Even in mature sectors like paint and coatings, it is possible for innovation to reach beyond merely meeting existing demands to redefine entire markets. Issues such as market dynamics, regulatory environments, funding ecosystems and the commercialization of emerging technologies work together to provide opportunities for true market disruptions. Understanding these elements — as well as their influences on one another — fuels success in today’s competitive global economy.

When we discuss true market disruption, we are referring to the introduction of a product, service or innovation that fundamentally alters how an industry operates. Often driven by technological advancements or shifts in business models, such changes frequently originate outside of established frameworks. The result? Successful disruptive innovation not only enables new revenue streams for the innovator but it reshapes consumer expectations and challenges incumbent players — both of which can, in turn, drive further innovation.

Market Disruption Examples

The coatings industry can boast several illustrations of market disruption, but I’d like to highlight two: cool roof coatings and paint protective films (PPFs).

Cool Roof Coatings

By reflecting more sunlight and absorbing less heat than standard roofing materials, cool roof coating products have disrupted the building materials market. Their energy savings, regulatory compliance and environmental and sustainability benefits exemplify how innovation can create entirely new value propositions when aligned with market needs and regulatory shifts.

Several companies have either developed prototypes or commercialized highly effective cool roof coatings. A great example comes from a startup company called EnKoat, whose multi-patented technology was originally developed at Arizona State University and has since been improved.

The IntelliKoat™ thermal and weather barrier system contains an advanced thermal energy storage innovation that reduces conductive heat transfer by acting as a heat blocker. The product also includes UV-IR pigment technology to act as a heat reflector to minimize radiant heat transfer. The inventors carefully chose their base resin systems to maximize weatherability and flexibility over time.

Unlike others, who typically cite lab-derived performance data, the company worked with contractors and has validated the IntelliKoat™ system in the built environment multiple times. The product was commercialized in late 2024 and is available for sale.

Paint Protective Films

Most people are aware of paint protective films (also sometimes called paint performance films) in the form of car wraps, where they provide protection and color to automobile and truck surfaces while also enabling intricate graphics and designs that are difficult (or impossible) to achieve with traditional paint. Innovation has driven their increasing adoption across additional sectors, however, including aerospace, architecture and energy, to name a few, redefining expectations around durability, aesthetics and environmental responsibility.

The evolution of PPF technology has resulted in numerous functional and aesthetic improvements. As a result, additional sectors are now turning to PPFs due to their UV resistance (prevents yellowing and degradation), hydrophobic properties (nanocoatings enable PPFs to repel water, dirt and other contaminants), superior abrasion resistance and clarity (through advances in polyurethanes), self-healing properties (polymers enable scratches to disappear under heat) and more.

The sustainability-related benefits compared to traditional paints are numerous, as PPFs can enable manufacturers to eliminate the traditional paint booth within their factory, reducing hazardous air pollution and energy use. In addition, PPFs require less energy to produce and apply while also emitting fewer volatile organic compounds (VOCs) and offering longer-lasting protection. These disruptive products support sustainability goals through reduced greenhouse gas emissions, lower waste and improved energy efficiency.

Assess the Target Market

The first step in developing or commercializing any innovation is to build a deep understanding of the target market. Effective market analysis and assessment comprise several key elements, detailed below.

Revenue and Growth Potential

Innovation must address markets that have clear value and growth trajectories. Quantify these aspects through metrics like market size and compound annual growth rate (CAGR) to confirm that the market is large enough to meet your ROI while also offering the prospect of future growth.

Market Dynamics and Competition

Identifying who the players are, where growth is occurring and what disruptions are already underway informs both strategy and investment. Which competitors are already active in the target market? Are similar offerings currently available? What sets your innovation apart? Competitive analysis enables you to identify the current state as well as unmet needs so you can position your innovation and your company properly in the market.

Regulatory Constraints

Compliance with environmental and safety regulations (e.g., VOC limits, PFAS bans) is increasingly critical, so be aware of current and future legislation in the space. Expending resources to develop a new product only to have it banned would be a worst-case scenario, but substituting materials of concern is an ongoing challenge for formulators. The antimicrobial coatings market illustrates how regulatory pressures limit available chemistries, thereby creating a gap that innovation must fill.

Investment Levels by Companies

Whether a company is mature or in a growth phase affects its openness to new technologies and solutions and shows whether its market is growing or declining. In addition, R&D investment spending is often a signal of a company’s strategic direction and financial health. Companies struggling with tight margins, high debt or competitive pressures often cut R&D first, since it is a discretionary cost. High R&D spending usually indicates a company with resources and intent to expand (see Table 1).

Understanding these factors provides innovators with the insights needed to tailor technologies that address specific pain points and opportunities within a given industry. In addition, they are simultaneously empowered to make better partnership choices toward those that are more likely to invest in their technology.

Partnerships and Funding Opportunities

Innovation scouting relies on a technology market pool that includes entities such as universities and research institutes, government laboratories, start-ups and small enterprises, adjacent industries to your business and others (see Figure 1). Navigating this ecosystem requires the strategic orchestration of partnerships, funding and technical validation. Technology scouts and innovators must not only develop technology but also map the right path to market by leveraging the most appropriate resources.

The landscape is highly fragmented, and each node brings unique capabilities and challenges. For example, universities may produce breakthrough research but lack the commercialization expertise and take longer to commercialize technology, if ever. Start-ups are agile but often under-resourced and need a great deal of guidance and financial assistance from others. Government labs may support foundational R&D but struggle with market-facing applications, as they lack industrial experience.

That said, government funding is a critical enabler of market-driven innovation. The National Science Foundation (NSF) and other agencies work to bridge the gap between academic discovery and commercial application. Various programs are available that strive to de-risk early-stage innovation and provide critical validation for market entry. The concept of use-inspired research, which prioritizes practical relevance and application over abstract inquiry, is key.

The National Innovation Corps Program (I-Corps), a truly transformative initiative within the NSF, trains university research teams to explore market opportunities through direct engagement with potential customers. I-Corps culminates in the development of a refined value proposition that could serve as the basis for starting a business based on NSF-funded university research. This rigorous program teaches the value of customer discovery, focusing on expediting the path from lab to market.

Potential Strategic Focus Areas

Many areas provide opportunities for material science to rapidly transform markets and yield impact through innovation. Several markets with larger % CAGRs were chosen to illustrate this point (see Figure 2). The paint and coatings market has been growing at a steady rate for years, on an average of about 4%. Other markets within that space are projected to see much larger growth.

Coatings and adhesives for electric vehicle batteries represent a burgeoning market, for example, with a strong projected CAGR of 30% and an expected value of $8 billion by 2030. 3D-printed construction materials represent another high-growth segment. These products are poised to revolutionize the building industry by reducing labor costs, speeding up construction and enabling more sustainable practices.

Regulatory requirements are mandating the rapid remediation of perfluoroalkyl substances (PFAS), and technologies that effectively rid the environment of PFAS are clearly in demand. Regulations are also limiting the number and use of many antimicrobials; the development of effective but less environmentally harmful additives for this space continues.

Smart mechanisms (e.g., triggered on-demand release) will continue to drive interest in multifunctional coatings that provide color and protection. These examples demonstrate the need to understand the market drivers within the coatings industry in order to outpace competitors.

Next-Generation Innovation

As innovators, we can become enamored of new technology. Perhaps you’ve heard of “shiny object syndrome” in the R&D world? This tendency to chase novel technologies without a clear path to market must be avoided to save time and resources. Instead, focus on balancing the following three pillars to ensure effective innovation.

Market Attractiveness

• Is there real and measurable demand?
• What is the size of the addressable market, and is it growing?
• Are there unmet customer needs that this innovation directly solves?

Commercial Viability

• Can the product be positioned competitively within its market?
• Does it offer a clear and compelling value proposition that justifies adoption?
• Can it be produced and delivered at a cost that supports sustainable margins?

Technical Feasibility

• Is the solution achievable with today’s (or foreseeable) technology?
• What risks exist in scaling from lab to pilot to full commercialization?
• Does the organization have — or can it access — the right technical expertise and resources?

When you understand the financial and business impact of these three pillars, you can evaluate and filter opportunities using unbiased, data-driven criteria. Stuart Pugh developed a decision matrix — now a standard element of Six Sigma methodology — that enables a criteria-based approach to scoring potential solutions to a problem. Adapting this method for scoring new business opportunities can help narrow the field to the best opportunities to pursue and ensure that resources are allocated to innovations with the highest potential for impact.

In order to be successful, innovation must ultimately involve more than just a great idea: It must create real market value. This journey involves rigorous market analysis, strategic alignment, technical validation and ecosystem orchestration.

Let’s Get Disruptive

The question that all innovators must answer is: “Does your innovation create market value?” If the answer is yes, then it has the potential not only to succeed commercially but to transform entire industries.

The ability of companies and innovators to thrive in a rapidly evolving marketplace hinges on adopting a market-driven approach to innovation, leveraging government and institutional support and rigorously vetting opportunities so that businesses can position themselves at the forefront of change and transformation. The specialty chemicals industries are facing increasing pressure to adapt to global trends, climate change, regulatory shifts and digitalization — innovators who are able to disrupt markets by inventing the future will lead the next wave of progress.

To learn more, contact the author at vscarborough@chemquest.com or visit https://chemquest.com.

This quarterly column, written by Victoria Scarborough, Ph.D., Vice President Collaborative Innovation of The ChemQuest Group, Inc., provides a look into the latest trends and technologies within the coatings and adjacent industries that impact the value chain.

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