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The coil coatings market size is forecast to increase by USD 1.98 billion at a CAGR of 5.69% between 2023 and 2028. The market growth is contingent upon multiple factors, notably the burgeoning demand from the building and construction sector, driven by ongoing infrastructure projects worldwide. Similarly, the automotive industry's increasing appetite for coil layers underscores its pivotal role in vehicle aesthetics and protection against corrosion. Moreover, the surging popularity of bio-based resins aligns with sustainability initiatives, reflecting a growing consumer preference for eco-friendly alternatives. These converging trends underscore the dynamic landscape of the market, necessitating strategic adaptation to capitalize on emerging opportunities and meet evolving industry demands. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Coil coating is a method used to apply a protective coating to a rolled metal strip continuously. These coatings come in various formulations and offer increased durability, smooth finish, and improved aesthetics to the metal. Coil coatings are widely used in a variety of applications due to their versatility and effectiveness in protecting metals from corrosion and wear. They are a popular choice in industries such as construction, automotive, and appliances, where the appearance and longevity of the metal are important factors.
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The market experiences growth fueled by the rising demand for lightweight materials in building construction and architectural applications. With a focus on durability and aesthetics, fluoropolymer coatings and polyester resin coatings offer stain resistance and protection against harsh environments. Industries such as construction, automotive, and furniture rely on pre-coated metal sheets with fluor polymer, siliconized polyester, and polyvinylidene fluorides (PVDF) coatings. These coatings, including Polyester Coil Coatings and Polyvinylidene Fluorides, find applications in various sectors like HVAC and automotive due to their versatility and reliability. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand from the building and construction sector is the key factor driving the market. The act of constructing a house, a public building, or an industrial facility is known as building and construction. Coil coatings are employed as protective coatings and sealants that are applied to different surfaces to enhance their appearance, corrosion resistance, adhesion, and scratch resistance. In addition, there has been considerable growth in the number of residential and commercial construction projects as a result of the trend toward green buildings, the accelerated migration of people from rural to urban areas, and rapid urbanization, which have further raised the demand for such products.
Moreover, companies are investing heavily in increasing production due to the increasing demand from the construction sector. For instance, in December 2021, to increase steel and coating production in response to the rising demand from the construction industry, a US-based steel manufacturing company, Ternium USA Inc., invested USD98 million in the expansion of its Shreveport site. Construction on the expansion commenced in 2022, with commercial operations at the added production line beginning by mid-2024. Thus, the rising demand for coil coatings in the construction industry is expected to drive market growth during the forecast period.
Increasing the number of M&As by companies is the primary trend shaping the market. Prominent players in the market are primarily focusing on various growth strategies such as acquisitions, partnerships, and collaborations to broaden their product portfolio landscape and garner large market shares. The market has the presence of international and local players. The prominent players in the market in focus strategically focus on acquisitions to expand their business in the market.
For instance, in June 2022, AkzoNobel announced that they had acquired African paints and coatings services from Kansai Paint. Acquiring Kansai Paint's services in the region will help US further expand our paints and coating business in Africa. The intended acquisition also includes automotive and protective coatings and coatings for wood and coil. Thus, such factors will contribute to the growth of the market during the forecast period.
Volatility in raw material prices is the major challenge that affects the market expansion. Coil coatings manufacturing heavily relies on binders and solvents, with resins serving as fundamental raw materials for binder production. Fluctuations in raw material prices significantly impact raw costs, prompting vendors to adjust product prices accordingly. Factors such as supply-demand imbalances, taxation, tariffs, and disruptions in mining operations further drive raw material price volatility. To mitigate risks, key players often secure raw material supplies in advance, though this practice incurs premium charges for buyers.
Consequently, such price fluctuations strain end-user manufacturers, impacting their profit margins and necessitating careful inventory management. Bulk purchasing may inflate inventory costs, while pre-purchased raw materials can sometimes become costlier than current market rates. Thus, such factors may impede the market growth during the forecast period.
The market is witnessing significant growth across the building and construction and automotive industry, and furniture industry. With a focus on durability and performance, manufacturers utilize finished steel and aluminum substrates coated with silicone-modified polyester and polyurethane coating resin with aluminium. These coatings offer superior protection against harsh environments and mechanical wear, making them ideal for building and construction coil coating applications. Additionally, industries benefit from specialized solutions like Fluor Polymer Coil Coatings, Siliconized Polyester Coil Coatings, and Plastisol Coil Coatings, tailored to meet specific requirements in the automotive and general industrial coating segments.
The market share growth by the polyester segment will be significant during the forecast years. Polyester resins used in coating applications, including amorphous, linear, or branched types, require cross-linking to form useful films due to their relatively low molecular weights. Compared to thermosetting acrylics, thermosetting polyesters offer superior metal adhesion and impact resistance.
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The polyester segment accounted for USD 3.31 billion in 2018. Polyester can be tailored to exhibit excellent mechanical, UV, chemical, and impact resistance in waterborne, high solids, low-VOC, and powder coatings, making them popular in construction, automotive, and aerospace industries. Linear polyesters dominate coil coating applications, offering flexibility, chemical resistance, and light stability when cured with melamine or blocked isocyanate. This, alongside their quick curing with aminoplast crosslinkers, is expected to drive polyester segment growth in the market during the forecast period.
The building and construction segment will account for the largest share of this segment.?Coil coatings are considered the most eco-friendly method for painting steel and aluminum, contributing to Leadership in Energy and Environmental Design (LEED) certification for buildings. They're easily shaped for various architectural components like walls, roofs, and doors due to their corrosion resistance. Pre-coated metals find extensive use in both indoor and outdoor construction, including roofing, wall cladding, garage doors, and roller shutters. Their versatility and sustainability drive their growing adoption in the market.
APAC is estimated to contribute 52% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The burgeoning construction industry in APAC, particularly in countries like India and China, is driving demand for coil coatings. Major market players are expanding their presence in the region due to lucrative business opportunities. Factors such as population growth, rising disposable income, and thriving construction and automotive sectors are fueling market growth. Automotive manufacturers are relocating to APAC, attracted by low-cost labor and government incentives. Additionally, initiatives like Make in India are encouraging automotive investment. Growing demand for industrial coatings, particularly those with lower VOC emissions for automotive applications, is expected to sustain market growth in APAC.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Allnex GMBH, Axalta Coating Systems Ltd., BASF SE, Beckers Group, BlueScope Steel Ltd., Bulk Chemicals Inc., Cabot Corp., Covestro AG, Englert Inc., Euramax, Henkel AG and Co. KGaA, Kansai Paint Co. Ltd., Material Sciences Corp., Nippon Paint Holdings Co. Ltd., Northern Coatings and Chemical Co., PPG Industries Inc., Salchi Metalcoat Srl, The Sherwin Williams Co., and Wacker Chemie AG
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
The market is witnessing substantial growth driven by stringent building codes and increasing demand for durable and weather-resistant coatings. These coatings are extensively used for protecting various substrates such as steel doors, aluminum panels, and rubber against corrosion and environmental damage. With advancements in metal lamination bonding, they offer superior adhesion and longevity, ensuring reliable performance in diverse applications ranging from institutional buildings to transport vehicles. Additionally, they enhance energy efficiency by providing effective insulation and maintaining optimal indoor temperature levels in residential and commercial buildings. Gutters, waterproof installations, and ceiling grids are essential components in renovation activities, ensuring efficient water drainage and protection against leaks, while organic coating materials, used extensively in residential buildings and automobile production, provide durability and aesthetic appeal through the incorporation of pigments.
Further, the market is witnessing significant growth, driven by the booming building construction sector and increasing demand for lightweight materials. These coatings, including fluoropolymer coatings, find wide applications in architectural settings and are commonly used on pre-coated metal sheets and finished steel surfaces. They are formulated using various resins such as polyester resin, silicone-modified polyester, and polyvinylidene fluorides (PVDF), offering exceptional stain and corrosion resistance. With specific formulations for different industries like construction, automotive, and furniture, they cater to diverse needs, including HVAC systems. Fluoropolymer and polyester coil coatings are particularly popular, offering durability and aesthetic appeal in both architectural and industrial applications.
Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.69% |
Market Growth 2024-2028 |
USD 1.98 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
4.87 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 52% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Allnex GMBH, Axalta Coating Systems Ltd., BASF SE, Beckers Group, BlueScope Steel Ltd., Bulk Chemicals Inc., Cabot Corp., Covestro AG, Englert Inc., Euramax, Henkel AG and Co. KGaA, Kansai Paint Co. Ltd., Material Sciences Corp., Nippon Paint Holdings Co. Ltd., Northern Coatings and Chemical Co., PPG Industries Inc., Salchi Metalcoat Srl, The Sherwin Williams Co., and Wacker Chemie AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Resin Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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