Adoption of Low-VOC and Solvent-free Coatings is Expected to Propel the Growth of the Global Powder Coatings Market

Market Highlights

Global Powder Coatings Market is projected to register healthy growth during the forecast period, 2022-2030. The market was valued at USD 12.1 Billion in 2021 and is projected to register a CAGR of 7.2% to reach USD 18.1 Billion by 2030.

The prominent factors driving the growth of the global market are the increasing applications of powder coatings as an alternative to liquid coating and the increase in the application of powder coatings across end-use industries such as consumer goods, appliances, automotive OEM and part manufacturing, electronics, construction, and furniture. The increasing use of powder coatings during the production of automotive parts and consumer goods is expected to significantly boost the growth of the market across the globe during the forecast period. However, the high manufacturing cost due to its energy-intensive manufacturing process and complicated process of forming thin films with powder coatings are likely to hamper the global market growth as companies are investing in R&D to explore better alternatives that could ensure better profit margins. However, the rapidly growing automotive and electronics industries in various countries across Asia-Pacific, such as China, Japan, India, and Singapore, is likely to boost the demand for powder coatings and create lucrative opportunities for the manufacturers operating in the global market.

Powder coatings have been one of the preferred choices of users over the past years due to their excellent hyper-durability, corrosion resistance, weatherability, unique color offerings, and abrasion and chipping resistance as compared to liquid coating. Powder coatings produce a thicker coating, and different types of finishes can be made, such as clear, plain color, metallic, or textured. These properties enable powder coatings to be extensively used across consumer goods, automotive, electronics, construction, architectural, industrial furniture, and other Industries. The consumer goods and the automotive industries have a combined share of over 65% for the powder coatings market. The fastest growth of the powder coatings market is taking place mainly in China and other developing countries in Asia-Pacific. This is attributed to the focus on the implementation of more environmentally favorable solutions and the high growth of the consumer sector and the automotive industry in the region.

Additionally, the increase in the sale of autonomous or e-vehicles is further expected to boost the growth of the powder coatings market. For instance, 61% of the consumers in China and 48% in Japan likely prefer a hybrid-electric or a battery-electric transportation medium as their next vehicle. Thus, the use of powder coatings in producing lithium batteries that are used in electric vehicles are expected to boost the market. However, the increase in the demand for petrol and diesel-based vehicles is still expected to propel the automotive market in the next few years.

Segmental Analysis

According to MRFR analysis, the global powder coatings market has been segmented based on substrate, resin type, a coating method, application, and region.

Based on substrate, the global powder coatings market has been segmented into metal and non-metal. The metal segment held a larger share of 93.0% and is expected to register a higher CAGR during the forecast period. Powder coatings are used to coat a variety of materials, including different metals and non-metals. The most common material is metal; however, powder coating is also used to coat wood, plastic, glass, and composites. Metals, without proper finishing, can tarnish and corrode when exposed to water, air, or chemicals. Unfinished parts fabricated from metal are eroded by salts, weakened by ultraviolet light, and rusted by rain. Hence, powder coatings are crucial to make products maintenance-free for regular use without the need for occasional repainting.

Powder coatings are based on different polymer resin systems, combined with curatives, pigments, flow modifiers, leveling agents, and other additives. The two major types of resins used in powder coatings are thermoset and thermoplastic. The thermoset segment is expected to be the larger and faster-growing segment, at a CAGR of over 6.0% during the review period. The thermoset segment is the dominant resin type segment, with a share of over 90.0% in 2018. The most used thermoset powder coating resins are derived from the epoxy, polyester, and urethane groups. They generally require lower curing temperatures than thermoplastics. Additives are often used to accelerate or delay the curing reaction. In addition, the advancements in the thermoset technology have been beneficial and have continuously increased the versatility of this material group, allowing for more customization options. Most of the standard thermoset materials can be chemically altered to provide the specific characteristics required for a given application.

The global powder coatings market has been segmented by the coating method into electrostatic spray coating, fluidized bed coating, electrostatic fluidized bed process, and flame spraying. Among these segments, the electrostatic spray coating segment accounted for the largest market share of over 50.0% in 2018. Some of the advantages offered by the electrostatic spray coating method are high transfer efficiency (over 99%), applies quickly, can be automated, minimum operator training, works with most chemistries (resins), allows coating of complicated shapes, simple and low cost for automation, and no pre-heating of components required. The coating method to be selected for powder coating is dependent on various factors, such as the nature and size of the parts to be coated, available processing surface and volume, and variety of colors used and a number of color changes.

The global powder coatings market has been segmented by application into consumer goods & appliances, automotive & transportation, architecture & furniture, construction equipment, and others. Among these segments, the consumer goods & appliances segment accounted for the largest market share of 38.90% in 2018. Powder coatings are widely used in a variety of end-use applications in the electronics, automotive, building & construction, and different manufacturing industries owing to the various benefits they offer. They possess excellent resistance to abrasion and corrosion, as compared to liquid coatings. Moreover, the quality of powder coatings lasts for years, remaining bright and vivid, with less fading over the period. It comes in a variety of colors and finishes and can be used as per the application.

Regional Analysis

Geographically, the Global Powder Coatings Market has been segmented into Asia-Pacific, Europe, North America, Latin America, and the Middle East & Africa. As per MRFR analysis, Asia-Pacific held the largest market share in 2018 and is projected to exhibit a healthy CAGR of over 7.0% during the forecast period owing to the growing automotive and consumer goods industry in the region. However, the market held the largest market share of over 50.0% in 2018 and is projected to dominate during the forecast period. The growth is mainly attributed to the rise in the sale of commercial vehicles coupled with the increase in the production of passenger cars and increase in trade for consumer goods in China, India, South Korea, Singapore, and Indonesia in the region

Key Players

Market Research Future (MRFR) recognizes the following companies as the Key Players in the Global Powder Coatings Market: PPG Industries, Inc. (US), Axalta Coating Systems Ltd (US), Nippon Paint Holdings Co., Ltd (Japan), The Sherwin-Williams Company (US), Akzo Nobel N.V. (Netherlands), Asian Paints PPG Pvt. Limited (India), DSM (Netherlands), TCI Powder (US), BASF SE (Germany), Berger Paints India Limited (India), Jotun (Norway), and Kansai Paint Co., Ltd (Japan).

Key Findings of the Study

• The Global Powder Coatings Market was valued at USD 12.1 billion in 2021 and is projected to register a CAGR of 7.2% to reach USD 18.1 Billion by the end of 2030.

• Based on substrate, the metal segment for powder coating was estimated to be valued at around USD 10,000 million in 2018; it is expected to register a CAGR of over 6.0% to reach around USD 16,000 million by the end of 2030.

• By resin type, the thermoset is expected to register a CAGR of around 6.5% to reach around USD 16,000 million by the end of 2030.

• Based on the coating method, the electrostatic spray coating method was estimated to be valued at around USD 6,000 million in 2018; it is expected to register a CAGR of over 6.5% to reach around USD 10,000 million by the end of 2030.

• By application, the automotive & transportation segment is expected to register a CAGR of around 6.0% to reach approximately USD 5,000 million by the end of 2030.

• Asia-Pacific held the largest share of over 50.0% in 2020 due to rapid industrialization and commercialization in the region.