The coil coatings market is estimated for 2023 for the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Coil coatings refer to liquid and powder coatings used to coat metallic coils. They are mainly used in construction, automotive, and appliances sectors for corrosion protection and decorative purposes.
Market Dynamics:
The coil coatings market is driven by increasing demand from the construction sector. Rapid urbanization and infrastructure development activities across developing economies are fueling the demand for pre-painted steel and aluminum coils from the construction industry. Moreover, growing awareness about corrosion resistance properties of coil coatings is encouraging their adoption over traditional paints in various end-use industries. Coil coatings provide long-lasting protection against weathering, corrosion, and abrasion. Their ability to withstand harsh outdoor conditions without fading, peeling or cracking over time is boosting their demand.
#1 Major Driver for the Growth of Coil Coatings Market: Increasing Demand from End-Use Industries
The coil coatings market is witnessing significant growth due to increasing demand from various end-use industries like construction, transportation, consumer appliances and HVAC. Coil coatings provide durability, protection and aesthetic appeal to metal sheets and coils used in various applications. The robust growth of the construction industry globally is a major factor driving the consumption of pre-painted and coated metal sheets in roofing and cladding applications. Rapid urbanization and infrastructure development activities are propelling the construction of commercial buildings, houses, malls and other structures, thereby fuelling the demand for metal panels, roofing and walling sheets that utilize coil coatings. On the other hand, industries like transportation and consumer appliances rely heavily on coated metal products for manufacturing vehicles, refrigerators, air conditioners and other appliances. This steady growth of consumer markets is positively impacting the sales volume of coil coatings.
#2 Major Driver for the Growth of Coil Coatings Market: Growing Usage of Coil Coatings in HVAC Equipment
Coil coatings are increasingly being used in HVAC (heating, ventilation, and air conditioning) equipment manufacturing due to their excellent anti-corrosion and aesthetic properties. HVAC components like evaporator coils, condenser coils and air ducts require protection against corrosion and scratching caused by friction during usage. Coil coatings form a durable, corrosion-resistant barrier on metal surfaces, thereby increasing the lifespan of HVAC parts. With rising global warming concerns, the demand for efficient climate control systems like air conditioners, chillers, heat exchangers is mounting steadily. New construction projects also install centralized HVAC infrastructure. All these factors are driving the production and sale of HVAC systems, which in turn fuels the consumption of coil coatings used in HVAC equipment manufacturing. Moreover, coil coatings maintain appealing appearance of HVAC parts and allow branding and product identification. Hence, their widespread application in HVAC systems ensures continued demand upsurge from this end-use segment.
#1 Major Restraint on the Growth of Coil Coatings Market: Stringent Environmental Regulations on VOC Emissions
One of the key challenges hampering the coil coatings market expansion is stringent environmental regulations imposed on VOC (volatile organic compound) emissions during the coating application process. VOCs are major air pollutants released as gases from certain solids or liquids, including various automotive paints, paint thinners, cleaning supplies, etc. Prolonged exposure to VOCs can cause damage to the central nervous system in humans. Hence, various regions have formulated strict norms on VOC content in industrial coatings. For example, the European Union has set a limit of 60g/L of VOC for coil coatings used in building construction applications. Similarly, North America and several Asian countries have tightened their VOC emission standards over the years. Compliance with such norms necessitates frequent reformulation of coil coating products by manufacturers, escalating production costs. Strict monitoring of VOC emissions also increases operational expenses of coil coating lines. Therefore, evolving green regulations act as a restraining market factor.
#1 Major Opportunity for the Coil Coatings Market: Rising Demand in the Asia Pacific Region
The Asia Pacific region, especially developing economies like India and China, provide huge untapped growth potential for coil coatings market. Factors like strong GDP growth rates, rising disposable incomes, rapid urbanization and progressive infrastructure development are driving massive investments in construction, transportation, consumer durables and HVAC sectors across Asia Pacific. India is witnessing unprecedented construction activity for smart cities, industrial parks, residential and commercial spaces. Key infrastructure projects are in full swing. Meanwhile, China remains on the global growth trajectory backed by rising living standards of its population. Similarly, other Southeast Asian countries are also experiencing speedy industrialization. All these macroeconomic changes are fueling the demand for pre-painted/coated metal products which utilize coil coatings. Since Asia Pacific is now the largest as well as the fastest growing regional market for end-user industries, it presents substantial opportunities for coil coatings manufacturers to augment sales volumes and investments in the coming years.
