Powder Coatings Market Size, Share & Trend Analysis Report, By Resin (Epoxy, Polyester, Epoxy-Polyester, Acrylic, Polyurethane), By Application (Consumer Goods, Automotive, Architectural, General Industries, Furniture) And Segment Forecasts To 2024

Industry Insights

The global powder coatings market size was USD 8.71 billion in 2015 and is expected to witness significant growth over the forecast period primarily owing to its various superior properties over conventional paints including high resistance to corrosion, high-quality finish, chipping and abrasion, durability, cost-effective, and reduced processing time.

Rising applications in numerous sectors including automotive, industrial, and construction will augment market growth over the forecast period. Powder coatings are solvent free resulting in negligible volatile organic compounds (VOC) emissions which in turn makes these products environment friendly, thereby fueling demand.

Advantages of powder coatings over traditional wet paint systems such as controlled film thickness and easy rectification of poorly coated areas are likely to be the primary factors driving market demand over the next eight years.

High adoption of the technology in the automotive sector on account of excellent performance, low operational costs, wide color availability, and custom properties such as anti-corrosion and anti-bacterial functions will stimulate market size over the next eight years. Increasing usage in windows, doorframes, building facades, kitchen, bathroom, and electrical fixtures will promote industry expansion over the forecast period.

Growing demand for metal furniture coupled with the availability of the product in various shades and finishes is expected to propel demand. Technological advancements including minimization of costs are expected to drive the market growth over the forecast period. However, high energy consumption is projected to restrain industry expansion over the forecast period.

Growing advancements in coatings technology including Nano-TiO2 photo catalyst coatings, green coatings and introduction of coatings methods to reduce drying time is expected to augment market growth over the forecast period. Low cost, VOC legislation and eco-friendly products are expected to promote industry growth. Introduction of silicone based technology for decorative paints is expected to propel market growth. Silicone imparts superior surface properties including slip, abrasion resistance, wetting, leveling and defoaming. In addition, they result in durable coatings and therefore improve sustainability.

The Clear Air Act of 1970 has resulted in restricting the use of liquid coatings in automotive and industrial manufacturing in the U.S. on account of their adverse properties towards environment and emission of volatile organic compounds (VOC). As a part of reducing VOC emission, the European Union has framed a VOC directive to reduce emissions. Automotive manufacturers in the region comply with the directive by giving preference to powder coatings in comparison to liquid coatings.

Every coating is unique and the manufacturers use their own set of raw material and ingredients to manufacture these material. Any change in the demand and supply of these raw material could have an impact on the coatings industry. Coatings manufacturers are a large segment where numerous manufacturers are engaged in the production of different types of coatings that include industrial coatings and performance coatings which are specific to their applications.

Application Insights

Consumer goods dominated the global market accounting for 22.7% of the overall revenue in 2015, as coatings help in providing a consistent, flexible finish that resists peeling and cracking. Furthermore, surging demand for domestic appliances including washing machine, freezer cabinet, and microwave oven are expected to augment industry expansion. Rising demand for household appliances in India, China, Vietnam, Philippines, and Thailand will create immense market potential over the next eight years.

The automotive industry will show rapid volume growth at a 7.6% CAGR from 2016 to 2024 as a result of surging vehicle production in China, Brazil, Malaysia, and Germany coupled with rising demand for high-end cars. Furthermore, high usage of these coatings in numerous applications including door handles, rims, and under hood components in light of superior finish and texture will spur product demand.

Resin Type Insights

Powder coatings come in two resin types namely thermoplastics and thermosetting plastics. Thermosetting resins include polyester, epoxy-polyester hybrids, epoxy, acrylic, and polyurethane, and this segment is expected to account for a significant market share over the forecast period as they are more heat stable as compared to thermoplastics.

Polyester accounted for 32.3% of the global volume in 2015 on account of its superior mechanical properties; and high weathering, exterior durability, and UV resistance. Growing product demand for various applications inducing horns, wipers, radiator grills, door handles, wheel rims, metallic structural component, bumpers, and bicycle will propel market growth over the forecast period.

Polyurethane generated revenue worth USD 955.4 million in 2015 and will witness high gains owing to excellent gloss retention and long-term resistance to humidity and corrosion in thin film applications.

Regional Insights

Asia Pacific accounted for 47.3% of the overall volume making it the largest market in 2015, and will witness significant rise owing to the growth of the electronic and automotive industries in China, Thailand, India, South Korea, and Taiwan. Rising disposable income coupled with the growing population has resulted in an increasing demand for automobiles, furniture, electronics, industrial and household appliances, and agricultural equipment, which will fuel industry growth. Increasing demand for consumer goods including washing machines and refrigerators in countries such as India, China, Vietnam, Philippines, and Thailand is expected to boost demand for powder coating in these applications.

MEA is expected to witness substantial volume growth at a CAGR of 7.5% from 2016 to 2024 in light of growing demand for passenger and commercial vehicles in the Middle East along with an expansion of road networks mainly in Saudi Arabia.

Competitive Insights

Key players in the global powder coatings market include AkzoNobel, Axalta Coating Systems, PPG Industries, IGP Pulvertechnik AG, Sherwin-Williams, BASF, Valspar Corporation, Allnex Italy Srl, TCI Powder Coatings, Nippon Paint, Evonik Industries, Kansai Paint and Jotun.

In April 2014, AkzoNobel launched a new powder coating technology that offers improved energy efficiency and productivity and reduces required capital investment. In April 2014, Jotun Powder Coatings launched Ultra Shine and The Aurora collection. Based on new technologies, these products provide sustainable and environmentally-friendly solutions in powder coating technology.

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