Smart Coatings Market Trends

Growth Drivers

• Technological developments: Technology developments and the increasing popularity of smart coating technology are enhancing the demand for smart coatings across several industries. These coatings are designed to respond to environmental conditions or mechanical stress which transforms the performance of materials in ways that are not matched by traditional coatings. Key players are focused on developing technologically advanced products to cater to the rising demand. For example, in September 2021, PPG Industries Inc., a US-based company that generates and distributes coatings, paints, and specialty materials announced the launch of Sigma Sailadvance NX coating, a significant antifouling technology breakthrough.
  
  The smart coating is progressively being used in the infrastructure and automotive sectors owing to its ability to protect surfaces from corrosion, mechanical damage, and UV radiation. In June 2020, Nippon Paint focused on advancing smart coating for defense and industrial drones, targeting applications that need UV resistance and self-cleaning properties to decrease maintenance costs and improve drone longevity.
• Increasing demand from the construction sector: As urbanization and infrastructure projects expand worldwide, construction companies gradually seek innovative solutions to improve building longevity, energy efficiency, and aesthetic appeal. Smart coatings provide a range of benefits including anti-corrosion, self-cleaning properties, and energy-efficient functionalities that are well-suited for modern construction needs. According to the Ministry of Statistics and Programable Implementation (MoSPI), the construction industry is projected to increase by 10.7% by the end of 2024. The smart coatings market is likely to expand to cater to the increasing demand from the building sector.

Challenges

• Environmental problems caused by smart coatings: Smart coatings are considered to be destructive to the environment owing to the assessment of gases during synthesis and the use of solvents such as volatile organic compounds (VOCs) that release dangerous peroxides and ozone. These compounds are harmful to the environment as VOCs contribute to the creation of ozone and smog. Moreover, all these compounds are injurious to human health as they can cause nose, eye, and throat irritation, loss of coordination, headaches, and nausea. These factors are predicted to hinder the smart coatings market growth in the coming years.
• Restricted availability of raw materials: Several smart coatings rely on developed materials such as nanomaterials, polymers, and rare earth elements which are either inadequate in supply or subject to economic or geopolitical constraints. A perfect example of this can be dependence on rare earth elements which are critical for producing smart coatings with high-performance features. According to a report in 2022 by the US Geological Survey, worldwide production of rare earth elements touched only 280,000 metric tons which is deficient to meet the increasing demand from industries such as construction, automotive, and aerospace. This shortage has caused supply uncertainties and price volatility impacting manufacturer's ability to enlarge the production of smart coatings.