Global Industrial Coatings Market Size (2024 – 2030)

The Global Industrial Coatings Market Size was valued at USD 19.45 billion in 2023 and is expected to reach USD 25.27 billion by 2030 growing at a CAGR of 3.81% over the forecast period 2024-2030.

Industrial Coatings, encompassing a range of paints, coverings, and coatings, primarily serve the purpose of protecting metals against deterioration, abrasion, and algae development. These coatings are environmentally friendly and enhance the appearance of the surface to which they are applied. Their usage spans a wide array of industries including transportation, construction, oil & gas, and consumer products & appliances, among others. They are suitable for a variety of surfaces such as aluminum, steel, iron, glass, wood, and plastic.

In addition to their primary functions, industrial coatings are also utilized for safeguarding walls, floors, and roofs from extreme weather conditions like heavy snow, intense rainfall, and strong winds. They are increasingly preferred over conventional latex-based paints due to their aesthetic enhancement capabilities. Manufactured using polymer-based materials, these coatings offer resistance to corrosion, abrasion, sticking, and various chemicals.

Polymers used in these coatings are especially effective against acids, bases, and chemical solvents. The coatings are known for their superior aesthetic appeal, crack-bridging ability, durability, flexibility, waterproofing properties, and environmental friendliness. Acrylics are commonly used in architectural and automotive sectors for their excellent corrosion resistance and glossy appearance. Zinc-based coatings on steel provide a polymeric barrier that significantly enhances corrosion resistance.

Epoxy coatings stand out for their exceptional resistance to abrasion, corrosion, and weathering and are suitable for extreme temperature conditions. Available in water-based, powder, and e-coating forms, these materials are notably resistant to water and fire. Increasing regulatory focus on reducing Volatile Organic Compound (VOC) emissions has heightened the demand for eco-friendly industrial coatings. These coatings are typically applied over a primer and sealed to protect surfaces, particularly steel and concrete, from rusting.

Key Market Insights:

The Industrial Coatings Market is experiencing strong growth, driven by escalating demand in sectors like automotive, aerospace, marine, and construction. Technological innovations are central to this growth, with a noticeable shift towards more sustainable options such as water-based and powder coatings in response to stringent environmental regulations and heightened environmental awareness. This has led to a decrease in the usage of solvent-based coatings.

In the Asia-Pacific region, emerging economies like China and India are significant contributors to market growth, propelled by rapid industrialization and infrastructure expansion. The automotive industry is a key consumer of industrial coatings, with growing vehicle production and the rising prominence of electric vehicles opening up new avenues for specialized coatings.

There is also a growing demand for functional and smart coatings, characterized by features like self-healing, corrosion resistance, and thermal insulation. This trend is driven by the industry's need for materials that are more durable and efficient. The market is competitive, with key players investing in research and development to create innovative products that cater to the changing requirements of various industries.

Global Industrial Coatings Market Drivers:

Advancements in Technology for Zero VOC Emissions Boost Market Growth

The manufacturing processes involved in producing various goods release solvents and alcohols, leading to the emission of volatile organic compounds (VOCs). Industrial coatings are a primary human-made source of VOCs. In North America, leading paint and coating manufacturers have achieved near-zero VOC emissions. This development is noteworthy, especially considering that regulations allow up to 50 g/L VOC in the most stringent categories and regions, such as the Southern California Air Quality Management District (SCAQMD). The shift towards zero VOC emissions has significantly contributed to the market's compound annual growth rate (CAGR) in recent years.

The automotive sector, including passenger cars and light commercial vehicles (LCVs), heavily relies on industrial coatings. The Asia Pacific region has emerged as the largest market for automotive OEM coatings, driven by China's burgeoning automobile sales, fueled by its population's rising disposable income. The growth in vehicle sales and production is expected to create lucrative opportunities for the industrial coatings market. Demographic shifts, such as the increasing environmental consciousness among younger consumers and decreased driving by older populations, are influencing market demand. The burgeoning automotive industry is a key factor propelling the industrial coatings market's revenue.

Increased Consumer Awareness for Sustainable Products Spurs Market Growth

There is a growing consumer preference for eco-friendly products, paralleled by regulatory measures aimed at reducing VOC emissions. This trend is bolstering the demand for sustainable manufacturing coatings.

Environmental regulations, particularly those pertaining to air pollution in the United States, China, and Western European countries, are anticipated to continue driving the adoption of low-pollution coating techniques in the coming years. These regulations have shifted demand from solvent-based coatings to low-VOC or environmentally friendly alternatives such as powder coatings, water-based coatings, and UV-curable coatings. Low-VOC coatings contain fewer chemicals that evaporate during application, resulting in a cleaner environment with reduced or negligible VOC emissions.

Global Industrial Coatings Market Restraints and Challenges:

Health Risks and Environmental Concerns Associated with VOCs, Along with Rigorous Regulations, Impede Market Expansion

Individuals working in environments with exposure to industrial coatings containing volatile organic compounds (VOCs) face significant and prolonged health risks. VOCs, due to their high vapor pressure at room temperature, are widespread organic chemicals hazardous to human health. This high vapor pressure allows molecules from liquids and solids to easily transition into the air. Various organic solvents, including aliphatic and aromatic hydrocarbons, ketones, esters, alcohols, glycol ethers, and more, are used in coating formulations. These solvents serve to disperse or dissolve binders, reducing the viscosity and thickness of the coating.

Several solvents in coating formulations are recognized as human carcinogens and are flammable or explosive, posing considerable risks. During the curing process of a coating, most solvents evaporate, leading to the emission of VOCs. The harmful effects of VOC emissions on human health and the environment have resulted in increased regulatory oversight. Environmental concerns about traditional coating components, application methods, and by-products are driving the development of pollution prevention alternatives.

The industry faces ongoing challenges with chemicals due to escalating demands from various regulatory bodies. For example, stringent new regulations from the National Science Foundation (NSF), effective from 2023, will govern permissible levels of Xylol and other solvents in coatings for potable water storage tanks in the USA. In Europe, the REACH regulation, which stands for Registration, Evaluation, Authorization, and Restriction of Chemicals, sets high compliance standards. This has necessitated careful consideration by coating manufacturers regarding the chemicals used in their products.

Global Industrial Coatings Market Opportunities:

Powder coatings are composed of polymer resin systems combined with flow modifiers, leveling agents, pigments, and other additives. The typical method for applying powder coating to a metal substrate is through electrostatic spray deposition (ESD). China, a leading nation in shipping and shipbuilding, has consistently supplied powder coatings to these industries. Powder coating technology is continuously evolving in the pipeline sector. Plastic pipes are increasingly employed across various sectors including shipbuilding, electronics, textiles, petrochemicals, chemicals, healthcare, pharmaceuticals, and urban construction.

Corrosion protection is essential for all marine vessels and offshore structures due to the harsh marine environment. The choice of coating system depends on the location of the application, such as the waterline area, hull, decks, interiors, topsides, and tanks. Traditional paints and coatings have been the primary choice for topside protection due to their cost-effectiveness, accessibility, and ease of application. However, advancements in zinc, polyurethane, and powder coating technologies offer superior options for longer-term service life. Zinc coatings provide cathodic protection, polyurethane is effective and aesthetic, and powder coatings can satisfy regulatory and environmental standards. Consequently, powder coatings present an attractive investment opportunity in these sectors, especially in developing regions like APAC and South America.

GLOBAL INDUSTRIAL COATINGS MARKET REPORT COVERAGE:

Global Industrial Coatings Market Segmentation:

Global Industrial Coatings Market Segmentation: By Resin Type:

• Polyurethane

• Epoxy

• Acrylic

• Polyester

• Alky

• Fluoropolymer

• Vinyl

• Others

Dominance of Epoxy in Market Share Attributable to Broad Use in Automotive, Transportation, and Aerospace Sectors. In 2023, the epoxy segment led the market. Epoxy coatings are favored in industrial applications for their outstanding mechanical strength, resistance to chemicals, and long-lasting durability. This segment encompasses a diverse array of products such as floor and wall coatings, pipeline coatings, primers, and sealers. Their exceptional characteristics have boosted their popularity in sectors including aerospace, automotive, construction, and marine. Additionally, the growing demand for environmentally friendly coating materials has bolstered the epoxy coatings market. Epoxy resins, known for their low VOC levels and potential for sustainable production, have become a preferred choice for companies aiming to minimize environmental impact.

Global Industrial Coatings Market Segmentation: By Technology:

• Solvent-Borne

• Water-Borne

• Powder Coating

• Others

Significant Market Share Growth Anticipated in the Waterborne Segment. Waterborne coatings, primarily composed of water, use minimal amounts of other solvents like glycol ethers, making them environmentally friendly and user-friendly. These coatings, with their low VOC content, comply with regulations in the US and Europe, leading to increased adoption in commercial applications. The waterborne segment has seen continuous growth. While solvent-borne coatings emit harmful vapors during evaporation, waterborne coatings release significantly lower levels of such fumes. Major global suppliers, including Axalta Coating Systems, are investing in waterborne technology for industrial coatings production, reflecting the growing preference for this technology and driving segment growth during the forecast period.

Global Industrial Coatings Market Segmentation: By End Use:

• Oil & Gas

• Water and Wastewater

• Chemical

• Automotive

• Food & Beverage

• Renewable Energy

• Mining

• Marine

• Industrial/Polymeric Floor Coatings

• Power Transmission

• Transportation

• Other

Automotive Industry to Lead, Driven by High Demand from End-use Sectors. The automotive sector is forecasted to experience the fastest growth between 2024 and 2030. As a major end-user, the automotive industry's demand for industrial coatings is consistently high. Vehicles require various coatings for protective, aesthetic, and durability enhancement purposes. The competitive nature of the automotive industry, with ongoing innovation and technological advancements, necessitates high-quality, durable coatings. The industry's stringent safety and environmental standards further drive the need for advanced industrial coatings, solidifying the automotive sector as the leading revenue contributor to the industrial coatings market.

Global Industrial Coatings Market Segmentation: By Region

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia-Pacific Poised to Lead in Global Sales, Boosted by Growth in Key Industries. The Asia-Pacific region is projected to be the largest market for industrial coatings, driven by escalating industrialization in countries like India and China. The region's burgeoning automotive, aerospace, construction, and marine industries significantly contribute to market development. The rise in automobile production and exports in the Asia-Pacific region fuels demand for automotive coatings. Moreover, the construction sector in the region is experiencing robust growth due to urbanization and new infrastructure projects, increasing the demand for construction coatings. Stricter environmental regulations on toxic chemicals in industrial coatings are prompting a shift towards eco-friendly coatings. Governments in the region are advocating for these coatings to reduce carbon footprints and promote sustainable development.

COVID-19 Impact Analysis on the Global Industrial Coatings Market:

The coatings industry experienced a negative impact from the COVID-19 pandemic due to the predominant influence of GDP changes on sales. Manufacturing units faced closures due to workforce shortages and lockdown measures, leading to concerns among businesses and supply chain constraints. The automotive industry, already grappling with a structural slowdown and economic challenges in 2019-2020, witnessed poor sales during the pandemic. The second wave of COVID-19 in India led to a decline in new automobile sales, as various auto facilities and dealers were mandated to close. In contrast, the regional vehicle industry in Europe seems to be gaining from the easing of lockdowns in several countries and economic recovery support packages. However, the U.S. automotive sector remains vulnerable due to low inventories and diminished incentives.

Recent Trends and Developments in the Industrial Coatings Market:

July 2022 – IGL Coatings unveiled Eco Coat Armor, a durable coating designed to preserve and extend the life of diverse surfaces. Eco-coat Armor exhibits exceptional flexibility, impact resistance, and chemical resistance, protecting against chemicals, corrosion, and harsh environmental conditions.

Key Players:

1. Akzo Nobel N.V.

2. Axalta Coating Systems

3. BASF Coatings

4. Beckers Group

5. Berger Paints India Limited

6. Chugoku Marine Paints Ltd.

7. Hempel A/S

8. Jotun

9. Kansai Paint Co., Ltd

10. KCC Corporation