Powder Coatings Market is Estimated to Witness High Growth Owing to Increasing Demand from the Automotive Industry & Growth of the Construction Sector
The powder coatings market size is estimated to be valued at USD 14.52 Billion in 2024 and with CAGR of 5.4% over the forecast period (2024-2031). The growing automotive industry across the globe is promoting the demand for powder coatings. Furthermore, the steady recovery of the construction sector in developed regions is augmenting the market growth.
The growth of the powder coatings market is driven by increasing demand from the automotive industry and steady recovery of the construction sector. Powder coatings are widely used in the automotive industry for coating various automotive components and parts owing to benefits such as corrosion resistance, durability, and easy application process. Additionally, growing vehicle production coupled with shifting preference towards powder coatings from wet coatings in the automotive industry is fueling the market growth. Furthermore, powder coatings find major applications in pipe coatings, architectural coatings, and general industrial coatings. Thus, the recovery of the construction sector in Europe and North America is positively impacting the consumption of powder coatings.
Increased Demand from Construction Industry
The construction industry has seen major growth over the past decade driven by increasing urbanization and investment in infrastructure projects. Powder coatings are widely used in construction for coating pipes, lighting poles, windows, doors, and other metal parts that are exposed outdoors. Their durable, scratch, and corrosion resistant properties make them ideal for withstanding weathering in outdoor construction applications. The ongoing growth in residential and commercial construction around the world has led to higher demand for powder coatings from this end-user industry.
Growth of Durable Consumer Goods Sector
The market for durable consumer goods such as furniture, appliances, and automotive parts has been expanding steadily. Powder coatings have become the preferred coating method for many consumer products due to their aesthetically pleasing finishes and low volatile organic compound emissions which are environment friendly. The increasing health awareness has boosted the demand for powder coated furniture which does not emit harmful VOC gases. Moreover, powder coated appliances and automotive parts have superior corrosion resistance helping reduce replacement costs. The strong growth outlook for consumer goods is expected to drive higher consumption of powder coatings.
Price Fluctuations of Raw Materials
Powder coatings rely on petrochemical-derived raw materials like epoxy, polyester, and acrylic resins for their formulation. The prices of crude oil and natural gas, which are used in the manufacturing of these resins, exhibit volatility depending on geopolitical factors and supply/demand forces. Any increase in raw material prices leads to a corresponding rise in powder coating cost. The unpredictable nature of commodity prices poses a major restraint for producers who have fixed pricing contracts with customers. It also restricts the ability to pass on higher costs unless prices adjust accordingly. This poses a challenge for maintaining stable profit margins.
Stringent Environmental Regulations
Regulations regarding safe handling and disposal of powder coatings and their waste are becoming increasingly stringent around the world. Most regions now prohibit the landfilling of process overspray and strictly limit VOC emissions from application equipment and curing ovens. Complying with such regulatory norms involves huge capital investment in advanced abatement systems. It also results in higher production costs. Tighter emission standards pose difficulties for powder coating manufacturers, especially SMEs who have limited budgets for upgrading to compliant technologies. The regulatory pressure negatively impacts the profitability and adds compliance burden for industry players.
Developing Countries
Many developing nations in Asia Pacific, Latin America, Middle East, and Africa are experiencing rapid urbanization and economic growth. This translates to growing infrastructure building, appliance/vehicle manufacturing and housing construction activities which spur the demand for durable coatings. However, the penetration of powder coatings in these emerging markets is still quite low compared to developed regions of North America and Europe. With rising affluence, local customers are willing to pay more for high quality and long-lasting finish of powder coated products. This offers significant market potential and opportunities for global powder coatings suppliers to expand their footprint in developing countries.
New Application Areas
Ongoing research is focused on developing powder coatings specifically for new application areas like 3D printed metal parts, medical devices, transportation interiors, and outdoor solar panels. The versatility and advantages of powder that allow it to coat intricate geometries make it an attractive coating method for parts manufactured using additive manufacturing technologies. Similarly, the non-toxic, non-allergic properties of powders position them well for coating interior automotive and aerospace components as well as medical equipment and implants that come in contact with humans. Such emerging application domains present considerable opportunities for future growth of powder coatings demand.
Link: https://www.coherentmarketinsights.com/market-insight/powder-coatings-market-339
Key Developments
- In May 2024, AkzoNobel, a leading global paints and coatings company, launched a new powder coating solution specifically designed for the two-wheeler industry. This innovative product is poised to revolutionize the way two-wheelers are finished, offering enhanced performance, durability, and aesthetic appeal.
- In 2023, AkzoNobel, a leading global paints and coatings company, launched a pioneering low-energy powder coating solution. This innovative product represents a significant advancement in the field of powder coatings, offering a more sustainable and energy-efficient alternative to traditional coating methods.
- In 2022, Akzo Nobel N.V. completed the acquisition of a Colombia-based paints and coatings company, Grupo Orbis, strengthening its long-term position in Latin America. Grupo Orbis have well presence in 10 countries in Central America, South America, and the Antilles. The transaction includes the Pintuco paints and coatings business, Andercol and Poliquim, Mundial, and Centro de Servicios Mundial. The Pintuco portfolio consists of 75% decorative paints and 25% coatings, offering a wide range of products across 10 countries, creating several opportunities for revenue synergies.
- In April 2021, Axalta, a leading global supplier of liquid and powder coatings, launched Axalta Mobility Coatings, a rebranding of its Transportation Coatings business unit. This redefined business unit will focus on supporting the accelerating demand for e-mobility and the evolving coatings needs of established and emerging light and commercial vehicle original equipment manufacturers (OEMs), fleet owners, and shared mobility providers.
Key Players
Akzo Nobel India Ltd. , Jotun , Asian Paints PPG Pvt. Ltd., 3M, The Sherwin-Williams Company, Kansai Paint Co., Ltd, American Powder Coatings, VITRACOAT , Paramount Powders (UK) Ltd., Thermaset Ltd, Atlas Coatings, Berger Paints India Ltd., Maharani Paints Pvt. Ltd., Titan Paints and Chemicals Private Limited, Rapid Engineering Co. Pvt. Ltd., Axalta Coating Systems, Fortunecoat Industries Pvt. Ltd. , Zigma Paints (P) Ltd., Nivera Paints (India) Pvt. Ltd., JOSEPH INDUSTRIES, and National Paints
