Protective Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global protective coatings market was valued at USD 12,220 million in 2021 and is estimated to record a CAGR of over 3.50% during the forecast period 2022-2027.

The COVID-19 pandemic negatively impacted the market in 2020. However, as the lockdowns were lifted, these end-user sectors started to grow rapidly to reach the pre-COVID level, which is expected to enhance demand for the market studied through the years to come.

Key Highlights

• Over the short term, growing infrastructure and industrialization in the Asia-Pacific region and growing green coatings demand are likely to drive the market's growth.
• On the flipside, regulations related to VOC emissions are expected to restrain growth of the protective coatings market during the forecast period (2022-2027).
• Potential replacement by powder coatings is likely to act as an opportunity for the market beyond the forecast period.
• Globally, Asia-Pacific is expected to dominate the market, due to high consumption in countries, such as China and India.

Key Market Trends

Increasing Demand from the Infrastructure Sector

• The infrastructure sector accounts for the largest share of the market studied. Surface deterioration of exposed structures is a major problem in the infrastructure sector. Surface deterioration may lead to structural problems due to the loss of cover and lead to corrosion of surface reinforcements.
• To minimize deterioration, protective coatings are used. The coating material used should be durable, bond well to the surface of the substrate, and be compatible if there is an expansion or a contraction during temperature changes.
• Countries such as India, Germany, the US, and China, among others, are witnessing increasing projects and investments in the infrastructure sector, which are increasing the consumption of protective coatings. ​
• For instance, in August 2020, the government of India identified and listed about 6,835 projects under its National Infrastructure Pipeline (NIP) in an effort to attract investments in infrastructure development. The NIP aims to invest about INR 111 lakh crore by 2025 in various projects across sectors such as energy, social and commercial infrastructure, communication, water, and sanitation.​
• The government of China planned to increase infrastructural investment in order to ensure the stability of its sagging economy. According to a report presented in the annual session of the National People’s Congress, in March 2019, CNY 1.8 trillion of investment was planned for road construction and waterway projects​.
• However, the slowing down of R&D activities due to the economic slowdown and lockdowns due to the COVID-19 pandemic has had a negative impact on the growth of the infrastructure market, affecting the protective coatings market in the short or mid-term.
• Based on the aformentioned aspects the infrastructure segment is expected to dominate the market.

Asia-Pacific to Dominate the Market

• The Asia-Pacific region dominated the global market. China is estimated to hold the largest market share globally.
• The Chinese infrastructure sector is estimated to hold the largest share in the country of the market studied. The country has the largest construction market in the world, encompassing 20% of all construction investments globally.
• China is a hub for chemical processing, accounting for a major chunk of chemicals produced globally. With the rising demand for various chemicals globally, this sector's demand for protective coating is projected to increase during the forecast period.
• China, under its 14th Five Year Plan (2021-2025), has set the target for coal power capacity to about 1,100 GW. Thus, State Grid, the network operator, and the China Electricity Council have been targeting plans to develop hundreds of new coal-fired power stations in the country.
• Furthermore, in India, the infrastructure sector is an important pillar of the country's economy. The government is taking various initiatives to ensure the timely creation of excellent infrastructure.
• The Indian government had announced a target of USD 400 billion investment in infrastructure by 2020, including USD 120.5 billion for developing 27 industrial clusters and USD 75.3 billion for road, railway, and port connectivity projects.
• India produces about 95 minerals, including ten metallic minerals, three atomic minerals, four fuel-related minerals, 23 non-metallic minerals, and 55 minor minerals. This makes India one of the major mining countries in the Asia-Pacific region. Many private players are investing actively to boost the mining sector.
• All the aforementioned factors makes the Asia-Pacific region the dominant one in the global market.

Competitive Landscape

The global protective coatings market is fragmented in nature, with the top 6 players catering to about 32.94% share of the global demand. The major market players (in no particular order) include Akzo Nobel NV, The Sherwin Williams Company, PPG Industries Inc., Jotun, and Hempel AS, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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