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Powder Coatings Market Overview
The Powder Coatings Market size is forecasted to reach US$18.2
billion by 2027 after growing at a CAGR of 6.1% during the forecast period 2022-2027.
Powder coating is a dry finishing process in which free-flowing, thermoplastic
or thermoset powder material is applied to a surface, melted and then allowed
to dry and harden into a protective coating. Powder coating based on
thermoplastic polymers is derived from polyolefins, polyvinyl chloride, polyvinyl
fluoride, polyester and so on whereas thermoset-based powder coatings are
derived from epoxy, polyester, acrylic, polyurethanes and so on. Powder coating
imparts a high-quality, durable finish, that allows for improved efficiency and
is eco-friendly. Powder coatings are based on polymer resin systems. The
environmental advantages offered by powder coatings compared to liquid coating
methods drives the powder coatings market. The pandemic resulted in shortages
of raw materials and supply chain disruptions. According to Echemi, a chemical
industry B2B website, there were shortages of neopentyl glycol that is used in
many of the resins for powder coatings and triglycidyl isocyanurate which is a
curing agent used in polyester powder coatings. This resulted in price hikes of over 60% in the Powder Coatings industry.
Powder Coatings Market Report Coverage
The “Powder Coatings Market Report – Forecast
(2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments
of the Powder Coatings industry.
Key Takeaways
- The Asia-Pacific region dominates the powder coatings market on account of the increasing construction activities and the recovering automotive industry. According to Invest India, the construction industry in India is expected to reach $1.4 trillion by 2025.
- There are two types of powder coatings, thermoplastic and thermoset. Thermoplastic powders are commonly derived from polyolefins, polyvinyl chloride and polyvinyl fluoride while thermosetting powders are derived from acrylic, epoxy and polyester resins.
- Thermoplastic powder coating melts and flows when heat is applied but continues to have the same chemical composition once it cools and solidifies. On the other hand, thermoset powder coatings will not melt when heated after curing.
- The major opportunity for this market is developing thin-film coatings.
- A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the powder coatings market report.
Powder Coatings Market Segment Analysis – by Resin Type
The thermoset
segment held a dominant Powder Coatings Market share in
2021 and is expected to grow at a CAGR of 7.2% during the forecast period of
2022-2027. In the powder coating process, as the powder heats and melts it
flows around the surface of the object and undergoes a chemical change called
cross-linking which forms a hard and durable coating. Thermosetting coatings do
not re-melt when they are cooled after heat is re-applied. In its powdered
state, thermoset material tends to have a much lower molecular weight than other coating materials, usually requiring less heat to melt, making it more energy efficient. Thermoset powders are commonly derived from epoxy, acrylic, polyester
and polyurethane groups. The most frequently employed are epoxy and polyester-based
resins. Epoxy resin-based thermoset powders form a tough impact-resistant
coating that has excellent corrosion resistance, so they are used for internal
applications. Polyester-based coatings have the added advantage of being highly
UV resistant, making them an ideal choice for outdoor applications. Thus, the
thermoset segment is anticipated to dominate the powder coatings market.
Powder Coatings Market Segment Analysis – by Application
The construction segment held a dominant Powder
Coatings Market share in 2021 and is
expected to grow at a CAGR of 8.3% during the forecast period of 2022-2027. Powder
coating can be used for metal components such as door frames, railings, window
frames, fencing, shelters, storefronts, façade or other areas of buildings. According to WSP, around 25% of the
overall construction cost is the façade, with the metal contributing a major
part of the cost. Powder coating can prevent corrosion and minimize re-coating
as it imparts a long-lasting coating. The powder coat is more resistant to
scratching, fading, erosion or other types of damage that can ruin the
aesthetic appeal of a building The latest trend in the construction industry is
low-emitting products and sustainable buildings. According to the U.S. Green
Building Council (USGBC), 1,105 projects have been certified with LEED
certification for green buildings in the U.S. in 2021. Powder coatings are
solvent and VOC-free and produce less waste than other coating methods, making them
a clear choice for green buildings. Thus, the construction industry is expected
to dominate the market.
Powder Coatings Market Segment Analysis – by Geography
The Asia-Pacific region held the dominant Powder Coatings Market share up to 60% in 2021 owing to the rising consumption of powder coatings from the automotive, construction and appliances sector. The construction activities in the region rebounded after the initial lockdown in 2020. The government of India has made several investments in construction and infrastructure to aid in development. As per a report by the Indian Construction Equipment Manufacturers Association (ICEMA), the construction equipment industry recorded a 47% growth in the second quarter of FY2021-22. According to a news report in Reuters, in FY22-23, US$529.7 billion will be invested to further drive economic growth across the country. China’s construction sector is expanding rapidly. according to the National Bureau of Statistics, China’s construction output is estimated to be worth approximately US$4.3 trillion in 2021. China plans to invest US$1.43 trillion in key construction projects as part of its 14th five-year plan. As per the National Development and Reform Commission (NDRC), the Shanghai plans call for a total investment of US$38.7 billion over the next three years. The Japanese construction industry is expected to boom as the World Expo will be hosted in Osaka, Japan in 2025. Therefore, this region is set to dominate the Powder Coatings market.
Powder Coatings Market Drivers
Environmental Advantages of Using Powder Coatings
Powder coating is the green process of choice for finishing
operations. It produces less waste than other finishing processes such as
liquid coating. The use of powder coating aids in eliminating waste because, after application, the powder coating overspray can be reclaimed and reused.
These types of reclamation practices keep overhead costs low while minimizing
environmental impacts. Solvents contain volatile organic compounds (VOCs) which
are detrimental to the environment. In liquid coatings, the average VOC content
is between 3.5 to 5.5 pounds per gallon, which is approximately one-third to
one-half of each gallon of the liquid coating being emitted into the
environment during the application process. Since powder coating lines do not
require the use of solvents, they do not emit VOCs and can operate with reduced
energy, faster curing and lower temperatures. This makes powder coatings highly
attractive from an environmental perspective. Innovations in the powder
coatings industry strive to make it even better. For instance, in early 2020, Sherwin-Williams
General Industrial Coatings division launched the Powdura ECO line made from a
resin that uses pre-consumer recycled polyethylene terephthalate (rPET). Thus,
the environmental advantages offered by using powder coatings drive the market.
Growing Usage of Powder Coatings in Electric Vehicles
The growth of electric vehicles (EVs) can be attributed to increasing oil prices and growing awareness regarding climate change. According to the International Energy Agency (IEA), in 2021, sales of electric cars (including fully electric and plug-in hybrids) doubled to a new record of 6.6 million. Sales kept rising in 2022 as well, with 2 million electric cars sold worldwide in Q1 2022, up almost 75% compared to Q1 2021. To keep EV motors and batteries operating efficiently, it’s important to maintain an optimum temperature range. Sometimes EV motors can generate operating temperatures that may exceed 200°C. Powder coatings are used to insulate battery boxes and isolate thermal activity. To take advantage of the growing EV market, powder coating manufacturers are launching products that cater to EVs. For instance, in January 2022, Arkema announced high-voltage coating solutions for electric vehicles. The two new polyamide 11 powder coating grades with UL certification were introduced for use in electric vehicle battery systems and other applications. Thus, the growing usage of powder coatings for EVs drives the market.
Powder Coatings Market Challenge
High Initial Investment
The
major restraint in the Powder Coatings market is the high initial investment
required to set up the powder coating equipment. Liquid coating applications
only require a spray gun and a spray area. Comparatively, a powder coating
workshop needs a spray gun, spray booth and curing oven. The addition of the
curing oven adds significantly to the initial start-up costs for powder
coating. The size of the curing oven purchased needs to take into account the
maximum part size that can effectively be handled. Larger, thicker and heavier
parts require a larger and more powerful oven, which further adds to the
overall equipment costs. While metals can be powder coated using electrostatic
spray deposition, non-metals require a fluidized bed powder coating
application. The need for a fluidized bed also increases the overall equipment
costs for the establishment of a complete powder coating facility. This can
prove to be a challenge for the powder coatings market.
Powder Coatings Industry Outlook
Product launches, acquisitions
and R&D activities are key strategies adopted by players in the Powder Coatings market. The top 10 companies in the Powder Coatings Market are:
- PPG Industries
- AkzoNobel Powder Coatings
- BASF SE
- Axalta Coating Systems
- The Sherwin Williams Company
- Jotun
- Valspar Corporation
- Nippon Paint Holdings Co. Ltd.
- Kansai Nerolac Paints Limited
- Tiger Coatings
Recent Developments
- In June 2022, Polychem launched a new powder coating collection called the Effects Collection. The collection features powder special effects, such as speckles, translucents, metallics, sparkle translucent, veins, patina effects, river textures, fine textures and dramatic illusion colors, available in a variety of colors.
- In May 2022, AkzoNobel Powder Coatings launched a comprehensive range of ready-to-ship powder coatings ranges specifically for the North American market. The range comprises approximately 500 unique powder coatings, with a broad variety of premium quality colors, textures and finishes.
- In February 2022, PPG announced that it has entered into an agreement to acquire the powder coatings business of Arsonsisi, an industrial coatings company based in Milan, Italy. The acquisition will enable PPG to expand its powder coatings offering in the Europe, Middle East and Africa (EMEA) region.
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