Epoxy Coatings Market - Forecast(2024 - 2030)

Epoxy Coatings Market Overview

Epoxy Coatings market size is forecast to reach US$30.5 billion by 2026, after growing at a CAGR of 5.2% during 2021-2026. Properties of epoxy coatings are versatile owing to which it is increasingly being used in various end-use industries. Globally, with the rising building and construction industry, the demand for commercial epoxy coatings in industrial flooring applications is also estimated to rise. Since these coatings provide extra-ordinary resistance to heat, corrosive chemicals, and UV light, as compared to polyurethane floor coating it is widely being preferred by the industrial finishers as epoxy surface coatings. Epoxy coatings provide excellent dimensional stability, extreme toughness, and adhesion to metals, fibers, glass, and several other material surfaces. The opportunity for epoxy coatings in the future lies with its introduction as epoxies with minimal or no VOC emissions. Such outstanding properties of epoxy coatings are predicted to fuel the epoxy coatings industry during the forecast period.

COVID-19 Impact

The COVID-19 outbreak widely affected the building and construction, healthcare, and transportation industries over the year 2020. Owing to the nationwide lockdown, construction projects have faced a delay and stagnation in this tuff time of the pandemic. The epoxy coatings market has witnessed many challenges due to COVID-19 by impacting construction, transportation, and general industrial sectors. Economies of each sector are affected due to the nationwide lockdown and have even resulted in stagnation in activities across the industries that uses epoxy coatings. However, once the building and construction and transportation activities will get back on track and start functioning with full capacity by 2021, the market for epoxy coatings is estimated to expand.

Report Coverage

The report: “Epoxy Coatings Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the epoxy coatings market.

Key Takeaways

• Asia-Pacific region dominates the epoxy coatings market owing to the rising growth and increasing investments in the construction industry. For instance, according to the Department for Promotion of Industry and Internal Trade (DPIIT), till December 2020, FDI in the construction industry stood at US$ 23.99 billion.
• The rising adoption of powder-based epoxy coating technology due to its low pollution and non-volatile organic compound emission properties is estimated to drive market growth in the upcoming years.
• The increasing demand for water-borne coatings in various industries with properties such as high mechanical strength and toughness with electrical and thermal properties will drive the growth of the epoxy coatings market in the forecast period. 
• Increasing difficulties in the application process of the epoxy floor coatings is anticipated to create challenges for the growth of the epoxy coatings market in the projected period.

Figure: Asia-Pacific Epoxy Coatings Market Revenue, 2020-2026 (US$ Billion)

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Epoxy Coatings Market Segment Analysis – By Technology

The powder-based segment held the largest share in the epoxy coatings market in 2020. Powder-based epoxy coatings offer superior performance and are also economical for applications that require high abrasion resistance and hardness. Also, owing to the high adaptability they are used in various applications. A controlled high temperature is even required for curing powder-based coatings. Furthermore, due to the non-volatile organic compound emission properties of powder-based epoxy coatings, this segment is predicted to continue its dominance and is also likely to drive the epoxy coatings market in the forecast period.

Epoxy Coatings Market Segment Analysis – By Substrate

Concrete substrate held the largest share in the epoxy coatings market in 2020. Epoxy floor coatings are used over concrete substrates due to their impact resistance, hardness, and durable properties. An epoxy floor coatings adhere to the concrete floors better than any conventional enamel, oil-based, or water paint. Industrial facilities, logistic centers, warehouses, and other areas coming under applications of heavy-duty make use of commercial epoxy coatings due to their ideal properties. Since the building and construction activities are booming rapidly with industrial flooring as the major application in it, the demand for epoxy coating on the concrete substrate is also set to rise. Thus, increased usage of epoxy coatings on the concrete substrate will drive the growth of the market in the forecast period.

Epoxy Coatings Market Segment Analysis – By Application

The flooring segment held the largest share in the epoxy coatings market in 2020. Epoxy coatings are majorly used to provide extreme toughness, quick-drying, and abrasion resistance to the floors. In industrial or commercial sectors, for flooring applications, epoxy coatings can be used as floor paints over concrete floors such as in manufacturing plants, airplane hangars, hospitals, commercial and retail stores, showrooms, garages, and others. For instance, Larsen & Toubro, in India, in 2019, won contracts for building hospitals, commercial complexes, and manufacturing capacity. The orders range between 2,500 crores (US$ 336.6 million) to 5000 crores (US$ 673.2 million), falling under the large category. Thus, such investments will drive the demand for flooring applications and would raise the growth of the market over the forecast period.

Epoxy Coatings Market Segment Analysis – By End-Use Industry

Building and construction industry held the largest share in the epoxy coatings market in 2020 and is estimated to grow at a CAGR of 5.45% during 2021-2026. In the building and construction industry epoxy coatings find usage in numerous applications such as in industrial flooring, self-leveling floors, decks, architectural surfaces, and others. In recent years, with the rising building and construction activities, the demand for epoxy coatings is also set to rise. The building and construction activities are increasing rapidly in emerging economies such as India, United States, China, and other countries. For instance, according to the World Bank, in 2020, the building and construction industry reached about US$ 11.9 trillion, with an increase of about 4.2% from 2019. Furthermore, according to Invest India, by 2025, the building and construction industry is expected to reach US$ 1.4 Tn. Thus, with the growth of the construction sector, the market for epoxy coatings will further rise over the forecast period.

Epoxy Coatings Market Segment Analysis – By Geography

Asia-Pacific region dominated the epoxy coatings market with a share of 45.6% in the year 2020. The Asia Pacific region is predicted to continue its dominance in the market during the forecast period due to the increasing requirement for epoxy coatings in developing countries such as China, Japan, India, and South Korea. China is expected to continue its dominance in the epoxy coatings market during the forecast period. This is due to the growth of the transportation and construction industries in the country. For instance, according to International Trade Administration, in China, construction industry revenue was reported to increase from US$ 968 billion in 2019 to US$ 1.1 trillion in 2021. India and Taiwan are also predicted to grow their epoxy coatings market during the forecast period, with increased investments by the government in construction, transportation, and other end-use industry. Epoxy coatings are used in automobiles for preventing corrosion and rust on the body parts and other components of automobiles. According to Invest India, in 2020, the transportation industry was worth US$ 806.63 billion and is further expected to grow at a CAGR of 5.9%. Thus, the rising usage of epoxy coatings in various end-use industries will drive the market growth in the forecast period.

Epoxy Coatings Market Drivers

Increasing Demand for Water-borne Coatings

The increasing demand for water-borne coatings is the key driver for the epoxy coatings market, especially from developing countries. High mechanical strength and toughness are the major properties exhibited by the water-borne epoxy coatings, additionally with electrical and thermal properties. The high cost of epoxy coatings can be foreshadowed by the excellent properties and long life of the water-borne coatings. In addition, epoxy coatings technology is projected to be majorly adopted due to the low pollution caused by them, under the government strict regulations, especially to control the air pollution. In various regions, under the paints and coatings segment, the major share is held by the water-borne epoxy coatings. Thus, the excessive use of water-borne coatings in building and construction, transportation, and other end-use industries will drive the growth of the epoxy coatings market in the forecast period.

Increasing Demand for Epoxy Coatings in Transportation Industry

Epoxy coatings in the transportation industry provide great advantages in preventing rust and corrosion on automotive body parts. It involves applying a primer to metal parts that are anti-corrosive and are made up of a thin epoxy-based coating. Furthermore, with formulations availability, concrete, and steel marine structures are protected by epoxy coatings, to adhere to wet substrates, such as coating water tanks, outfall structures, fish ladders, and dams. Automotive applied in water suspension uses epoxy coatings as a primer, and as two-part liquid marine coatings. In recent years the rising production of automotive has further raised the demand for epoxy coating. For instance, according to Organisation Internationale des Constructeurs d'Automobiles (OICA), in Austria, motor vehicle production increased from 1,64,900 units in 2018 to 1,79,400 units in the year 2019. Similarly, in Vietnam, the production of motor vehicles increased from 2,37,000 units in 2018 to 2,50,000 units in the year 2019. With the increasing production of automobiles, it is estimated that in the upcoming years the requirement for epoxy coatings in the transportation industry will rise. Thus, which will boost the growth of the market.

Epoxy Coatings Market Challenges

The difficult application process of epoxy floor coatings will hamper the market growth

The difficult application process of the epoxy floor coatings is its major disadvantage. Epoxy flooring cannot be applied to contaminated, unprepared, or damaged surfaces, unlike polyurethane floor coating. The floor must be clean without any grease, solvent, or oils over it, to ensure the long life of the coating. Repairing of the damaged surfaces is often required, and the concrete is needed to be ground to profile the surface, also seven days are required by epoxy coatings, approximately, to cure. Therefore, in comparison to other coatings, epoxy flooring has a slower turnover time. Thus, due to difficulty in the application process, the growth of the epoxy coatings market will be hindered in the forecast period.

Epoxy Coatings Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the epoxy coatings market. Major players in the epoxy coatings market are BASF, Axalta Coating Systems, Berger Paints India Limited, Kansai Paint Company Limited, AkzoNobel N.V., PPG Industries Inc., Tikkurila Oyj, RPM International Inc., Nippon Paint Company Limited, The Sherwin Williams Company, and The Valspar Corporation. 

Acquisitions/Technology Launches

In April 2020, Chugoku launched solvent-free epoxy coating for water ballast tanks. It also meets new Korean regulations under the Atmospheric Environment Conservation Act for the management of volatile organic compounds (VOCs).

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