Polyurea Coatings Market

Market Overview

The global polyurea coatings market size was valued at USD 1,058.64 million in 2022. It is estimated to reach USD 2,508.49 million by 2031, growing at a CAGR of 10.06% during the forecast period (2023–2031). The expected rise in demand for polyurea coatings throughout the projected timeframe might be attributed to the advantages of polyurea coating in swimming pools and other constructions.

Polyurea coating is a protective coating comprised of a combination of liquid polyurethane and resin. This coating is extremely durable, chemical, heat, and water resistant, non-toxic, and therefore environmentally benign. In addition to protecting wooden, concrete, and steel structures from abrasions and corrosion, it can help preserve a deteriorating concrete structure, restore canals, and maintain its integrity. An aluminized polyurea coating prevents corrosion and abrasion on pipelines that transport corrosive and abrasive substances.

Polyurea coating is used as a base coat in pumps to prevent cathodic disintegration because it reduces cavitation and erosion while increasing pump performance. It is rapidly replacing paint and fiberglass coatings in a variety of applications, particularly in the construction of water parks, theme parks, bathtubs, aquariums, pools, reservoirs, facades, and cabins, owing to its advantageous properties, which include rapid curing and a reduction in maintenance cycles.

Market Dynamics

Global Polyurea Coatings Market Drivers

Rising Demand from Asia-Pacific Countries

The Asia-Pacific region has several emerging economies. Polyurea coatings are extensively used in the building and construction industry. The region is expected to witness prominent growth in this sector due to strict regulations against the emission of VOC. Population growth is significantly increasing the demand for residential buildings. Companies are building residential and industrial parks closer to metropolitan cities to meet the growing demand for residential spaces.

Rising industrialization and urbanization in nations like China and India are expected to fuel the demand for polyurea coatings during the forecast period. Growing disposable income and a surge in demand from the construction and transportation industries are expected to fuel the coatings market growth in these countries.

Growing Use of Polyurea Coatings in Swimming Pools

Polyurea coatings are used for waterproofing and skid resistance in swimming pools. They are used for isolation applications and filling gaps on a pool's surface. Polyurea coatings are extensively used in pool surfaces as they are water- and chemical-resistant. They are sprayed hot, forming a membrane on the surface covering the entire pool. They are also used in water treatment plants and water tanks.

Polyurea coatings in swimming pools provide water tightness and great adherence to uneven substrates. One of their strong characteristics is their ability to adapt to any material. Polyurea coatings are also UV-resistant. Polyurea coatings have a long service life of up to 25 years, in addition to mechanical and chemical resistance, elasticity, and thermal stability. With proper application, total water-tightness is also guaranteed. Such benefits of polyurea coating in swimming pools are anticipated to increase the demand for polyurea coatings during the forecast period.

Global Polyurea Coatings Market Restraint

High Health Risk from Toxic Fumes

Polyurea coatings have raw materials derived from highly reactive isocyanates. According to the Centers for Disease Control and Prevention (US Department of Health and Human Service), these coatings derived from isocyanates result in irritation caused to the mucous membrane of the eyes and gastrointestinal and respiratory tracts. Adverse health risks associated with polyurea coatings and the demand for skilled labor are the key challenges faced by manufacturers.

Polyurea coatings are made from amines that release toxic vapors when applied to substrates. Pungent toxic fumes of amines are emitted while installing or applying polyurea coatings. The pungent smell makes spraying or applying polyurea coatings difficult and rather unconformable. Toxic fumes have several side effects on health, thereby restricting market growth.

Global Polyurea Coatings Market Opportunities

Increasing Demand in Medical Facilities

In response to the COVID-19 pandemic, countries across the globe undertook efforts to construct medical facilities that are more secure and advanced. Safety concerns regarding medical facilities are anticipated to create favorable conditions for the expansion of polyurea coating producers. Polyurea coatings find application in hospital flooring and serve as a waterproofing solution for many infrastructural elements.

Some of the medical facilities have large flooring areas or miles of sidewalks. These structures consume large volumes of coatings. Therefore, polyurea coatings manufacturers are expected to witness significant demand for application in medical facilities. Keeping surfaces in operation and surgical rooms clean and sterile is important. Polyurea coatings prevent the growth of microorganisms on hospital floors and equipment and, therefore, find increased demand from hospitals and other medical facilities. These factors are expected to fuel medical facilities' demand for polyurea coatings.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant global polyurea coatings market shareholder and is estimated to exhibit a CAGR of 10.11% during the forecast period. The extensive use of spray coatings has fueled the growth of the polyurea spray coatings market. Polyurea has replaced epoxy and polyurethane coatings due to the stringent regulations regarding VOC emission. The building and construction industry in the US is driving the polyurea coatings market growth. The rise in residential and non-residential infrastructure and the increase in the adoption of lining materials and waterproofing solutions are expected to boost market growth in the country.

In addition, Canada is a focal point in North America, witnessing rapid development in all spheres in the past five years. Multiple government projects and infrastructure development in residential and non-residential sectors will enable the polyurea coatings market to flourish during the forecast period. North America has a fragmented and competitive polyurea coatings industry with several key players, such as PPG, Nukote Coatings, Versaflex, and BASF.

Europe is predicted to exhibit a CAGR of 9.95% over the forecast period. Europe has numerous developed economies, such as Germany, the UK, France, Italy, and Spain. Thus, it has established industries such as automotive, construction, and defense, which are expected to drive the demand for polyurea coatings during the forecast period. With lockdown restrictions being lifted in many European countries, the construction industry's growth is expected to positively impact the polyurea coatings market. In addition, Germany is Europe's largest market, accounting for 22.12% market share. Germany's vast automotive industry includes manufacturers such as Volkswagen, Audi, and BMW. The demand for polyurea coatings is proportional to the growth of the automobile sector. Polyurea coatings are used in automobile exteriors due to their superior properties, such as anti-corrosion and impact resistance.

Asia-Pacific is predicted to witness the largest growth in the polyurea coatings market over the forecast period. The major aspects contributing to the growth include rapid urbanization, increasing disposable income, and improving living standards, which have significantly contributed to the growth of the construction and automotive industries. Countries that largely contribute to the polyurea coatings market in the Asia-Pacific include China, India, and Japan. In addition, China accounts for the maximum market share in the global market. The demand for polyurea coatings in China is driven by construction, automotive, and industrial applications.

In Latin America, the automotive, construction, and oil and gas industries drive the market for polyurea coatings. Brazil and Mexico are the largest motor vehicle producers. The automobile industry was severely affected by the COVID-19 pandemic in 2020. However, post-COVID-19 pandemic, the demand for polyurea coatings is expected to grow during the forecast period. The construction industry is the leading market in Latin America. Mexico and Brazil are expected to witness mixed growth during the forecast period due to supply chain disruptions and downturns in the construction and oil and gas industries. The demand for residential and commercial buildings is accelerating the growth of the construction industry.

In the Middle East, the construction and oil and gas industries drive the polyurea coatings market. The Middle East and Africa's emerging economies are witnessing increased construction activities. Middle East countries have crude oil-dependent economies. The use of polyurea coatings in oil and gas pipelines is expected to amplify the market's growth during the forecast period. In addition, the demand for residential buildings has surged with the growing urban population. Metro expansion in Dubai and the construction of several theme parks in the UAE are expected to amplify the demand for polyurea coatings in the Middle East and Africa.

Segmental Analysis

The global polyurea coatings market is bifurcated into raw materials, types, and applications.

Based on raw materials, the global market is segmented into aromatic isocyanate and aliphatic isocyanate. 

The aromatic isocyanate segment is the largest contributor to the market and is projected to exhibit a CAGR of 10.29% over the forecast period. Aromatic isocyanates are produced from pre-polymers such as amines or through blends of polymers. Raw materials used in aromatic isocyanates are benzene and toluene. In the building and construction industry, toluene isocyanate and methylene diphenyl diisocyanate are the two major types of aromatic isocyanate used. Aromatic polyurea coatings are relatively cheaper than aliphatic polyurea coatings. Low cost has helped boost the demand for aromatic polyurea coatings. In addition, aromatic isocyanates are extensively used in building interiors where UV stability is unimportant. Aromatic isocyanates are used as a base coat, which means they are used as the first layer on any surface. Therefore, even in automobiles, they are used as basecoats. The aromatic polyurea coatings market is expected to grow with increased vehicle production.

Aliphatic isocyanates are specialty chemicals used as primary raw materials to formulate polyurea coatings, adhesives, and sealants. Aliphatic polyurea coatings are used on substrate exteriors. They are used in polyurea coatings to provide UV stability and turn coatings colorless to enhance transparency. They are used in polyurea coatings applied on the exterior of residential buildings or substrates directly exposed to the environment. Aliphatic isocyanates are widely used in the production of paint and coatings applied on aircraft to protect them from harsh conditions.

Based on type, the global market is segmented into pure and hybrid polyurea coatings. 

The hybrid polyurea coatings segment is the highest contributor to the market and is projected to grow at a CAGR of 10.45% over the forecast period. Hybrid polyurea coatings contain polyurethane and polyurea. They have many applications but are more moisture-sensitive than pure polyurea. Exceptional physical properties of hybrid polyurea are expected to expedite market growth during the forecast period. However, they are less durable compared to pure polyurea. They are also cheaper as they do not provide UV protection to substrates. Hybrid polyurea coatings are available in two drums: the catalyst and the formulation. Epoxy resins are used as a catalyst in polyurea coatings for solidifying properties. Hybrid polyurea coatings have less flexibility and tear strength than pure ones.

Pure polyurea coatings are formed when isocyanates react with amine-terminated resins. Pure polyurea coatings play a crucial role in determining the properties of the final surface coating. These systems serve various applications to protect them from corrosion, including coating or lining applications over substrates such as concrete or metals. In addition, the major advantages of pure polyurea coatings over hybrid ones include rapid reactivity, high resistance to tearing, better chemical and mechanical resistance, better abrasion and impact resistance, and water resistance. Pure polyurea coatings can be applied in any temperature and weather. This factor is helpful in places where the application has to continue regardless of the season or temperature. Pure polyurea coatings do not delay waterproofing, the next step in the coating process.

Based on application, the global market is bifurcated into building and construction, automobile industries, industrial applications, theme parks, and others. 

The building and construction segment dominates the global market and is predicted to exhibit a CAGR of 10.36% during the forecast period. Polyurea coatings are extensively used in the building and construction industry. Their protective and advanced coating methods provide long-term protection against corrosion. Polyurea in steel structures insulates them against corrosion and provides resistance against dynamic and static loads. In addition, spray polyurea coatings are extensively used as terrace coatings as they extend the structure's durability against external factors. Polyurea coatings can be used for terrace isolation during cold weather, as melting water can cause damage to the concrete structure.

Polyurea coatings are strong and fast-curing and are used in multiple industries. They are used in the oil and gas industry for their numerous properties, such as protection against abrasion, weather, and chemical corrosion. Polyurea coatings are applied on oil and gas storage tanks, pipelines, and containers for a longer life span. Traditionally, polyurethane and epoxies were used in the oil and gas industry due to their easy availability and economical pricing. Although epoxies are widely used, they have several disadvantages regarding longevity and protection. Therefore, polyurea coatings are new and far more durable than waterproofing and protective coatings. As polyurea coatings are anti-slip coatings, they protect workers from injuries.

Recent Developments

• August 2023- Novasafe, the newest product from Induron Protective Coatings, was launched. Novasafe is a furfuryl-modified, thick-film, ceramic-filled novolac epoxy resistant to the harshest treatment plant environments.

• July 2023- Delta Coatings International, a Dubai-based waterproofing specialist and provider of protective coatings systems, announced its ambitious three-year strategic growth plan for the Middle East, concentrating on the key markets of Oman, Egypt, and Saudi Arabia.