Powder Coatings Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Powder Coatings Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global powder coatings market was valued at over USD 10,000 million in 2021, and the market is projected to register a CAGR of greater than 5.5% during the forecast period (2022-2027).

The automotive and architectural industries are some of the major sectors for the application of the powder coatings market.

Due to the COVID-19 outbreak, nationwide lockdown around the globe, disruption in manufacturing activities and supply chains, production halts, and labor unavailability negatively impacted the powder coating market in 2020. However, the conditions started recovering in 2021, restoring the market's growth trajectory during the forecast period.

Key Highlights

• Over the medium term, the major factors driving the market studied are strict regulation against VOC emissions and favorable government initiatives promoting the usage of powder coatings.
• On the flip side, the difficulties in obtaining thin film coatings are expected to hinder the growth of the market studied.
• The growing investments in the infrastructure and construction industry in emerging economies in the Asia-Pacific region are likely to provide opportunities for the market studied during the forecast period.
• Asia-Pacific dominated the market, globally, with the most significant consumption from countries such as China, South Korea, and India.

Powder Coatings Market TrendsGrowing Demand from Architectural and Decorative Segment

• One of the fastest-growing markets for powder coatings is the architectural and building market, primarily due to the durability of powder coatings.
• Moreover, the expansion of polyester resin technology, namely stable, low-gloss formulas, provided architectural market opportunities that promoted the growth of powder coatings.
• Due to the variety of colors and finishes available in powder coatings, many construction companies are turning to powder coatings to provide long-term exterior finishes for outdoor venues and public work projects.
• In April 2021, PT Jababeka Morotai, a subsidiary of Jababeka Group, collaborated with the OISCA International College Foundation (OISCA International) to develop the Morotai Special Economic Zone (KEK). Under this collaboration, a World War II monument and supporting facilities will be constructed in KEK, North MalUnited Kingdomu Province, Indonesia.
• In the North American market, the explosion of green construction practices and globalization have further increased the awareness regarding powder coatings as a viable option to coat architectural aluminum.
• In 2021, according to the U.S. Green Building Council (USGBC), 1,105 projects had been certified with LEED certification for green buildings in the top 10 states of United States with 247 million GSF land. This will likely provide a huge opportunity for powder coatings in the region.
• Therefore, with the abovementioned factors, the demand for powder coatings in the architectural and decorative industries will likely increase over the forecast period.

Asia Pacific to Dominate the Market

• In the Asia Pacific region, China and India dominated the global market share due to the rising consumption from the automotive industry, construction activities, and industrial goods. This is augmenting the demand for the powder coatings market in the region.
• China is in experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in 2021, the construction output in China was valued at approximately CNY 29.31 trillion.
• In the Indian Union Budget 2022-23, capital expenditure on infrastructure has increased sharply by 35.4%, from INR 5.54 lakh crore to INR 7.50 lakh crore in 2022-23, which includes a total of 2,000 km of rail network and 60,000 houses under PM Aawas Yojna, among others.
• In September 2021, Axalta announced that it broke ground for the construction of a state-of-the-art coatings facility in Jilin City, Jilin Province, North China. The 46,000-square-meter new plant will produce mobility coatings for light vehicles, commercial vehicles, and automotive plastic components.
• In May 2021, PPG announced the completion of a USD 13 million investment in its Jiading, China, paint and coatings facility, including eight new powder coating production lines and an expanded Powder Coatings Technology Center. The expansion will increase the plant's capacity by more than 8,000 metric tons annually.
• Furthermore, in 2021, electric vehicle sales in China skyrocketed by 154%, with total electric vehicle sales of 3.3 million units 2021, up from 1.3 million in 2020. This is in accordance with the Ministry of Finance of China's statement to provide financial subsidies for new electric vehicles, as they will be exempted from vehicle purchase tax between January 1, 2021, to December 31, 2022.
• Hence, with such trends mentioned above and the growth of the above-mentioned end-user industries, the demand for powder coatings is estimated to grow substantially in the region during the forecast period.

Powder Coatings Market Competitive Analysis

The powder coatings market is fragmented, with only a few international players holding a considerable share, coupled with several local players in individual countries. Some of these major players (not in any particular order) include Akzo Nobel NV, Axalta Coating Systems LLC, The Sherwin-Williams Company, PPG Industries Inc., and Jotun, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.