Although the coatings industry has matured in much of the world, new technologies and industrial growth in developing countries will continue to raise the industry’s fortunes worldwide, a new market report forecasts.
The surging Asia-Pacific market, greater R&D in industrial coatings, and growth in Radiation Cure Coatings top the global industry’s key trends for the next several years, propelling the industry's value to nearly $99 billion by 2015.
So reports Coatings: A Global Strategic Business Report, just issued by the research firm Global Industry Analysts Inc.
A ‘Beeline’ for Asia
Although cheap labor and abundant resources have manufacturers “making a beeline for Asia-Pacific and Latin America,” North America still accounts for the majority of global coatings production, while China is considered the leading consumer of coating additives.
Asia-Pacific, led by advances in China, India, Indonesia and other high-growth markets, “stands tall as the largest regional market,” followed closely by Europe and the U.S., GIA reports.
Asia is expected to show the fastest Compounded Annual Growth Rate—4.2%— through 2015, the report says. While architectural coatings will account for the largest share of the coatings market in value terms, special-purpose coatings have the highest growth potential, with a CAGR of 2.8% predicted through 2015, the report says.
OEM and Industrial Coatings
The global coatings industry has come under close scrutiny from environmental agencies around the world in recent years, the report notes.
“The US [Environmental Protection Agency] has put its foot down on the levels of VOC emissions by coatings manufacturers,” the report says. “Coatings makers are constantly striving to achieve these targets by employing innovative R&D methods to improve the quality of coatings and minimize levels of VOCs.”
This presents an especially tough environment for OEM and industry coatings, the researchers say. However, they add, these industries remain optimistic about growing in these stagnant markets by concentrating on value added, technologically superior and environment friendly features.
Design, color and styling R&D for OEM and industrial coatings is “the next cutting edge,” the report says. “Manufacturers are increasingly developing coating products that would differentiate them from their competitors, creating niche products to gain customer confidence.”
New products should coincide with gradual recovery in the global automobile industry, which was hit worst in North America and Europe in 2008 and 2009.
For all the recent buzz over nanotechnology, its potential coatings applications are still relatively untapped, the researchers say.
Nanotechnology “holds lot of promises,” especially in the area of Radiation Cure Coatings, comprised of Electron Beam (EB) and Ultra-violet (UV) coatings, where demand “is increasing at a fast pace,” the report says.
IPPIC Releases Global Analysis
The International Paint and Printing Ink Council (IPPIC) has published its second Global Paint & Coatings Industry Market Analysis (2009 - 2014). The report offers in-depth insight into the size, growth rate, market dynamics, customer and competitive movements, and important trends and driving forces within the global paint and coatings industry, the authors say.
As with the first edition, the single-volume report covers Decorative, OEM and Special Purpose coatings and their many sub-segments.
IPPIC is comprised of paint and printing ink trade associations representing Europe, Asia, North America, South America, and Australia.