Release Coatings Market - Forecast(2023 - 2028)

Release Coatings Market Overview

The Release Coatings Market size is projected to grow at a CAGR of 6.2% during the forecast period 2022-2027 and reach US$229.5 million by 2027. Release coatings are significant components of pressure-sensitive adhesive (PSA) products such as tapes and labels. Release Coatings are categorized into various types which include siloxane (silicone), acrylate, fluoropolymer and more. They are primarily used in a wide range of industries including building & construction, medical & hygiene, packaging, food industry and other industries. The expansion of release coatings is primarily driven by their usage in the construction industry. For instance, according to recent insights from the World Cement, the global construction industry output increased by 5.7% in 2021. An increase in construction activities along with the growth of the healthcare industry is expected to drive the growth of the release coatings market size in the upcoming years. In 2020, the surge in the COVID-19 pandemic negatively impacted construction activities as a result of the country-wide shutdown of construction sites, thus, temporarily affecting the growth of the release coatings industry. However, a steady recovery in new development and construction contracts has been witnessed across many countries around the world since 2021, which in turn, is driving the demand for release coatings.

Release Coatings Market Report Coverage

The "Release Coatings Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Release Coatings Market.

Key Takeaways

• Water-based coating technology held the largest share in the Release Coatings Market in 2021, owing to its increasing demand and benefits such as low VOC (volatile organic compounds) and HAP (hazardous air pollutant) levels over other types of coating technology.
• Building & Construction industry held a significant share in the Release Coatings Market in 2021, owing to the increasing demand for release coatings from the construction sector across the world. For instance, in October 2021, the MoC (Ministry of Construction) of Vietnam proposed around 266 residential housing projects across the country which are scheduled to be completed from 2022 to 2025.
• Asia-Pacific dominated the Release Coatings Market in 2021, owing to its increasing demand from the industrial sectors such as construction & healthcare sectors in the region.
• A detailed analysis of strengths, weaknesses, opportunities and threats will be provided in the Release Coatings Market Report.

Figure: Release Coatings Market Revenue Share, By Geography, 2021 (%)

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Release Coatings Market Segment Analysis – by Coating Technology

The water-based coating technology held the largest Release Coatings Market share of over 25% in 2021, owing to a range of advantages they offer over other types of coating technology. Water-based coatings are surface coatings that contain 80% water and a small number of other solvents such as polyvinyl ether and glycol. It offers a wide range of properties and benefits such as excellent adhesion properties, good resistance to heat and abrasion, along with anti-corrosion properties in comparison to solvent-based and other types of coatings. Moreover, water-based coatings are environment friendly due to low VOC (Volatile Organic Compounds) and HAP (Hazardous Air Pollutant) levels which makes them less toxic and flammable in comparison to solvent-borne and other coating technology. Hence, all of these benefits of water-based coatings are driving its demand for use in release coatings as compared to other types of coating technology, which in turn, is expected to boost the market growth during the forecast period.

Release Coatings Market Segment Analysis – by End-use Industry

The building & construction industry held a significant Release Coatings Market share of over 18% in 2021, owing to the increase in construction activities across the world. For instance, in October 2021, the Ministry of Construction of Vietnam proposed VND 30 trillion (US$1.3 billion) credit package to build low-cost residential homes for workers. Likewise, another 278 building construction projects including 276,000 units with a total area of 13.8 million square meters are currently under development in Vietnam. All of these projects are scheduled to begin in 2022 and be completed by the end of 2025. Furthermore, recent insights from Construct Connect state that the U.S. government has funded around US$20 billion for the construction of a real estate and development project called One Central project in Chicago. The project is under the schematic design phase and currently undergoing construction in 2022.

Release Coatings Market Segment Analysis – by Geography

Asia-Pacific held a dominant Release Coatings Market share of around 44.7% in the year 2021. The consumption of release coatings is particularly high in this region due to its increasing demand from the industrial sectors such as the construction & healthcare sectors in the region. For instance, the government of China approved 695 building and construction projects with a total investment of 3 trillion yuan (US$471 billion) in January 2022. Moreover, recent insights from Invest India state that there are around 115 future construction projects that are currently under the planning phase in India in 2022. The total investment in these construction projects is around US$11.63 million. It includes the construction of hotels, shopping complexes, office buildings and more. Furthermore, according to the India Brand Equity Foundation (IBEF), in Union Budget 2022-2023, INR 86,200.65 crore (US$11.28 billion) was allocated to the Ministry of Health and Family Welfare (MoHFW) with the aim of improving the country’s healthcare sectors along with its facilities, products and services. This is anticipated to propel the growth of the market during the forecast period.

Release Coatings Market Drivers

An increase in construction activities

Construction activities are considered to be the pillar of growth for a country and also play a major role in increasing the overall global economy. The factors such as urbanization and the rapid pace of development to aid the economic growth of the countries are driving the construction activities in multiple regions across the world. For instance, according to Volvo CE, the construction sector saw an increase in construction activities across multiple regions since the fourth quarter of 2020. South America saw an increase of 12%, Asia by 39%, Europe by 20% and China by 28% in 2020. Furthermore, YIT Corporation commenced the construction of numerous residential apartment building projects in Finland, the CEE countries and Russia in December 2021, with total investments of around EUR 200 million (US$236.5 million). The projects are scheduled to be completed by the end of 2023. This is anticipated to drive the growth of the market in the upcoming years.

Growth of the healthcare industry

Release coatings are commonly used in the healthcare industry for multiple applications involving drug delivery, pharmaceutical packaging, medical devices such as medical sensors & electrodes, point of care/diagnostic devices and more, along with consumer healthcare products such as eye patches, first aid bandages & tape, hygiene products and other similar applications. According to the International Trade Administration (ITA), the Mexican medical device market was valued at US$16.80 billion in 2020, representing a significant increase of 10% in comparison to US$15.27 billion in 2019. Moreover, the medical device market in Canada was valued at around US$8.6 billion in 2020. Furthermore, according to Vietnam’s Ministry of Health, the pharmaceutical industry is expected to grow at a rate of 10% per year from 2017 to 2028, owing to an increase in pharmaceutical production and sales in the country. Recent insights from the Indian Economic Survey 2021 state that the Indian domestic pharmaceutical industry is estimated to grow threefold in the next decade. Hence, such surging growth of the healthcare industry is expected to increase the demand for release coatings, owing to its above-mentioned usage. This is expected to accelerate the growth of the market in the upcoming years.

Release Coatings Market Challenge

Fluctuating prices of raw materials may confine the market growth

Some of the raw materials for release coatings are obtained from crude oil. As a result, fluctuations in the prices of crude oil may hinder the growth of the market. For instance, in 2020, the international benchmark for petroleum prices across the world also known as Brent crude prices decreased to US$9.12 per barrel, which was the lowest record since December 10, 1998. Likewise, in April 2020, India’s Crude Oil Basket (COB) reached US$19.90 per barrel, which was the lowest record since February 2002. During the first 11 months of the year 2020-21, the average annual price of India’s COB was around US$42.72 per barrel, which decreased by 30% more than the average COB price in 2019-20. Furthermore, as per revised estimates for 2020-21, the COB has increased by around 35% from its initial budget estimate. In this way, such uncertainty regarding the price of crude oil may affect the prices of raw materials that are used in the production of release coatings. Thus, such instability and fluctuating prices of raw materials may limit the growth of the release coatings industry during the forecast period.

Release Coatings Industry Outlook

Technology launches, acquisitions and increased R&D activities are key strategies adopted by players in the Release Coatings Market. The top 10 companies in the Release Coatings Market are:

1. Dow
2. Wacker Chemie AG
3. Momentive Performance Materials Inc.
4. Elkem
5. Evonik Industries AG
6. Shin-Etsu Chemical Co. Ltd.
7. Omnova Solutions Inc.
8. Mayzo
9. Rayven Inc.
10. Product Release Europe Ltd.

Recent Development

• In December 2021, Evonik launched its new release coating, TEGO RC 1442. The newly launched release coating is primarily designed for fast-curing pressure-sensitive adhesive (PSA) applications. It offers excellent anchorage to substrates while delivering stable release values over time, even under humid storage conditions.

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