One might think that the commodity crisis as well as the unforeseen lockdowns in export-relevant countries such as Shanghai have led to a slump in the coating market, but figures and record years indicate otherwise. During a time when most companies are struggling to survive, the industrial coatings market reports a total value of $83.16 USD billion, as well as an estimated compound annual growth rate (CAGR) of 3.4% from 2021 to 2028. With that being said, how does the market manage to overcome raw material crises and lockdowns while achieving record figures?
AUTOMOTIVE INDUSTRY
One of the most significant contributions is made by the automotive industry, accounting for more than a quarter of the market share in the field of industrial coatings, thus allowing more than 27.5 million passenger cars to be manufactured in a single year alone. This fast-changing, dynamic and innovative market demands high-quality, economical and reproducible solutions, whether it requires sliding coatings for moving parts to reduce friction, premium hardening and tempering of automotive components, corrosion protection or scratch-resistant paint finishes. This current market demand is significantly affected by demographic trends where older people tend to drive less and younger people worry about sustainability and energy consumption. As a result, the coatings industry strives to reduce energy consumption in various ways and manufacturers develop more efficient processes for the production of coatings and formulated coatings.
CONSTRUCTION & ARCHITECTURE
Not only the automotive industry contributes to the growing coating demand, but also countries such as India, where the construction market is driven by low-cost labour, cheap raw material prices and the growing urban population in the region. Especially in the last few years, subsidies from the Indian government for infrastructure developments boosted rates in the industry considerably thus enabling coating companies to benefit from new projects such as underground railways, bridges and buildings being constructed all over the country.
OIL AND GAS INDUSTRIES
Another driving factor like the oil and gas industry, which is currently experiencing a 4.15 million barrel per day (bpd) increase in demand, is worthless without the coatings industry providing protective coatings. Transporting oil and gas to refineries requires the application of various types of protective coatings that offer corrosion-resistant, heat-resistant, abrasion-resistant and fire-resistant properties. In this regard, countries such as America, China, Saudi Arabia and Russia play a crucial role in driving the oil and gas industry forward, as well as promoting the use of environmentally friendly coatings through the increasing implementation of legislation in recent years.
Understanding trends and transformations such as these, which can be driven by a variety of factors, whether political or health-related, is essential, especially in the coating market, in order to provide qualified personnel. For assistance on this journey, contact our specialist coating industry consultants.