Powder Coatings Market

Market Overview

The global powder coatings market size was valued at USD 10.86 billion in 2022. It is estimated to reach USD 17.99 billion by 2031, growing at a CAGR of 5.77% during the forecast period (2023–2031).

Powder coating is a coating form that is applied as a dry, free-flowing powder. In contrast to conventional liquid paint, which is applied using an evaporating solvent, particle coatings are frequently applied electrostatically and then heated or exposed to ultraviolet light to cure them. The granules could be composed of a thermoplastic or thermoset polymer. It is typically used to create a harder and more durable finish than conventional paint. Powder coating primarily coats metals, including domestic appliances, aluminum extrusions, drum hardware, automobiles, and bicycle frames.

Powder coating technology developments like UV-curable powder coatings make powder coat materials like plastics, composites, carbon fiber, and MDF (medium-density fiberboard) possible because they only need a small amount of heat and oven dwell time to process them. Most powder coatings have particle sizes between 2 and 50 m, softening temperatures between 80 and 150 °C, melting temperatures between 200 and 300 °C, and curing temperatures between 200 and 300 °C for at least 10 to 15 minutes.

Market Dynamics

Global Powder Coatings Market Drivers

Evolving Use in the Aerospace Market

Growth in the aerospace industry is driving the demand for powder coatings. Aircraft manufacturers depend on aircraft coatings to give their aircraft a distinctive look. These coatings enable these machines to achieve greater fuel efficiency and protect their surfaces from wear and corrosion. The powder coatings in aircraft improve the process efficiency with quicker cure time, quicker equipment prep, and clean up. The aerospace sector exhibits a preference for powder coatings owing to a multitude of advantageous characteristics.

Boeing, the largest aircraft manufacturer, expects to deliver 43,110 commercial aircraft during 2020-2039. Air traffic is expected to grow by 4% by 2039, and its fleet will grow by 3.20% by 2029. This will increase the demand for powder coatings as they are applied to internal components, aircraft composites, landing gear, aircraft wheels, door handles, struts, hand railings, and the exteriors and interiors of spacecraft. Growing air traffic, aircraft deliveries, international trade, and investments in the aviation sector will drive the demand for powder coatings in the aerospace industry.

Powder Coatings Generating Low or No VOC

The adoption of powder coatings has been increasing as they are safe for the environment because of their low or no VOC content. Traditional paints with solvent bases produce hazardous solvents or airborne contaminants. The benefit of powder coatings is that they do not offer risks, produce less hazardous waste, and cut emissions at the finishing line.

Increasing demand for sustainable solutions and customer demands for improved performance are the primary forces influencing the development of powder coatings technology. To reduce their environmental impact, customers constantly seek to increase process efficiencies, such as eliminating coatings steps and maximizing the use of coating materials. Powder coatings are significantly simpler to handle and are safe to touch up because they are inert and do not need special handling or disposal. Hence, the factors above drive market growth over the forecast period.

Global Powder Coatings Market Restraints

High Cost of Raw Materials 

The cost of raw materials is one of the biggest issues the powder coatings market has to deal with. Coatings manufacturing companies work on reducing costs to increase their profitability. The raw materials used to make powder coatings include oil and natural gas. Metals used in pigments also contribute to the cost of raw materials used to manufacture powder coatings. However, the price of raw materials is largely driven by the price of oil.

In 2014, the average cost of oil was USD 98.95 per barrel. It dropped to USD 52.39 in 2015, then USD 43.79 per barrel in 2016. In 2017, it rebounded to USD 54.19 per barrel. This, in turn, resulted in the inflation of raw material prices in 2017. In addition, the cost of raw materials rises together with the demand for powder coatings on a global scale. The coatings industry is hit hard by the double-digit rise in resins, pigments, additives, and solvents prices, thereby restricting market growth.

Global Powder Coatings Market Opportunities

Introduction of Innovative Powder Coatings

Powder coatings manufacturers are trying to improve the composition and functionality of their products. For instance, PPG Industries introduced its Silversan Antimicrobial powder coatings, formulated with silver ionic technology. This powder coating releases silver ions, which help protect the cured paint film from the growth of microbes, even if the surface is subjected to wear and exterior exposure. The US Environmental Protection Agency has registered silver as a pesticide to prevent, destroy, repel, or mitigate pests ranging from animals and weeds to microorganisms such as bacteria, fungi, and viruses.

Furthermore, AkzoNobel launched its new Futura Collection in the last quarter of 2021. The Futura collection comprises super-durable architectural powder coatings manufactured to meet contemporary trends in architectural design. Similarly, Evonik launched the SPHERILEX DP – 0115 in 2020, a patented matting powder coating. This powder coating has a matt effect that gives a uniform, consistent finish to the surfaces on which it is applied. Such innovations in powder coatings create opportunities for market growth.

Regional Analysis

Based on region, the global powder coatings 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 powder coatings market shareholder and is estimated to exhibit a CAGR of 5.96% during the forecast period. The demand for powder coatings is high in the Asia-Pacific region due to increasing demand from China. The major factor that will raise the demand for powder coatings is environmental regulations. China has enforced strict environmental regulations on paints and coatings manufacturers to minimize VOC content in their products and emissions generated while producing their paints. As a result, the demand for low or no-VOC powder coatings is increasing.

Another factor driving the powder coatings market demand is the Chinese government's Electric Vehicle (EV) market goals. In November 2020, the Chinese laid bullish targets for growing the use of electric vehicles. The Ministry of EVs has set a target of increasing the current 5% share of EV sales to 20% by 2035, or 50%. Since there are no VOC emission coatings, the demand for powder coatings to finish EVs will rise as the EV sector expands in China. This will increase the demand for coatings for plastic substrates for the automotive market and spur the demand for powder coatings.

Europe is predicted to exhibit a CAGR of 5.67% over the forecast period. The major driver for European powder coatings is consumer demand for enhanced performance, durability, improved aesthetics, better corrosion protection, wider color options, and weather-resistant resins. Powder coatings are widely used in major countries of Europe, such as Germany, France, Russia, and Spain. Polyester powder coating dominates the market due to higher outdoor durability. These polyester powder coatings are widely used in automotive and architectural structures. The polyester powder coatings offer a uniform quality finish, protection against corrosion, longer life, and gloss and color retention for many years.

Furthermore, the demand for powder coating is increasing in Europe as powder coatings do not release VOCs or contain lead or chromium, which are responsible for ozone layer depletion. Powder coatings also contain 99% of active ingredients that can be recycled, thereby minimizing waste. They have a reduced solid waste profile compared to traditional coatings.

In North America, the market for powder coatings is driven by growth in the construction, automotive, transportation, industrial, agricultural equipment, and general industries. The demand for powder coatings in North America has increased as they do not contain any solvents, resulting in low or no VOC emissions. The Environment Protection Agency (EPA) is key in monitoring and commercializing powder coatings. Also, powder coatings can be easily washed off the skin, reducing operators' health hazards. In the North American region, the US is the largest consumer of powder coatings, followed by Canada. Consumer goods and automobiles constitute North America's largest powder coatings market share, owing to a strong regulatory framework, technological advancements, and easy application on articles.

In the Middle East and Africa, increasing infrastructure development and the oil and gas industry drives the powder coatings market. The Middle East region faces harsh sunlight that requires powder coatings in various applications. The emerging nations of the Middle East and Africa have increased construction productivity. The Middle East is the world's largest region involved in oil and gas extraction. Various equipment, such as drills, pumps, and valves, are utilized in onshore and offshore oil and gas extraction. These are coated with powder coatings.

Additionally, epoxy powder coatings are widely used in extraction equipment to protect them from abrasion, heat, chemical spills, and corrosion. Middle Eastern nations like Saudi Arabia are developing their infrastructure at a rapid pace. There is increasing investment in the development of business complexes, corporate offices, and hotels, which will drive the powder coatings market growth during the forecast period.

Segmental Analysis

The global powder coatings market is segmented by resin types and end-user industry.

Based on resin types, the global market is bifurcated into thermoplastic and thermoset resin. 

The thermoset resin segment dominates the global market and is projected to exhibit a CAGR of 5.86% over the forecast period. Thermosetting powder coatings are based on lower-molecular-weight solid resins. These coatings melt when exposed to heat, after which the powder coatings form a uniform thin layer. These powder coatings cross-link within themselves or with other reactive components of a much higher molecular weight. Spray applications and thin paint-like coatings are made possible by the fact that the resins used in thermosetting powder coatings can be crushed into very small particles.

Thermosetting powder resins have been derived from three generic resins, i.e., epoxy, polyester, and acrylic resins. Thermoset resins are the most preferred in powder coatings as these coatings melt upon temperature increase and undergo a simultaneous chemical reaction and polymerization. Once the reaction occurs, the powder-coating film cannot melt again. Therefore, thermoset resins have wide applications in the decorative and industrial markets.

Thermoplastic powder coatings coat the metal or substrate by melting when they reach the desired temperature. Thermoplastic powder coatings are especially used in industrial applications, where the substrates are coated with a coating material to protect them from corrosion resistance. Thermoplastic powder coatings are based on high-molecular-weight polymers that exhibit excellent chemical resistance, toughness, and flexibility. These resins tend to be difficult to grind to the consistent fine particles needed for spray applications and, when heated, have a high viscosity.

The fluidized bed technique also applies thermoplastic resins and is generally used for thick-film coatings applications. The resins used in thermoplastic powder coatings are polyethylene, polypropylene, nylon, polyvinyl chloride, thermoplastic polyamides, and thermoplastic polyesters. Thermoplastic resins represent thick-film coatings starting from 300 µm. These films are flexible and extremely tough, resilient to mechanical and chemical stress, with electrical insulation, environmentally friendly properties, and BPA and near VOC free.

Based on the end-user industry, the global market is segmented by appliances/consumer goods, automotive, general industrial, furniture, architectural, and others. 

The appliances/consumer goods segment owns the highest market share and is estimated to exhibit a CAGR of 6.86% during the forecast period. The demand for powder coatings in appliance or consumer goods segments is increasing. The appliances industry accounts for one-third of all industrial powder-coated parts. Powder coatings are used in appliances such as blenders, mixers, microwaves, refrigerators, vending machines, washers, and dryers. Powder coatings are applied on home appliances such as microwaves and refrigerators, as they can handle many temperature ranges without wearing or flaking. In addition, appliances used in homes, businesses, or industries all experience ongoing stress. These coatings can provide stain, corrosion, and chemical resistance to ensure first-class performance.

Additionally, powder coatings are applied on vending machines, which are placed outside and have to bear the external elements. Thus, powder coatings prove incredibly useful in protecting vending machines from extreme environmental conditions. Powder coatings are widely applied on kitchen appliances as they are more economical, easier to coat, and deliver excellent durability and resistance to chemicals and detergents.

In the automotive industry, powder coatings offer a high-quality finish, with the availability of a range of chemistries such as polyesters, acrylics, super durables, urethanes, and many more. Powder coatings are used on various automotive parts, such as underbody/under the hood, wheels and rims, truck bumpers and lift gates, RV frames, and components. These powder coatings offer scratch and abrasion resistance, durability, weather ability, and aesthetics. In addition, automotive powder coatings are applied on the surfaces of vehicles. Exterior parts need protection from UV radiation, accidental scratches, and chemicals. Cars also need beautiful aesthetics, high gloss, and superior smoothness. Interiors need scratch resistance and must accommodate a multitude of hues, metallic effects, and textures.

Recent Developments

• April 2023- AkzoNobel introduced a superdurable powder coating, Interpon D, for architects and designers in the Indian market. This coating can give aluminum surfaces the gorgeous natural appearance and texture of stone without the hassle or expense of using the actual material.
• May 2023- PPG announced the closure of a EUR 13.5 million investment to improve its powder coatings manufacturing facility in Brazil, Indiana.