Future Market Insights announced that demand is accelerating as electrification, PFAS reformulation and infrastructure durability mandates reshape specifications.

In a report by Future Market Insights, the global functional coating materials market is projected to grow from $2,150 million in 2026 to $7,160 million by 2036, reflecting a 12.8% CAGR.

According to the report, growth is being driven by increasing integration of coatings into EV battery systems, infrastructure life-extension programs and regulatory-driven reformulation initiatives. Coatings are increasingly specified to provide dielectric insulation, corrosion resistance, thermal management and mechanical durability within unified system architectures.

Electronics and automotive applications represent the largest end-use segment at approximately 44% share, followed by industrial applications at about 28%. Anticorrosion remains the leading functional category at roughly 46% share, reflecting ongoing infrastructure protection needs.

Regionally, India and China are expected to lead growth through 2036, supported by expanding EV manufacturing and electronics localization. In the United States, expansion is linked to domestic battery production investments and gigafactory development.

The report also identifies continued transition toward waterborne, powder and UV-curable technologies, along with increased emphasis on PFAS-free and low-VOC systems.

Access the full report here.

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