- Increased investment by leading players in developing regions is expected to boost production.
- Volatility of raw material costs, along with low replacement rate of solvent-based coatings, is expected to hinder growth.
- The demand for solvent-borne coatings is expected to boost in the near future.
A protective coating is a layer of material, which is applied on the surface of another material with the aim of preventing or inhibiting corrosion. Protective coating can be classified into metallic and non-metallic coatings. Commonly used materials in metallic protective coatings include aluminum, zinc, and chromium, whereas, non-metallic protective coating’s material include epoxies, polyurethanes, and polymers. Protective coatings find applications in consumer products as well as in heavy machinery, marine, and oil & gas industry, etc.
Major players operating in the global protective coatings market include Akzo Nobel N.V., The Valspar Corporation, PPG Industries, Inc., Arkema Group, Kansai Paint Co. Ltd, The Sherwin-Williams Company, Sika AG, Wacker Chemie AG, Hempel A/S, and Jotun.
Increased investment by leading players in developing regions, owing to low labor cost, less stringent environmental regulations, and cheap manufacturing costs is expected to boost the production for protective coatings market. For instance, in June 2015, Axalta Coating Systems Ltd. announced establishment of a new waterborne coatings facility in Wuppertal, Germany, which was in line with the company’s strategy to provide a sustainable coating solutions. Furthermore, in December 2014, PPG Industries, Inc. completed expansion of its Cheonan, South Korea, facility, which cost around $12 million, and enabled increased production capacity of waterborne coatings. Increased adoption of water-based coatings as compared to solvent-based coatings is likely to drive the demand for water-borne segment in the near future.
Factors such as volatility of raw material costs along with low replacement rate of solvent-based coatings is expected to hinder growth of the market in the near future. The major raw materials used in paints and coatings industry are pigments, solvents, binders, additives, and white urea, with raw materials accounting for around to 49% of total costs. Growth of the global protective coatings market is affected by various macroeconomic factors and price fluctuations of crude oil and logistics costs. This scenario is likely to have adverse impact on the growth of protective coatings market over the approaching years.
The global protective coatings market was valued at $16.39 billion in 2018, and is expected to register a CAGR of 8.7%, in terms of revenue over the forecast period (2019-2027), to reach $34.81 billion by 2027.
Solvent-based coating gives more resilient finish than waterborne and powder-based coatings, making it easier to wipe. However, it tends to become brittle as the coating ages. Solvent-based coating provides high block resistance, i.e., when two painted surfaces come into contact, they do not stick to each other and are more tolerant to adverse weather conditions such as high humidity during the drying period. Owing to advantages offered by the solvent-borne coatings, the demand for solvent-borne coatings is expected to boost in the near future.