Protective coatings is one of the major segments accounting for a 24% share of the global paints and coatings market. The paints and coatings market was valued at USD 140 billion in 2020. The production and consumption of paints and coatings is the largest in the APAC region. The demand is high from countries such as China and India. The APAC region accounts for a 56% share of the overall paint and coatings market by volume. The development of various end-user industries such as construction, infrastructure, oil and gas, mining, power generation, automotive, and aerospace is increasing the demand for protective coatings. The construction industry is the major growth driver of the protective coatings market. There is a rise in the adoption of eco-friendly and smart coating during the forecast period.
The pandemic and lockdown disrupted the global paint and coatings industry with huge disruption in the production and supply chain. The market has been highly affected by the COVID-19 outbreak due to variations in the construction business and raw material prices, production of raw material, and lockdown implementation in various countries. Increasing pricing pressures and a shortage of labor in many countries have impacted construction and infrastructure development activities. However, the global protective coatings market share is expected to witness sudden traction in demand during 2021.
- Epoxy resins are expected to observe an incremental growth of over $6.5 billion by 2026 as they have excellent chemical and heat resistance, prolonged durability, superior adhesion, and high corrosion protection performance.
- In terms of end-user, the aerospace protective coatings market size is expected to observe growth at a CAGR of over 6% during the period 2020–2026.
- Smart coatings are witnessing high adoption in several end-user industries - automotive, construction, and electronics.
- India's protective coatings market is projected to grow at a CAGR of over 4% during the period 2020–2026 due to high investment in sustainable development plans, especially for railways infrastructure.
- Epoxy resin accounts for a 40% of market share and the growth is expected to increase over the forecast period due to the adoption of low emission-based resins. It is likely to grow at a 7% CAGR from 2020-2026. Legislative requirements, increased pressure for VOC reduction, and the introduction of zero VOC water-based systems that can provide effective protection against corrosion even at low temperatures have increased the demand for epoxy resins.
- The polyurethane resin is expected to reach USD 8 billion by 2026, growing at a CAGR of 6%. The demand for polyurethane-based protective coatings is expected to increase owing to its features such as chemical resistance, high gloss, good clarity, and good mechanical properties including flexibility, hardness, and abrasion resistance.
- The water-borne protective coatings are expected to witness the highest growth of 7.5% CAGR and is expected to reach approx. USD 26 billion in 2026. The demand for water-borne protective coatings is expected to increase during the forecast period as they are heat and abrasion-resistant, have excellent adhesion, and help in reducing air emissions.
- The demand for solvent-based coatings will decrease during the forecast period as manufacturers are likely to shift toward water-borne due to their low VOC content. Solvent-based are used in automotive exteriors that need corrosion, chemical, and weather-resistant coatings. The demand for solvent-based has decreased over time due to the government regulations imposed by the US and Europe.
- The market for corrosion protection coatings is highly fragmented with a large number of applications. The APAC region is the largest market for anti-corrosion protective coatings. Staggering economic growth and high application of anti-corrosion agents in construction, marine, and automotive sectors influence the growth of anti-corrosion solutions. China is the leading producer and consumer of anti-corrosion agents due to the rapid industrialization and the increased application in marine, oil and gas, construction, transportation, and automotive end-user industries.
- The construction segment is the largest end-user segment for the global protective coatings market. The construction segment accounts for 22% of the overall protective coatings market share. The global infrastructure investment is expected to reach $94.4 trillion by 2040, and a further $3.6 trillion will be required for sustainable development goals. Hence, to protect the substrate from corrosion and other environmental effects and increase infrastructure development, the demand for protective coatings in the construction segment is expected to grow substantially.
- The growth of the powder-based protective coatings market will be bolstered by booming the automotive industry in the APAC region. The region sold nearly 40.6 million units of passenger cars in 2019.
Europe: The global protective coatings market is expected to grow 1.4X times during the forecast period. Around 23% of the global market has been captured by the European region. Germany holds the largest share in terms of revenue in the European region. The protective coatings market in Europe in terms of volume is expected to reach 495 thousand tons in 2026, growing at a CAGR of 3% during the period.
Asia Pacific: The APAC region is expected to witness the highest incremental growth of 41% from 2020-2026. Several players are expected to expand their presence worldwide during the forecast period, especially in the fast-developing countries in the APAC region, to gain more market share. The demand for protective coatings in China will be driven by increased investments in the construction, marine, and oil and gas industries.
North America: The North American market for protective coatings is mature. The consumption of epoxy resins in the protective coatings market has increased in North America over time. The region has a highly regulated Environment Protection Agency (EPA) that plays a key role in monitoring and commercializing protective coatings. The US is the largest consumer of protective coatings in the region due to the increasing construction activities in the region.
Middle East & Africa: The Middle East and Africa is a growing market for protective coatings and accounts for a 10% share of the total market. The market in the Middle East region is driven by the oil and gas industry. Epoxy resins are widely used and account for 40% of the overall resin consumption in terms of value. Anti-corrosion protective coatings are widely used in the Middle East and Africa region and accounted for a 40% share in terms of value in 2020.
Latin America: The market for protective coatings in Latin America will be driven by the construction, automotive, transportation, and marine industries. The demand for bio-based or low VOC emitting protective coatings is increasing in the region. This is expected to create opportunities for water-based coating manufacturers in the region.
The protective coatings market is fragmented and the top four manufacturers account for a 36% market share. The market has several small vendors. Sherwin Williams is the global leader with a 13% market share in the global protective coatings market, followed by PPG Industries, AkzoNobel, and Nippon Paints. Companies have increased their R&D expenditure and are focusing on developing an environment-friendly substance that is less toxic and possesses no health hazards. Players compete on various factors such as cost, product innovations, and technology. Over the past decade, there is a lesser demand for conventional solvent-based coatings as compared to high solids and water-based coatings due to strict governmental regulations.