Coatings World - September 2015

U.S. demand for paint and coatings is forecast to grow 3. 8 percent annually to 1.4 billion gallons in 2019, valued at $31.5 billion. Gains will be driven by a strong rebound in construction activity, which will stimulate demand in the architectural market. Environmentally-friendly, low VOC paint and coating products will continue to see particularly strong growth as manufacturers develop new products to meet stricter government regulations and changing consumer tastes. Additionally, new technological advances, such as nanostructured coatings, will drive future growth as they open new applications by providing antimicrobial, self-cleaning, sound-dampening, anticorrosive, and light-emitting functions. These and other trends are presented in Paint & Coatings, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Architectural markets for paint and coatings will continue to be the main outlet for the industry, growing at an above average rate through 2019 as demand is driven by an improved outlook for both residential and nonresidential construction. According to analyst Joseph Kocian, “The fastest growth for paint is expected in new residential construction as housing completions rise at a double-digit annual pace, but demand in improvement and repair applications will increase as well.” Overall, demand for interior paint, which accounts for about two-thirds of the market, will outpace demand for exterior paint due to increased use of siding materials that do not require painting.

Manufacturing coatings demand
is forecast to reach nearly 400 million
gallons in 2019, on annual gains of 2.4
percent. A rebound in construction
spending will propel demand for related
paint and coatings. The metal build-
ing components market will exhibit the
fastest growth among manufacturing
markets, benefiting from industrial and
commercial expansion. The furniture
and fixtures market will continue to ac-
count for the largest share of manufac-
turing coatings and will also grow at an
above average pace. The motor vehicle
market will experience subpar gains due
to weak growth in light vehicle produc-
tion. Maintenance and specialty coat-
ings demand will exhibit below average
growth going forward. Marine coatings
will rise at the quickest rate, bolstered by
increased commercial shipping activity
and new antifouling technology.

Electrocoating Market to
Grow at a CAGR of 5.12%
Between 2015-2020

The report “Electrocoating (E-Coat)

Market by Type (Cathodic Epoxy, Cathodic Acrylic, Anodic), by Application (Passenger Cars, Commercial Vehicles, Automotive Parts & Accessories, Heavy Duty Equipment, Appliances, & Others)

& By Region - Global Forecasts to 2020” report analyzes the global e-coat market with respect to market drivers, restraints, opportunities, and challenges in different regions.

E-coat is a unique immersion coating process in which electrically charged particles are deposited out of a water suspension to coat a conductive part. In this process, a positive charge is applied to the paint bath and a negative charge is applied to the parts to be-coated. The paint particles are suspended in water. The paint allows an electric current to travel from one paint particle to another till it reaches the part where the paint particles electrically attach themselves to the surfaces of the part. The parts are then processed through a bake oven where the paint is melted onto the part for fusion bonding and then heat cured to form a hard and durable film to coat the part.

The drivers identified for the electro-
coating market are growing automotive
and appliance industry. Developing coun-
tries such as China, India, and Brazil are
the major consumers of e coat. The mar-
ket in countries of Middle East and Africa
are also growing. In developed countries
such as the U.S., Spain, Germany, Japan,
and Italy, the market is growing at a low
to moderate rate.

Asia-Pacific is the largest market for e-coat, both in terms of volume and value, followed by Western Europe and North America. The key companies in this market are Axalta Coating Systems (U.S.), BASF SE (Germany), Hawking Electrotechnology (U.K.), KCC Corporation (South Korea), Koch Membrane Systems Inc. (U.S.), Luvata Oy (Finland), MetoKote Corporation, Inc. (U.S.), Nippon Paint Holdings Co., Ltd. (Japan), PPG Industries, Inc. (U.S.), Luvata Oy (Finland), and the Valspar Corporation (U.S.).

The e-coat market, in terms of value and volume, is estimated by considering the current and future projections according to the economic and industrial outlook. This analysis also covers important developments, expansions, partnerships & agreements, and mergers & acquisitions of the leading global companies.

The market size, in terms of value, of e-coat was estimated to be about $2.87 billion in 2015 and is projected to reach $3.69 bBillion by 2020, at a CAGR of 5.12% between 2015 and 2020.

The market size of e-coat majorly depends on new production of automobiles such as passenger cars, commercial vehicles, heavy duty construction, and agricultural equipments. The e-coat offers superior performance and are cheaper. They also comply with environmental regulations. Because of this characteristics, e-coat is in high demand in end-use industries such as appliances, automotive, construction, and furniture. The restraints in the market is the initial high cost of capital equipment. The opportunities for the e-coat industry are growing automotive market in Asia-Pacific and the Middle-East.