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The polyurethane (PU) coatings market is estimated to grow by USD 9,719.29 million at a compound annual growth rate (CAGR) of 6.2% between 2022 and 2027. The growth of the market depends on several factors, including growing demand from the transportation industry, increasing application of polyurethane coatings on wooden products, and expansion of the building and construction industry.
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The growing demand from the transportation industry is notably driving the market growth, although factors such as volatile raw material prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand from the transportation industry is notably driving the market growth. Polyurethane coatings are used in commercial transportation applications. It helps reduce the carriers' weight and cost by enabling thinner vehicle wall construction, lesser steel support structures, and fewer mechanical fasteners. Polyurethane coatings are used in trains, vehicles, and marine boats in components such as body panels, front and rear systems, surrounding wheel covers, and grilles.
The superior gloss, durability, and cost-effectiveness of paints and coatings further make them popular among automakers. There is a rise in investments in public transportation in various parts of the world. Governments across the globe are investing in developing transportation infrastructure to increase connectivity and ensure the smooth passage of cargo and passengers. Such investments by governments across the globe are fueling the demand from the transportation sector.
Increasing demand for waterborne polyurethane coatings is one of the major market trends. The waterborne polyurethane coatings offer various benefits and are extensively used in industries such as automobiles, buildings and construction, marine, oil and gas, aerospace, and mining. These coatings are used as primers as they offer excellent resistance to heat and abrasion and provide superior adhesion. Due to low VOC levels and hazardous air pollutant (HAP) emissions, waterborne coatings are less toxic and flammable.
Unlike solvent-borne coatings with severe environmental impact, waterborne polyurethane coatings release fewer organic compounds. Waterborne coatings are relatively more cost-effective than solvent-borne coatings and do not require additives, thinners, or hardeners. Also, relatively low quantities of waterborne polyurethane coatings are required to cover a surface area compared to other variants. As a result, the demand for waterborne polyurethane coatings is growing at a considerable rate worldwide.
Volatility in the prices of raw materials is the major challenge impeding market growth. Petrochemical feedstock required for manufacturing coatings includes binders and solvents such as polyesters, alcohols, and epoxy resins. Crude oil and natural gas are the basic raw materials used for producing binders. Fluctuations in crude oil prices will have a direct impact on the cost of feedstock. Each petrochemical feedstock has a different correlation with the pricing of oil, which is influenced by factors such as the demand and supply of feedstock, the manufacturing process, and the region of production. Volatile prices of petrochemical feedstock will lead to volatility in resin prices.
Polyurethane coatings are not compatible with all types of surfaces. For instance, single-part coatings are mostly cured using heat. The two-part polyurethane coating is used to coat a thermally sensitive material. Silicon conformal coating is generally applied as a thicker coat and thus cannot be applied to small components. Moreover, polyurethane cannot be used on metal surfaces such as stainless steel and gold due to its mechanical adhesion techniques. These factors pose a challenge in identifying materials for specific substrates, which will hamper the market growth and trends during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
IVM Chemicals Srl - The company offers coatings that are used as an alternative to solid wood, such as plywood, MDF, or Finger Joint.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
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 share growth of the wood and furniture segment will be significant during the forecast period. The growth in the global wooden furniture market is fueling the demand. The rapid growth of the wooden furniture market in developing economies such as India and China is driven by increasing demand for home and office furniture. Consumer preference for hardwood and softwood-based furniture is anticipated to boost the demand globally. An increase in the construction of office buildings, commercial complexes, and residential buildings, led by rapid urbanization across the globe, is also driving the demand.
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The wood and furniture segment was valued at USD 5,939.94 million in 2017 and continued to grow until 2021. The growth of residential construction activities in North America will increase the demand for household furniture such as beds and mattresses, storage units, tables and tabletops, chairs, sofas, recliners, and other luxury wood products, which will drive the market. Thus, the wood and furniture segment is anticipated to grow at a moderate growth rate which boosted the demand. Such factors are expected to boost the segment's growth during the forecast period.
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APAC is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth in the commercial and residential construction sector and the increasing investments in economic development in the region are likely to fuel the demand in end-user industries such as wood and furniture, electrical and electronics, automotive, and transportation. Such new infrastructure development is expected to fuel the demand during the forecast period.
The purchasing power of people in China improved significantly in this period, which is anticipated to positively impact the market in the automotive, packaging, and electronics sectors during the forecast period. The accelerated growth of this region's construction industry is a major factor driving the demand for wood and furniture applications. Polyurethane coatings are mainly used for office furniture, home furniture, and kitchen furniture as they offer superior gloss and an improved appearance. The booming construction industry in APAC is one of the major factors driving the market growth rate.
The Polyurethane (PU) coatings market is robust, driven by diverse industries like automotive, aerospace, wood, furniture, textiles, electronics, marine, and industrial sectors. PU coatings offer high-performance features like abrasion and corrosion resistance, low-temperature curing, flexibility, and excellent weathering properties. With their optical and electronic circuit compatibility, they find wide applications. These coatings excel in UV, impact, and mar resistance, with low odor and flammability. Moreover, they boast alkali resistance, high tensile strength, and chemical resistance while being environmentally friendly with low VOCs. The market's growth is fueled by the need for operational efficiency, energy conservation, and increasing demands across various sectors.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.2% |
Market growth 2023-2027 |
USD 9,719.29 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.85 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 53% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Asian Paints Ltd., Axalta Coating Systems Ltd., BASF SE, Covestro AG, Crown Polymers Corp., Dow Inc., Endura Manufacturing Co. Ltd., Evonik Industries AG, Huntsman Corp., IVM Chemicals Srl, Jotun AS, Lanxess AG, Mitsubishi Chemical Corp., PPG Industries Inc., RPM International Inc., The Sherwin Williams Co., Tuff Coat Polymers Pvt. Ltd., VCM Polyurethanes Pvt. Ltd., and Warren Paint and Color Co. |
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 market forecasting 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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