Industrial Coatings Market

Market Overview

The industrial coatings market size was worth USD 102 billion in 2021. It is estimated to reach an expected value of USD 127 billion by 2030 at a CAGR of 3% during the forecast period (2022–2030). 

Industrial coatings like polyurethane, acrylic, polyesters, epoxy, and alkyd are utilized in a variety of end-use sectors, covering oil & gas, general industry, aviation, automotive & vehicle refurbishment, resource extraction, energy production, nautical, semiconductors, and others.

Acrylic industrial coatings are widely utilized in general industry, aerospace, automotive & vehicle refinish, and other end-use industries due to their adhesive, corrosion resistance, and quick-drying qualities.

Water-based industrial coatings are likely to grow in popularity over the projected timeframe as people become more aware of the negative impacts of solvent-based surface coatings and the many regulations governing VOCs and other harmful air pollutants (HAPs).

Increased emphasis on the manufacturing of electric cars due to growing CO2 emissions is expected to boost the automotive industry continues to evolve, which will increase demand for industrial coatings in the future years. For example, China's government has set a goal for electric vehicles to account for at least 20% of all vehicles sold in the country by 2025.

The industrial coatings market is divided by product, technology, end-use, and region. 

Market Dynamics

Industrial Coatings Market Drivers

• Rise in Adoption from Various End-Use Industries

Industrial coatings are commonly used in transportation, automobile & car refinishing, semiconductors, aviation, oil & gas, mining, energy production, and other industrial uses. Over the projected period, rising demand from the aforementioned end-use sectors is anticipated to fuel the growth of the industrial coatings market. One of the most important end-use sectors for industrial coatings is automotive and refinish coatings. The need for industrial coatings is predicted to rise as the use of refinish coatings for automobile repair, maintenance, and aftermarket repainting grows due to outer appeal, surface preservation, and corrosion resistance. Additionally, rising demand for customized automotive designs and paintwork is likely to propel market growth.

Furthermore, market growth for industrial coatings from various industries like electronics, packing, wood, building and construction, farming, and others is expected to propel market expansion over the forecast period. Market growth for industrial coatings from applications such as packaging, including capping and closures, cans, and others, is likely to drive market expansion in the next years. Product durability, elasticity, adhesion, and high CO2 retention qualities, among other things, are driving the demand for industrial coatings in the packaging business. Moreover, the need for industrial coatings in the wood industry is expanding as infrastructure projects increase. Industrial coatings, for example, are used to improve the visual appeal and preserve the wooden faces of furniture, cupboards, sidings, decking, and flooring.

• Rise in Consumer Awareness for Sustainable Products

Consumer emphasis on eco-friendly products is growing, as are ecological regulations requiring the decrease of VOC emissions. This is driving demand for environmentally-friendly manufacturing coatings.

Ecological legislation, notably air pollution legislation, in the United States, China, and Western European countries will keep driving the use of low-pollution coating techniques in the future years. Due to these rules, demand for solvent-based coatings has switched to low-VOC or ecologically friendly solutions like powder coatings, water-based, and UV-curable coatings. Low-VOC products include fewer chemicals that dissolve during the application, resulting in a cleaner environment with minimal or no VOC emissions.

• The proportion of solvents in coatings affects VOC emissions.
• Traditional liquid coatings comprise over 60% solvents, releasing VOCs for long periods of time after implementation.
• Eco-friendly coatings, on the other side, do not contain any chemicals, resulting in extremely low VOC emissions.

Industrial Coatings Market Restraints

• Stringent Regulations Regarding Toxic Solvents

A number of federal regulations and legislation apply to volatile organic compounds (VOCs). Several federal governmental rules for managing VOC emissions and minimizing public exposure to harmful substances apply to these organic materials, which are frequently used in industrial coatings for technical applications.

VOC legal conformance in new application areas, ecological significance of VOCs, and input materials security assessments relying on potential toxic and physicochemical data are all ensured by national and international regulatory authorities. The European Chemical Industry Council (CEFIC) and the German Chemical Industry Association, as well as other scientific organizations, are continually analyzing and developing low-VOC coatings for a variety of industrial applications. Indoor and outdoor air pollution are both caused by VOC emissions.

Industrial Coatings Market Opportunities

• Growing Potential for Powder Coatings in Shipbuilding and Pipeline Sectors

China is one of the biggest countries in terms of maritime and shipbuilding. The country has constantly led to the expansion of powder coatings in the shipbuilding and pipeline industries. In the pipeline business, powder coating is becoming increasingly prevalent. The powder coatings industry has an attractive ability to invest in shipbuilding and pipelines, notably in Asia-Pacific and South America's emerging economies.

Regional Analysis

The industrial coatings market is segmented into four regions: North America, Europe, Asia-Pacific, Central and South America, and Middle East & Africa. In 2021, North America accounted for the largest share of the Industrial Coatings market. The North American market is expected to generate a value of USD 50,432 million by 2030, at a CAGR of 3%. 

In 2021, the United States ruled the North American industrial coatings market, and this trend is expected to continue during the projected period. In the future years, rising demand for goods from different end sectors, including general, aircraft, maritime, oil & gas, and automotive, is anticipated to propel the growth of the North American industrial coatings market.

Automobile manufacturing in the United States has increased dramatically in recent years. For example, in March 2017, Ford declared an increase in the manufacturing of trucks and SUVs in three of its sites in Michigan, United States. The expansion cost around USD 1.2 billion in total.

In addition, Germany is Europe's production hub and the region's major vehicle producer. In the next years, technological improvements like electric cars and self-driving automobiles are expected to strengthen the country's automotive industry, resulting in an increased need for industrial coatings. The regional market is anticipated to be driven by the rising product demand from several end-use industries during the period. However, the region's stringent VOC emission restrictions, which result from growing environmental concerns, are expected to impact the market for solvent-based industrial coatings.

The Asia-Pacific industrial coatings market is expecting lucrative growth in the coming future. The Asia-Pacific market is expected to generate a value of USD 27,793 million, by 2030, at the highest CAGR of 4% during the forecast period. 

Over the projected period, the market is likely to be driven by rising urbanization and rising product consumption from the automotive & vehicle refinish sector in nations such as India, Japan, and South Korea. In comparison to North America and Europe, Asia-Pacific is projected to profit from factors such as limited raw material costs and laxer VOC emission regulations. This is predicted to open up a lot of doors for industrial coatings in numerous end-use industries like the general sector, automotive and vehicle refinishing, nautical, and so on. 

Segmental Analysis

The industrial coatings market share is classified into product, technology, and end-use.

Based on product, the market is segmented into polyurethane, acrylic, polyester, alkyd, epoxy, and others. The acrylic segment is dominant over other product types of industrial coatings and is expected to generate USD 41,098 million by 2030. It is expected to grow at a CAGR of 3% during the forecast period. 

Acrylic industrial coating is widely utilized in various industries, including automotive & auto refinish, aviation, and many other end-use sectors, due to its resistance to corrosion, better adhesion, barrier and inhibitory ability, and fast-drying time. Acrylic industrial coatings are utilized in a variety of applications, including new construction and repair, industrial machinery, intermodal boxes, and automobiles.

Over the projected period, the alkyd market is expected to grow at a substantial CAGR of 3 percent. The rising application spectrum of the product in automotive, oil & gas, and industrial sectors is driving up demand.

Due to its characteristics, including resistance to stains, cracking, severe temperatures, and blistering, epoxy industrial coatings are frequently employed in construction, shipbuilding, and wastewater treatment facilities. The substance is used in household appliances, such as refrigerators and washing machines, to shield them from corrosive gases, humidity, and food acids, increase their lifespans and enhance their looks. Epoxy industrial coatings are in high demand because of their strong anti-corrosion performance, low VOC content, and expanding use in the aerospace and automotive industries.

By technology, the market is classified into solvent-borne, water-borne, powder-based, and others. The solvent-borne coatings segment is anticipated to generate USD 38,9010 million by 2030 at a CAGRof 3%. 

General industry, oil and gas, marine, automotive, and other industries all use solvent-borne industrial coatings. Lower drying times and improved performance in open and humid environments are predicted to drive category growth over the projection period. Solvent-borne coatings are expected to witness an upsurge as the industrial sector in growing countries like China, India, and Brazil grows.

Industrial coatings made of water dry more quickly than coatings made of solvents because the water in the coating layer evaporates quickly, causing the coating to dry more quickly and without developing surface skin. Industrial coatings made of water are typically utilized when solvent-based coatings are anticipated to react with the substrate. Due to their low VOC content and low emissions of harmful air pollutants, they are also flame-resistant and toxic-free. The strict law governing the solvents included in coatings in the United States and other European nations is expected to increase the use of water-based coatings.

Compared to their alternatives, powder-based coatings are more resilient and environmentally friendly. Due to the lack of a solvent, they have a shallow VOC content and so efficiently and inexpensively abide by environmental protection laws. To prevent corrosion, provide abrasion protection, and create a uniform surface finish, powder-based coatings are widely used in agricultural equipment, automotive, machine components, mechanical parts, and building facades, among other applications. The market for powder-based industrial coatings is anticipated to increase during the projected period due to the rising demand for zero-emission or low-VOC coatings in the U.S., India, China, and European nations.

By end-use, the market is classified into the general industry, marine, automotive & vehicle refinish, electronics, aerospace, oil & gas, mining, power generation, and others. The general industrial end-use segment was the highest contributor to the market and is estimated to reach USD 51,820 million by 2030, at a CAGR of 3% during the forecast period. 

Industrial coatings are used in coil, packing, building, farming, and timber applications in the general industry end-use market. Rapid growth for coil coatings from metal roofing, automotive, wall panels, HVAC equipment, appliances, and other applications due to qualities like good corrosion prevention, long-lasting color, and scratch resistance is likely to boost market expansion during the forecast period.

Impact of covid-19

Because sales are mostly impacted by GDP changes, the impact of the COVID-19 pandemic is negative for the coatings industry. The majority of manufacturing units were shut down due to a lack of workers and lockdown circumstances, raising the alarm among businesses and supply chain restrictions. Poor sales, a structural slowdown, and a faltering economy plagued the automotive industry in 2019-2020. New automobile sales in India dropped during COVID-19's second peak, as several auto facilities and dealers were ordered to shut down. The regional vehicle industry, on the other hand, appears to benefit from the lifting of lockdowns in several European countries, as well as compensation packages designed to aid economic recovery. The car industry in the United States, on the other hand, is still vulnerable due to low inventories and reduced incentives.

Recent Developments

• In December 2022, AkzoNobel completed the acquisition of Lankwitzer Lackfabrik GmbH's wheel liquid coatings business, strengthening the firm's performance coatings offering.
• In December 2022, Axalta Partners with the UK's Fastest-Growing, Award-Winning Accident Repair Organization, Steer Automotive Group.
• In September 2022, the MegaGloss Metallic topcoat was introduced by Jotun Yachting.
• In April 2022, Jotun introduced SteelMaster 1200HPE, a high-performance epoxy intumescent coating that offers up to 120 minutes of protection from cellulosic fires.