The global protective coatings market size will be valued at $46 billion in 2026, growing at a CAGR of 6% during the forecast period. The market size is expected to grow over 1.4X times in revenue during the forecast period. In 2020, the market witnessed reasonable growth, with over 41% of the APAC market share, especially India, China, and Japan. The growth of protective coatings in the European region has been boosted by developing oil and gas segments and investments in various infrastructure projects during 2015–2019. The European protective coatings market growth declined in 2020 due to the outbreak of the COVID-19, which resulted in the abrupt downturn in the European construction market. 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 the 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 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.
GLOBAL PROTECTIVE COATINGS MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Resin Type
- Formation Type
- Functional Solutions
- End-user Industry
INSIGHTS BY RESIN TYPE
The demand for epoxy coatings is likely to increase during the forecast period because of increased stringency by government bodies to reduce the application of volatile organic compounds (VOC). Also, epoxy protective coatings are witnessing high adoption as they offer excellent corrosion protection and water resistance. The consumption of epoxy resins has increased in North America over the period owing to the increasing demand for eco-friendly coatings from the construction industry.
Polyurethane resins are increasingly witnessing high adoption in industrial projects, coupled with the growing demand from the automotive, aerospace, and construction industries. The demand for polyurethane water-based coatings is expected to increase during the forecast period due to the shift from solvent-borne coatings to water-based ones. The APAC region is likely to emerge as the largest market for polyurethane resins, with China contributing a major share due to high construction activities. Also, China’s automotive sector will be another contributor to the market over the forecast period. Alkyd, polyester, and acrylic are other major resins, which are likely to witness promising growth during the forecast period.
INSIGHTS BY FORMATION TYPE
In terms of formulation, water-based protective solutions are expected to observe the highest growth during the forecast period. An increase in infrastructure and construction projects and the high adoption of water-based solutions are the major drivers for the growth. Another factor is government regulations for using volatile organic compounds and the pressure to follow CO2 emission norms. These regulations are positively influencing the demand for waterborne coating solutions across the globe, particularly in the APAC region.
Despite being less environment friendly and advanced in water-based solutions, solvent-based compounds hold a decent share in the global protective coatings market. These solutions are preferred as they withstand harsh environmental conditions such as humidity and fluctuations in temperature. They exhibit higher toughness than water-borne coatings. Historically, these solutions observed rising demand in North America and Europe; however, on account of increased stringency in implementing sustainable, eco-friendly coating solutions, the share of these solutions is expected to decline during the forecast period.
INSIGHTS BY FUNCTIONAL SOLUTION
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. Thailand, South Korea, Indonesia, and India are other key countries that observe high demand for anti-corrosion solutions. Moreover, the demand for anti-corrosion agents will increase with the resumption of construction and infrastructure development projects across the world, which were stalled due to the outbreak of the COVID-19 pandemic.
INSIGHTS BY END-USER TYPE
The global infrastructure investment is expected to reach $94.4 trillion by 2040, and further $3.6 trillion will be required for sustainable development goals. The APAC region will dominate the infrastructure investments with current investments as well as during the forecast period. 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.
With the increase in oil and gas extraction activities worldwide, the demand for protective coatings is expected to increase over the forecast period. Pipelines, refineries, purifying plants, storage tanks, reservoirs of oil and gases require protective coatings with conductive properties. Offshore oil and gas require coatings as they are constantly in contact with seawater and prolonged exposure to penetrating UV rays threatens to make the life of a coating system short. Hence, vendors are developing special protective coatings to meet the oil and gas industry's versatile requirements, thereby influencing the segment growth. Marine, marine, aerospace, and automotive are significant end-users, which are likely to increase anti-corrosion agents' demand.
INSIGHTS BY GEOGRAPHY
The APAC region is likely to contribute the largest protective coatings market share by 2026. With the expansion in infrastructure, construction, marine, and shipbuilding, the demand for protective solutions is likely to increase. The growing demand for energy sources and high maintenance in the transportation industry fuel the demand for protective solutions. The development of high-quality infrastructure in China and India has been one of the market's major enablers in recent years. China is a major producer and consumer of protective solutions. Rapid urbanization, which has led to the growth of construction, chemical, and power generation sectors, increases the demand for protective coatings. The demand for marine coatings is high in the APAC region due to China's emergence as a major player in the shipbuilding industry. The introduction of glass flake epoxies, which improve abrasion resistance and are more environmentally friendly, is also expected to influence the region's market growth.
INSIGHTS BY VENDORS
Due to the highly competitive and volatile environment, the protective coatings market growth mainly depends on the ability to anticipate, gauge, and adapt to the constantly changing market trends with environment-friendly coatings with low or no VOC content and successfully introduce new or improved products on time. AkzoNobel, PPG industries, The Sherwin Williams Company, Nippon Paints, RPM International, and Axalta are the major players trying to expand their markets through profitable partnerships and merger strategies. In contrast, the domestic vendors capitalize on the product portfolio that best suits the domestic needs and wants.
The protective coatings market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Solvent Borne
- Power Based
- Scratch Protection
- Thermal or Fire Protection
- Oil and Gas
- Power Generation
- North America
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa