According to a study of the global powder coatings market, Asia-Pacific was the region with highest revenue contribution during 2015. Going by the latest developments, the projected growth is right on track of time. While China already claims a whopping one-third of global revenue figures, India is the rising star of the decade. The latter specifically, exhibits a steep incline towards successfully invading market shares of the leading geographies across the world.
AkzoNobel’s expansion into Indian grounds to unfold novice manufacturing operations in the powder coating segment marks a new era altogether. The groundbreaking ceremony for the $10 million investment project was held in Mumbai, India in late August, 2016. The company already has an established manufacturing facility for powder coatings at Bangalore, India. Both the units will work in sync to attend to the increased demand across the nation.
The need for this new plant can be seen in the light of rising demand from regional consumer populate. The fast pace of economic development has increased the per capita income and thus the individual purchasing power. Addressing this issue, the Managing Director of AkzoNobel’s powder coating business, Simon Parker, stated, “Demand for powder coatings has been growing at double-digit rates in India and this facility will position us well to capture that growth.”
Under an extensive plan to “Make in India”, the country has lately garnered significant attention from other manufacturers as well. At current, the nominal GDP for the seventh-largest economy amounts around $2.29 trillion.
At the event, Conrad Keijzer, an executive committee member of performance coating division at AkzoNobel was quoted saying, “As the largest powder coatings company in the world, we regard India as being one of our most important strategic markets. Establishing the new facility in one of the world's fastest growing economics will give us additional momentum for our ambitious growth plans in the country.”
It would be interesting to see how local manufacturers respond to this development in their domestic arena. They suspect a heavy decline in profits as they lose their big fishes to the global leader. For them, it would be worthwhile remembering the scale of operations they are facing competition from. At the same time, they have an advantage of knowing the local grounds better. Thus, they can redefine their marketing strategies to target their clients in a more captive manner. Pricing structures are expected to become competitive. However, quality will emerge as the deciding factor for which low-scale enterprises will survive the period of turmoil; better service and support can be another. This is definitely some good news for the consumers of the segment. They will be handed over the leverage of choice with an array of options available at hand.
As per a latest research report, the global powder coating market size is estimated to reach $12,332 million by the end of 2022, growing at a CAGR of 5.4% between 2016 and 2022. The industry offers polymer-based coating solutions for industrial equipment, automobiles, spares, and commercial products. High resistance to chemicals and mechanical abrasion is provided to the surfaces with powder coating technology. That, and the cost-effectiveness of the method makes it desirable for adoption among original equipment manufacturers (OEMs) and aftermarket vendors. Leading specialty chemical companies expand their portfolio to attend to the coating needs of luxury and outdoor wooden furnishing segment. This augments the demand channels, eventually boosting market size in terms of volume.
By Big Market Research