The need for efficient processes and long-lasting along with eco-friendly coatings and the rising demand from APAC region is expected to drive market growth during the forecast period 2019-2025. Industrial Coatings Market size is forecast to reach $100.51 billion by 2025, after growing at a CAGR of 4.80% during 2020-2025.
Industrial coating is widely used in various end users, owing to the properties such as chemical resistance, water resistance, durability, impact resistance, abrasion resistance, and UV light resistance. The demand for industrial coatings is rising in various applications such as concrete, steel, board, wall, roofs, and other industrial materials. Also, increasing demand for environmentally friendly coatings is driving demand for water and powder-based industrial coatings due to growing environmental issues and strict VOC norms. Hence, the following factors overall increase the growth of the Industrial Coatings Industry over the forecast period.
The production and demand in top countries for Industrial Coatings is expected to boom over the next five years. In terms of revenue and volume acrylic resin is the dominant resin type, accounting for the largest share in industrial coatings market in 2019. The main benefits of acrylic industrial coatings are the ease of use, physical properties, and their low costs. Also, the acrylic based industrial coatings have excellent physical properties, which are attained very quickly because of their rapid drying nature. They are fungus resistant, provide longer than average pot life, and have excellent moisture protection. Roof coatings are growing in popularity and a wide range of homeowners are turning to acrylic coating as it is environmental friendly. Their durability, coupled with their ability to decrease the monthly energy bill, is two of the main advantages that an acrylic coating has to provide.
According to International Trade Centre (ITC), the world export of acrylic resins was worth USD 13,490,819 thousand in 2016, and USD 15,291,934 thousand in 2017, which further increased to USD 17,152,076 thousand in 2018. Also, according to the European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. Also, the European Construction 2020 Action Plan aimed at stimulating favorable investment conditions for the building and construction industry. Thus, such investments and initiatives in the construction industry by the government are flourishing the construction industry is various regions. And with the increasing building and construction sector, the demand for acrylic industrial coatings will also substantially increase, which will boost the acrylic based industrial coatings market during the forecast period.
Rest of APAC dominated the Industrial Coatings Market with a share of 37% in 2019 and is projected to dominate the market during the forecast period (2020-2025). Rest of Asia-Pacific countries includes China, Japan, South Korea, Australia & New Zealand, Taiwan and Others. The Rest of APAC region is a huge manufacturing hub that has drawn foreign investment and booming industrial sectors mainly because of low-cost labor and easily accessible raw materials. Demand for industrial coatings is rising because of the region’s growing chemical, aerospace, transport, marine, and automotive industries. China is the world’s largest economy based on purchasing power parity with a GDP of $23.2 trillion in 2017. Manufactured products account for about 94.3% of China’s $2.09 trillion total exports which include automobiles, ships, locomotives, textiles, fertilizers, and electronics. Also, the manufacturing industry in Japan is the most diversified with various advanced industries which are exceedingly successful. Japan has managed to become a leader in technological development in a wide range of fields of manufacturing which include semiconductors, consumer electronics, optical fibres, automobile manufacturing, optoelectronics, copy machines, facsimile, and optical media among others. Thus, growing development in various end use industries in this region will further drive the market for Industrial Coatings in the forecast period.
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Industrial Coatings Market Growth Driver
- Growing trends of automotive refinish coatings
The advent of autonomous and electric cars is making waves in the auto refinish world. As OEMs increasingly adopt the use of ADAS (advanced driver-assistance systems), body shops are consequently seeing an increase in the complexity and cost of repairs with the significant effort required to maintain and calibrate these systems in line with OEM specifications. Additionally, the drive to reduce overall CO2 emission of vehicles through weight reduction, and the use in body sensors is resulting in the need for new repair coatings that can cope with light-weight multi-substrate vehicles while ensuring radar and LIDAR safety systems are not impacted. Also, auto refinish manufacturers are seeing a strong move into cosmetic repair coming from allied automotive industries, rather than from traditional collision repair streams, where these activities can be aligned along with glass replacement, mechanical service, or specifically focused on serving the growing trend in automotive mobility services. The growing developments and the rising trends of automotive refinish tend to increase the market growth of industrial coatings.
- Tremendous advancements in the shipbuilding industry across APAC
Chinese Association of Shipbuilding Industry (CASI), Asia Pacific, led by China, South Korea and Japan, has made tremendous advancements in the shipbuilding industry. China emerged as the global leader, the research states, with new orders accounting for more than 33 percent of the global shipbuilding industry. Asia Pacific will have a significant share of the overall industry owing to large-scale shipbuilding activities in China, Japan, South Korea, Philippines and Taiwan. In Europe, for example, major shipping countries such as Greece, Germany, Norway (the maritime hubs) continue to have the highest demand for marine coatings. APAC (specifically Japan, China, and Singapore) also has a high demand. The growing demand of import and export via waterways tends to increase the demand of marine coatings around the globe, which leads the growth of industrial coatings globally over the forecast period.
The Major Players in this Market Include
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Industrial Coatings Market. In 2019, the market of Industrial Coatings has been consolidated by the top ten seven players accounting for 18% of the share. Major players in the Industrial Coatings Market are PPG Industries, Inc., Akzonobel, The Sherwin-Williams Company, Axalta Coating Systems, LLC, BASF, Nippon Paint Holdings Co., Ltd., Kansai Paint Co., Ltd., Jotun, Hemple A/S, and KCC Corporation among others.
Furthermore, the impact of COVID-19 will have a ripple effect on the industrial coatings market, as the industries it serves continue to be negatively impacted. For industrial coatings, customer shutdowns, record declines in consumer spending, and lack of capital expenditures are trends all having a negative impact on the markets. Within the broad scope of industrial segments, markets related to automotive and transportation have been notably impacted. At this critical juncture, various manufacturers is focused on what be the ‘new normal’ will looks like. Also, owning to the COVID-19 palindrome, the industrial coating manufacturers, who focus on core industrial sectors have experienced huge loss due to less in consumption, tends to the reduction of the market growth.
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About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.