SOFT TOUCH POLYURETHANE COATINGS MARKET ANALYSIS

Soft-touch polyurethane coatings are widely used across automotive and aircraft interior components, consumer electronic devices such as TV, laptop, and mobile phones, and interior wood surfaces that includes trim, furniture, and doors. Moreover, these coatings are also used across kitchenware and cosmetic cases. The global soft-touch polyurethane coatings market is projected to surpass US$ 14.06 billion by the end of 2030, in terms of revenue, growing at a CAGR of 8.95% during the forecast period (2023 to 2030).

Global Soft Touch Polyurethane Coatings Market: Growth Drivers

• Surge in Aesthetic as well as Soft-touch products Trends

The market for soft touch polyurethane coatings is being propelled by the growing demand for soft-touch goods across a wide range of industries. This trend of aesthetics—color combination, tactile feeling, and sheen—is greatly praised in today's consumer markets, broadening the canvas for players in the soft touch polyurethane coatings business. Soft-touch coating methods, in essence, provide consumers with a rich tactile experience while also preventing hand slippage. The use of coating techniques to give plastics a more appealing appearance has boosted the use of soft touch polyurethane coatings in the industry. The quest for a coating technology that can endow plastic surfaces with a leather-like texture at a low cost is driving their acceptance.

• Increased Usage across Industries

Soft-touch polyurethane coatings are widely utilized in automobiles, and one of the primary causes driving the soft-touch polyurethane coatings industry growth is the packaging business. To lower chemical and abrasion resistance, soft-touch polyurethane coatings are utilized. Soft-touch coatings' flexibility and drag may also prevent part slippage and offer a matte finish, making them excellent for numerous End Use industries such as electrical and electronics, automotive, and packaging, which is boosting the soft-touch polyurethane coatings market. Additionally, soft-touch polyurethane coatings are becoming increasingly popular in the electronics industry due to their great durability and good resistance to weathering and UV radiation. The expansion of the automotive industry along with the increase in defense budgets are other market growth determinants that are projected to bolster the growth of the market.

Global Soft Touch Polyurethane Coatings Market: Restraints

Availability of Master batches

Furthermore, master batches give uniform color and eliminate the need for further coating and running costs. Master batches are most commonly utilized as a polyurethane alternative in interior furnishings and automotive interior parts. It is a better polyurethane because it allows for better coating penetration on complicated shapes for both indoor and outdoor applications. As a result, the master batch’s long-term benefits are likely to limit the expansion of the soft-touch polyurethane coatings market. This factor will challenge the soft touch polyurethane coatings market growth rate.

Global Soft Touch Polyurethane Coatings Market: COVID-19 Impact

The recent outbreak of coronavirus had a negative impact on the soft touch polyurethane coatings market. The automotive sector's production activities were halted during the COVID epidemic, which could stifle market growth. Passenger car registrations are expected to drop by roughly 25% by 2020, according to the European Automobile Manufacturers Association (ACEA). Toyota's automotive sales in China decreased by 70.2 percent to 24,000 units in February 2020, according to Asian Automobile Analysis (AAA). Vehicle production in Europe, North America, and South America declined by 21%, 20%, and 30%, respectively, in March 2021, according to the International Organization of Motor Vehicle Manufacturers (OICA). The global soft-touch polyurethane coatings industry, on the other hand, has been severely impacted, impeding market growth.

Global Soft Touch Polyurethane Coatings Market: Market Segmentation

Regionally, Europe dominated the global soft-touch polyurethane coatings market in 2022, reporting 47% market share in terms of revenue, followed by North America and Asia pacific, respectively.

Figure 1. Global Soft-Touch Polyurethane Coatings Market, Revenue Share (%), By Region 2022

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Global Soft Touch Polyurethane Coatings Market: By End Use Industry

On the basis of End Use industry, transport & automotive dominated the global soft-touch polyurethane coatings market in 2018 with around 38% of the market share in terms of revenue, followed electrical & electronics and wood & furniture, respectively.

 Figure 2. Global Soft-Touch Polyurethane Coatings Market, Revenue Share (%), By End User Industry, in 2022

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Global Soft Touch Polyurethane Coatings Market: Recent Developments

In June 2020, BASF introduced ten new versions of its "Haptex 2.0" polyurethane (PU) solution for synthetic leather manufacture. This new technology will aid designers in achieving superior quality and desired aesthetic look in a wide range of synthetic leather applications.

In January 2021, Allnex launched polyurethane coating DAOTAN 7061/35WA. DAOTAN 7061/35WA is an emulsifier-free, high molecular weight, aliphatic urethane-acrylic-hybrid aqueous dispersion with excellent shear stability which is specially designed for automotive OEM and vehicle refinishes coating segments.

In June 2020, BASF launched 10 variations of Haptex 2.0 polyurethane (PU) solution for the production of synthetic leather. This product is enhanced higher peel strength, anti-yellowing, and high abrasion performance properties. Synthetic leather made with this PU solution is used to meet stringent VOC standards and is useful in various industries such as furniture, footwear, automotive, apparel, and accessories.

In January 2020, BASF announced a single-digit million-euro investment in the capacity expansion of water-based polyurethane dispersions with a production capacity of 30% at its Castellbisbal site in Spain.

Global Soft Touch Polyurethane Coatings Market: Key Companies

Key players operating in the global soft-touch polyurethane coatings market are The Sherwin Williams Company, Akzo Nobel N.V., PPG Industries Ltd, Axalta Coatings Systems, Rust-Oleum - RPM International Inc., Aexcel Coatings., Sokan New Materials, and Jotun AS

Definition: Soft-touch polyurethane coatings are advanced coatings that are manufactured by using polyurethane dispersions. These coatings offer a soft feel to the surface, better scratch resistance, heat resistance, and chemical resistance. This coating is classified into solvent-based and water-based. Moreover, these coatings are highly durable and also provide fast dry time.