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APAC Powder Coatings Market - Forecast(2023 - 2028)
APAC Powder Coatings Market Overview
APAC Powder
Coatings market size is forecast to reach US$10.7 billion by 2026, after
growing at a CAGR of 7.6% during the year 2021-2026. Powder coating is a dry finishing procedure
that uses electrostatically charged finely ground pigment and resin particles
that are sprayed over electrically grounded parts. The charged powder particles
stick to the part and stay there until they're melted and fused in a curing
furnace to form a homogeneous coating. Powder coating finishes are not only durable
but also adaptable. Metal, concrete, steel, and plastic are among the surfaces
it can be used on. It's a versatile finish that can be used both indoors and
out, and it's also one of the most cost-effective possibilities. In the near
future, the expanding number of consumer products companies in India, China,
and Singapore is predicted to boost market development. Moreover, Powder
coatings have several advantages over other coatings, including cheaper
operating costs, immediate availability, low VOC emissions, good appearance,
and consistent thickness which is
projected to propel the APAC powder coating market forward in the forecast
period.
COVID-19 Impact
The outbreak of
COVID-19 has disrupted the production of raw materials used in paints and
coatings manufacturing. Asian countries such as India, China, Japan, Singapore,
and Thailand are the hubs for paints and coatings manufacturing and are major
suppliers of these raw materials. The outbreak of the novel coronavirus in APAC
has affected the supply of these raw materials. For instance, China is one of
the major suppliers of resins and exports a million tons of resins to the
global market. The break in the supplies of raw materials has reduced the
production of paints and coatings products. In 2020, all private buildings and
construction sites, government constructions, and refinish automotive
businesses were hit drastically. Retailers are also canceling already placed
bulk orders of paint and coatings products due to the shutdown of the market.
End-use consumers are not buying expensive coating technologies such as
polyurea and polyurethanes from distributors and retailers due to COVID-19.
Overall, the sales of paints and coatings products are hampered at the
distributors' level due to the suspension of construction and building
activities.
Report Coverage
The report: “APAC Powder Coatings Market Report –
Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the
following segments of the APAC Powder Coatings Industry.
By Country: Malaysia, Indonesia, Thailand, India, Australia and New Zealand, Japan, Vietnam, Bangladesh, Philippines, Pakistan, South Korea, and the Rest of APAC
Key Takeaways
- Japan dominates the APAC powder
coatings market, owing to the increasing construction and automotive sector in
the country. The increasing per capita income and evolving lifestyle of
individuals coupled with the rising population are the major factors expanding
the construction and automotive sector in Japan.
- Powder coating protects and
enhances the appearance of household appliances such as refrigerators, dryer
drums, water heaters, dishwashers, and microwaves. It can be made of plastic,
metal, or concrete, all of which are long-lasting materials. As a result, the
overall powder coating market in the Rest of the APAC region is expected to
grow.
- The rise in automobile
manufacturing and a surge in demand for electric vehicles is the major factor
driving market expansion in developing countries such as India, China, and
others. For instance, the Indian government launched the Faster Adoption and
Manufacturing of Hybrid and Electric Vehicle (FAME) scheme in 2019 with an
Rs.10,000 crore budget. The scheme was set to expire in 2022.
- During the projected period,
the profitable construction industry in the Asia Pacific will contribute to
increased demand for powder-coated construction equipment in the area.
According to the Indian National Investment Promotion and Facilitation Agency,
the country's construction equipment industry is expected to generate US$6.5
billion in revenue in 2020.
Figure: APAC Powder Coatings Market CAGR by Country, 2021-2026 (%)
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APAC Powder Coatings Market Segment Analysis – By Resin Type
The thermoset segment
held the largest share in the APAC powder coatings market in 2020 and is estimated
to grow at a CAGR of 7.4% during the year 2021- 2026. Epoxy resin is commonly
used as a powder coating material in a variety of industries in the
Asia-Pacific region. Epoxy powder coatings are robust, long-lasting, and
durable metal coatings. Their superior hardness and impact and abrasion
resistance increase the performance of the product over liquid coatings. Also,
epoxy powder coatings help maintain the functioning of critical equipment so
that production may operate smoothly, thereby improving the bottom line.
Fluoropolymer resin owing to its non-stick properties and chemical resistance
is widely used in powder coatings. Fluoropolymer powder coatings are almost
solely employed in the exterior of commercial, residential, and monumental
buildings, including high-value residential, commercial storefronts, curtain
walls, skyscrapers, hospitals, malls, government buildings, and stadiums. According
to the International Trade Administration (ITA), China is the world’s largest
construction market, and the industry is forecasted to grow at an annual
average of 5% in real terms between 2019 and 2023. Thus, thermoset powder
coatings are becoming more popular in this region, owing to the rising growth
of the construction and automotive industries in countries such as China,
India, and Japan.
APAC Powder Coatings Market Segment Analysis – By Coating Method
The electrostatic
spray segment held the largest share in the APAC powder coatings market in 2020
and is forecasted to grow at a CAGR of 7.8% during the year 2021-2026. The
electrostatic spray consists of two sub-segments corona charging and tribomatic
static charging. The most common way of applying the powder coating to metal
objects is to spray the powder using a corona gun. The gun imparts a
positive electric charge to the powder, which is then sprayed towards the
grounded object by mechanical or compressed air spraying and then accelerated
toward the workpiece by the powerful electrostatic charge. Tribomatic static
charging is the second most common method of spraying powder coatings, after
corona charging. The powder develops a charge while passing through special
hoses and guns. When the powder comes into touch with these non-conductive
surfaces, the friction causes electrons to be removed from the particles. After
which a powerful positive charge is developed by these particles. There is no
utilization of high voltage or lines of force, allowing for easier penetration
into deep recesses. Tribomatic charging is efficient in developing a static
charge within the powder, however, coatings must be specifically formulated for
this system.
APAC Powder Coatings Market Segment Analysis – Substrate
The metal
segment held the largest share in the APAC powder coatings market in 2020 and
is forecasted to grow at a CAGR of 8.2% during the year 2021-2026. Metal as a powder coating substrate finds
widespread use in the building industry due to its exceptional weathering
qualities and color and gloss preservation. Exterior architectural applications
such as façades, curtain walls, windows, door profiles, sheet metal, cladding,
and others benefit from their corrosion resistance and great weather ability.
The demand for powder coatings in the metals market is driven by factors such
as developments in civil construction and a strong need for efficient paints in
developing nations like India, Malaysia, Thailand, and more. In October 2020, Axalta Coating System
introduced Alesta AP QualiSteel, a new powder coating system for galvanized
steel that is both efficient and long-lasting. Alesta AP QualiSteel is commonly
used to coat machine components, outdoor furniture, and more. Such product
launches are further assisting the market growth.
APAC Powder Coatings Market Segment Analysis – By End-Use Industry
The construction
segment held the largest share in the APAC powder coatings market in 2020 and
is forecasted to grow at a CAGR of 8.9% during the year 2021-2026. Powder
coating is witnessing increasing adoption in the outdoor construction segment
owing to its numerous benefits over the more traditional liquid fluoropolymer
coating. Powder coat provides superior UV resistance and durability to
traditional paints, thereby decreasing long-term maintenance costs. For
instance, Pure Polyester (TGIC) coating can provide gloss retention and prevent
color loss for at least 10 years on units such as windows, door frames, outdoor
displays, and railings. Besides, a single coat of TGIC coating is equivalent to
around 2 coats of liquid polyester. The presence of a well-developed
construction sector in major developed economies such as Japan, South Korea,
Singapore, and Australia is anticipated to increase product demand during the
forecast period. Besides, the rapid rise in outdoor construction in emerging
economies such as China, India, and Vietnam are also contributing to the market
growth. For instance, Chinese urbanization rates are among the highest in the
world. Moreover, the architectural design and engineering industry revenue
passed US$1 trillion in 2019.
APAC Powder Coatings Market Segment Analysis – By Geography
India is growing at the fastest CAGR of 9.5% by revenue during the years 2021-2026 in the APAC powder coatings market. India is the major ground for various types of industries including automotive, construction, infrastructure, and more. Being a developing country, it upholds a strong avenue for industrial development. The recent scheme “Make in India” issued by the Indian government is all set to escalate the industrial development in India and attract more foreign investments. The Indian manufacturing sector is estimated to grow tremendously with huge investments from global manufacturers. Automotive along with construction are some of the major industries significantly fueling the growth of the powder coatings market in India. For illustration, according to Invest India, the Indian EV market is expected to grow at a CAGR of 44 percent between 2020 and 2027, with annual sales reaching 6.34 million units by 2027. The construction industry in India is expected to reach US$1.4 Trillion by 2025. In Union Budget 2021, to support initiatives such as “Housing for Al”’ and “Smart Cities Mission”, the government allocated Rs. 13,750 crores (US$1.89 billion) to AMRUT and Smart Cities Mission. As the machinery and equipment related to these industries employ a broad spectrum of powder coatings for protective purposes, the significant growth in these sectors is poised to flourish the powder coatings market in India over the coming years.
APAC Powder Coatings Market Drivers
The increasing use of powder coatings in the automotive sector is driving market growth.
Recently, the demand for modern electric vehicles has increased which is flourishing the automotive industry. In the automotive sector, powder coatings are increasingly playing their part in protecting batteries and associated components from overheating as well as insulating them against other threats that can reduce performance and increase risk. New trends are also emerging in powder coating systems to support manufacturers in bringing a new generation of vehicles and also powder coatings are renowned for their intrinsic benefits of helping to support sustainability and accelerating processing times. Moreover, the Chinese automotive manufacturing industry is the largest in the world and according to the China Association of Automobile Manufacturers, the country grows to become the world’s biggest market for electric vehicles in 2020 with a 40% sales increase. The increase in sales tends to surge the use of powder coating and thus driving the market growth. However, the Chinese government has been consistently trying to increase the sales of electric vehicles through incentives and mandates for automakers, developers of autonomous vehicle technologies, and ride-hailing service companies, which in turn, is expected to increase the demand for powder coatings in the country. In April 2020, the Ministry of Finance of China had issued a notice of promoting financial subsidies for new electric vehicles. It stated that new EVs purchased between January 1, 2020, and December 31, 2022, are free from vehicle purchase tax. This factor helps in increasing the adoption of electric vehicles and therefore accelerating the market growth. Moreover, in India, the automotive industry is seeing significant transformation concerning its sustainable growth and profitability and in 2020 the automotive industry in India shows a 20% growth which gives rise to the need for power coating in the automotive sector.
APAC
Powder Coatings Market Challenges
High investment requirement in powder coatings equipment
The initial investment in powder coating tends to be high as the process requires a spray gun, a specialized spray booth, a curing oven, and many others. So, manufacturers need to invest more to collect all the equipment that is needed for powder coatings. Powder coating can be used in a wide variety of manufacturing applications and represent over 15% of the finishing market, thus, manufacturers are focusing more to invest on the powder coatings equipment which can create challenges for the market growth. Some manufacturers choose to complete finishing operations in-house, in which they would need to invest in obtaining or purchasing powder coating equipment. The initial investment in equipment is high, and workers must be trained in using and maintaining the machines. Finishing equipment manufacturing vendors can offer standard powder coating equipment, design and build services for custom powder coating systems, as well as provide the necessary employee training and maintenance services for the systems which increase the investment cost in powder coating equipment. Many organizations have invested heavily in their powder coating machinery and equipment, for instance, AkzoNobel recently invest 40 million euros to make the largest powder coatings plant with a designed annual capacity of 46,000 tons. In many ways, the equipment investment for powder coating is some of the greatest expenses associated with starting powder coating production. Investment costs vary from project to project and they largely depend on how much surface area is needed to be coated. Powder coatings are used in a variety of industries such as automotive, construction, and many more which increases the number of projects in the particular industry. Thus, the rising number of projects increases the investments in powder coatings equipment.
APAC Powder Coatings Industry Outlook
Technology launches,
acquisitions, and R&D activities are key strategies adopted by players in
the APAC Powder Coatings market. Major players in the APAC Powder
Coatings market are:
- PPG Industries Inc.
- The Sherwin Williams Company
- AkzoNobel N.V.
- KCC Corporation
- Axalta Coating Systems
- Nippon Paint Holdings Co. Ltd.
- Jotun A/S
- Dai Nippon Toryo Co. Ltd.
- Kansai Nerolac Paints Limited
- Berger Paints India Limited
Recent Developments
- In October 2020, AkzoNobel was building a plant in Chungli District, Taoyuan City, Taiwan, that will allow customers in Taiwan more access to the company’s advanced powder coatings solutions. The fully automated plant, which represents a €20 million investment, will have the increased production capacity to fulfill growing demand in the architecture, auto accessories, telecommunications, electronic components, furniture, domestic appliances, sports equipment, and machine tools markets.
- In May 2020, PPG acquired Global Coatings Manufacturer Wörwag, a global manufacturer of coatings for industrial and automotive applications. The acquisition of Wörwag is another step forward in PPG’s strategic growth plan that will provide further value to our customers and shareholders.
- In March 2020, PPG acquired Alpha Coating Technologies, a Light Industrial Powder Coatings Manufacturer, of powder coatings for light industrial applications and heat-sensitive substrates. Financial terms were not disclosed.
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