Protective Coatings Market Size Is Set to Grow by USD 22.40 Billion from 2024-2028
According to the Technavio Market Analysis, increasing demand for water-borne coatings and the expansion of the construction industry are driving the growth. But raw material costs pose a challenge for growth. 70 percent of market growth happens in APAC.
Source: Technavio
The market is estimated to grow at a CAGR of about 10.87% during the forecast period.
Water-borne coatings, where water acts as the main solvent, are less toxic and flammable due to low levels of VOC and hazardous air pollutants (HAP) emissions. Tecavios research shows that this, alongside their resistance to heat and abrasion, combined superior adhesion, are strong market drivers.
Other drivers include Increasing focus on UV-curable coatings and nanocoatings. The growing popularity of protective nanocoatings in the market can be attributable to their relative cost-effectiveness and higher durability than other coatings.
Volatile pricing
Volatile raw material prices are a major challenge impeding growth. Fluctuations in crude oil prices will directly impact the cost of feedstock.
Petrochemical feedstock, which is required to manufacture most coatings, includes binders and solvents such as polyesters, alcohols, and epoxy resins.
Factors such as the demand and supply of feedstock, the manufacturing process, and the region of production contribute heavily to the volatility of prices. Furthermore, volatile prices of petrochemical feedstock will contribute to the variability in resin prices.
Tecavios analysis estimates that the Asia Pacific region contributes 70 percent of growth in the coating market during the projection period.
Significant increases in passenger and commercial vehicle sales, mainly in China, India and Japan, are leading to increased demand for protective coating.
Additionally, growth of heavy engineering, steel manufacturing, mining and refining, and plastics and polymer industries is expected to increase the demand for protective coatings.
Source: Technavio
