Protective coatings are basically used to provide protection to the surface. It is a simple way of eliminating corrosion by creating the barrier between the surface and the corrosive environment. Protective coatings can be metallic or non-metallic and can be used for other purposes also other than corrosion prevention. Epoxies, polymers, and polyurethanes are some of the non-metallic coating whereas aluminum, zinc, and chromium are some of the metallic coatings.
Global protective coatings market is estimated to account for around US$ 17,850.8 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 9.0% during the forecast period (2020-2027).
The growth in the power sector due to rising demand for energy is escalating installation of power plant especially across the Asia Pacific the region is fueling the market growth of protective coatings. According to the India Brand Equity Foundation, India is ranked fourth in wind power, fifth in solar power, and fifth in renewable power installed capacity as of 2018. India ranked sixth in the list of countries to make most investments in clean energy with US$ 90 billion. Moreover, the total installed capacity of power stations in India stood at 368.68 Gigawatt (GW) as of January 2020.
Railroad expansion across the developing regions is expected to offer potential opportunities to the market of protective coatings. Moreover, growth in the automotive industry due to the production of the automobiles around the globe is further projected to augment the market growth of protective coatings. As per the stats by European Automobile Manufacturers' Association, 98.1 million motor vehicles were produced in 2018 worldwide. More than 80 million passenger cars were produced around the world in 2017.
Strict rules and regulations associated with the VOC emissions as it is hazardous to the environment such as it contribute in ozone depletion is expected to hinder the market growth of protective coatings. For instance, The Environmental Protection Agency published the architectural coatings rule on 11 September 1998 (63 FR 48848) under the authority of Section 183(e) of the Clean Air Act mandates limiting the amount of volatile organic compounds (VOC) in coatings products.
On the basis of region, Asia Pacific region dominated the global protective coatings market in 2019 with a 44.9% of market share in terms of value, followed by North America and Europe respectively.
On the basis of technology, solvent-borne coatings segment dominated the global protective coatings market in 2019 with 65.0 % of market share in terms of value, followed by water-borne coatings and others segment respectively.
Development of environmental coatings by major players is a growing trend in the market this is attributed to growing environmental concerns. For instance, in November 2019, Allnex announced the launch of its new UCECOAT® 7999 developed for industrial wood applications. UCECOAT® 7999 is a Tin-free and APEO-free UV-curable polyurethane dispersion with a bio-based carbon content of minimum 20% (ASTM D 6866) for clear and white formulations aimed at a wide range of industrial wood applications.
The Paints Directive 2004/42/EC of the European Parliament and of the Council of 21 April 2004 on the limitation of emissions of volatile organic compounds due to the use of organic solvents in paints and coatings and vehicle refinishing products aims to prevent the negative environmental effects of emissions of volatile organic compounds (VOC) from paints and coatings and other refinishing products
Protective Coatings Market - Impact of Coronavirus (Covid-19) Pandemic
The oil and gas industry has already felt the effects of the coronavirus as the global pandemic has reduced the demand of crude oil, thus resulting in production declines and plunging oil prices around the globe. The global crude oil prices hit 18-year low mark on March 30th 2020 as the price of Brent Crude oil fell to US$ 22.58 per barrel. U.S. Energy Information Administration (EIA) has revised their global estimates for oil consumption to an increase of 400,000 bpd, down by 60% from 1,000,000 bpd from January 2020. The slowdown in the oil & gas industry will impact demand of protective coatings from the sector.
Few Recent Developments
In November 2019, Arkema Group, the global specialty chemicals company, has exhibited at the Chinacoat 2019 tradeshow in Shanghai and presented its latest innovative and sustainable high-performance solutions designed for local paints and coatings market. This includes architectural coatings, architectural chemicals, industrial coatings, 3D printing, specialty coatings, fabric, inks, and UV inkjet.
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