208 pages.

Target Audience 2024

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