Global Protective Coatings Market Size & Share, Market Research and Industry Forecast Report, 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Global Protective Coatings Market


The global protective coatings market size was estimated at USD 30.16 billion in 2018 and is expected to register a CAGR of 7.7% over the forecast period. Rising construction industry is significantly driving the growth. Protective coating is widely used in various end-use industries including construction, oil and gas, aerospace, industrial, marine, automotive, power generation, mining, and others. The coating is applied over various surfaces to ensure protection from external environment that could damage the function or integrity of an item or part.
The growth in construction industry, globally, has been a significant factor contributing to the demand for protective coatings. Rising population, urbanization, and industrial growth have resulted in the rising need for infrastructure development and construction across the globe, most notably in fast emerging regions such as Asia Pacific, Central and South America, and Middle East.

Construction industry is witnessing a favorable growth across the globe on account of increasing infrastructural developments. Construction industry requires several protective coating formulations to meet the requirements from different applications. Abrasion and wear-resistant, high-temperature, intumescent, and water-resistant coatings are some of the commonly used protective coating products in the industry. Protective coatings are also applied to different construction equipment to ensure resistance to corrosion and wear and tear, durability, and operational efficiency.

Strong economic growth and growing government impetus to develop infrastructure in the country are prominently fueling the growth of construction industry especially in emerging economies, such as India and China.Rising infrastructure spending in China is expected to potentially fuel the growth of the protective coatings market over the forecast period.

For instance, in January 2019, the China Railway Corporation announced plans to construct 6,800 km of new railway line including 3,200 km of high-speed rail, indicating a 40% increase in the construction of new tracks from 2018. In addition, rising investments from leading MNCs in the country owing to the easy availability of raw materials and cheap labor are further propelling the growth of construction industry.

However, strength regulations regarding toxic solvents are anticipated to impact the market growth. Volatile Organic Compounds (VOCs) are required to conform to various statutory regulations and legislations. These organic compounds, widely utilized in protective coatings and technical applications, are subject to several governmental and federal regulations for controlling VOC emissions and to limit human exposure to toxic substances.
Formulation Insights

Solvent borne was estimated as the largest formulation segment in 2018. Solvent borne protective coating is widely used in industrial, oil and gas, marine, and automotive sectors. In industrial sector, solvent borne coatings are used where the components may be susceptible to rusting and where it is not advisable to use water borne coatings. In addition, they are used in industries having high humidity and corrosive gases.

Stringent regulations regarding VOC emissions in developed economies, particularly in the U.S. and the U.K., are expected to challenge the growth of the segment. Solvent borne coatings are now being replaced by greener alternatives and bio-solvents owing to their environmental benefits, which may challenge the growth of this segment over the forecast period. Solvent borne coatings are expected to witness a growth in demand in emerging countries such as China, India, Brazil, and Russia owing to the rapid infrastructure development in these countries.

End Use Insights

Construction was the largest end user segment, accounting for over 20.0% of the revenue share in 2018.Protective coatings are used for enhancing the durability and protecting the structure from fire, corrosion, and UV radiation. They are used to boost thermal resistance and reduce the impact of corrosive gases on industrial structures.
Favorable government policies concerning tax benefits for infrastructure development have boosted the growth of this segment in the countries from Asia Pacific, such as India and China. Infrastructure development is anticipated to gain momentum over the forecast period on account of new socio-economic development plans.Construction companies such as Larsen & Toubro Limited, DLF Limited, Vinci SA, Bechtel Corporation, and Balfour Beatty plc, are some of the potential customers of protective coatings.

Resin Insights

Epoxy resin was the largest segment occupying over 37.94% market share in terms of revenue in 2018, followed by Polyurethane. Epoxy coatings are used in structural parts in the construction to enhance durability, strength, and resilience. They are also used in floor toppings, grouts, crack injection, and adhesives.

In addition, the product is used in home appliances such as refrigerators and washing machines to protect them from food acids, corrosive gases, and humidity as well as to extend service life and improve aesthetics. Rising demand for epoxy resin can be attributed to low VOC content and excellent anticorrosion performance along with augmented requirement from aerospace and automotive industries. Increasing demand for shipbuilding and repair, petrochemicals, and steel in China has resulted in a surge in demand for epoxy resin.

In addition, increasing investments in infrastructure development in Asia Pacific and Middle East are expected to drive the demand of epoxy resin during the forecast period. Some countries, such as Indonesia and Thailand are the key automobile manufacturers and shipbuilding participants that majorly use epoxy protective coatings.

Regional Insights of Global Protective Coatings Market

Asia Pacific was the dominant regional segment occupying over 56% of the revenue share in 2018 followed by Europe. The region is projected to account for a significant market share over the forecast period on account of the ascending demand for protective coatings from end users, such as aerospace, automotive, mining, power generation, industrial, oil and gas, and others.

In Asia Pacific, China led the protective coatings market both in terms of volume and revenue. Factors such as the presence of numerous end users, close proximity to raw material suppliers, and rapid industrialization and urbanization, especially in India and China are anticipated to boost the regional product demand.

Asia Pacific has a huge population, particularly in China and India, and is involved in a large number of infrastructure development activities. The availability of raw materials coupled with less stringent laws regarding VOC emissions as compared to North America and Europe has given huge opportunities for the development of end-use sectors such as automotive, marine, and manufacturing, among others.
Protective Coatings Market Share Insights

The global market is fragmented in nature with the presence of various key players such as Akzo Nobel NV; Arkema SA; Axalta Coating Systems; PPG Industries, Inc.; The Sherwin-Williams Company; RPM International, Inc.; and Wacker Chemie AG along with some small and medium global and regional players. The global players face intense competition from each other as well as from the regional players who have well-established supply chain networks and are well aware of the regulations and suppliers in their market.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Protective Coatings Market Research Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global protective coatings market report on the basis of product, component, application, end user, and region:

Resin Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Acrylic
  
Epoxy
  
Polyurethane
  
Alkyd
  
Polyester
  
Others

Formulation Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Solvent Borne
  
Water Borne
  
Powder Based
  
Others

End User Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  
Construction
  
Oil & Gas
  
Aerospace
  
Industrial
  
Marine
  
Automotive
  
Power Generation
  
Mining
  
Others