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Organic Coatings Market Size Forecast to Reach $23 Billion by 2026

(, December 05, 2021 ) Organic coatings market size is forecast to reach US$23 billion by 2026, after growing at a CAGR of 3.8% during 2021-2026, owing to the rising demand for corrosion inhibitors such as organic coatings from various end-use industries as these coatings improve the durability and stability of the metal surface. Due to the rise in environmental issues and increased demand for green products, the organic coating market has been expanding. One of the most successful ways to avoid corrosion of magnesium alloys is organic coating. The rapid growth of the oil and gas industry has increased the demand for organic coatings; thereby, fueling the market growth. Furthermore, the flourishing automotive and aerospace industry is also expected to drive the organic coatings industry considerably during the forecast period.

Organic Coatings Market COVID-19 Impact

Due to the pandemic, there’s been a supply chain disruption in the global and local enterprises which are dealing with the manufacturing of organic coatings. Furthermore, the building and construction operations have come to a sudden halt, owing to which the demand for organic coatings has subsequently decreased during the pandemic. For instance, in different areas, there has been a temporary suspension of building and construction activities. In Quarter 2 (Apr to June) 2020, for example, construction production in Great Britain dropped by a record 35.0 percent compared with Quarter 1 (Jan to Mar) 2020. Also, due to the coronavirus, the production in these sectors is experiencing difficulties like untimely deliveries of organic coatings. All of these factors are limiting the organic coatings market growth during the outbreak.

Organic Coatings Market Segment Analysis – By Type

The water-based segment held the largest share in the organic coatings market in 2020 and is growing at a CAGR of 5.7% during 2021-2026. Water-based organic paints enhance viscosity, minimize foam, control shine, control flow, add anti-chipping capability, and allow the paint to be more impact resistant to maximize its performance. Water-based paint formulations increase paint quality by imbuing the paint with long-term water repellency. For long-term, multi-use, environmental protection, and safety, the production of water-based organic coatings continue to be aimed at high efficiency in the forecast period. Owing to the performance advantages such as prevention from color fading and water spotting, prevention from mold and mildew problems, and prevention from damage caused by moisture intrusion, water-based organic coatings demand is projected to increase during the forecast period.

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Organic Coatings Market Segment Analysis – By Resin Type

The acrylics segment held the largest share in the organic coating market in 2020. Acrylic-based organic coatings are used in various market categories including architectural, transportation, protective, decorative, and more. The main benefits of acrylic-based organic coating are ease of use, physical properties, and low costs. They are resistant to fungi, have a longer than average pot life, and have outstanding protection from moisture. According to International Trade Centre (ITC), the world export of acrylic resins was worth US$13,490,819 thousand in 2016, and US$15,291,934 thousand in 2017, which further increased to US$17,152,076 thousand in 2018. The resilience of acrylic resins, as well as their ability to reduce monthly energy bills, are two of the key benefits they offer. Thus, all these factors are boosting the demand for acrylic-based organic coatings during the forecast period.

Organic Coatings Market Segment Analysis – By End-Use Industry

The oil & gas segment held the largest share in the organic coatings market in 2020 and is growing at a CAGR of 8.9% during 2021-2026, owing to the increasing demand for protective and eco-friendly coatings such as organic coatings in the oil & gas industry. Organic coatings maintain the durability of structures and provide resistance to weather, humidity, abrasion, chemical resistance, toughness, and aesthetic appearance, owing to which its demand is increasing in the oil & gas industry. The primary application of organic coatings is to prevent corrosion and provide long-lasting protection to the metal surfaces, adhesive cement, and metals are largely employed in the oil and gas equipment such as heat exchangers, oil country tubular goods (OCTG), process equipment, storage tanks, pressure vessels, and more. The Surging consumption of metals in the oil and gas industry to manufacture its processing equipment is projected to substantially propel the organic coatings market during the forecast period.

Organic Coatings Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the organic coatings market in 2020 up to 41%, owing to the increasing oil & gas industries in the region. The region's automotive and aviation industries are benefiting from that population and per capita income. According to Invest India, India's production and consumption of petroleum products have steadily increased over the years. Between April and October of this year, 150 MMT of petroleum products were produced. India’s projected oil demand is going to grow at a CAGR of 4.2% during 2017 – 2040. According to the U.S. Energy Information Administration (EIA), China’s oil consumption growth accounted for an estimated two-thirds of incremental global oil consumption in 2019. China consumed an estimated 14.5 million b/d of petroleum and other liquids in 2019, up 500,000 b/d, or nearly 4%, from 2018. With the increasing consumption, the demand for increasing the production of oil & gas is proportionally rising, which is boosting the organic coatings market growth in the Asia Pacific region during the forecast period.

Organic Coatings Market – Drivers

Flourishing Automotive Sector

In automotive components such as panels, doors, trunk closure, wheels, fuel tanks, steering, braking system, and more, steel and magnesium alloys are commonly used to make the vehicle lighter, refine vehicle designs that improve safety, and improve fuel efficiency. And organic coatings are extensively used as a corrosion inhibitor in steels. In 2019, according to the Organisation Internationale des Constructeurs d'Automobiles (OICA), the automotive production in Malaysia and Vietnam has increased up to 571632, and 250000, i.e., 1.2%, and 5.5%, higher than the previous year. The Chinese government expects the production of cars to reach 35 million by 2025, according to the International Trade Administration (ITA). Thus, it is anticipated that with the flourishing automotive industry, there will be an upsurge in the demand for steel in the sector, which will subsequently increase the demand for corrosion inhibitors, which will then drive the organic coatings market growth.

Expanding Building and Construction Industry

Steel and magnesium alloys are affordable, readily available, and safer, and their intrinsic properties, such as strength, versatility, durability, and 100% recyclability allow for improved environmental performance across the entire life cycle of buildings, owing to which it is widely used in the building and construction industry. According to the US Census Bureau, total construction was at a seasonally adjusted annual rate of 1,366,697 in February 2020, which is 6.0% above the rate of 1,288,951 in February 2019. According to the International Trade Administration (ITA), the Chinese construction industry is forecasted to grow at an annual average of 5 percent in real terms between 2019 and 2023. In addition, due to various government initiatives, such as Foreign Direct Investments, construction and construction activities are also increasing (FDI). Thus, the rise in construction activities is expected to augment the demand for organic coatings as it is largely used to protect steel from corrosion, which acts as a driver for the organic coatings market during the forecast period.

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Organic Coatings Market – Challenges

The Delamination of Organic Coatings

The most effective and inexpensive technique to protect metallic materials from corrosion is organic coating. The protective coating can separate the metal substrate from corrosive media; provide electrochemical protection (inhibition and cathodic protection, and display an adhesive function). Organic coatings, however, degrade due to under film corrosion in violent environments, which can shorten coatings' service life. Degradation is accelerated by scratches or wear, enabling the diffusion between the coating and metal of aggressive media to the interface. Thus, cathodic Delamination (refers to the weakening or loss of adhesion between the coating and substrate) is one of the major modes of failure for organic coatings, which is the major factor that may restrict the market growth.

Organic Coatings Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the organic coatings market. Major players in the organic coatings market are Plating Technology, Hi-Tech Metal Finishing, Anochrome Group, Akzo Nobel, AD International, Organic Coatings Limited, DeKalb Metal Finishing, Hi-Tech Metal Finishing, Plating Technology, Anochrome Group, Sherwin Williams Co., BASF SE, Axalta, and Organic Coatings Ltd.

Acquisitions/Technology Launches

In June 2020, Axalta launched a new collection of industrial powder coatings in Mexico. Alesta BE+ does not generate emissions of volatile organic compounds (VOC), requires less time to cure, and uses less energy, which increases productivity while lowering production costs for customers.

Related Report:

A. Powder Coatings Market

For more Chemicals and Materials reports, please click here

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Venkat Reddy

(+1) 970-236-3677

Source: EmailWire.Com

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