Powder coatings market share has experienced a veritable expansion over the years owing to the benefits associated with the products, including durability, superior quality and enhanced efficiencies on virtually any type of material. Powder-coated surfaces are essentially more resistant to scratches, chipping, fading and wearing than any other finishes.
The product is derived from polymer resins, combined with curatives, leveling agents, pigments, flow modifiers and other additives. Constant evolution and development in the automobile sector have driven the consumption of powder coatings substantially over the years, with the need to effectively treat the bare metals.
The increase in purchasing power along with the change in consumer lifestyle have supported the growth of the automotive industry across developed and developing nations. According to data furnished by OICA, global automobile production in the year 2018 was recorded at over 95.6 billion, and is likely to witness a robust growth over the years.
In addition, powder coatings are extensively being used as a protective or decorative finish across several crucial industrial applications such as electronics, military, agriculture, boating, and marine supplies.
Anticipated Effect of Favorable Government Regulations
Environmental degradation leading to a rise in carbon emission levels, coupled with changing consumer preferences towards the construction of green buildings and the utilization of eco-friendly building materials, will support powder coatings consumption.
Stringent regulations set by the government and other recognized regulatory authorities to control VOC levels have steered the adoption of powder coatings across the globe. These materials carry several sustainability advantages over competing products such as anodizing or liquid PVDF paints. It has been estimated that global powder coatings market share is likely to surpass USD $17 billion by 2025. Rapid acceptance of these products is derived from the low VOC emission levels they entail.
Volatile Organic Compounds (VOCs) are primarily released from burning of fuels such as natural gas, coal, wood and gasoline. High VOC content can create serious human and environmental threats. Initiatives are being undertaken by the governments worldwide to curb these levels. For instance, Environmental Protection Department under the Government of Hong Kong has restricted the import of products with VOC content exceeding a certain prescribed limit mentioned under the VOC regulations.
Widespread Application of Thermoplastic Coatings
Thermoplastic resins can be easily molded into any different shape or structure, making the plastic resin acceptable for use across several industries. High recyclability, reshaping ability, tailored elasticity, dimensional stability, superior impact resistance, chemical resistance, and no discharge of harmful fumes or gases are some of the pivotal factors fostering powder coatings industry outlook.
These coatings can be found on common electronic appliances like refrigerators, or on everyday use furniture like bookshelves. Thermoplastic powder coatings enable easier application of thicker layers that are extremely resilient to different types of stress. They also provide effective electrical insulation, besides being VOC and BPA free.
Appliance consumption has rapidly grown in emerging economies. In fact, IBEF reports that the appliance and consumer electronics industry in India could surpass USD $48.37 billion by 2022, indicating massive demand for efficient materials and surface solutions like powder coatings.
Impact of Flourishing Oil and Gas Industry
Some of the important factors that complement the exponential growth of powder coatings market size include the enormous expansion of oil and gas sector to meet the burgeoning demand from across the globe.
Proliferating demand for developments in construction and automotive industries to meet the requirements for residential, industrial and commercial spaces is driving the oil and gas sector. As per data furnished by the U.S. Energy Information Administration, in 2018, U.S. natural gas and petroleum production witnessed an increase of 12% and 16% respectively.
Developing nations like India are also experiencing an extensive demand for oil and gas due to the increase in investments by the government and industry players, as well as the growth in the construction sector in the region. As per IBEF, by 2035, the demand for oil in India is slated to reach over 1,516 million tons.
The advantages linked to the use of the product in the industry include thicker coatings, faster production cycles and a relatively lower rate of emissions of VOCs. They also provide superior levels of protection against rust and other forms of corrosion.
Moreover, the use of powder coatings is expanding from metallic products to other surfaces such as medium-density fiberboard (MDF). Usage of the product in the industry ensures reduced material wastage thereby resulting in reduced cost.
Booming Asia Pacific Automobile Industry
Citing reports, in 2018, total number of passenger cars sold in the Asia-Pacific (APAC) region was recorded at nearly 39.3 million units. Rising disposable income among the people along with enhanced lifestyles in countries such as China, Japan, India, Singapore and India have fueled the sale of vehicles across the region. Powder coatings have become essential in the coating of important vehicle components, particularly the wheels.
Environmental concerns have triggered the governments across APAC to adopt stringent regulations. For instance, Government of Japan, introduced “Voluntary Emissions-Reduction Programs” to reduce the VOC emissions in the country. It advised the companies to deploy a method or design a plan that resulted in the reduction of emissions.
Some of the efforts undertaken by the companies included, shift towards VOC-free materials, installation of eco- friendly devices and development of portable VOCs decomposition equipment.
Consistent expansion of global powder coatings industry share can be observed through the rise in research and innovations undertaken by leading market players such as BASF, AkzoNobel N.V., Axalta Coating System and Asian Paints among various others. Say for instance, in October 2019, Axalta reportedly acquired a manufacturing site in Turkey specifically to expand its production capabilities to provide faster, reliable and superior quality products to its customers.
For more information on this report, visit https://www.gminsights.com/industry-analysis/powder-coating-market.