• Aditya Kaushal

High Performance Coatings Market: Essential Multi-Segment Insights [5 Recent Developments]

  • Why is there a need for high performance coatings?

  • Are the high performance coatings supporting sustainability?

  • Which end-user industry accounts for the largest market share in the high performance coatings market?

High performance coatings can provide the following key characteristics after application on substrates like metals, galvanized, non-ferrous metals, wood, and concrete:

  • Corrosion resistance

  • Abrasion resistance

  • Weather (Environment) resistance

  • Color and gloss performance (creation and retention of aesthetics)

  • Exceptional chemical resistance and high heat resistance (intumescent coatings)

  • Higher durability and strength

  • Low VOC emissions to no or zero VOC emission

Environment conditions, like moisture, high airflow, direct sunlight, and other environmental factors, play a significant role in impacting coatings and can affect both interior and exterior spaces. High performance coatings are specialized and specifically engineered coatings for the primary function to sustain the premium quality, increasing the life cycle savings in the long run, and secondary function to enhance the aesthetics of the product applied.

Since the start of Covid-19, the pandemic has affected not only human lives but also the economy in the world. Many small-scale and medium-scale companies have suffered from financial distress, and it will take some time to boost their business operations. However, the paints and coatings industry shows a bounceback with a positive growth trend in the first half of this year.

The high performance coatings market is estimated to value USD 60,512.34 million by 2026 at a CAGR of 4.89% over the forecast period 2020-2026.

High performance coatings market in USD million and growth rate | AKI Research | Intelligent Market Research Report

Key Driving Factors

The high performance coatings market is highly driven by the building and construction activities in countries like the USA, China, India, Saudi Arabia, and many more. The materials used in construction like steel, iron, metals, etc., are easily affected by corrosion. High performance coatings prevent these substrate materials from corrosion and enhance their durability. Moreover, it also prevents concrete, cement, and similar structures from chipping and cracking.

The continuously increasing demand for high performance coatings from industrial coatings is also driving the market. Power plants, the oil & gas industry, water treatment plants, etc., are asset-intensive businesses that require enormous capital for continuous operations. These industries are highly affected by corrosion, chemicals, and the environment. For example, in the oil & gas industry, it is required to have a strategic enhanced pipeline system with a better life cycle and lower risk to their operation. The high performance coatings prevent the corrosion of drilling rigs, pipelines, offshore platforms, etc., to minimize the risk.

Restraints in High Performance Coatings Market

During the pandemic in 2020, the demand for high performance coatings mainly decreased in the aviation industry. Many new planes or aircraft orders are backlog, and some orders were canceled. For example, Airbus had a backlog of 7184 aircraft and a 34% decline in 2020 in commercial aircraft deliveries compared to 2019. The pandemic has affected the supply chain and the number of workforces due to forced lockdown by governments in different countries.

The VOC emission rules and guidelines also restrict the demand for solvent-borne high performance coatings. Paint and Coatings manufacturers are majorly focused on low VOC and no VOC coating products to reach their sustainability goals.

Regional Market Analysis

By region, the Asia-Pacific is dominating the high performance coatings market with a global market share of about 39.27% in 2020. It is also estimated to have the highest CAGR of 6.13% during the forecast period 2020-2026.

High performance coatings market by region 2020 | AKI Research | Essential Market Research Reports

China accounted for the largest share in Asia-Pacific due to the manufacturing hub for various industries like automotive, aviation, shipbuilding, building and construction. China has launched the "New Infrastructure" campaign, which will offset the economic impact of the COVID-19 pandemic and boost sustainable growth in construction activities. The new plan will focus on infrastructures like 5G networks, inter-city transportation, inner-city rail systems, new energy vehicle charging stations, and many more. Several railway projects like Wuhan Urban Rail Transit, Intercity Railway lines along the Yangtze River in Jiangsu Province, etc., are under construction and planned to complete in the forecast period.