High Performance Coatings Market - Forecast(2023 - 2028)

High Performance Coatings Market size is forecast to reach $119.8 billion by 2025, after growing at a CAGR of 5% during 2020-2025. Performance coatings are varnishes used to enhance the performance of surfaces and are resistant to high temperatures, corrosion and abrasion. A performance coating is an affordable option for delivering cosmetically engaging, durable finishes to a product. It is an effective technology that is environment-friendly and comes in a variety of colour combinations due to which the high performance coatings market is expected to grow during the forecast period.

 

Acrylic segment held a significant share in high performance coatings market in 2019. Acrylic resin-based performance coatings have high demand, especially in the automotive industry, owing to stringent environmental regulations and the high corrosion resistance of these coatings. Apart from automotive, consumer appliances are the major end-use industry of high performance coatings. The coatings based on acrylic resins are also being used in wood, marine, transportation, and general industrial applications. 

Epoxy coatings for marine applications are typically formed by the chemical reaction of a bisphenol A-type epoxy resin with a curing agent as in coal tar epoxy films, with similar packaging of epoxy and curing agent. Fluoropolymers are high-performance plastic materials used in harsh chemical and high-temperature environments, primarily where a critical performance specification must be met. 

Powder-based segment held a significant share in high performance coatings market in 2019. Powder-based coatings are highly efficient with over 98% powder overspray recoverability, more resistant to scratching, fading, chipping, and wearing than other finishes. This process releases negligible VOC into the environment and takes less cure time beyond the cool-down period. Powder-based industrial coatings emit low levels of VOCs, providing superior performance and cost efficiency for applications that require maximum abrasion resistance, and hardness.

Building & construction segment held a significant share in high performance coatings market in 2019 growing at a CAGR of 5.12% during the forecast period. High performance coatings provide the following qualities, such as exceptional corrosion protection, abrasion resistance and high resistance to impact, excellent chemical and thermal resistance, extreme durability and strength, and it also contributes to the aesthetics as well. The key areas of expected growth in building and construction segment are social infrastructure, hospitals, schools, water, government accommodation, defense infrastructure, and water resources.

Asia Pacific dominated the high performance coatings market with a share of more than 41%, followed by North America and Europe.  This is primarily because of higher demand from the construction sector due to a growing population. In China, the housing authorities of Hong Kong have launched various measures to push-start the construction of low-cost housing. Additionally, the Chinese government has rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years, despite efforts to rebalance its economy to a more service-oriented form. This is likely to boost the demand for high performance coatings in the country.

Furthermore, countries such as India and Japan have also been contributing to the growth of the high performance coatings market. Overall, the demand for high performance coatings is expected to increase in the during the forecast period.

Stringent EU regulations regarding the reduction of VOC emissions in coating resins and low polluting coating technologies are driving the demand for environmentally-friendly coatings. Government regulations in the Western European countries and US, especially regarding air pollution, will continue to be a driving force for the adoption of new and low-pollution coating technologies. These regulations have led to the shift in demand from solvent-based coatings to environmentally-friendly products, such as water based, powder coatings, high solids, and UV-curable coatings. These environment-friendly products contain fewer solvents that evaporate during the curing phase. Hence, new rules and regulations set by the European Commission and Federal government agencies are leading toward achieving a greener environment with minimum or zero VOC emissions.

Modern high performance coatings will last decades before any visible corrosion damage is observed. Another drawback is the inability to accurately quantify the corrosion damage. Thus, a major effort within the coatings research community has been in the development of more rapid and quantitative tests to assess the corrosion performance of coated metal substrates.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the high performance coatings market. In 2019, the market of high performance coatings has been consolidated by the top five players accounting for xx% of the share. Major players in the high performance coatings market are PPG Industries Inc., Akzo Nobel NV, Hempel Group, Daikin Industries Ltd., and The Sherwin-Williams Company, among others.