The powder coatings market is influenced by various factors that dictate its supply and demand dynamics, technological advancements, regulatory landscape, and economic conditions. Firstly, the demand for powder coatings is driven by their wide-ranging applications across industries such as automotive, architectural, furniture, appliances, and general industrial. As these sectors continue to grow, driven by factors like urbanization, infrastructure development, and consumer preferences for durable and environmentally friendly coatings, the demand for powder coatings rises correspondingly, driving market expansion.
On the supply side, factors such as raw material availability, production capacity, and technological innovations play pivotal roles. Raw materials like resins, pigments, and additives are essential components in powder coating formulations. Fluctuations in the availability or cost of these raw materials can impact production costs and pricing strategies within the powder coatings market. Additionally, advancements in powder manufacturing processes, such as extrusion, milling, and particle size control, contribute to enhancing supply chain efficiency and meeting market demands for high-performance and customized coatings.
Regulatory policies and standards also significantly impact the powder coatings market. Environmental regulations regarding volatile organic compound (VOC) emissions, hazardous substances, and product safety drive manufacturers to develop coatings that comply with stringent standards. Compliance with these regulations not only ensures market access but also enhances consumer trust and brand reputation, particularly in industries where environmental concerns and health risks are paramount.
Moreover, macroeconomic factors such as GDP growth, industrial output, and construction activity influence the overall demand for powder coatings and their downstream products. Economic fluctuations or changes in consumer behavior can affect market growth, while increasing investments in infrastructure projects, residential construction, and automotive manufacturing can stimulate demand for powder coatings, driving market expansion.
Global market dynamics, including trade policies, geopolitical tensions, and currency fluctuations, also play a crucial role in shaping the powder coatings market landscape. Changes in global trade patterns, trade agreements, or geopolitical events can disrupt supply chains, alter market dynamics, and influence pricing strategies within the powder coatings market.
Furthermore, technological advancements and innovations continue to drive developments within the powder coatings market. Research and development efforts aimed at improving coating performance, durability, and application efficiency contribute to market innovation. For instance, the development of powder coatings with enhanced corrosion resistance, weatherability, and color options offers new opportunities for market growth and differentiation in various applications.
Powder Coatings Market Size was valued at USD 12.97 billion in 2023. The Powder Coatings market industry is projected to grow from USD13.91 billion in 2024 to USD 22.62 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.27% during the forecast period (2024 - 2032). Increased demand for powder coating from various end-user industries and the growing application of powder coatings in the automotive sector are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market is expanding rapidly due to reduced volatile organic compound (VOC) use. These coatings consist of no VOCs, thus reducing atmospheric pollution, safe storage and handling, and low fire hazard. VOCs are chemicals that vaporize at room temperature and are the leading cause of ground-level air pollution. Nitrogen oxides react with VOCs to form smog and can cause nose, throat, and eye irritations, headaches, memory impairment, visual disorders, and cancer in humans. Increasing awareness regarding pollution control among manufacturers is boosting these coatings' production. Manufacturers are usually required to file for permits and follow strict environmental regulations on the amount of solvent and VOCs emitted into the atmosphere. Violation of the regulation by manufacturers regarding VOCs content has to face penalties and fines. These coatings offer an alternative that minimizes the amount of air pollution control and complies with regulations and restrictions. In manufacturing these coatings, there is no use for petroleum solvents and therefore do not release VOCs harmful to the environment. These coatings comply with environmental regulations expected to drive the market. This factor drives the market CAGR.
Additionally, the Application of these coatings is a two-step process in which, firstly, the product is splashed with powder with the assistance of an electrostatically charged powder gun. The powder clings to the part, and afterward, that part is restored inside a coating oven. This coating oven liquefies the powder to stream together and lock to the part effectively. The relieving procedure creates a durable bond that lasts and helps protect the metal beneath. Powder coating has a 60% of average transfer efficiency. Thus 40% of the powder cannot adhere to the component. The excess sprayed powder on the part can be gathered and reused using powder reclamation. Powder reclamation works better when only one or two primary colors are used for the products, as multiple color changes considerably boost equipment costs. If the component is sprayed with one or two colors, it can significantly help save the powder by reclaiming it. The over-sprayed powder can be trapped in the filters or spray booth. The recycled powder can be used again and which makes the powder. Thus, driving the Powder Coatings market revenue.
Based on Substrate, the Powder Coatings market segmentation includes Metal, Non-Metal. The metal segment dominated the market because powder coatings are a popular choice for coating metal objects, as they offer several advantages over other types of coatings.
Based on Resin Type, the Powder Coatings market segmentation includes Thermoset and Thermoplastic. The thermoset segment dominated the market; this one melt and flows when heat is applied and generally requires lower curing temperatures than thermoplastics. Thermoset coatings are bifurcated into epoxy-polyester, polyester, polyurethane, acrylic, and others. The epoxy polyester sub-segment accounted for the primary share of the thermoset segment. Epoxy polyester has improved resistance to overbaking yellowing and improved weather ability than epoxy. Epoxy polyester is now regarded as the main backbone of the market.
Figure1: Powder Coatings Market, by Resin Type, 2022&2032(USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Powder Coatings market segmentation is based on Resin Type Electrostatic Spray Coating, Fluidized Bed Coating, Electrostatic Fluidized Bed Process, and Flame Spraying. The electrostatic spray coating segment dominated the market; the electrostatic spray is the primary technique used for thermoset coatings. The particles of these coatings are given an electrical charge in the coating gun. The increasing demand for thermoset powder coating for various end-use industries is expected to fuel the electrostatic spray coating method demand.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American Powder Coatings market area will dominate this market due to rising government investments in construction projects, which shall drive regional growth. Due to its eco-friendly nature and aesthetic value, powder coating has gained popularity in the construction industry and will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: POWDER COATINGS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Powder Coatings market accounts for the second-largest market share due to the rise in the automotive industry. It will likely drive the European market and witness a significant growth rate during the forecast period. Further, the German Powder Coatings market held the largest market share, and the UK Powder Coatings market was the fastest-growing market in the European Region.
The Asia-Pacific Powder Coatings Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rise in automotive, appliance, furniture, architectural, construction & earthmoving equipment, agriculture, and general industries. Moreover, China’s Powder Coatings market held the largest market share, and the Indian Powder Coatings market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Powder Coatings market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Powder Coatings industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Powder Coatings industry to benefit clients and increase the market sector. The Powder Coatings industry has offered some of the most significant advantages in recent years. Major players in the Powder Coatings market, including PPG Industries, Inc. (US), Valspar Industrial (US), Asian Paints Limited (India), Akzo Nobel NV (Netherlands), Koninklijke DSM NV (Netherlands), DuPont (US), Arkema SA (France), Evonik Industries AG (Germany), Kansai Paint Co., Ltd (Japan), TCI Powder (US), and Axalta Coating Systems (US)., and others, are attempting to increase market demand by investing in research and development operations.
Akzo Nobel N.V., stylized as AkzoNobel is a Dutch multinational company that creates paints and performance coatings for industry and consumers worldwide. Headquartered in Amsterdam, the company has activities in more than 150 countries. AkzoNobel announced its plan to acquire Grupo Orbis to strengthen its South and Central America position. Depending on regulatory clearances, the acquisition is anticipated to be completed by the end of this year or early in 2022. Pintuco paints and coatings, Andercol and Poliquim (resins), and Mundial (distribution and services) are all part of the deal.
PPG Industries, Inc. is an American Fortune 500 company and paints, coatings, and specialty materials supplier. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. By revenue, it is the largest coatings company in the world, followed by AkzoNobel launched CORAFLON platinum coatings for architectural metals. Compared to standard fluoroethylene vinyl ether coatings, the patented coatings technology provides high transfer efficiency rates of over 20% and improved corrosion resistance. PPG CORAFLON Platinum products are available ly in various colors, glosses, micas, and metallic finishes.
December 2020: the highly populated UK-based paints manufacturer, HMG Paints, partnered with another UK-based key player, Symphony Coatings, and decided to provide industrial coatings from HMG, and color matching facilities will be from the three branches of Symphony Coating.
January 2021: PPG plans to acquire Wörwag, a world-renowned developer of powder coatings for automotive and industrial applications. Wörwag's rich expertise in powder coatings is expected to complement PPG's robust business and could help PPG boost its product offerings. Wörwag's inclusion in PPG will also help foster the customer base across key regions worldwide.
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