Plastic Coatings Market - Forecast (2022 - 2027)

The plastic Coatings Market size is forecast to reach US$6.4 billion by 2027, after growing at a CAGR of 4.7% during 2022-2027 due to growing demand from various sectors such as automotive, building & construction, electronics, aerospace and defense, more. Plastic coating has excellent properties such as corrosion inhibition, abrasion resistance, thermal resistance, and esthetics. Various types of plastic coatings such as polyurethane, polyester, epoxy, polyvinyl chloride, acrylonitrile butadiene styrene, and polyethylene terephthalate are used in the automotive sector which helps to reduce overall vehicles weight. Thus, increasing vehicle production is expected to drive the demand for plastic coatings. In 2019, according to the American Automotive Policy Council in the United States, 10.8 million cars and trucks were produced. Additionally, 13.7 million were sold vehicles including cars and trucks in the U.S., Canada, and Mexico. Hence, the production will increase by around 12 million per year by 2025, which will boost the demand for the plastic coatings industry.

COVID-19 Pandemic

However, the end-use industries are being significantly affected due to the COVID-19 pandemic, as most of the countries have faced issues during the lockdown. Plastic coatings help to reduce the overall weight of vehicles but due to the lockdown, the whole transportation industry got affected. Thus, the limitation in vehicle production may hamper the demand for plastic coatings. According to “Asian Automobile Analysis (AAA)”, Toyota’s automobile sales in China fell 70.2% to 24,000 units in February 2020. In addition, in March 2021 according to the “International Organization of Motor Vehicle Manufacturers (OICA)”, vehicle production in Europe, North America, and South America fell by 21%, 20%, and 30%, respectively. In lockdown production of vehicles was postponed which limited the demand for plastic coatings.

Report Coverage

The report “Plastic Coatings Market - Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Plastic Coatings Industry.

• By Process: Electrophoretic Painting, Bonded Lubricant Coatings, Dip Coatings, Spray Coating, Powder Coating, and Others
• By Type: Polyvinyl Chloride, Plastisol, Thermoplastic Polymers, Fluoropolymers, Polyurethane, Epoxy, Polyethylene Terephthalate, Polyamide, Acrylonitrile Butadiene Styrene, Polyester, and Others
• By Application: Building and Construction (Wall Covering, Roofing, Masonry Walls, Ceiling Tiles, Others), Automotive sector (Engine Compartment, Body Parts, Interior Bracketry, Fuel Tanks, Others), Aerospace and Defense (Bumpers, Retainer Clips, Handles, Others), Electronical and Electronics (Wire and Cable Insulation, Digital Meter Probes, Others), Consumer Goods, Medical Sector (Medical Devices, Sterilization Case Covers, Tweezers, Others), and Others
• By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and the Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (the Middle East and Africa)

Key Takeaways

The Asia Pacific dominates the plastic coating market due to increasing construction and automotive production & investment activities in developing countries such as India and China.

According to the National Bureau of Statistics, China's real estate market investment jumped from 15.7% in 2019 to 38.3% in January-February 2021.

Increasing consumption of halogenated plastic such as polyvinyl chloride (PVC) from the automotive sector is increasing the fuel efficiency of vehicles which, in turn, is expected to grow the demand for plastic coatings.

Some plastics such as epoxy, polyurethane, and polyethylene terephthalate are derived from crude oil; thus, fluctuation in the prices of materials is limiting the market growth during the scenario.

Plastic Coatings Market Segment Analysis - By Process

The dip coating process segment dominated the global demand for the plastic coating market in 2020. In the dip coating process, plastisol is composed of polyvinyl chloride (PVC) resins in form of a liquid plasticizer. Plastisol is suitable for electrical applications due to its toughness, excellent corrosion, and impact resistance. Apart from this, when heat is exposed during this process, heat solidifies the coating materials into a soft and flexible. Thus, tooling for dip coatings is inexpensive hence it is the widely used process for plastic coatings.

Plastic Coatings Market Segment Analysis - By Type

The polyurethane coatings type segment held the largest share of the plastic coatings market in 2020 due to more durable and versatile insulation properties. Polyurethane helps to reduce energy costs while making commercial and residential properties more efficient. Polyurethane coating is used in the maintenance of temperature and reduces noise in homes. PU coatings provide several physical properties which makes them an extremely flexible plastic coating type for construction and automotive applications.

Plastic Coatings Market Segment Analysis - By Application

The automotive sector segment held the largest share in the plastic coatings market in 2020 and is growing at a CAGR of 5.1% during 2022-2027. In vehicles, plastic coatings are used to reduce vehicle weight. Various plastic-type such as polyvinyl chloride (halogenated plastic), polyamides, acrylonitrile butadiene styrene, and polyethylene terephthalate are used in automotive interior and exterior parts. Thus, the increasing automotive sector is expected to boost the demand for plastic coatings. For instance, according to the “India Brand Equity Foundation (IBEF)”, automobile export reached 4.77 million vehicles in FY20, growing at a CAGR of 6.94% during FY16-FY20. Apart from this, The Indian Government expects the automobile sector to attract US$ 8 to US$10 billion in local and foreign investment by 2023, which is expected to boost the market scenario in this forecast period. Furthermore, according to the government-backed China Association of Automobile Manufacturers, Chinese auto sales in 2018 reached 28.1 million. China has become a world leader in the electric bus segment which grows in production of electric buses by 34% by 2025. Hence, the automotive industry is expected to boost the demand for plastic coatings.

Plastic Coatings Market Segment Analysis - By Geography

The Asia Pacific dominated the plastic coatings market with a share of 34% in 2020 owing to increasing investment in the construction and automotive sector with growing demand for coatings. According to the India Brand Equity Foundation (IBEF), the real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) by 2040 and expected to reach a market size of US$ 1 trillion by 2030 from Rs. 12,000 crore (US$ 1.72 billion) in 2019. On the other hand, according to Central Sanctioning and Monitoring Committee (CSMC), 1,68,606 new homes were approved to construct in urban areas under Pradhan Mantri Awas Yojana in 2021. On the other hand, according to the Society of Indian Automobile Manufacturers (SIAM), in India, passenger vehicle production increased by 4.0 million in 2019. For example, small-scale tax incentives decreased by 10% to 5% played an important role in the growth of the industry. Thus, increasing activities and growth of these industries are expected to influence the demand for plastic coatings.

Plastic Coatings Market Drivers

Growth in Building and Construction Industry

Plastic coatings are widely used in celling coatings, wall covering, and other construction applications, which increases the requirement of polyamide, halogenated plastics such as PVC, ABS, and other plastics for coatings. Thus, the increasing growth of the building and construction sector is expected to boost coatings demand. According to India Brand Equity Foundation (IBEF), in 2019 Puravankara realty firm limited plans to invest Rs 850 crore to build 3 luxury housing projects in Bengaluru, Chennai, Mumbai over the next 4 years. According to an “American Housing Survey in the U.S.”, there are about 95 million single-family homes as of 2019. According to the India Brand Equity Foundation (IBEF), the real state sector in India is expected to reach a market size of US$ 1 trillion by 2030 and will grow to (US$ 9.30 billion) by 2040. Hence, the growing construction industry is expected to drive the demand for plastic coatings.

Growing Consumption of High-Performance Coatings

High-performance polyurethane coating offers excellent resistance to weathering and abrasion, also maintenance interiors or exteriors in industrial environments. High-performance coatings will contain more of the prime pigments that provide colors and also contain higher-quality binders. This is widely used in exterior applications due to its exterior durability, resistance to discoloration at elevated temperatures and helps to reduce volatile organic compounds emission. Hence, the growing performance of coatings is expected to drive the demand for plastic coatings.

Plastic Coatings Market Challenges

Decline in Automotive Industry due to COVID-19 Pandemic

Due to COVID 19 pandemic, the growth of the automotive sector has fallen to a great extent, which hampered the plastic coatings market growth. According to the Society of Indian Automobile Manufacturers (SIAM), the total commercial vehicle sales declined by 20.77% to 5,68,559 units in FY2020-FY2021, as against 7,17,593 units in FY2019-FY2020. Also, the sales of passenger vehicles reduced by 2% in FY2020-FY2021. Apart from this, according to the China Association of Automobile Manufacturers (CAAM) new energy vehicle sales decreased by 27.4% in December 2019. As a result, an overall 4% decline to 1.24 million units. Although the automotive sales in Malaysia declined by more than 17% in Q2 2020 and 2.7% in Q3 2020, by Malaysia Automotive Association (MAA). Furthermore, global automotive production fell by 16% in 2020, according to the “International Organization of Motor Vehicle Manufacturers (OICA)”. Hence, the overall declination in vehicle production may create de-growth for the market scenario during the era.

Volatility in Raw Material Prices

Business development is expected to be threatened by fluctuating prices of curing agents such as epoxy, polyurethane, and polyethylene terephthalate. These resins are petroleum-based products; thus, the crude oil fluctuation may hamper the market growth. According to BP static, Oil prices declined by US$64.21/bbl in 2019 as compared with US$71.31/bbl in 2018. Hence, the volatility of raw materials is expected to hamper the market growth.

Plastic Coatings Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the plastic coatings market. Major players in the Plastic Coatings Market include:

1. DowDuPont Inc.
2. BASF SE
3. The Sherwin-Williams Company
4. PPG Induatries, Inc.
5. Axalta Coating Systems
6. Akzo Nobel N. V.
7. The Valspar Corporation
8. Bayer AG
9. Kansai Paint Co. Ltd.
10. Clariant
11. Wacker Chemie AG
12. 3M Company
13. Eastman Chemical, and among others.


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