Performance coatings are a set of varnishes used to enhance the physical properties of surfaces, namely the ability to resist harmful environmental factors such as intense temperature, humidity, radiation, etc. The nature and function of performance coatings is determined by their application. Hence, performance coatings have become adopted in a wide range of industries due to their considerable benefits to the end product’s quality. The growth of the manufacturing sector across the world is thus likely to drive the global performance coatings market at a steady rate over the coming years.
According to Transparency Market Research, the global performance coatings market was valued at US$79.1 bn in 2017. Exhibiting a steady CAGR of 5.2%, the market is likely to rise to US$102 bn over the 2017-2022 forecast period.
Here are some of the key insights regarding the global performance coatings market:
Rising demand for consumer electronics has been vital in the steady growth of the global performance coatings market. The appearance and finish of consumer electronics has become ever more important in modern times, thanks to the increasing spending power of urban consumers and the increasing availability of advanced production technologies. Performance coatings are being used to improve the glossiness of consumer electronics as well as their durability against dust and other environmental factors that can cause damage to the instrument. The booming consumer electronics industry is thus likely to remain a leading consumer of the performance coatings market.
The growth of the automotive and aerospace sectors has also been vital for the performance coatings market. The increased demand for refined automotive design and the steady technological advancement in the aerospace sector have led to rising use of performance coatings. The rising demand for premium cars in emerging regions such as APEJ could be a key factor for the global performance coatings market in the coming years. The rising demand for resistive performance coatings in consumer vehicles as well as in the transportation sector is likely to remain a major driver for the global performance coatings market in the coming years. The growing transportation sector in developing countries in Asia Pacific is thus important for the global performance coatings market.
The power industry’s rising need for performance coatings to protect vital electrical equipment is also a major driver for the global performance coatings market. The rising demand for smart grid equipment as well as the rising demand for power in underdeveloped regions across the world is likely to drive the demand from the global performance coatings market.
Geographically, the rapid pace of urbanization in Southeast Asian countries is likely to keep APEJ the dominant regional contributor to the global performance coatings market in the coming years. The APEJ performance coatings market is expected to exhibit a robust 6.2% CAGR over the 2017-2022 forecast period and rise to a valuation of US$34.8 bn. Rising demand from the consumer electronics and automotive industry in developing countries such as China and India is vital for the performance coatings market in APEJ. Europe is another major regional segment for the global performance coatings market and is likely to rise to a valuation of US$22.1 bn by 2022, exhibiting a steady 4.5% CAGR in the forecast period.
The fragmented global performance coatings market features leading companies such as AkzoNobel NV, Masco Corporation, Hempel A/S, Jotun A/S, The Valspar Corporation, Axalta Coating Systems Ltd., Nippon Paint Holding Co. Ltd., BASF SE, and PPG Industries Inc. Moreover, new players are likely to enter the burgeoning industry in the coming years due to the growing potential of the market.