Powder Coating Market Trends

Growth Drivers

• Rising EV and battery manufacturing: The rapid production of electric vehicles (EVs) and energy storage batteries is estimated to fuel the sales of powder coating solutions in the years ahead. The growing demand for lightweight, durable, and safe materials is increasing the application of powder coatings. The report by the International Energy Agency (IEA) discloses that the electric car sales crossed 17 million in 2024. This directly fuels the installation of EV batteries. Thus, to improve thermal management and meet fuel economy, automakers are increasingly investing in specialized and lightweight materials such as powder coatings.
• Adoption in 3D printing and additive manufacturing: The sectors, including aerospace, automotive, medical devices, and consumer, are increasingly focusing on additive manufacturing, especially 3D printing. Powder coatings are highly used in many 3D-printed parts during post-processing to enhance their finish and durability. France is the fourth largest country in the additive manufacturing (3D printing) industry, behind Germany, Italy, and the UK, making up 3% of the world’s revenue in this sector, according to the International Trade Administration (ITA). The same source also estimates that the France market is expected to grow by 17% each year through 2030. This indicates that powder coating is expected to exhibit a high demand across various regions of the world.
• Penetration into aerospace and defense: The aerospace and defense sector is offering lucrative earning opportunities for powder coating manufacturers. The evolving need for lightweight materials and long-lasting protective materials is likely to double the revenues of key players. The Aerospace Industries Association (AIA) reports that in 2024, the aerospace and defense industry employed over 2.23 million people in the U.S. These jobs make up about 1.4% of all U.S. jobs and grew by more than 100,000 workers in 2024. The robust developments in the aerospace and defense sector are poised to propel the consumption of powder coating solutions during the forecast period.

Challenges

• High initial capital investment: The production of powder coatings is a capital-intensive process, which acts as a major restraining factor for small and new companies. Setting up advanced infrastructure often deters budget-constrained companies from achieving higher market shares. Thus, this cost hurdle slows down innovative powder coating solution adoption in certain regions.
• Competition from alternative coatings: The strong presence of alternatives such as liquid coatings and newer waterborne formulations is expected to act as a major restraining factor for powder coatings. The similar and advanced characteristics of these alternatives limit the profit margins of key players. The increasing emergence of eco-friendly alternatives is intensifying competition for powder coating companies.