The global smart coating market size was USD 885.5 million in 2015. Increasing demand for the product from various end-user industries including military, aerospace, and healthcare is expected to drive growth over the forecast period. As opposed to regular coating, these products are expected to witness higher penetration across various end-user verticals, owing to key properties such as anti-corrosive, self-healing, and self-assembling. These properties enable the coating to respond to environmental changes, including temperature, pressure, pH, thus promoting its use in the aerospace industries. Rapid demand growth in the aerospace, military, healthcare, and textile industries is estimated to propel the overall growth during the forecast period.
The market is highly competitive owing to the presence of a large number of manufacturers and suppliers, globally. The market is expected to witness robust growth owing to industry players adopting strategies such as mergers & acquisitions (M&A) to strengthen and sustain their position in the market. However, high raw material production costs coupled with complexity in production process is likely to hinder growth over the projected period.
The key challenges faced by the industry include environmental regulations and high raw materials costs. In addition, the increasing demand for raw materials such as metal oxides from other industries such as cosmetics, personal care is likely to impact raw material availability over the next eight years. Furthermore, growing environmental concerns over the use of nanomaterials coupled with the development of eco-friendly coating is expected to be a major market restraint over the forecast period. The anti-corrosion coating platform recently developed by AnCatt is a major example of environmental-friendly coating products. This technology has been observed to be cost-effective, with self-healing and lightweight properties, compared to other products in the segment.
U.S. smart coating market revenue, by end user, 2013 - 2024 (USD Million)
Multi-layer smart coating accounted for the largest share of over 50% in 2015. The product is widely used in automotive sector, owing to properties including corrosion protection and self-healing. Growing automotive sector in Asia Pacific coupled with rising disposable income in the region is expected to drive market growth over the forecast period. In addition, the extensive research and development and technological advancements in these sectors is expected to act as a key driver for the market growth over the next eight years.
The smart coating market has also been segmented on the basis of end user into automotive, aerospace, construction, consumer electronics, military, healthcare, and others. The automotive segment was valued at over USD 130 million in 2015, primarily driven by the growth of the automotive industry in the Asia Pacific region, where increased income levels have driven the demand for advanced automotive systems. Self-stratifying coating are gaining preference in the automobile industry due to resource and cost-related challenges involved in the application of second coating on automobile parts.
Increasing use of the compound in the consumer electronics segment owing to properties including self-healing and self-cleaning. Furthermore, the robust growth exhibited by the smartphone industry coupled with above average growth from other hand-held devices is expected to have a positive impact on market growth over the forecast period.
Asia Pacific is estimated to witness the highest growth during the forecast period, growing at a CAGR of over 25% from 2016 to 2024. High rate of infrastructure development; construction; high demand for consumer electronics; and rising demand from military for coating with artificial intelligence and anti-corrosive properties; among others. Furthermore, rising infrastructure spending in the region coupled with robust manufacturing sector growth is expected to be a key driver for the industry. Supportive government policies promoting infrastructure development primarily in India, Indonesia, Vietnam and Philippines are expected to act as key drivers for industry growth. Europe dominated the smart coating market in 2015; however, the growth of the European market is expected to slow down owing to stringent environmental regulations, maturity of several end user industries, and so on.
The industry in North America is expected to witness higher growth than Europe due to the increasing technological advancements in the field of nanomaterials, combined with new product developments compliant with the environmental regulations in the region.
The key players in the industry include Bayer AG, DuPont, 3M Company, PPG Industries, BASF SE, The Dow Chemical Co., Dow Corning Corporation, and so on. These players are focusing on mergers & acquisitions as the key strategy for sustaining and strengthening their positions in the global market, amidst the intense competition from manufacturers and suppliers in the Asia Pacific region.
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