Industrial coatings are specially engineered products for protection against corrosion, wear-resistance and provide better aesthetics. It is a thin film applied to various concrete, steel, and other industrial materials, used with polymers such as polyurethane, epoxy, acrylic, alkyds, and polyester. Their durability, ease of cleaning, and high gloss make industrial coating preferable in a wide range of applications in aircraft, oil-rig towers, power plants, offshore structure, and conveyors, among others.

According to MRFR, the global industrial coating is expected to reach $119 billion by 2025 with 5.8 per cent CAGR during the forecast period, 2019 to 2025.  While as another research report by Transparency Market Research, projects the global industrial coatings market to be worth $41.68 billion by the end of 2022, up from $31.47 billion in 2017.

Automotive industry is a big growth driver

During the forecast years of 2017 and 2022, the market for industrial coatings is anticipated to register a CAGR of 5.8 per cent. Out of the various types of resins, the demand for epoxy resins is projected to dominate the global market as it aims to reach a valuation of $14.64 billion by the end of 2022. Geographically, the global industrial coatings market will be led by North America between 2017 and 2022, it has predicted.

GROWTH DRIVERS

Industrial coatings are preferred due to the growing construction industry in emerging economies. Rapid urbanisation and rise in infrastructure spending are likely to fuel the market growth in the coming years. The consistent influx of people from rural areas to the city has forced the municipalities to allow residential constructions and commercial buildings as the addition of a newer population requires the same. As this trend continues to amplify, it is projected to demand a great deal out of the construction industry thereby augmenting the sales of industrial coatings.

Moreover, the introduction of bio-based and powdered industrial coatings in domestic home appliances and electrical components are expected to offer a lucrative opportunity for the market players operating in the global market growth.

The other important factor in creating remunerative opportunities for the global industrial coatings market is the flourishing automotive industry. Industrial coatings safeguard plastics and metals from external conditions. Additionally, concrete and steel can also be protected from fire hazards and other factors that can cause damage with the help of these coatings. Increasing investments and entry of automobile production units in developing parts of the world is expected to have a positive impact on the regional markets of industrial coatings during the forecast period.

Industrial coatings are available in various forms such as solvent-borne, water, and powder. Solvent coatings are harmful and hazardous to the environment owing to high volatile organic compound (VOC). In order to comply with environmental legislations, coating companies are focusing on developing durable, water-resistant, and environmentally friendly industrial coatings. Increasing demand for high-performance coatings with enhanced service life and improved corrosion resistance are expected to drive the market growth. The powdered industrial coating offers low VOC content, high flexibility, superior performance, and cost efficiency for different applications in electrical and electronics, industrial assembly, and furniture, among others. Moreover, the requirement of safety and wear protection has been considered as the prime concern in the automotive and oil and gas industries, which further drives the market growth.

Despite the strong market drivers, the global market for industrial coatings is likely to be restrained by a few factors. Fluctuating prices of raw materials, which is directly hampering the cost of industrial coatings are hindering market growth, especially in the cost-sensitive markets. The high cost of raw materials owing to volatile crude oil prices and the stringent regulations on the use and disposal of products are expected to hamper the global market growth during the forecast period.

BASF is a key player in the global adhesives market

In addition to these factors, the global market for industrial coatings is also being hampered by the stringent policies governing the solvent-based coatings market. Analysts anticipate that the market can combat these challenges with soaring demand for industrial coatings from Asia Pacific.

Moreover, the ongoing Covid-19 crisis is going to impact this industry vertical as well and it remains to be seen how the markets ng covid19 footprints for a better analysis of markets and industries.

A rising population that will drive the construction industry and improving disposable incomes that will boost automobile sales will offer many opportunities for the overall market.

SEGMENTATION

The global industrial coatings market has been segmented based on resin, type, end-use industry, and region. Out of the various types of resins, the demand for epoxy resins is projected to dominate the global market as it aims to reach a valuation of $14.64 billion by the end of 2022.

Based on material, the global industrial coatings market has been segmented into polyurethane, acrylic, alkyd, epoxy, polyester, fluoropolymers, and others.

Based on type, the global industrial coatings market has been classified into solvent, high solids, powder, and water. By end-use industry, the global industrial coatings market has been categorized as automotive OEM, construction, general industrial, marine, aerospace, wood, packaging, and others.

REGIONAL SPREAD

Based on the region, the global industrial coatings market has been studied across five key regions—Asia-Pacific, North America, Latin America, Europe, and the Middle East & Africa. Geographically, the global industrial coatings market will be led by North America between 2017 and 2022.

Asia-Pacific accounted for the largest market share in 2018 and is projected to grow at a moderate CAGR during the review period. This is primarily attributed to the presence of stringent protection and safety regulations in general engineering, automotive, and construction industry. China is the dominating country in the region, owing to the more extensive automotive production base and growing automotive refinish market. Initiatives to facilitate FDI, including ‘Make in India,’ has led to the growing demand for industrial coatings in the region. Furthermore, increasing construction of metros and rail projects along with the rise in investment in the aircraft industry is likely to drive the market growth.

Moreover, the presence of major manufacturers such as PPG Industries, Nippon Paint Holdings, Kansai Paint, and BASF SE help in serving the product in the region. The market in Asia-Pacific is projected to register the highest CAGR during the review period owing to the rapid industrialisation and infrastructure development.

Furthermore, the surge in oil and gas and the growing packaging industries in developing countries, such as India and China, are further propelling the regional market growth. The European market held a substantial market share in 2018, owing to the growing strict EU regulations on industrial hazards.