Protective Coatings Market

Global Protective Coatings Market is valued at USD 12.5 Billion in 2021 and is projected to reach a value of USD 18.8 Billion by 2028 at a CAGR of 7.1% over the forecast period.

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The Protective Coatings Market shows a significant growth in the next years. This growth is mainly attributed to the increasing demand for coatings that are able to protect metal surfaces from corrosion and other environmental attacks. The growing concerns about the environment and health hazards have been the key drivers for this market, apart from the rise in steel and aluminum industries. Several factors are responsible for this surge in demand, including an increased awareness of the need for environmental protection and a growing trend toward sustainable development. One of the main drivers behind this growth is the escalating concern over climate change and its various impacts on both the environment and humanity. Increasing awareness of air quality issues, water shortages, deforestation, and other dangers posed by greenhouse gas emissions has prompted manufacturers to seek more environmentally friendly products. Another factor contributing to Protective Coatings' popularity is their versatility. Unlike many other types of products, which are typically used only in specific applications or industries, Protective Coatings can be applied to almost any surface. This makes them ideal for a variety of applications, including industrial production processes, transportation vehicles and surfaces, building materials, and healthcare facilities. Additionally, Protective Coatings are often easy to apply and remove. This makes them ideal for use in a variety of scenarios where cleanliness or convenience is a priority (e.g., medical settings).

Environmental awareness is on the rise, motivating a growing number of businesses to adopt protective coatings as a means to protect their surfaces from environmental damage. Factors such as increasing reports of air and water pollution, deforestation, and global warming are driving this market growth. Protective coatings are effective at inhibiting the formation of airborne pollutants and preventing the creation of harmful sludge and varnish byproducts. This is particularly important in regions with high levels of environmental stress, such as urban areas. Furthermore, protective coatings offered versatile chemistries that could provide multiple benefits beyond just weathering. These coatings could also prevent corrosion, act as a barrier against bacteria and viruses, or inhibit the growth of fungi. As consumers become more aware of the importance of protecting their environment, businesses that offer protective coatings stand to benefit from increased demand. The rise in demand from the automotive and electronics industries owing to variances in the protection needs of these sectors is one of the key drivers for this market. Additionally, growth in the microelectronics sector is also expected to fuel demand for protective coatings in the near future. The automotive industry is estimated to be the largest consumer of protective coatings, accounting for over 50% of the global market share. This popularity can be attributed to various factors such as Napa valley asphalt's resistance to black ice and low oil content, which makes it a desirable substrate for several car models. Other prevalent reasons for increased demand from automotive manufacturers include increased safety requirements, emissions control mandates, and the cost-efficiency benefits of using coatings. The electronics sector is second only to automotive in terms of revenue generated and has witnessed an increasing amount of development activity in green technology that requires durable coating solutions. Some prominent players included in this segment are Samsung Electronics Co., Ltd., Sony Corporation, Foxconn Technology Group, and Intel Corporation among others. A major reason behind this increase in demand lies in growing awareness about the environmental impact associated with traditional materials used in manufacturing electronic products such as lead, PVC, and arsenic-containing solders. As a result, companies are investing more money into research and development (R&D) initiatives focused on safer alternatives with better performance attributes.

However, there are some restraints in the market. Environmental constraints are one of the key restraints hampering the growth of the protective coatings market. Standards governing paint release and flammability are being progressively enhanced across various regions, which is posing a challenge to the adoption of protective coatings across industries including transportation, construction, and agriculture. Moreover, stringent emission norms are also restraining the growth of this market. Heavy usage in industrial applications is another restraint on the growth of this market as aging infrastructure leads to an increase in maintenance needs that could be addressed with the use of protective coatings instead of repairs or replacements. Additionally, some other key restraints restraining the growth of the protective coatings market include inadequate understanding of product usage and application needs among various stakeholders; lack of durability and resistance against fouling by organic molecules; the high cost associated with developing technologies for achieving durable protection; and inadequate research activities conducted in this domain.

Top Market Trends

1. Increasing popularity of automotive and industrial applications The increasing popularity of automotive and industrial applications is likely to drive the protective coatings market. This is because these applications require specific coatings that can resist chemicals, abrasion, and other environmental factors.

2. Reduction in manufacturing costs Reduction in manufacturing costs is also expected to fuel the growth of the protective coatings market. This is because coatings are becoming increasingly affordable as companies look to save on production costs. Additionally, newer technologies are helping to lower the manufacturing time required for coatings Sahaya Research Private Limited.

3. Growing demand from Tier 1 and Tier 2 players While the major players in the protective coating market are producing high-quality products, there is a growing demand from small and medium enterprises (SMEs). This is due to their need for economical products that offer good performance. These SMEs include companies in the transportation and construction industries Sahaya Research Private Limited.

4. Adoption of latest coatings technologies such as titanium dioxide (TiO2), zinc oxide (ZnO), silicon dioxide (SiO2), and Others which are more effective in providing enhanced protection than traditional coatings systems;

5. Higher adoption of nanotechnology products in the Protective Coatings Industry to create new functionalities like photocatalytic degradation, water repellency, anti-fouling, etc. These materials offer enhanced performance, higher-resolution patterns, longer-wearing properties, and resistance to solvents and UV radiation. They are currently being used in abrasion-resistant coatings, anti-scratch coatings, and fire-retardant coatings among others.

6. Improvement in overall product performance through rigorous quality control measures during the manufacturing process.

7. Another key factor is the increasing demand for customized and tailor-made coatings solutions across various industrial applications. In addition, the continuous refinement of production techniques and rising demand for environmentally friendly products are other key factors fuelling the growth of the protective coating market.

Market Segmentation

The market is segmented based on Technology, Resin Type, End-Use Industry, Applications, and Region. On the basis of technology, the market is segmented into Solvent based, Water based, Powder Coatings, and Other Technologies. Based on Resin type, the market is segmented into Epoxy, Polyurethane, Acrylic, Alkyd, Zinc, and Other Resin Types. Based on end-use industry, the market is segmented into Offshore Structures/Oil & Gas-Exploration, Production & Transmission, Petrochemical - Refineries & Chemical Processing, Marine, Cargo Containers, Power Generation, Water & Wastewater Treatment, Food & Beverages, and Other Industries. Based on applications, the market is segmented into Abrasion Resistance, Chemical Resistance, Fire Protection, Heat Resistance, Corrosion Resistance, Pipe Coatings, Tank Linings, and Other Applications.

Based on Technology

The protective coatings segment is dominated by solvent-based technologies. This is due to the fact that these coatings are easy to apply, durable, and have low shear rates. However, newer oil-free systems are gaining ground in the market. These systems use solvents but do not require any type of primer or sealant. One of the primary benefits of solvent-based technologies is their ease of application. They can be sprayed or brush applied and require little clean-up. In addition, they are also very cost effective. As a result, they are widely used in a variety of markets, including automotive and aeronautical applications. Oil-free systems are gaining ground in the protective coating market because they offer several advantages over solvent-based technologies. These systems don't require any type of primer or sealant and can be applied using either a spray gun or a brush. They also have lower shear rates which make them more resistant to wear and tear than traditional coatings. In terms of volume sales, the solvent-based technology segment will continue to dominate the market for protective coatings over the next few years. Oil-free systems will grow at a slower rate thanks to their higher initial costs, but they will eventually become more popular as they deliver various benefits over traditional coatings.

Based on Resin type

In recent years, the market for protective coatings has been dominated by epoxy segments. The reasons for this are manifold: first, epoxy coatings provide good wear resistance and chemical resistance; secondly, they can be easily applied over large areas with high production yields; and finally, they are relatively inexpensive in comparison to other types of coatings. Epoxy coatings accounted for almost two-thirds of the global protective coating market in 2021, with a CAGR of 7.5% over the past five years. This strong growth is largely attributable to the increasing industrialization of economies across the world and the consequent need for safe and reliable protection surfaces. Over 60% of global epoxy protective coating sales are generated by the industrial sector. The other major segments in the Protective Coatings Market are Polyurethanes (PU) and Silicone oils (SO). These segments together account for about one-third of total sales. PU coatings have seen growth due to their favorable environmental performance as well as noise insulation properties offered by this type of coating. SO/flexible PU blends offer good wear resistance and abrasion resistance at a lower cost than single-component silicones or polyurethanes.

Based on end-use industry

The protective coatings market is segmented based on the end-user industry. The construction & infrastructure segment dominated the market in 2021, owing to increasing investments by various companies in the sector. The automotive and transportation segment is expected to register a high growth rate during the forecast period due to rising demand for vehicles with enhanced protection from weather conditions. The other end-user industries that are expected to grow at a rapid pace are energy and chemical, food and beverage, electronics and appliances, and advanced materials. The automotive industry was the second largest consumer segment with a share of about 20%. Protective coatings are used in automobiles to improve durability against environmental factors such as water, oil, and road salt.

Based on Region

Asia Pacific accounted for almost half (46%) of the global Protective Coatings Market revenues in 2021. This was primarily driven by soaring economic development opportunities across various countries within APAC, which has led to an increase in demand for advanced technology products such as protective coatings. Additionally, stringent environmental regulations are causing industrial companies to invest heavily in R&D efforts aimed at developing new coating technologies that are more resilient to environmental stressors. This expected growth will result in increased protection against corrosion, tarnish, water repellency, anti-static properties, and other contaminants encountered during manufacturing processes. North America dominated the market for protective coatings in terms of revenue in 2021 owing to its large base and high rising rates over the forecast period. The region is expected to grow at a higher rate than Europe during the forecast period owing to increasing investments in R&D and extensive production capabilities. Rising environmental regulations are also boosting the demand for protective coatings in this region.

Competitive Landscape:

The key players in the Global Protective Coatings market include- Akzo Nobel N.V. (Netherlands), PPG Industries Inc. (US), The Sherwin-Williams Company (US), The Valspar Corporation (US), Jotun (Norway), Hempel Group (Denmark), Kansai Paints Co. Ltd. (Japan) and others.

Recent Market Developments:

● To better meet the demands of the North American Coatings Market, The Polynt Group stated in June 2022 that it would be increasing the manufacturing of its coating resins. The company is growing so that it can provide more advanced resin technologies such as alkyd, polyester, copolymer, emulsion, and urethane to the paint and coatings sector, which is seeing rapid expansion.

● With the intention of expanding its footprint in the African market, AkzoNobel announced in June 2022 that it would be acquiring Kansai Paint's paints and coatings division.

● The company PPG Industries Inc. stated in October 2021 that it would be increasing the variety of coatings available to wastewater treatment plants. The enlarged product line features corrosion-resistant, high-performance options for a variety of wastewater management procedures.

● RPM International Inc.'s Carboline division acquired Dudick Inc. in July 2021. High-performance coatings, flooring systems, and tank linings are among the products that Dudick Inc. provides. Thanks to the purchase, Carboline will be able to fortify its standing in the industry.

● Hempel AS released its passive fire protection (PFP) coating, Hempafire Pro 400, in June 2021 so that steel may be better protected from flames.

Segmentation of the Global Protective Coatings Market: