The global powder coatings market is projected to grow from USD 11.6 billion in 2020 to USD 14.9 billion by 2025, at a CAGR of 5.2% between 2020 and 2025.
Strong growth can be witnessed in the powder coatings market in the APAC region, especially in China, India, and South-East Asian countries. The increasing use of Powder Coatings in the appliance and automotive industry is projected to create new opportunities for the market players. The penetration of powder coatings is expected to increase in the long term and is projected to witness a high CAGR during the forecast period. The abundant availability of raw materials, especially in APAC, is expected to support the production of powder coatings.
The appliances industry, being highly dependent on China, was the hardest hit by COVID-19. However, it is expected to witness a V-shaped growth trajectory as the demand for appliances, especially refrigerators, grew even during the initial phase of the pandemic. The introduction of antimicrobial surfaces on appliances is also expected to trigger the demand for powder coatings.
Automotive segment is projected to be the largest end-use market of Powder Coatings.
The automotive industry is expected to lead the overall Powder Coatings end use market, in terms of value, between 2020 and 2025. The powder coatings market in the automotive segment is anticipated to witness healthy growth owing to increased competition among players, growing demand for vehicles, supportive government policies, development of transportation infrastructure, and rapid economic growth. APAC accounts for the largest share of the automotive coatings market owing to large demand and production of automobiles, rising number of joint ventures among key players, and favorable political and economic scenarios. While the major challenge that Europe and North America face is the economic slowdown, the market for powder coatings in both the regions is anticipated to benefit from stringent environmental regulations..
Thermoset resin is the fastest-growing segment of the Powder Coatings market.
Thermoset powder coating is the preferred powder coatings technology for industrial applications. Epoxies and polyesters are predominantly used. Epoxies are preferred for their overall physical properties, while polyesters exhibit better outdoor weathering properties. The resin component in the formulation will largely determine the processing and performance properties of powder coatings. The thermoset resin segment is expected to lead the growth during the forecast period. Thermoset powder coatings are used on a wide array of automotive, appliances, and general industrial products.