The industrial coatings market size is projected to reach around $209.40 billion by 2032, up from $145.15 billion in 2022, growing at a CAGR of 3.9 per cent from 2023 to 2032, a new report by Precedence Research predicted.
Rising demand for anti-corrosive coatings has boost the growth of the global industrial coatings market which was affected adversely during the outbreak of Covid-19 due to reduced demand. However, the rising number of automotive and infrastructure industries across the globe, along with increased demand for durable equipment, is considered to boost the growth of the industrial coatings market during the forecast period.
According to the report, by technology, the solvent borne segment has held highest revenue share of over 36.41 per cent in 2022. By product, acrylic segment was highest revenue holder in 2022 and held 34.1 per cent. By end-users, general industrial segment has generated revenue share of 40.49 per cent in 2022.
The key players in the sector are Beckers Group, Nippon Paint Holdings, Henkel, BASF, Jotun, Axalta Coating Systems, The Sherwin-Williams Company, Akzo Nobel, PPG Industries, Hempel.
Asia Pacific has accounted revenue of over 44.6 per cent in 2022.
Asia Pacific is the most dynamic region for the industrial coatings market, and China is one of the largest distributors of raw materials for industrial coatings. Favourable trends such as rising industrialisation, construction activities and urbanisation in developing countries have surged the demand for industrial coatings. Moreover, new product launches and product portfolio expansion by prominent vital players are boosting the growth of the industrial coatings market in Asia Pacific. For instance, in January 2023, Arkema announced doubling its powder coating capacity in a Mumbai-based plant in India. This expansion reinforces the company's position in the global industrial coatings market. Companies such as Nippon Paint Holdings Co Ltd., Kansai Paint Co Ltd. and Berger Paints Ltd are headquartered in Asia Pacific and contribute to the market's growth.
North America and Europe are expected to show a significant increase in the industrial coatings market during the forecast period of 2023-2032. With rising environmental concerns, water-borne coatings are in demand in the North American industrial coatings market. The US is the largest motor vehicle market, and the automotive industry is expected to boost the demand for durable and anti-corrosive industrial coatings. The presence of major key players such as Akzo Nobel, Axalta Coatings Systems, PPG Industries, The Sherwin-Williams Company, RPM International, The Chemours Company and Hempel is contributing to the growth of the market in North America. The United States and Canada are considered significant contributors to the revenue of the industrial coatings market in North America.
The sudden outbreak of Covid-19 negatively impacted the European industrial coatings market, the report notes. However, the market holds the potential to witness a surge in demand for industrial coatings owing to rising construction activities post-pandemic. In recent years, emerging economies in European countries have boosted the demand for premium coatings and paints. Due to the rising population and presence of most industries, Germany is expected to dominate the European industrial coatings market. Continuous market development, including new product launches, mergers and partnerships for business expansion, are considered major driving factors for the regional industrial coatings market.
Rising demand for durable coatings from automotive, packaging and oil & gas industries in Gulf countries of the Middle East will boost the growth of the industrial coatings market in the region. Saudi Arabia is the most significant contributor to the development of the industrial coatings market and is expected to maintain the growth with rising demand for coatings from the maritime industry. The emerging economy has surged the construction activities in the region, and this factor propels the development of the industrial coatings market in the Middle East. Companies such as Al Jazeera Paint, Jotun Paint, Middle East Paint Company and Henkel Jebel Ali FZCO are contributing to the growth of the industrial coatings market in the region. The market in Africa is expected to show a significant increase at a pace during the forecast period.
Rising demand for anti-corrosive coatings
Rising investments in the construction industry in developing countries are considered to boost the demand for anti-corrosive coatings, which subsequently encourages the growth of the industrial coatings market.
Industrial coatings are applied on various surfaces that offer endless benefits, including enhanced/prolonged life and quality to the equipment, improved resistance, and protection against corrosion and other potential hazards. Various techniques are applied for the industrial coating process, such as spraying, brushing, dip coating, roll coating, spin coating, flow coating, and PVD coating.
The primary concern for industrial coating is extreme weather conditions. To cope with this obstacle, many companies prefer the application of acrylic coating as acrylic carries potential weather resistance properties.
However, the rising number of automotive and infrastructure industries across the globe, along with increased demand for durable equipment, is considered to boost the growth of the industrial coatings market during the forecast period.
Anti-corrosive coatings offer an additional protective layer against corrosion and provide extra life to the product and are highly preferred for the preservation of the product and equipment of construction.
The rising demand for anti-corrosive coatings is highly attributed to increasing industrialisation. The rising demand for anti-corrosive coatings from the marine industry is considered a major driving factor for the growth of the industrial coatings market. The maritime sector utilises anti-corrosive coatings or paints to protect ships from damage caused by salty water. For instance, in July 2022, Japan-based Nippon Paint Holdings Co Ltd. launched a new anti-corrosive coating primer for its E-marine range of paints.
Effects of adverse environmental conditions
However, industrial coatings offer additional layers of protection to the material, and the effects of adverse environmental conditions on the coating are likely to hamper the growth of the global industrial coatings market. Industrial coatings tend to show a reaction if exposed to humidity or extreme temperature. Changed weather conditions, such as cloud fronts or storms, are likely to impact the overall lifespan of the coating.
Other factors, such as extreme dust, direct sunlight and heavy rain, affect the quality of the layer. Thus, effects caused by overall environmental conditions are seen as restraining factors for market growth. Furthermore, improper storage of coating packages and ignored maintenance hinder the development of the market. However, proper selection of coatings, considering environmental elements and paints, followed by routine maintenance, can cope with this restraint.
Development of eco-friendly industrial coatings
Industrial coatings release volatile organic compounds (VOCs) during the drying process. VOCs are considered a harmful element to the environment. After reacting with oxygen, VOCs form a hazardous component known as smog. Considering the enormous adverse effects caused by the emission of VOCs, almost every country has adopted federal rules to limit the emission of VOC. However, the advancement in the industrial coatings market is driving the demand for environmentally friendly ones. The development of UV-curable, high solids and powdered eco-friendly coatings will open lucrative opportunities for manufacturers and developers. The product will also aid the significant environmental concern. For instance, in January 2023, Eastman company received prestigious Green Seal verification for continuing its commitment to developing eco-friendly paints, coatings and sealer sets that limit VOC emission.
Difficulties in meeting regulatory policies
The industrial coatings market faces multiple challenges in meeting legal and regulatory requirements. Difficulties such as different local stringent regulations and product verification processes fail many coating products. Small-scale industries are more prone to be affected by this obstacle. According to the policies, products that fail to receive approvals are not allowed to participate in the market, and this causes economic loss for companies. Thus, difficulties in meeting regulatory policies are considered a challenge for the growth of the industrial coatings market.
In January 2023, India-based leading paints and coatings company Berger Paints Ltd announced that the company plans to open a new manufacturing plant in Orrisa. The company is also ready to gear up a fully automated paint manufacturing plant in Lucknow, in the UP state.
In January 2023, an ASRC industrial company, FD Thomas announced the acquisition of California-based Redwood Painting Company. Redwood is involved in the application of protective coating systems for industrial clients. The acquisition aims to provide a business expansion opportunity for F.D. Thomas.