In today's dynamic performance coatings industry, demands driven by industry trends keep shifting, and technological advancements are taking a lead role in driving these changes. One leading trend being witnessed in this area has been a move towards sustainable & environmentally friendly coatings. Manufacturers are gradually adopting innovative formulations aimed at minimizing volatile organic compounds (VOCs) and other harmful chemicals due to environmental concerns becoming more pronounced. Another major trend that is shaping the market dynamics is the growing need for high-performance coatings in different industries, including automotive, aerospace, and industrial applications, among other businesses that use them extensively or have extreme weather conditions. Thus, there is increasing demand for paint offering enhanced longevity as well as resistance against corrosion where applications must endure harsh environments or strong climatic variations, which are not always suitable for all sectors, thereby fueling the expansion of R&D departments tasked with creating new performance-based paints suited particularly well under those circumstances.
Technological advancements are crucial factors determining trends across markets, and this holds for the Performance Coatings industry as well. There has been an inclination towards application-based smart coating, which is composed of nanotechnology cooperation enhancing the healing attributes of coats. Their nanoscale particle structures result in improved adhesion, abrasion resistance, and anti-corrosive properties for nanocoatings. The market has shifted towards customization and innovation in general. There is an increasing trend among manufacturers to develop coatings tailored specifically to individual customers' requirements rather than producing generic products that suit all markets. Such a pattern is necessitated by the realization that standard solutions may not always be optimal for diverse industries or applications. Accordingly, firms are undertaking research and development in order to make specialized paints that can solve sector-specific problems, thus ensuring overall improvement of quality.
Globalization is also influencing market trends in the Performance Coatings industry. Increasing infrastructure and construction activities in emerging economies are, therefore, driving the demand for high-quality coatings. Additionally, globalization has led to increased integration of the automobile and aerospace sectors, thereby raising the demand for international standard-compliant coating products. Nevertheless, there are still challenges facing this industry, including fluctuating costs of its raw materials inputs such as resins, pigments, and solvents, which change with time due to various reasons. This variability affects the cost of production at large, thereby influencing pricing strategies and margins realized by producers within this sector. As a result, companies have taken up proactive measures such as strategic partnerships and long-term contracts with suppliers so as to insulate themselves from changes in raw material prices.
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
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
Market Restraints
Segmentation
By Type
By Coating Technology
By Application
By Region
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.
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