Metal Coatings Market Overview
Major factors being witnessed in the global metal coatings market are rising investments in the residential, commercial, as well as industrial construction industry; increasing use of sol-gel technologies and zirconium; and companies are performing mergers and acquisitions to acquire new technological advancements. For instance, in 2016, BASF SE completed acquisition of Albemarle Corporation’s global surface treatment business, and Chemetall, a leading developer and manufacturer of customized technology and systems for surface treatment.
Metal coatings are extensively used in various industrial sectors to increase metal life and reduce the maintenance cost. These are manufactured as thin films of protective materials and are glued to metals for enhancing surface properties such as color, corrosion, oxidation resistance, appearance, wear resistance, electrical resistance, and thermal protection. The metal coatings market is segmented on the basis of resin type, process, end-use industry, and geography.
On the basis of resin type, metal coatings market is classified into fluoropolymer, polyurethane, polyester, plastisol, and siliconized polyester. Polyester resin type coatings hold a significant share in the market, owing to its uniform properties such as good bendability, hardness, gloss, and resistance to ultraviolet (UV) rays, chemicals, and scratches.
This resin is again sub-classified into aromatic polyester and cycloaliphatic polyester. Aromatic polyester resin type coatings are widely used and are cost-effective, whereas cycloaliphatic polyester resin type coatings are durable, highly UV-resistant, but are expensive in nature. The market demand for these polyester type coatings is driven by increase in their applications in the building and construction, and automobile industries.
The metal coatings market is also classified on the basis of process into coil coatings, extrusion coatings, and hot-dip galvanized coatings. The coil coating process accounts for a significant market share during the forecast period, owing to its increasing industrial applications and technological advancements.
On the basis of technology, the metal coatings market is bifurcated into liquid and powder. The liquid coating technology is designed to increase applied cost efficiency and achieve better quality. The technology accounts for larger market share in terms of value and volume, owing to its variety of custom formulations, ranging from solvent-based to high-solid or low bake, waterborne finishes, and UV-curable technology.
The metal coatings market is categorized on the basis of end-use industry into building and construction, automotive and transportation, consumer goods and appliances, and marine. The building and construction industry hold a significant share in the market, where these coatings are applied on heating, ventilation, and air conditioning (HVAC) systems, trims, ceiling grids, blinds, railings, purlins, roof and wall panels, doors, and others.
Based on region, the metal coatings market is categorized into North America, Europe, Latin America (LATAM), Asia-Pacific (APAC) and Middle East and Africa (MEA). APAC accounted for the largest market share during the historical period, owing to its rising population, demand for quality metal coating products, and increasing innovations and developments in end-use industries. High demand for these coatings in the APAC region acts as a major driving factor in the market.
Metal Coatings Market Dynamics
Rapid growth in the market is driven by increasing industrial applications, high consumption of metal coatings in the APAC region, and growing construction and automotive industries in emerging nations. Additionally, due to the saturated markets in North America and Europe, manufacturers are forced to shift their focus into developing or emerging nations of APAC and LATAM. According to Bureau of Labor Statistics, construction industry projecting 4.5% year-on-year (Y-o-Y) growth rate and will become one of the fastest growing industry by 2020s. This is the major factor, which drives the metal coatings market where the building and construction industry holds a significant share.
The growth in automobile sector is another driving factor for the metal coatings market, where the APAC market is expected to witness high growth. According to Society of Indian Automobile Manufacturers (SIAM), the Indian automobile industry produced a total of 2.9 million vehicles in fiscal year 2018 as compared to 2.5 million in 2017, which a growth of 14.7%. Similarly, China is expected to improve its automobile output, and produce 30.0 million units by 2020 and 35.0 million by 2025.
The metal coatings market is majorly affected by volatile raw material prices such as prices of crude oil and natural gas. Moreover, stringent regulations for the use of hazardous chemicals are making market players in the building and construction industry to shift toward composite materials, thereby, replacing steel and aluminum sheets in the process. This would restrict the market growth.
Metal Coatings Market Competitive Landscape
Some of the major companies operating in the global metal coatings market are PPG Industries Inc., DowDuPont Inc., Akzo Nobel N.V., Sherwin-Williams, BASF SE, Axalta Coating Systems, Kansai Paint Group, Wilh. Becker Holding GmbH, Henkel AG & Co. KGaA, Nippon Paint Holdings Co. Ltd. Several industry participants have integrated their business operations and produce raw materials and final products. This helps companies to leverage technological capabilities and produce economically competitive products.
The study provides the historical as well the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.