Coating Resins Market Size, Share & Trends Analysis Report By Formulation (Water-Borne, Solvent-Borne, UV-Cured, Powder-Borne), By Coating Type (Acrylic, Epoxy, Alkyd, Urethane, Others), By End-User (Architectural Coating, Industrial Coating, Marine Coating, Automotive Coating, Wood Coating, Coil Coating, Packaging Coating, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global coating resins market size was valued at USD 44.54 billion in 2022. It is estimated to reach USD 68.91 billion by 2031, growing at a CAGR of 4.97% during the forecast period (2023–2031).

Coating resins are indispensable ingredients in the production of paints and coatings. These are applied to the surface of an object to impart durability, corrosion resistance, weather resistance, and contaminant resistance. Resins provide coatings with quick drying periods, sustained gloss, and superior weather resistance. Coating resins are produced through multiple procedures. The formulation may be water-based or solvent-based.

The method used to synthesize coating resin is governed by requirements such as location, base material, coating purpose, etc., to modify properties of coating resins such as resin viscosity, color, adhesion, and cohesiveness for effective application. Resin coatings are the most popular method for applying protective coating layers in various industrial applications, including architectural, automotive, construction, mechanical, marine, wood, paper, cellulose coatings, and wood.

Market Dynamics

Global Coating Resins Market Drivers

Increasing Demand from Construction Industry

The construction industry is one of the leading segments of the global economy. The construction sector's growth is mostly attributable to the growth in the corporate environment and residential spaces. Various initiatives undertaken by the government and foreign direct investment in several regions have also contributed to the growth of the global construction industry. Factors like rapid urbanization, rise in disposable income, improvements in living standards, and 100% FDI have supported the expansion of the construction sector in emerging nations like India, China, Japan, Brazil, and Thailand.

Additionally, the demand for coating resins in tahe construction industry has experienced significant growth and is expected to continue expanding. According to a report by the United Nations, the global population will increase from 7.2 billion to 8.1 billion in 2025, boosting the housing sector. The surge in non-residential construction projects will drive the demand for coating resins in the construction sector.

Growing Use of Bio-Based Epoxy Resins

Biobased epoxies are new bio-sourced resins produced using various renewable resources, such as vegetable oils, saccharides, isosorbides, terpenes, rosin, natural rubber, tannins, and cardanol. Over the past few years, the demand for bio-based epoxy resins is gained tremendous momentum in the paints and coatings industry. The rapid shortage of fossil resources and environmental concerns regarding increasing greenhouse gas emissions have contributed to the higher adoption of renewable feedstocks.

Bio-based epoxy resins possess certain properties that make them more attractive than other epoxy resins in the market. Some remarkable properties of bio-based epoxy resins are no unpleasant smell, relatively superior to petroleum-based ones, low VOC content, low odor, superior strength, and UV resistance. Therefore, owing to the favorable properties of bio-based epoxy resins, the demand for bio-based epoxy resins is increasing, fueling the coating resins market growth.

Global Coating Resins Market Restraint

High Raw Material Costs

Global resin suppliers have encountered some limitations in recent years. Environmental regulations are pushing the resins market to create new, "greener" technologies, but rising raw material and energy costs threaten this development. Raw materials such as Bisphenol A and epichlorohydrin and unsaturated dibasic acids are used to make different resins derived from crude oil.

The price of crude oil is generally high and uncertain as it frequently fluctuates, directly impacting the resin price and the cost of coating products. As many FMCG players offer these products in the market, it is difficult for them to change product prices due to the competitive factor and the presence of local players offering the same products at a relatively lower price. Such factors may hinder vendors and affect their supply chain.

Global Coating Resins Market Opportunities

High Growth Potential in Emerging Economies

In the preceding two decades, remarkable growth has been observed in emerging markets. The main reason behind the rapid growth of emerging markets leading to outshining the developed nations is the rapid urbanization, establishment of more and more factories as compared to North America and Europe due to the lenient government regulations or norms, rising purchasing power, and major advances in areas such as ICT, biotechnology, and nanotechnology will play an important role in the development of emerging economies.

Furthermore, emerging markets across Asia-Pacific, the Middle East and Africa, and South America represent a lucrative opportunity for the coating resin manufacturers to invest heavily in these growing markets. For instance, Saudi Arabia needs to add 1.5–2 million homes by 2022 to keep pace with the rise in demand for residential spaces. Retail construction, including large malls and open areas, is expected to surge in the region significantly. Thus, the construction of housing, malls, shopping centers, several mega projects, and railways will drive the demand for coating resins.

Regional Analysis

Based on region, the global coating resins market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global coating resins market shareholder and is anticipated to grow at a CAGR of 5.44% during the forecast period. The primary factors contributing to the development of the Asia-Pacific coating resins include the surging pace of urbanization, increasing disposable income, and improving living standards, which have significantly contributed to the growth of construction activities, demand for modern furniture, the growing trend for home-delivered food, and the presence of automotive industry. Japan, China, India, and South Korea are the primary developing countries in Asia-Pacific.

Additionally, the increasing population, demand for housing, and investment in multiple projects such as 5G networks, IoT, Artificial Intelligence, and data centers contribute to the construction industry's rapid expansion in the region. Due to the coronavirus outbreak, China's construction industry was badly disrupted in Q1. However, in the second quarter, the construction industry recorded an improvement as the majority of the projects resumed. Moreover, to mitigate the impact of a pandemic on the construction industry, the National Development and Reform Commission devised 65 fixed-asset investment projects worth USD 78.4 billion. Therefore, the demand for coating resins is anticipated to increase with such investments in several projects.

North America is anticipated to exhibit a CAGR of 4.74% over the forecast period. The growth of various end-use segments, such as architecture, automotive, aerospace, paper, and furniture, drives the North American coating additives market. In North America, the US has the biggest aerospace and defense market, which accounted for 1.8% of total US GDP in 2019. The presence of highly skilled labor, aerospace engineers, and several leading global aerospace and defense manufacturers, including Boeing and Lockheed Martin, have contributed to the emergence of the biggest aerospace industry. In addition, the US aerospace and defense industry manufactures and caters to most domestic and international demand for arms and military technologies. In 2019, the US aerospace and defense market was valued at USD 909 billion, a 6.7% increase from 2018. Therefore, the high demand for the aerospace and defense sector is expected to accelerate the demand for coating resins in the aerospace sector during the forecast period.

In Europe, the demand for coating resins is expected to grow significantly. Europe is one of the biggest and wealthiest economies and is home to the most developed countries, like the UK, France, Italy, and Spain. Europe has experienced notable advancements in living standards, per capita income, and the adoption of innovation and technology since the beginning of the industrial revolution. Therefore, the region's world-class automotive, construction, furniture, and defense industries are expected to drive the coating resins market demand during the forecast period.

The Latin American coating resins market is driven by several sectors, including the construction, automotive, marine, and oil and gas industries. In Latin America, Brazil and Mexico ranked as the largest motor vehicle manufacturers around the world. Brazil produced around 3.9 million motor vehicles, whereas Mexico manufactured around three million in 2019. The Latin American automotive industry experienced negative consequences as a result of COVID-19. In the first half of 2020, the sales of light vehicles dropped by at least 29% than the last year in the same period. Despite the decline in sales, Latin America still holds around 3.2% of sales of light vehicles worldwide. In September 2020, the production of vehicles increased by 0.9% in Mexico. Likewise, in October 2020, car production in Brazil increased to 7.4%. Therefore, the demand for coating resins will increase in the coming years.

Segmental Analysis

The global coating resins market is bifurcated into formulation, coating type, and end-user.

Based on formulation, the global market is segmented into solvent-borne, water-borne, powder-borne, and UV-cured. 

The water-borne segment is the largest contributor to the market and is projected to exhibit a CAGR of 6.18% over the forecast period. Water-borne coatings are surface coatings that use water as a solvent to disperse the resins added to create coatings. Water-borne coating constitutes 80% of the water and 20% of the solvents. The outer finish of water-borne coatings is almost like that of solvent-based coatings. In addition, the raw material used to manufacture water-borne coating is synthetic resins, pigments, surfactants, and additives. The three types of water-borne coating are water-soluble, water-dispersible coatings, and emulsions. With the advancement in the performance of water coating, its application in the end-user industries is increasing.

Solvent-borne coatings comprise organic compounds applied on surfaces to prevent corrosion. These are liquefying agents that evaporate when they encounter oxygen. These coatings are less prone to environmental conditions like humidity and high temperatures. As a result, solvent-borne coatings are highly preferred for applications in humid environments; as compared to water-borne coating, solvent coating cures the surfaces properly due to the chemical reaction between oxygen in the atmosphere and the constituents of the water-borne coating. The solvent-borne coatings are considered less environment-friendly due to VOC emissions.

Based on coating type, the global market is segmented into acrylic, alkyd, epoxy, urethane, and others. 

The acrylic segment owns the highest coating resins market share and is projected to grow at a CAGR of 5.85% over the forecast period. Acrylic coatings are available in various forms, such as thermoplastic, thermosetting, organic solvent-borne, water-borne, emulsion, powder, and radiation-curable formulations. Acrylic coatings are based on polymers and copolymers with color retention and inertness properties. Acrylic paints are mainly used outdoors and are being largely replaced by water-based acrylic coatings due to environmental reasons. Therefore, water-based acrylic coatings are widely used in North America and Europe compared to Asia-Pacific due to stringent regulations regarding low VOC content.

Epoxy resins are widely employed in paints and coatings due to their high strength, versatility, and excellent adhesion properties to various substrates. Epoxy resins are thermoset polymers derived from a monomer containing at least two epoxide monomers. Epoxy resins have strong adhesive qualities, making them versatile for many end-use industries. Epoxy resins are preferred for their excellent mechanical properties, such as heat resistance, chemical resistance, durability, corrosion resistance, and electric insulation. These attributes make epoxy coating resins suitable for various end-use markets, such as paint can, metal container, decorative flooring, automotive, marine, and aerospace.

Based on end-user, the global market is bifurcated into architectural coating, industrial coating, marine coating, automotive coating, wood coating, coil coating, packaging coating, and others. 

The architectural coating segment dominates the global market and is predicted to exhibit a CAGR of 5.21% during the forecast period. Architectural coatings are also known as decorative coating. It is a coating formulation used to coat the interior and exterior of a building. Architectural coatings comprise a wide range of coating, including varnishes, paints, primers, sealers, inks, ceramics, and others. The main function of the architectural coating is to protect the exteriors and interiors of a building from heat, moisture, changing weather, and chemicals. Apart from protection, it also imparts a glossy and durable look to the building.

Industrial coatings are films deposited on materials to add or enhance properties such as corrosion resistance, wear resistance, and conductivity. Industrial coatings are used on plastics, metal, and mineral substrates. The presence of resins on industrial coatings provides durability and improves performance and corrosion resistance. In several industries such as oil and gas, mining, and petroleum, coating resins are applied on steel structures, bridges, plants, and other structures requiring protection against corrosion and high resistance to wear and tear. Coating resins are also applied inside cans to ensure protection and prevent the metal from reacting with the contents of the can and on the outside for decorative purposes.

Recent Developments

• March 2023- WACKER unveiled its VINNOL L-6868 polymer resin binder, which will be used to formulate wood, paper, film, and solvent-borne coatings, is suitable for printing inks and high-solids and UV-curing systems, and is compatible with food-grade packaging.

• May 2023- The Polynt Group announced its intention to increase its resin production capacity to serve the North American Coatings Market and satisfy the expanding demands of the paint and coatings industry. This expansion is now fully operational and will be enhanced by the inauguration of Polynt Coatings Canada Limited in Port Moody, British Columbia.