The size of the global powder coatings market in 2017 was USD 9.33 billion and is projected to reach USD 14.70 billion by 2025, growing at a CAGR of 5.8% over the forecast period. Major factors that are driving the market are increasing demand from end-use industries including automotive, consumer goods, architectural, general industries and furniture. Additionally, the penetration of powder coatings is also increasing as compared to liquid coatings, as the former take less time to dry, and offers low weight on end products, corrosion resistance and low emission.

Asia Pacific dominated the global powder coatings market in 2017 by occupying more than 43% of the market share. China and India are the countries with the highest consumption of powder coatings in several industries including automotive, consumer goods and furniture. China’s automotive industry is growing at a fast pace and is the largest consumer of powder coatings in the country. According to the China Association of Automobile Manufacturers, China’s automotive sales were increased by 3% year on year from 28,012,630 units in 2016 to 28,879,000 units in 2017. Moreover, China’s market is highly fragmented, with the presence of many small manufacturing enterprises and large established players including BASF SE, Valspar and AkzoNobel.

BASF has conducted a study on color distribution across the globe. The study found that white powder coats are more popular in Asia Pacific than any other region. Almost 53% of new cars are white. Among chromatic colors, red is the popular choice. Car purchasers in this region are increasingly connecting color preferences to the buyers’ lifestyles and attitudes. Sparkling and metallic black colors have witnessed demand for several body segments such as doors, hood, bonnet, wheels and other accessories. Moreover, subcompacts cars, grays and silvers with some dazzling effects are becoming popular among buyers.

Nearly every fifth car in Europe is gray. This color has replaced black, which was popular among the car buyers a few years back. At present, car buyers in Europe have an option of more than 110 color variations, ranging from dark metallic to light gray. Blue offers approximately 140 shades, and has become one of the most desired colors in Europe.

Following are the key developments and trends in the powder coatings industry that are expected to impact the market growth in the coming years.

New Products with Increased Durability and Reliability

• In 2017, Axalta coating systems launched more than 250 products. The company expanded its industrial product line by launching products such as ICONICA, Tufcote, Nap-Grad and Flaxbase 7700PB. The company also developed a spray technology named Durapon 70TM HS-PVDF for the aluminum extrusion industry.
• In November 2018, PPG launched a new powder coating solution called PPG ENVIROCRON, which was developed to offer corrosion and superior chip resistance to enhance the life of high-tensile automotive coil springs on original equipment manufacturer (OEM) vehicles.

New Manufacturing Plants to Increase the Production Capacities in Emerging Markets

• In February 2018, AkzoNobel inaugurated a powder coating manufacturing facility in Mumbai, India, with an investment of EURO 9 million. It is the company’s sixth production plant in India.
• In November 2018, PPG announced an investment of USD 1.7 million in its coating manufacturing plant located at Kunshan, China for its dispense cell operations.
• Recently PPG launched an automated dispense cell operation at its San Juan Del Rio, Mexico, coatings facility. Additionally, it will begin its production for more cells in Sriperumbudur, India, in 2019.

Innovation in Technology

• In December 2018, PPG announced that it has invested a major share of its expansion budget in its Automotive Parts and Accessories Decorative segment for automated dispense cell operations.
• In December 2018, BASF invented Tech Cool 35037 and 35058 a premium machining fluid. The technology is applied to provide a superior micro-finish on low- and high-carbon steels, tough alloys ferrous alloys, molybdenum and titanium. These products also offer tremendous corrosion protection, contain no sulfur, chlorine, phosphorous and boron compounds. Both of these technologies have increased emulsion stability and enhanced hard water tolerance.

Mergers and Acquisitions

• In February 2017, Axalta acquired Century Industrial Coatings, a North American manufacturer of industrial coatings for oil and gas, rail car, structural steel and other OEM applications. The acquisition provided an opportunity to offer an entirely new powder coating product range with best-in-class services to all the customers of these two companies.
• In September 2017, Axalta Coating Systems acquired Plascoat Systems Limited, which will help Axalta to innovate new powder coating products and solutions.
• In December 2018, PPG acquired Whitford Worldwide, a global coatings manufacturer. The company is specialized in nonstick and low-friction coatings for consumer and industrial products. Moreover, the acquisition has expanded the company’s customer base as well as strengthened the relationship with stakeholders, with the help of product expansion and increased in R&D investments.

Get more information about the market supply-demand trends and actionable insights at https://www.adroitmarketresearch.com/industry-reports/powder-coating-market.