In-Mold Coatings Market Trends

Key Emerging Trends in the In-Mold Coatings Market

The use of powder coatings in the in-mold process has been on the rise, capturing the second-largest share of the global in-mold coatings market in 2016, both in terms of value and volume. This surge in popularity is attributed to the economic and environmental benefits that powder coatings offer over traditional solvent-based coatings. Notably, advancements and alterations in powder coating formulations have addressed issues like color-changing properties and film consistency, boosting their demand in the in-mold process. In 2016, the global market for powder coatings in in-mold applications measured at 1,771.9 KT and is anticipated to grow at a CAGR of 6.7%, reaching 2,770 KT by the end of 2023.

One significant driver for the increasing adoption of powder coatings is the growing concern over Volatile Organic Compounds (VOCs) emitted by solvent-based coatings. This has led to a rising preference for low-VOC alternatives, including water-borne and powder coatings. The appeal of powder coatings lies in their durability, resistance to abrasion, and eco-friendly nature, making them the preferred choice for in-mold coatings across various industries.

The recovery of the global automotive industry has played a pivotal role in the upward trajectory of powder coatings. Following the recession of 2008–09, the automotive sector, particularly in China, the US, and Japan, has experienced robust growth. Projections indicate a significant increase in global automobile production by approximately 30 million units by the end of 2023. Specialty chemicals, including coatings and polymers, are integral to the automotive industry, with a focus on weight reduction for enhanced fuel efficiency and performance, alongside reduced manufacturing costs. This trend, known as lightweighting, has led to a notable surge in the use of plastics in the automotive sector.

The consumption of automotive plastics is expected to reach nearly 15 million tons by the end of 2023, growing at a CAGR of around 8%. Consequently, there is an increased demand for innovative coatings and technologies that offer an economical solution and provide a uniform finish, such as in-mold coatings.

In this context, the rising demand for cost-effective coating systems, combined with the expanding use of plastics in the automotive industry, is poised to create lucrative opportunities for participants in the global in-mold coatings market in the coming years. The market is expected to witness sustained growth during the review period, driven by these factors and the continuous evolution of powder coating formulations, addressing previous limitations and enhancing their applicability in diverse industries.