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The protective coatings market size is forecast to increase by USD 22.41 billion at a CAGR of 10.87% between 2023 and 2028. The market exhibits significant growth due to various driving factors. One of the key trends is the increasing demand for eco-friendly water-borne coatings, which are gaining popularity due to their low volatile organic compound (VOC) emissions and better environmental compatibility. Another trend is the increasing focus on advanced coatings, such as UV-curable and nanocoatings, which offer superior protection and durability. However, the market faces challenges due to the volatility of raw material prices, particularly for titanium dioxide and other pigments. To mitigate these challenges, market participants are exploring alternative raw materials and production methods to reduce costs and improve efficiency.
The protective coatings market is experiencing growth driven by stringent environmental regulations and increasing demand for eco-friendly products. With the implementation of EU laws and the European Green Deal, VOC-free coatings, such as water-based industrial coatings and bio-based coatings, are gaining traction. Industries like automotive, furniture, and electronics are turning to advanced solutions like polyurethane resin and epoxy resin-based coatings for enhanced performance and durability. Thin films, smart coatings, and self-healing capabilities are now pivotal in maintaining product lifetime and aesthetic appeal, especially in luxury cars and construction projects. Regulatory policies from the US and Western European governments promote the use of low VOC formulations, addressing environmental awareness. Global demand is further influenced by urbanization, geopolitical tensions, and price volatility, making cost efficiency a priority for manufacturers.
Further, the protective coatings market is evolving, with aqueous coatings gaining popularity due to their eco-friendly properties and compliance with the Eco-product Certification Scheme. The European Commission's regulations drive innovation, particularly in sectors like vehicle refinish and large-scale infrastructure projects, including bridges, roads, and commercial buildings. These coatings are designed for diverse industrial settings, ensuring durability under various operating conditions. As environmental awareness grows, the demand for sustainable solutions continues to rise, shaping the future of the coatings industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The solvent-borne segment is estimated to witness significant growth during the forecast period. Protective coatings are essential in various industries for enhancing the durability and longevity of surfaces. Two primary types of protective coatings are solvent borne and water borne. According to the latest market research, solvent borne coatings held the largest market share in the global protective coatings industry. The reason behind this dominance is the ability of solvents to effectively dissolve components such as pigments, additives, and resins in protective coatings. Solvent borne coatings have a shorter curing time compared to water borne technology, making them a preferred choice in the architectural industry. Moreover, the high demand for solvent borne coatings is witnessed in sectors like automotive and oil and gas due to their superior protective properties and faster application process. As a result, the market for protective coatings, particularly solvent borne, is projected to expand substantially during the forecast period.
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The solvent-borne segment accounted for USD 18.28 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 70% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is experiencing substantial growth due to the increased usage of protective coatings in industries such as automotive, construction, and oil and gas. Key contributing countries in the region include China, India, Japan, and South Korea. The market's diversity is driven by the region's rapid industrialization, expanding business sector, and presence of numerous regional and local companies. The automotive industry is a significant driver of the demand for protective coatings in APAC. The region's automotive sector is growing rapidly, leading to an increase in the production of vehicles, which in turn is boosting the demand for protective coatings.
In addition, the construction industry's growth is also contributing to the market's expansion, as protective coatings are widely used in infrastructure projects and building facades. Furthermore, the oil and gas industry's need for protective coatings to prevent corrosion and maintain equipment is another factor fueling the market's growth. The market in APAC is expected to continue its growth trajectory due to these factors and the region's overall economic development..
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased demand for water-borne coatings is the key driver of the market. Water-borne protective coatings, which utilize water as the primary solvent, provide numerous advantages across various industries such as aerospace, oil and gas, marine, power generation, mining, and automotive. These coatings offer superior resistance to heat and abrasion, along with excellent adhesion. Moreover, water-borne coatings are less hazardous due to their reduced volatile organic compounds (VOC) and hazardous air pollutants (HAP) emissions, making them more eco-friendly than solvent-borne coatings.
Water-borne coatings release fewer organic compounds into the environment compared to solvent-borne coatings, which have a significant environmental impact. Furthermore, these coatings do not necessitate additives, thinners, or hardeners, resulting in cost savings. The amount of water-borne coatings needed to cover a given substrate surface area is also relatively less than other types of coatings.
Increasing focus on UV-curable coatings and nanocoatings is the upcoming trend in the market. The market encompasses solvent borne and water borne coatings. Market players are investing significantly in research and development to introduce advanced protective coating technologies, such as nanocoatings and UV-curable protective coatings, to gain a competitive advantage. Nanocoatings, in particular, have gained popularity due to their cost-effectiveness and superior durability compared to traditional coatings. Halo Nano Matrix is an illustrative example of a nano-protective coating. Nanocoatings exhibit extensive applications across various sectors, including transportation, industrial machinery, marine, and architectural industries. They offer solutions for maintaining long-lasting shine and are easy and quick to apply. Additionally, they effectively repel rain, dirt, and other environmental contaminants.
Volatile raw material prices is a key challenge affecting the market growth. In the realm of protective coatings, hydrocarbon processing industries and the power generation sector are significant end-users. The production of these coatings relies on petrochemical feedstocks, which encompass binders and solvents such as polyesters, alcohols, and epoxy resins. Crude oil and natural gas serve as the fundamental raw materials for manufacturing these binders. The cost of feedstock is directly influenced by the price of crude oil, with each petrochemical feedstock exhibiting a distinct correlation. Factors like demand and supply, manufacturing processes, and production regions impact this relationship. Consequently, the volatility of petrochemical feedstock prices contributes to the fluctuation in resin prices. The unpredictability in crude oil prices is attributed to the persistent demand-supply disparity in the global oil market.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Wacker Chemie AG - The company offers protective coating such as Geniosil GF 80, Geniosil GPTM, HDK H13L, HDK H18, Silester XAR.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Protective coatings play a crucial role in various industries, including offshore and hydrocarbon processing, power generation, and mining sectors. These coatings help protect infrastructure from corrosion and wear, enhancing their durability and longevity. Acrylics, polyurethane, and alkyd are popular types of protective coatings used in these industries. Solvent borne coatings, such as those based on acrylics and alkyd resins, offer excellent chemical resistance and high-performance protection. However, they come with higher VOC emissions, making water borne coatings, including polyurethane and acrylic resins, increasingly popular due to their lower environmental impact. Structural polyurethane coatings provide superior protection against harsh environments, making them ideal for offshore applications.
In the power generation sector, water borne coatings are preferred due to their low VOC emissions and ease of application. Mining operations often require strong protective coatings, with powder coatings offering a cost-effective and durable solution. Resin insights reveal that the demand for protective coatings continues to grow, driven by the need for efficient and sustainable infrastructure in energy-intensive industries. The future of protective coatings lies in advanced technologies, such as nanotechnology and self-healing coatings, offering enhanced protection and longer lifespan.
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Market Scope |
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Report Coverage |
Details |
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Page number |
207 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.87% |
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Market growth 2024-2028 |
USD 22.40 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.53 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 70% |
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Key countries |
China, India, US, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akzo Nobel NV, Al Gurg Paints LLC, Asian Paints Ltd., Axalta Coating Systems Ltd., Berger Paints India Ltd, Chitra Insultec Pvt. Ltd., Dow Chemical Co., Hempel AS, Henkel AG and Co. KGaA, Jotun AS, Kansai Paint Co. Ltd., Nippon Paint Holdings Co. Ltd., NIPSEA Group, Plasma paints, PPG Industries Inc., RPM International Inc., Sika AG, The Chemours Co., The Sherwin Williams Co., and Wacker Chemie AG |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Market Segmentation by Resin Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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