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Performance Coatings Market Analysis

ID: MRFR//9217-HCR | 99 Pages | Author: Anshula Mandaokar| May 2024

The Performance Coatings Market operates under a number of forces whose interaction gives its nature its current form. In general terms, performance coating is an important aspect within coat industries because it enhances durability, aestheticism, and functionality across many applications. For these reasons, changes in end-user demands continue shaping this industry, mainly driven by automotive construction, aerospace, and industrial manufacturing, among others. Innovations represent an essential aspect here where R&D efforts are at times responsible for bringing about novel formulations and technologies. Manufacturers always seek ways of creating cutting-edge materials that meet stringent regulatory standards while addressing emerging issues faced by users. Increasingly, sustainability has become a central motive behind the choice of raw materials and manufacturing processes in this sector.
Global economic trends also shape market dynamics. Therefore, fluctuations in currency exchange rates, trade policies, and geopolitical events can affect supply chains and lead to raw material cost variations as well as market access uncertainties. Furthermore, the COVID-19 pandemic has demonstrated that businesses need to be robust in order to deal with unexpected disruptions. Regulatory factors are also critical in shaping market dynamics for performance coatings. Rather than focus on new design chemistries or product types, environmentally friendly requirements have seen the performance coating sector transition towards low VOC (volatile organic compound) formulations.
The dynamism within the performance coatings sector is further heightened by market competition. These may include mergers, acquisitions, partnerships, and product innovations, among others, as companies strive to grow their market shares. This competitive landscape creates a continuous demand for excellence, which compels manufacturers to improve their products' performance, reduce costs, and expand their global presence. The influence of digitalization and technology on market dynamics cannot be understated. Nanocoatings and smart coatings are emerging with properties such as self-healing materials and responses to external stimuli being attached to them. In addition, digital platforms enable efficient supply chain management, market analysis, and customer engagement, which facilitate data-driven decision-making. They also enable companies to make quick decisions in response to changing trends in markets.

Performance Coatings Market Overview

According to MRFR analysis, the performance coatings market is projected to witness a CAGR of over 5.11% to reach around USD 62.58 billion by the end of 2028.

Performance coatings are commonly used in surrounding where surface and structures need chemical resistance, enhanced abrasion and need durability. They are fabricated to fulfill the requirements of their primary functions, which is to protect the surface that they are coated.The performance coatings can be applied by using various processes such as solvent-based coating, water-based, and powder-based coatings in several end-use industries such as construction, automotive and transportation, industrial, aerospace & defense, marine, and others.

The key factor driving the growth of the global performance coatings market is the upsurge in demand for performance coatings in the automotive and marine industries. The growing demand for performance coatings in the automotive & transportation, and marine industry, is due totheir excellent performance properties such as adhesion, alkali resistance, flexibility, chemical resistance, heat resistance, ultraviolet (UV) resistance, moisture tolerance, and resistance to permeating, are expected to boost the global performance coating market over the forecast period. Additionally, the growing application of performance coatings inthe industrial segment isfurther expected to fuel the product demand in industrial textile production. Performance coatings are coated in rollers used in textile production that withstand high temperatures and have good aggressive chemicals and abrasive conditions.

Rising production and sales of automobiles across the globe on account of improving economic development are expected to fuel the demand for performance coatings during the review period. In recent years, automotive coatings have beenconsidered one of the most important markets and play a crucial role in the automotive industry. Polyurethane coating is commonly used as a high-performance topcoat binder in automotive applications. In contrast, epoxy coating is used as a primer or the layer beneath the topcoat layer because of its good adhesion and good corrosion resistance. Extensive use of Industrial coatings in the aerospace & defense industry in gas turbine engines, air vessels, rocket exhaust cones, insulating tiles, space shuttles, windshield glass, and engine components is a key driver for the global industrial coatings market.

Regulatory Framework

  • D4060: Standard test method for abrasion resistance, tabor abrasion wheel test of the organic coatings.

  • D2243: Standard test method for freeze-thaw resistance of water-borne coatings.

  • CSA Z245.21-06- This standard is required for epoxy coating applied externally to bare steel pipe.

Impact of Coronavirus Outbreak

The global performance coatings market is facing anintenseslump caused by the imposition of lockdowns across the globe to decrease the spread of COVID-19. The major end users of performance coatings such as automotive & transportation and industrial industry have also shut down their production facilities resulting in a decline in demand for performance coatings across the world. As a result, the demand for coatings hasnearly varnishedduring the assessment period. Itisunlikely to be recovered until the governments of all over the world take their provisional policies.

Supply Chain Analysis

The supply chain analysis evaluates every stage and step taken by stakeholders involved throughout the production and distribution of performance coatings. The supply chain includes raw materials suppliers, performance coatings manufacturers, distribution channels, and end-use industries.

The mainraw materials required to produce performance coatings include epoxy, silicone, polyester, acrylic, alkyd, polyurethane, and fluoropolymers. The other raw materials are petrochemical products, and as a result, raw material costs fluctuate.

Market USP

Performance coatingsare used for protection, performance, and aesthetics appeal.

Market Drivers

  • Increasing demand from the automotive industry.

  • Rise in demand for performance coating in the marine industry.

Market Restraints

  • Solvent-based adhesives and coatings are being discontinued to reduce VOC emissions.


By Type

  • Polyurethane: Polyurethane has superior characteristics of preventing corrosion and provide durability on the surface of substance with this coating. Polyurethane coating is applied to many floors, steel supports, and concrete supports in the construction industry. This makes them more durable and less prone to rust.

  • Silicone: Silicone coating has excellent solvent resistanceand iswidely used for industrial purposes. Several industrial paints manufacturers use silicone coating to improve adherence, waterproofing, and resistance of a substance to extreme conditions.

  • Polyester: Polyester is a cost-effective product and ismajorly used in the construction industry in architectural projects. The polyester powder coating is ideally used in windows, doors, home appliances, and metal furniture.

  • Acrylic: Acrylic coatings are known for their inertness and exceptional color retention when exposed tocertain environments. Acrylics are one of the fastest-growing segments in the industrial coatings industry.

  • Others: Others include zinc coating, ceramic coatings, and others.

By Coating Technology

  • Solvent-based coating: solvent-based coatings are widely employed in various industrial applications due to theirlow cost, outstanding film-forming capabilities, and ease of application. Solvent-based coatings have a high concentration of volatile organic chemicals, makingthe application, drying, and development of a long-lasting, uniform coating film easier.

  • Water-based coating: The resins used include in water-based coatings are polyesters, epoxy,and alkyds. Water-based coatings are low in toxicity and lower the concentration of flammable materials since it contains low VOC (volatile organic compounds levels) and HAP (hazardous air pollution) emissions. Furthermore, favorable government rules and regulations are expected to drive the growth of the water-based coating segment over the forthcoming years.

  • Powder-based coating:Powder-based coating is a type of coating technologyconsisting ofa combination of pigments, curatives, flow modifiers, leveling agents, and additives, among others. The electrostatic spray deposition (ESD) process is generally used to apply the powder coating onto the substance in the marine and automotive industry.

By Application

  • Aerospace & Defense:In the aerospace & defense industry, the operator needs a lightweight coatings system withunique characteristics such asa long service period, usually over fiveyears and often much longer. To fulfill this requirement, performance coating plays an important role in the aerospace industry. Performance coating also provideshigh heat resistance to aero enginesand exhibits anti-corrosion properties in a hot, humid atmosphere. As a result, increasing usage of performance coatings in the aerospace &defense industry isexpected to drive global market demand during the forecast period.

  • Construction: Construction materials are used to meet specific needs, and each has different limitations. Steel is one of the most often used building materials, and it must be corrosion resistant. Steel and other metals are protected by high-performance coatings that create a long-lasting barrier between the metal and its service environment.

  • Automotive & Transportation: Performance coating isused ina wide range of applications in the automotive and transportation industry, such as compressor components, molds, roller and bearing, high-performance washers, and transportation components. Therefore, development in the automotive & transportation industry is expected to provide a lucrative opportunity formarket growth.

  • Industrial: Performance coatings are used forvarious industrial purposes such as oil & gas industry, chemical industry, and textile industry, or other large-scale industrial structures that are subject to harsh environmental conditions. The oil & gas industry has to face extreme environments with constant exposure to moisture, salt spray, and high winds. Applying a performance coating on various components used in the oil and gas industry helps reduce the rate of corrosion.

  • Others: Other end-users are hospitals, healthcare facilities, restaurants, retailers, and hotels.

By Region

  • North America: The North American region is expected to dominate the global performance coating market growth during the assessment period. This growth is expected to boost the market demand in the forecast period. The US is one of the leading military forces across the globe and is projected to remain so. The growing demand for lightweight military aircraft is the major factor expected to fuel the regional market growth. The global defense industry is expected to register a CAGR of about 3% over the 2019-2023 period to reach USD 2.1 trillion by the end of 2023.

  • Europe: The market in Europe is projected to witness high demand for performance coatingsdue to the growth of the automotive, aerospace, and marine industries in the region. Major contributors to the market growth include Germany, the UK, France, and Russia.

  • Asia-Pacific: Some of the major factors resulting in the growth of the performance coating industry in Asia-Pacific are lower raw material prices, increased emphasis on environmental-friendly coatings, and increased building activities in the region. Hence, these factors are creating an optimistic opportunity in Asia-Pacificregion for the global performance coating market in the foreseeable term.

Key Players:

Akzo Nobel NV, PPG Industries, Nippon Paint Holding Co. Ltd, andSherwin-Williams Company are key players in the global performance coating market. To gain a competitive advantage, key players in the global performance coating market are engaged instrategic initiatives such as collaborations,mergers & acquisitions, expansions, and technology/product launchto increase the product demand. For instance, the biggest plant of Akzo Nobel NV company situated in Europe for producing powder coatings is set to house a major capacity expansion to produce automotive coatings. The company follows recent investments in China and Vietnam designed to install greener facilities and production methodsthere, which will help the company achieve its sustainability ambitions.

  • Akzo Nobel NV (Netherlands)

  • PPG Industries Inc. (US)

  • Kansai Nerolac Paints Limited (India)

  • Metal Coatings Corp. (US)

  • Toefco Engineered Coating Systems Inc. (US)

  • Endura Coatings LLC (US)

  • Beckers Group (Germany)

  • Nippon Paint Holdings Co. Ltd (Japan)

  • The Sherwin-Williams Company (US)

  • AFT Fluorotec Ltd (UK)

  • The Chemours Company (US)

  • Hempel Group (Denmark)

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