Industrial Coatings Market Size, Share & Trends Analysis Report By Product (Acrylic, Alkyd, Polyurethane, Epoxy, Polyester), By Technology, By End Use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global industrial coatings market size was valued at USD 83.16 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.4% from 2021 to 2028. Rising demand from the general industry is significantly driving the market. Industrial coating is widely used in various end-use sectors, including automotive and vehicle refinish, electronics, aerospace, oil and gas, mining, marine, and power generation.  Automotive and refinish coatings are among the major industrial coatings. Growing usage of refinish coatings for automotive maintenance, repair, and aftermarket painting on account of visual appearance, surface protection, and corrosion resistance is expected to propel the demand for industrial coatings. Moreover, the growing need for customized designs and paints in vehicles is likely to support the market growth.

Increasing awareness regarding the protection of vehicle paints by healing scratches and damages on vehicle surfaces has surged the market growth. Moreover, expanding consumer base in Asia Pacific and Middle Eastern countries on account of rising disposable income is expected to support the growth of industrial coatings in automotive and vehicle refinish end-use industries over the forecast period.

Increasing demand for industrial coatings from packaging applications such as caps and closures and cans is projected to positively influence the market growth in the coming years. Properties such as product resistance, flexibility, adhesion, and excellent CO2 retention properties to preserve freshness are increasing the demand for industrial coatings in the packaging industry. Furthermore, increasing construction activities are driving the demand for industrial coatings in the wood industry.

However, environmental and health hazards associated with volatile organic compounds are majorly affecting market growth. As VOCs highly contribute to the formation of ozone, various environmental and safety regulations such as The Occupational Safety and Health Administration (OSHA), The Environmental Protection Agency (EPA), and California Air Resource Board (CARB) are being implemented by governments globally to limit the harmful effects of these compounds on human health and environment.

Product Insights

The acrylic segment led the market and accounted for a revenue share of more than 35.0% in 2020. Acrylic industrial coating is widely used in general industries, automotive and auto refinish, aerospace, and other end-use industries owing to its properties such as corrosion resistance, good adhesion, barrier and inhibiting ability, and fast-drying. New construction and refurbishment, machinery equipment, intermodal containers, and automobiles are some of the applications of acrylic industrial coatings.

Epoxy industrial coatings are widely used in construction, shipbuilding, and wastewater treatment plants owing to their excellent properties such as resistance to stains, cracking, extreme temperatures, and blistering. The product is used in home appliances such as refrigerators and washing machines to protect them from food acids, corrosive gases, and humidity, extend the service life, and improve the aesthetics of the appliances. The demand for epoxy industrial coatings is attributed to their low VOC content and excellent anti-corrosion performance, along with the growing requirement from the aerospace and automotive industries.

Technology Insights

The solvent borne segment led the market and accounted for a revenue share of more than 35.0% in 2020. Solvent-borne industrial coatings are widely used in the general industry, oil and gas, marine, automotive, and other sectors. Properties such as lower drying times and better functionality in open and humid conditions are expected to fuel the segment growth over the forecast period. Solvent-borne coatings are expected to witness growth in demand in emerging countries such as China, India, and Brazil owing to the growth of the industrial sector. However, stringent regulations regarding VOC emissions, particularly in North America and Europe, are expected to challenge the segment growth.

Water-based industrial coatings dry at a faster rate compared to solvent-based coatings due to the rapid evaporation of water from the coating layer, which results in faster drying without surface skin formation. Water-based industrial coatings are primarily used where solvent-based coatings are expected to react with the substrate. In addition, they are flame-resistant and have low toxicity owing to their low VOC content and low hazardous air pollutant emissions. The use of water-based coatings is projected to increase due to the stringent legislation regarding the solvents present in coatings in the U.S. and other mature European countries.

End-use Insights

The general industrial segment led the market and accounted for a revenue share of more than 40.0% in 2020. The general industry segment includes the consumption of industrial coatings in coil, packaging, construction, agriculture, and wood applications. Increasing demand for coil coatings from metal roofing, wall panel, HVAC equipment, automotive, appliances, and other applications owing to properties such as excellent corrosion protection, long-lasting color, and scratch resistance is anticipated to positively influence the overall market growth over the forecast period.

Industrial coating is widely used in various wood applications such as joinery, kitchen cabinets, furniture, millwork, and musical instruments. It is used in the protection and refinement of wood or wood-made structures. The coating helps increase the product life and enhance the visual cues of the wooden products. Increasing disposable income of consumers and improvement in the standard of living in developing economies such as India and China are the key factors fueling the demand for modern furniture, which, in turn, is expected to drive the demand for industrial coatings in the wood industry.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of over 45.0% in 2020. Increasing industrialization and growing product demand from the automotive and vehicle refinish sector in countries such as India, Japan, and South Korea are expected to drive the market over the forecast period. Factors such as the easy availability of raw materials and less stringent laws regarding VOC emissions in Asia Pacific compared to North America and Europe are expected to create large-scale opportunities for the use of industrial coatings in various end-use sectors, such as the general industry, automotive and vehicle refinish, and marine.

Low labor cost in the emerging nations of Asia Pacific has attracted many foreign investors to set up their manufacturing facilities in the region. Thus, the growing number of manufacturing facilities is boosting construction activities in the region, which, in turn, is anticipated to propel the demand for industrial coatings over the forecast period. However, the outbreak of COVID-19 negatively impacted the demand for industrial coatings in various applications including general industry, automotive, and electronics owing to the stalled manufacturing activities, restriction in supply and transportation, and economic slowdown across the globe in 2020. Moreover, the recommencing industrial operation is projected to positively influence the demand for industrial coatings in the coming years.

Key Companies & Market Share Insights

The market is fragmented with the presence of various key players, along with some small and medium global and regional players across the world. The global players face intense competition from each other as well as from regional players, who have well-established supply chain networks and are well aware of the regulations and suppliers in the market.

Major players are involved in mergers & acquisitions, expansion of their manufacturing facilities, investing in research & development facilities, and new product development. These initiatives assist them to cater to the increasing global demand, ensure competitive effectiveness, enhance sales and operations planning, develop innovative products and technologies, and expand customer base. For instance, in November 2019, Akzo Nobel N.V. acquired Mapaero, a French aerospace coatings manufacturer, to strengthen its global position in aerospace coatings. Similarly, in February 2020, the company acquired Industria ChimicaReggiana (ICR) S.p.A., a manufacturer of paints and coatings for automotive refinish and light industrial coatings industries. Some prominent players in the global industrial coatings market include:

• PPG Industries, Inc.

• Akzo Nobel N.V.

• The Sherwin-Williams Company

• Axalta Coating Systems, LLC

• Jotun

• BASF SE

• Henkel AG & Company, KGaA

• Nippon Paint Holdings Co., Ltd.

• Hempel A/S

• Beckers Group

Industrial Coatings Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global industrial coatings market report on the basis of product, technology, end use, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Acrylic

  • Alkyd

  • Polyurethane

  • Epoxy

  • Polyester

  • Others

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Solvent Borne

  • Water Borne

  • Powder Based

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • General Industrial

  • Marine

  • Automotive & Vehicle Refinish

  • Electronics

  • Aerospace

  • Oil & Gas

  • Mining

  • Power Generation

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • ASEAN

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates (UAE)