The global powder coatings market is fragmented with the top nine companies accounting for around 54% of the market in 2011. Key players in the market are PPG Industries, AkzoNobel, Sherwin-Williams, and DuPont. Players in the market are extensively focusing on R&D and expansion through mergers and acquisitions. The low entry barriers will attract many new players to enter the market. Additionally, the growing demand for powder coatings in APAC will also appeal to new players to enter the market. Thus, the threat of new entrants is expected to remain high. Transparency Market Research (TMR) in its new study, states that there exists a potential threat from substitutes such as enamels and paints.
According to the report, the global market opportunity in powder coatings is anticipated to rise from US$8.49 bn in 2015 to US$10.52 bn by 2018. By application, the appliances segment will continue to lead, accounting for 22.9% of the market by 2018. On the basis of geography, Asia Pacific not only led in the past but is also expected to do so in the coming years. Asia Pacific will account for 48.2% of the market in 2018. The powder coatings market is developing at a rapid pace in the region owing to favorable economic conditions. The growing demand for automobiles, furniture, and appliances by the growing population and increasing disposable income of consumers are driving the market in Asia Pacific.
Eco-friendly Nature of Powder Coatings to Support Growth of Market
Powder coatings emit negligible VOCs in the atmosphere and thus, there are many supportive environmental regulations which are encouraging the market’s growth. Additionally the reduced risk of combustion while storing and during application is another factor boosting the market worldwide. In contrast, conventional liquid coats contain 60% of solvents, resulting in high VOC emissions for long durations even after application, thus making powder coatings the preferred choice.
Over the past few years, the growth of the economies of Brazil, Russia, India, and China (BRIC) has been higher than that of developed nations such as the U.K. the U.S., Japan, or Germany. This is benefitting the market as the purchasing power of consumers directly impacts the sales of automobiles, appliances, and furniture. Moreover, the availability of cheap labor coupled with lower infrastructural costs have encouraged increasing number of manufacturers to expand their operations in these countries, thus driving the powder coatings market.
Difficulty in Using Powder Coatings to Cover Edges Hinders Use
In cases where powder coatings cannot be used to cover edges, solvent coatings such as paints are used as substitutes. This is expected to hinder the powder coatings market. Additionally, the application of powder coating is difficult on sharp edges and inside corners. Moreover, during curing, the liquid film tries to pull away from the edges of the surfaces, resulting in the formation of a thicker layer distorting the uniformity of coating. These are some of the problems associated with the use of powder coatings, dampening their demand.
New Opportunities to Emerge with Development of Advanced Powder Coatings
Development of advanced powder coatings is expected to lower curing temperatures, reduce energy consumption, increase production, and reduce overall investment costs. This is expected to ensure the growth of the market in the future. In addition, equipment development is expected to help in increasing the powder utilization rates and reduce wastage. These factors are projected to create opportunities of growth in the global powder coatings market.
This information is based on the findings of a report published by Transparency Market Research titled “Powder Coatings Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2012 - 2018.”
The global powder coatings market is segmented as follows:
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