Technical coil coatings Market Is Estimated To Witness High Growth Owing To Increasing Construction Activities And Growing demand For Durable And Aesthetic Coated Coils
The Technical coil coatings market size is estimated to be valued at USD 4.60 Billion in 2024, exhibiting a CAGR of 4.5% over the forecast period (2024-2031). Technical coil coatings are widely used in the construction, automotive, and appliance industries. The market is expected to grow owing to increasing construction activities across the globe and growing demand for durable and aesthetic coated coils with a wide range of colors and gloss properties from end-use industries. Furthermore, stringent environmental regulations regarding Volatile Organic Compound (VOC) emissions from coating materials are also expected to boost the market growth.
Increasing construction activities
Rapid urbanization along with growing residential and commercial construction in developing regions such as Asia Pacific and Middle East & Africa is the key driver boosting the consumption of construction materials including metallic coils. Technical coil coatings protect metallic coils from corrosion and provides durable and aesthetic finish.
Growing demand from the appliance industry
The expanding appliance industry especially in developing nations owing to rising living standards and changing lifestyle is augmenting the demand for technically-coated metallic coils. Major appliances including refrigerators, washing machines, and air conditioners extensively use coated metallic coils for manufacturing cabinets and other body parts requiring corrosion resistant and aesthetic finish.
Growing demand from the construction industry is driving growth in the technical coil coatings market
One of the key drivers of growth in the technical coil coatings market is the steady increase in demand from the construction industry globally. Coil coatings are extensively used in metal roofing, wall cladding, rain gutters, and other exterior metal components of commercial and residential buildings. The rising construction of both commercial and residential projects is creating a burgeoning need for coated metal materials in the building industry. Countries across the world are experiencing increased urbanization which is translating to more infrastructure development and new construction activities. This, in turn, is boosting the demand for products like metal roofing, siding, and other pre-coated steel materials that require technical coil coatings.
Growing appliance and automotive industries are fueling the demand for technical coil coatings
Another major driver for this market is the strong growth of the home appliance and automotive manufacturing sectors. Technical coil coatings have wide usage in the manufacturing of appliances such as air conditioners, refrigerators, washing machines etc. for their outer body as well as internal components. The growing sales of appliances globally is creating sustained demand for coated steel and aluminum in this industry. Similarly, the automotive sector utilizes coil coated materials extensively in auto bodies, wheels, engine compartments, and other exterior and interior parts of vehicles. As automotive production increases worldwide to meet the consumer demand, it will fuel the growth of the technical coil coatings market.
Strict environmental regulations pose a challenge for technical coil coatings companies
One key restraint affecting the technical coil coatings market is the implementation of strict environmental laws regarding VOC emissions from coating products. Many countries and regions have framed regulations to reduce or eliminate the use of harmful volatile organic compounds in industrial coatings. This is posing technical and formulation challenges for manufacturers to develop eco-friendly coatings meeting the low or no-VOC norms. Considerable investments are required for R&D to modify resin and solvent compositions to comply with changing environmental standards, which increases production costs for companies. Strict monitoring and audits of manufacturing processes are also impacting the operational expenditures of technical coil coatings producers.
High dependence on a few key end-use industries increases market vulnerability
Another major limitation affecting the stable growth of this market is its high dependence on the performance of few key end-use industries like construction, appliance, automotive, etc. Since a major portion of technical coil coatings demand comes from these sectors, any slowdown in their growth directly impacts the revenues and sales of coatings producers. For example, the dip in global auto sales during the COVID-19 pandemic severely affected the demand for coil coatings from automotive OEMs. Similarly, sluggish construction activities in certain economies can dampen the consumption of coated metal products. This concentration risk leaves the market vulnerable to fluctuations in demand from its major consumer segments. Diversifying the end-use portfolio can help companies mitigate such risks.
Developing green product portfolios presents opportunities
With growing preferences towards green and sustainable offerings, developing environment-friendly technical coil coating product ranges provides a big opportunity for market players. Formulating low-VOC, powder and water-based coatings meeting the latest eco-standards allows companies to tap into the expanding green building and construction market. Offerings like LEED-compliant coatings help boost sales and brand image for sustainable construction and infrastructure projects. Significant R&D investments are underway to commercially manufacture greener product variants using bio-based resins and advanced corrosion resistant pigments. This presents new revenue streams as green building gains global popularity and regulatory push.
Growing Asia Pacific construction industry offers lucrative prospects
Lastly, the immense growth potential in the Asia Pacific region, especially in emerging countries like India and China, provides a lucrative market opportunity for technical coil coatings companies. Mega infrastructure projects and the large affordable housing sector in these nations are driving the demand for pre-coated metal products. Aggressive capacity expansion plans by coatings producers and localization of manufacturing units in the region will allow capturing this high growth market at scale. With increasing industrial and construction activities, Asia Pacific presents the best growth prospects for technical coil coatings over the coming years.
Link: https://www.coherentmarketinsights.com/market-insight/technical-coil-coatings-market-1258
Key Developments
- In 2023, Chemcoaters, a leading provider of specialty coatings and surface treatments, announced the launch of a new corrosion-inhibiting coil coating for hot-rolled pickled and oiled (HRPO) and cold-rolled (CR) steel.
- In January 2022, Modine Coatings, the industry-leading commercial and industrial HVAC coatings division of Modine Manufacturing Company, announced plans to showcase its latest GulfCoat technology at the AHR Expo from January 31 to February 2. At the event, the company will introduce two new products: GulfCoat Circuit Shield and GulfCoat AM.
- In October 2021, PPG Industries, Inc., a renowned supplier of paints, coatings, and specialty materials based in the United States, unveiled a wide range of coil coatings for commercial, residential, and industrial metal building products at the Metalcon 2021 trade show.
- In 2021, AkzoNobel, a leading global provider of paints, coatings, and specialty chemicals, announced the launch of TRINAR® TC, the latest innovation in their PVDF (polyvinylidene fluoride) coil coating technology.
Key Players
PPG Industries Inc., BASF S.E., Akzo Nobel N.V., The Valspar Corporation, DowDuPont Inc., The Sherwin-Williams Company, Backers Group, Kansai Nerolac Paints Limited, ArcelorMittal, Arconic, BDM Coil Coaters, CENTRIA, Chemcoaters, Dura Coat Products, Goldin Metals Inc., Jupiter Aluminum Corporation, Norsk Hydro ASA, Novelis, Ralco Steels, and Rautaruukki Corporation
