Coating Resins Market size will grow to USD 51.4 billion by 2026 from USD 42.4 billion in 2021, at a CAGR of 4.0% during the 2021-2026 period. The markets growth is primarily triggered by the increased demand from construction and automotive industries, a surge in investments in the infrastructure sector, demand for eco-friendly coating systems, and a rise in the purchasing power of consumers.
This report also provides a comprehensive analysis of the companies listed below: Arkema (France), BASF SE (Germany), Covestro (Germany), Allnex Netherlands B.V. (Germany), The Sherwin-Williams Company (US)
COVID-19 Impact on the Global coating resins Market
The outbreak of COVID-19 has disrupted the production of raw materials used in paints and coatings manufacturing. Asian countries such as India, China, Japan, Singapore, and Thailand are the hubs for paints and coatings manufacturing and are major suppliers of these raw materials. The outbreak of the novel coronavirus in APAC has affected the supply of these raw materials. For instance, China is one of the major suppliers of resins and exports a million tons of resins in the global market. The break in the supplies of raw materials has reduced the production of paints and coatings products.
Arkema is a global player in the chemicals industry. It operates through three coherent and complementary segments dedicated to specialty materials: Adhesive Solutions, Advanced Materials, and Coating Solutions, and a fourth segment called Intermediates. In February 2019, Arkema opened a new powder coating polyester resins manufacturing unit in Navi Mumbai, India. This new facility also includes a dedicated laboratory to provide application development and technical support. The facility will help Arkema better serve customers in the fast-growing powder coating market throughout India, as well as the Gulf Region and surrounding countries.
BASF SE has 11 divisions that are aggregated into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions, based on their business models. Coating resins are kept under the Industrial solutions. In April 2021, Azelis made public its new distribution agreement with BASF, effective immediately, for the dispersions, additives, and resins range in Australia and New Zealand (ANZ). The products subject to the agreement are commonly used in coatings, adhesives, sealants, and elastomers (CASE), and construction applications.
Acrylic is projected to be the largest resin type of the coating resins market.
Acrylic is the largest resin type in the coating resins market in terms of volume. Acrylics are available in two types of composition: pure acrylics and complex acrylic. Pure acrylics contain only acrylic monomers. To obtain a resin with specific properties, or to reduce its cost, different monomers can be incorporated into an acrylic polymer. In complex acrylics, styrene is the most used, and the resulting resin is known as styrene-acrylic. Styrene monomers are significantly less expensive than acrylic monomers. These monomers are known to increase water resistance and offer alkali resistance and improved hardness. It is a low-cost material that provides water resistance, better stain protection, and good water resistance. These factors are driving the demand for acrylic coating resins globally.
Powder coatings is the fastest-growing technology segment of the coating resins market.
Powder coatings is the fastest growing technology in coating resins market, in terms of volume. The powder coating technology uses dry resin powders for coating substrates with thermoplastic or thermoset films. The coating is formed after a layer of powder is applied with a powder spray gun or fluidized bed tank to the substrate and heated, thereby melting the powder. Powder coatings are largely used in automotive, appliance finishing, outdoor furniture manufacturing, and architectural and building applications. A key driver for the powder coatings technology segment is the increasing number of stringent environmental regulations for zero- or non-VOC coatings.
APAC is the largest coating resins market globally.
APAC is projected to lead the coating resins market and this dominance is expected to continue till 2026. APAC encompasses a diverse range of economies with different levels of economic development. The growth of the region is mainly attributed to the high economic growth rate coupled with heavy investments across industries such as automotive, consumer goods & appliances, building & construction, and furniture. The key players of the coating resins market are expanding their production capacities in APAC, especially in China and India. The advantages of shifting production to APAC are the low cost of production, availability of skilled and cheap labor, and the ability to serve the local emerging market in a better manner.