AEROSPACE COATING MARKET challenges and opportunities

Aerospace coating manufacturers rely heavily on crude oil and its derivatives for producing various resin and solvent-based formulations. However, international crude oil prices have witnessed wild fluctuations in recent years. In 2022, the aerospace coating industry saw major disruptions as crude oil prices surged over USD 120 per barrel due to geopolitical tensions. This led to a 15% hike in the cost of solvent-based coatings, forcing manufacturers like PPG Industries to renegotiate contracts and pass on price increases to customers, straining relationships.

Market Opportunity- Development of bio-based and advanced coatings

Aerospace coating market is expected to witness new growth opportunities through the development of bio-based and advanced formulations. Rising environmental awareness boosts demand for sustainable coating options produced from renewable plant-based resources like vegetable oil, starch and bio-resins. Leading coating manufacturers have started extensive R&D initiatives to create bio-derived resins, pigments, and solvents which can match performance of conventional petrochemical-based equivalents. AkzoNobel unveiled its bio-based aerospace coating line in 2023, leveraging renewable resources like linseed oil and bio-derived resins. The product, developed in partnership with Airbus, offers the same durability and UV resistance as traditional coatings while reducing VOC emissions by 30%, gaining traction among eco-conscious airline operators.