Industrial Coatings Market Trends

Growth Drivers

• Rapid Maturing of Automotive Industry - Growing usage of industrial coatings for automotive maintenance, repair, and aftermarket painting on account of visual appearance, surface protection, and corrosion resistance is expected to propel the demand for industrial coatings. Thus, the expansion of the automotive industry is expected to increase the sales of industrial coatings in the forecast period. For instance, the automotive industry of India is anticipated to become the 3rd largest automotive industry in the world by the year 2030, with a revenue generation of 200 billion dollars.
• Growth in the Production of Electronics – The production of electronics requires the application of industrial coatings to improve the aesthetic looks along with making it durable and a protection layer against heat and harsh extreme conditions such as rust and others. Therefore, the high production rate of electronics in order to meet consumer demand is anticipated to bring lucrative growth opportunities in the upcoming years. As per recent studies, it was figured that the production of domestic electronics production in India escalated from USD 30 billion in 2014-2015 to USD 70 billion in 2020-2021.
• High Level of Steel Production - Global steel production rose from the year 2020 with 1,870 million tons to 1,950 million tons in 2021, equivalent to a 4% increase.
• Soared Expenditure in Research and Development (R&D) – The government and major key players in the market are focused on developing advanced and eco-friendly industrial coatings for rising concerns regarding environmental pollution. Hence, the rising research and development activities are expected to increase awareness about industrial coatings among the population during the analysis period. As per statistics shared by World Bank, it has been calculated that the global expenditure on research and development stood up at 2.63% of the total GDP in 2021, a considerable rise from 1.99% in 2013.
• Worldwide Progression in Chemical Industry – For instance, in 2019, the total global revenue of the chemical industry reached approximately USD 3.90 trillion.

Challenges

• Adverse Effect on Environment - Despite the evident benefits for businesses, industrial coatings have been linked to a wide range of environmental problems, including greenhouse gas emissions, global warming, and air pollution. In addition, inappropriate waste management at manufacturing firms has a negative impact on biodiversity in various regions. Hence, this factor is estimated to hinder the market growth.
• Growing Costs of Raw Materials
• Stringent Government Rules on the Usage of Volatile Organic Compounds (VOC)