Protective Coatings Market

Market Overview

The global protective coatings market size was valued at USD 12.2 billion in 2021. It is expected to reach USD 16.7 billion by 2030, recording an estimated CAGR of 3.40% over the forecast period (2022–2030).

Construction, aerospace, oil and gas, industrial, marine, automotive, power generation, mining, and other end-use industries employ the protective coating extensively. The coating is utilized on various surfaces to protect them from the elements, which could compromise an item's function or integrity. The expansion of the construction industry has contributed significantly to the demand for protective coatings. Rising population, urbanization, and industrialization have increased the demand for infrastructure development and building worldwide, particularly in the Asia Pacific, Central and South America, and the Middle East.

Market Dynamics

Global Protective Coatings Market Drivers

• Booming Industrialization in Asia-Pacific

With more and more countries becoming newly industrialized, Asia-Pacific is the fastest developing region. This rapid growth in the industrial sector generates the need for energy infrastructure, which increases the demand for protective coatings in the region. The region's energy infrastructure, from pipelines to refineries, is saturated with new investments due to massive industrialization and increased demand for oil and gas, mixed with meager local supply. Due to ecological issues, China has a trend to switch from coal to gas as an energy source, which will raise the demand for gas pipelines and, in turn, the need for protective coatings. Greenfield offshore investments are also on the rise in Southeast Asia. These new projects will likely boost demand for protective coatings, particularly Polyolefin and fusion bond epoxy coatings.

• Growing Demand for Green Coatings

Green coatings are coating formulas that have been developed with the least amount of environmental effect feasible across their supply chain. Green coatings are aqueous and powder-based coatings that are environmentally friendly throughout their whole lifecycle. Green coatings have reduced fire danger during handling and storage and raw materials and emissions.

Green coatings result in high utilization, little waste, and a low applied cost, leading to long-term growth. Akzo Nobel has supplied green protective coatings for wind turbines at wind energy fields across the North Sea and China. Covestro has created two-component epoxy green coatings with carbon nanotubes (CNTs) to minimize viscosity and provide robust reinforcement.

These coatings lower the flow resistance between the ship's hull and the water, saving significant fuel. When CNTs are added to coating formulations, they improve abrasion resistance 100% compared to typical, solvent-borne epoxy systems. Coating chemistries and formulations are developing, and there will be more competition among manufacturers in the future to create better coating systems and rising market demand.

Global Protective Coatings Market Restraint

• Regulations Related to the VOC Emissions

Protective coatings emit toxic VOCs, which the industry is concerned about. Traditional petroleum-based products are continuously under scrutiny because of the increased efforts to reduce carbon footprints. As a result of these concerns, bio-based paints and coatings with excellent protection characteristics have emerged. The industry's focus has shifted to developing environmentally benign polymers that meet coating standards and outperform high VOC-containing paints and varnishes.

In Europe, stricter air pollution management requirements have fueled demand for coatings with low volatile chemicals. Polyurethane dispersion (PUD) and aqueous alkyds are two common VOC replacements that outperform polymers in terms of performance. For various reasons, bio-based resin technologies are widely favored over solvent-borne solutions. The fact that they have a low odor and contain very little VOC is one of the main reasons for their popularity.

With enough R&D, the industry should be able to push the development of bio-based eco-friendly paints and coatings that exceed the performance standards of petroleum-based materials. Several businesses have received commercial recognition for their efforts to re-formulate hazardous items. Others have lost significant market share due to their unwavering support for traditional, environmentally dangerous products. Organizations are projected to be significantly impacted by their commitment to lowering the environmental footprint of their existing and upcoming product mix as consumers grow more concerned about ecological effects and sustainability. The issues described above are expected to constrain demand for protective coatings in the foreseeable term.

Global Protective Coatings Market Opportunities

• Potential Replacement by Powder Coatings

To replace solvent-based coatings, powder coating is the most preferred option. These coatings are less expensive and less harmful to the environment than liquid painting. Powder coating applications necessitate a high curing temperature, which can be challenging to achieve with heat-sensitive materials such as plastic and wood. Many developers have been attempting to improve curing temperatures to alleviate these issues. Powder coatings can now be fixed at 120°C using new infrared and UV curing technologies, significantly lower than previous needs. As a result, this breakthrough expands the range of materials and businesses that can benefit from powder in the future.

Powder coatings are also environmentally benign, making them a good solution for many big coating firms looking to decrease their carbon impact. Since the powder does not require a solvent to be applied to a surface, this coating produces almost no volatile organic molecules. As a result of the causes mentioned above, powder coatings are projected to replace other traditional coatings in the coming years, thus creating a growth opportunity for protective coatings throughout the projection period.

Regional Analysis

Asia-Pacific to Witness Maximum Growth

In terms of regions, the global protective coatings market share is segmented into Asia-Pacific, North America, Europe, South America, and the Middle East and Africa. 

Asia-Pacific dominated the global protective coatings market in 2021, and it is estimated to reach a value of USD 8,825 million by 2030 at a CAGR of 4.3%. China is a hub for chemical processing in Asia-Pacific, accounting for a significant proportion of the chemicals generated globally. With the rising need for various chemicals globally, the demand for protective coating from this sector is projected to increase during the projected period. Furthermore, China is the largest producer of crude steel in the world. The prominent growth of steel production due to the growing demand from many sectors is estimated to drive the market studied during the forecast period.

North America is the second-largest region and is estimated to reach a value of USD 3,475 million by 2030 at a CAGR of 2.9%. Protective coatings have a significant demand from the United States construction sector compared to the other countries in North America owing to its larger market size and active investments in the development of the construction sector. Moreover, the mining industry in the country is recently found investing in research and innovation, where it has been developing an unknown mineral and its commercial application, which can provide prospects for growth in mining activities in the country in the coming years. More than 10% of the country's infrastructure projects funded through 2020 are dedicated to mining sector projects. Hence, such progressions are expected to drive the market in the years to come.

Europe is the third-largest region in the market. It is estimated to reach a value of USD 2,750 million by 2030 at a CAGR of 2.7%. Germany has the most significant chemical industry in Europe. Germany is a leading chemical producer and accounts for over 70% of Europe's chemical exports. The industry is expected to grow in the coming years, further boosting the demand for the market studied. The chemical industry registered around EUR 143.37 billion in 2020 compared to EUR 147.44 billion in 2018. The dominant players in the German chemicals industry are BASF, Bayer, Henkel, Evonik, Covestro, Merck, Lanxess, Freudenberg, Wacker, and Atlanta. With the increasing demand from the major end-user industries, the market studied is projected to grow during the forecast period.

Segmental Analysis

The global protective coatings market share is segmented by product type, technology, end-use industry, and region. 

By product type, the global protective coatings market is segmented into Epoxy, Polyurethane, Vinyl Ester, Polyester, and Others.

The Epoxy segment is the largest shareholder in the global protective coatings market. It is estimated to reach a value of USD 7,065 million by 2030 at a CAGR of 3.5%. The coatings derived from epoxy-based resins have restricted gloss retention. They are also be used as binders for coating applications to improve the durability of coating for floor and metal applications. Epoxy-based protective coatings offer protection against acids, solvents, alkalis, fuels, fatty acids, salt or sugar solutions, chemical cleaning agents, etc. Therefore, the need for epoxy-based Protective coatings is expected to increase during the forecast period due to the abovementioned factors.

Polyurethane coating is expected to be the fastest-growing segment over the forecast period, accounting for USD 4,620 million at a CAGR of 4%. Polyurethane-based protective coatings maintain resistivity and provide excellent performance against high levels of UV. It is also resistant to corrosive organic liquids, acids and alkalis, fuel, hydraulic oils, and solvents. Polyurethane-based chemical resistant coatings are often applied as the alternative to epoxy-based coating, where more resistance to changing temperatures is required. Moreover, the high price growth in the epoxy resins and, in turn, epoxy-based protective coatings are fueling the growth of polyurethane-based coatings in some price-sensitive applications. 

Vinyl Esters account for the third-largest share in the market. It is estimated to reach a value of USD 1,395 million by 2030 at a CAGR of 2.8%. Vinyl ester-based coatings generally have thermal stability, durability, and high corrosion resistance. These properties make vinyl ester resins extremely useful in various applications that require resistance to aggressive chemicals and elevated temperatures. 

By technology, the global protective coatings market is segmented into Water-Borne, Solvent-Borne, Powder, and Others.

Solvent-Borne holds the most dominant position in the global protective coatings market. It is estimated to reach a value of USD 7,085 million by 2030 at a CAGR of 3%. During the curing phase, solvent-borne coatings are less susceptible to ecological conditions, like temperature and humidity, than water-based coatings. This is a significant advantage because solvent-based coatings have been preferred in the protective coatings segment.

Water-Borne is expected to be the fastest-growing technology, accounting for USD 5,225 million by 2030 at a CAGR of 4.5%. Even though water coatings hold most of the share in architectural applications, their proportion is still low in industrial maintenance and protective coatings. However, the addition of inorganic fillers to the system is likely to improve the weather resistance of the coatings further, thus, overcoming one of the significant hurdles for the water-borne protective coatings.

Powder coating acquires the third-largest position in the market. It is estimated to reach a value of USD 3,160 million by 2030 at a CAGR of 3.5%. Powder coating technology is a dry finishing process used to dry paint any object. In this method, finely ground particles of pigment and resin are charged electrostatically and then sprayed on electrically grounded parts. Growing assistance for the use of powder coatings, compared to traditional liquid paints, by regulatory firms, like EPA and REACH, on account of negligible VOC emissions, is expected to be a key driver for market growth.

By end-use industry, the global protective coatings market is segmented into Oil and Gas, Mining, Power, Infrastructure, and Others.

The Infrastructure industry holds the most commanding position in the global protective coatings market. It is estimated to reach a value of USD 6,120 million by 2030 at a CAGR of 3.8%. Countries such as India, Germany, the United States, and China, among others, are witnessing increasing numbers of projects and investments in the infrastructure sector. Hence, seeing the consumption of protective coatings. As the infrastructure projects are rapidly growing globally, the demand for protecting coatings during the forecast period.

The Oil and Gas industry is the second-largest shareholder. It is estimated to reach a value of USD 5,015 million by 2030 at a CAGR of 3.5%. The oil and gas (including chemicals) industry is one of the major end-users of protective coatings. The gas consumption in China is predicted to rise to 340 BCM by 2022 and surge to 600 BCM by 2040. The growing investment by the private sector is also expected to improve the oil and gas industry, driving the country's chemical-resistant coatings market. Therefore, these increasing oil and gas sector activities are expected to boost the demand for protective coatings from the oil and gas sector in the coming years.

The Power segment holds the third-largest market share. It is estimated to reach a value of USD 2,565 million by 2030 at a CAGR of 3.4%. Protective coatings are also extensively used in the power sector for mainly corrosion and heat resistance. Power generation can take any form from wind, hydroelectric, and nuclear to fossil fuel facilities, each of which presents its restrictions for protective coatings methods. Furthermore, Offshore wind has shown positive growth in 2020, especially in Europe and North American region, which has boosted the demand for offshore corrosion protection coatings.

Recent Developments

• April 2022 - The Sherwin-Williams Company declared that it had completed its acquisition of the European industrial coatings business of Sika AG. The acquired firm will become part of the Company's Performance Coatings Group operating segment.
• April 2022 - PPG introduced PPG ENVIROCRON™ P8 Series Anti-Graffiti coating at the Exhibition Centre in Karlsruhe, Germany. The innovative product is a hybrid powder coating that stands up to the harshest cleaners and chemicals and is developed to leave no trace of surface damage or graffiti particles. Since it is produced without block agents, PPG Envirocron P8 Series Anti-Graffiti coating has no carcinogenic, mutagenic, or toxic-to-reproduction (CMR) materials commonly found in other products.