Powder Coating Market Size, Share & Trends Analysis Report By Resin (Epoxy, Polyester, Acrylic, Polyurethane), By Application (Consumer Goods, Automotive), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global powder coating market size was valued at USD 13.60 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2023 to 2030. The emerging economies of Asia Pacific and MEA regions have witnessed strong growth in non-residential sectors including consumer goods, IT, telecom, and retail resulting in growth in product demand. The growing number of consumer goods companies in India, China, and Singapore is expected to augment market development in the near future. Powder coatings have numerous advantages over other coatings, such as lower operating costs, immediate availability, negligible VOC emission, excellent appearance, and uniform thickness. In addition, they are relatively easy to apply in thick layers of coating, which results in a smooth, uniform appearance.

A rise in the production of automobiles and the surge in demand for medical devices are expected to be major factors driving the market growth in developing nations including India, China, Brazil, and Mexico over the forecast period. Moreover, high product adoption in the furniture sector on account of its excellent performance, low operational costs, color availability, and custom properties, such as anti-corrosion and anti-bacterial functions, will stimulate market growth.

Paints & coatings is among the most heavily regulated industries in the world. There are a large number of players operating in the global paints & coatings market across the globe. With technological advancements, various new coating technologies have been introduced. These technologies include waterborne coatings, powder coatings, radiation-curable coatings, and high-solid coatings, among a few others.

Powder coatings do not contain any solvents, which results in negligible emission of VOC into the atmosphere and reduced risk of combustion during application and storage. In addition, the powder can be easily washed off when it comes in contact with human skin, which reduces health hazards for operators.

Raw materials used in product manufacturing include thermoplastic and thermoset resins. Thermoplastic comprises nylon, PVC, polyolefin, ABS, and polycarbonate coatings while thermoset comprises coatings made of epoxy, polyester, polyurethane, and acrylic coatings. Volatility in raw material prices affects the powder coating raw material pricing.

Powder Coating Market Trends

Brazil, Russia, China, India, and South Africa are the fastest-growing economies in the world. The availability of cheap labor coupled with lower infrastructural costs has encouraged an increasing number of manufacturers to expand their operations in this region. This has resulted in more employment opportunities, which in turn has boosted the economy and impacted the income of people here.

Increased disposable income of consumers coupled with the growing population has resulted in an increasing demand for automobiles, furniture, electronics, industrial and household appliances, agricultural equipment, and other products. Powder is being used to coat various surfaces such as engine parts, pipes and fixtures, metal parts used in household appliances, and other products. Thus, the increased demand of finished goods has led to a growing demand for powder coatings in these countries.

Conventionally, powder has been used to coat only certain parts of automotive such as chassis and engine parts. However, more and more automobile manufacturers are coating other parts such as radiators, bumpers, engine blocks, coil springs, shock absorbers, wheels, and mirror frames. Thus, demand for powder coating has been increasing in the automobile industry.

Environmental pressure led to the development of powder coatings in Europe and their usage is driven by various end-use industries. Powder coatings have replaced liquid finishing as coating application technology. Powder coatings have been refined over the years and comprise several technologies and application methods. The concept of applying polymer in powder came into existence in the late 1940s and the early 1950s.

Increasing demand for automobiles such as cars and commercial vehicles in developing countries such as China, India, and Brazil and replacement or spare parts in developed economies such as the U.K. and the U.S. coupled with the increasing application of powder coatings on numerous parts of automobiles is expected to drive the market over the next few years.

Application of thin films around these areas may impair the leveling and film flow. Application of powder coatings inside corners may result in “Faraday’s cage effect” which results in low film thickness in these areas. The “Faraday’s cage effect” occurs as the electrically charged particles are attracted to the nearest point on the surface. Fewer lines of powder reach the deep end of the surface, thus, resulting in the formation of thinner layers in this area of the substrate. In cases, where powder coating cannot be used to cover edges, solvent coatings such as paints are used as substitutes to coat the substrates. This has resulted in limited growth of the market affecting the market adversely.

Resin Insights

The polyester resin type segment accounted for 28.0% of the volume share in 2022 on account of the beneficial properties of polyester, such as quick-drying, chemical resistance, temperature resistance, abrasion resistance, and surface protection. A surge in product demand in applications including door handles, radiator grills, wheel rims, bumpers, bicycles, and metallic structural components will propel the segment growth over the forecast period.

The demand for epoxy powder coatings on account of their properties including quick-drying, surface protection, and excellent hardness is expected to witness growth. These coatings exhibit properties such as toughness, flexibility, and weather ability and are cheaper as compared to other coatings. Therefore, the demand for these powder coatings is projected to increase over the forecast period.

Epoxy-Polyester (Hybrid) resin types are anticipated to witness the fastest CAGR over the forecast period on account of their properties, such as toughness, flexibility, weather ability, and low cost as compared to other coatings. These products are a mixture of both polyester and epoxy resins and are mainly used for interior applications, such as furniture coatings.

Application Insights

The consumer goods application segment dominated the global market in 2022 accounting for 23.9% of the overall value share. The segment is expected to witness significant growth over the forecast period. Growing purchasing power, high standards of living, and rapid urbanization are expected to drive the consumer goods sector, thereby boosting product demand over the forecast period.

The use of powder coatings is predominant in consumer goods as these coatings do not contain solvents, exhibit higher flexibility than conventional liquid coatings, and comply with environmental regulations. Moreover, the rising demand for domestic appliances in India, China, Vietnam, the Philippines, and Thailand is expected to boost the product demand in the coming years.

Growth in construction industry in China, India, Nigeria, Mexico, and Brazil is expected to boost the demand for windows, doorframes, and building facades over the forecast period. This is expected to augment the demand for powder coatings in aluminum extrusions.

The automotive application segment is expected to witness the fastest growth over the forecast period. Growing automobile production in the U.S., Mexico, Argentina, Brazil, South Africa, Indonesia, and China is expected to boost the product demand for automotive accessories. In addition, growth in demand for automobiles in emerging markets of China, India, Mexico, Brazil, South Africa, and Malaysia is expected to drive automotive sales in these countries. 

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 39.9% in 2022. Infrastructure development in China and India is expected to boost the use of powder coating in architectural applications such as aluminum extrusions used in building facades, kitchen windows, doorframes, building facades, and kitchens. However, the key preference given to anodized aluminum extrusion is expected to restrict demand for powder coating in architectural applications in the Asia Pacific over the forecast period.

Expanding automotive industry in the U.S. and rising concerns regarding VOC emissions released from the coatings used in automobile production are expected to boost the demand for powder coatings in North America.

Growth in the automotive industry in the U.S. and rising concerns over VOC emissions from the coating in automobile production is expected to boost the demand for powder coatings in the U.S. In addition, increasing automobile production in Mexico and the shift of manufacturers from the European Union is expected to increase the use of powder coating in the automobile industry of Mexico.

Increasing automotive production in Austria, Germany, Romania, Hungary, and Turkey are expected to boost demand for powder coating in automobiles over the forecast period. In addition, REACH regulations for restricting VOC emission in the coating process have forced automotive manufacturers to utilize powder coatings in place of liquid coating. Reduction of VOC emission is expected to benefit automobile manufacturers in terms of receiving carbon credits.

Key Companies & Market Share Insights

The global powder coatings market is fragmented as the top industry players collectively accounted for 40% of the overall share. Manufacturers invest heavily in research & development activities and rely on technological developments to achieve competitive advantage through product differentiation and low cost. Moreover, manufacturers are focusing on integrating their operations through supply and distribution channels to expand their reach to individual consumers.

Fluctuating prices, as well as shortage, of raw materials, are expected to be the major factors restraining market growth, as they result in higher production costs, thereby minimizing the profit. However, high demand for the product owing to its growing use in industries, such as automotive, construction, and furniture, is anticipated to drive market growth in the future. Some prominent players in the global powder coating market include:

• Akzo Nobel N.V

• The Sherwin-Williams Company

• PPG Industries, Inc.

• BASF SE

• DSM

• Valspar

• Arkema S.A.

• Bayer AG

Powder Coating Market Report Scope

Global Powder Coating Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global powder coating market report based on resin, application, and region:

• Resin Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Epoxy

  • Polyester

  • Epoxy-Polyester (Hybrid)

  • Acrylic

  • Polyurethane

  • Other Resins

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Architectural

  • Furniture

  • Automotive

  • Consumer Goods

  • General Industries

  • Other Application

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • France

    • U.K.

    • Italy

    • Russia & CIS countries

    • Benelux

    • Turkey

    • Spain

    • Switzerland

    • Sweden

    • Poland

    • Austria

    • Norway

    • Denmark

    • Finland

    • Portugal

    • Czech Republic (CZ)

    • Slovenia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa