Industrial Coatings are the types of coatings specifically designed for industrial applications. These coatings are used to protect and enhance the appearance of various types of surfaces, machinery, equipment, and structures in industrial settings. Industrial coatings serve several important functions, including corrosion protection, chemical resistance, temperature resistance, and aesthetics.
Based on Resins, the market is segmented into Acrylic, Fluoropolymer, Polyester, Polyurethane, Epoxy, and Others. Acrylic is the largest Resin type in the Industrial Coatings market owing to its beneficial uses such as ease of use, physical properties, and low costs. Acrylic-based Industrial Coatings have excellent physical properties, as fungus resistant, provide longer life, and excellent moisture protection. Acrylic Resins have strong chemical and photochemical resistance and are commonly used in numerous applications, which include as industrial coatings with solvent and water-based architectural coatings.
Major types of paints and coatings included the Prismane Consulting's Global Paints & Coatings- 2023 World Analysis are decorative coatings, industrial coatings, marine coatings, polyurethane coatings, powder coatings, wood coating, optical coating, and textile coatings. Protective coatings are used in diverse industrial markets to protect metal, concrete structures, and surfaces from tough environmental conditions and exposure to other chemicals including acids, alkalis, and solvents.
The primary function of these coatings is to protect the substrate against corrosion and erosion. Besides this, some of the coatings also offer an excellent aesthetic appearance to the substrates. Thermal insulation coatings have been growing at a faster pace and are applied to different surfaces to form a protective finish and provide resistance to heat. It has low conductivity towards heat which reduces heat loss in various equipment, thus improving their performance. Developments in manufacturing, automobile, industrial sectors, and nanotechnology are expected to influence the market positively. Moreover, increase in demand from the aerospace, defense, marine, and transportation sector will also support the growth of paints & coatings. Increasing production of automobiles in the Asia-Pacific region has driven the overall paints and coating market in the region.
In terms of Segment, the market is bifurcated into Automotive Coating, Protective Coating, Powder Coating, Marine Coating, Wood Coating, Coil Coating, Packaging Finishes, and Others. Automotive Coating accounted for the largest share. Rising demand for Automotive refinishes for maintenance of the vehicle with the along with the increasing demand for electric and hybrid vehicles due to the concerning carbon emissions will boost the industrial coatings market in the forecast period.
Paints & Coatings market is estimated over 47 million tons in 2017 with Asia-Pacific leading the global demand with 48% consumption. China alone accounts for one-third of the global paints & coatings demand. Other important regions include North America and Western Europe accounting for 33% of the global demand. Asia Pacific will remain the leading consumer of paints & coatings during the forecast period and will further increase its global dominance. Decorative coatings account for a major share of 45% of global consumption followed by industrial & protective coating.
In terms of base material used, water-based coatings dominate the paints & coatings market with 51% global consumption. Solvent-based coatings are also a major part of the paints & coatings industry accounting for around 45% of the global paints & coatings market. Powder-based and other types constitute 4% of the global market. In the forecast period, solvent based coatings are expected to grow at a slower rate on account of strict environmental regulations regarding emission of volatile organic compounds (VOCs) in developed as well as developing countries. On the other hand water and powder-based paints & coatings are expected to grow at a CAGR of 4-5% during the forecast period globally.
Paints and Coatings are manufactured using raw materials such as polymer resins, pigments & fillers, additives, and solvents. In terms of raw material type required, resins account for around 45% followed by pigments and fillers with 30% of the global paints and coatings demand. Resins used for production of paints and coatings are acrylic, urethane, alkyd, and epoxy which act as a binder in the paints industry. Solvent comprises around 20% and constitutes alcohols, esters, ketones, glycols, and glycol ethers. Oxygenated solvents have a higher demand in paints and coatings formulations with more than 50% demand in paints and coatings products. Sub-segments of additives used in paints & coatings include rheology modifiers, surfactants, biocides, foam control, and others.
Based on Applications, the Industrial Coatings market is segmented into Automotive, Construction, Industrial, Pipes & Fittings, Aerospace, Marine, Packaging, Woods, and Others. Automotive accounted for the largest share owing to its widespread in the industry. The Industrial Coatings market is expected to be driven by the rising number of light and commercial vehicles globally.
Asia Pacific is the largest market for Industrial Coatings owing to the rapid industrialization and rising demand from the Automotive market in countries such as India, Japan, and South Korea. Less stringent VOC emission laws in the region as compared to Western Europe and North America will create high opportunities for these Industrial Coatings in various End-Use industries. Industrial coatings are also used in the Construction industry as they act as a protective layer to prevent damage from moisture, UV radiation, chemicals, and physical abrasion and also help in extending the lifespan of surfaces and structures. The construction industry in India is the second largest in the country and makes a big contribution to its GDP.
In 2022, Sherwin-Williams Company acquired German-based Specialized Industrial Coatings Holding (SIC Holding) to expand its Industrial Coatings portfolio.
The rising demand for Automotive Coatings will boost the market in the upcoming years. These coatings help make vehicles lighter and improve the resistance of tires, which enables automotive manufactures to provide fuel-efficient vehicles. The process of manufacturing automotive coatings also reduces energy and water consumption and lowers the waste produced. Several corrosion-effective pre-treatments help reduce the water usage lowers the waste generated and increase energy efficiency. These coatings not only extend the lifespan of vehicles but also reduce maintenance costs for consumers which will positively impact the market.
The rising demand for Electric Vehicles will positively impact the Industrial coatings market as EVs require special coatings to protect their battery system from corrosive elements, high temperatures, and mechanical stress.
In 2023, PPG announced a new Joint Venture between Entrotech Inc., to deliver paints and clear films for Automotive and Industrial customers through PPG Advanced Surface Technologies.
Industrial coatings are essential for protecting surfaces from damage and extending their lifespan. However, they also raise significant environmental concerns, primarily related to VOC emissions, hazardous ingredients, waste generation, energy consumption, biological impact, longevity, and disposal challenges.
Some industrial coatings contain hazardous ingredients, such as heavy metals (e.g., lead, chromium), which can leach into the soil and water when the coatings degrade. This contamination can harm aquatic ecosystems and pose risks to human health if it enters the food chain. Efforts have been made to reduce the use of these harmful substances in coatings, but they still pose a concern, especially in older coatings and in regions with lax regulations.
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