• 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.


North America accounted for the second-largest market in the high performance coatings market in 2020. It is estimated to have a CAGR of 4.10% over the forecast period. However, Middle-East and Africa is estimated to be the second fastest-growing region for the high performance coatings market, with a CAGR of 4.71%..


End-User Industry Analysis


Building and Construction industry dominated the global high performance coatings market by end-user industry with a share of about 30.26% in 2020. It is estimated to have the second-fastest CAGR of 5.08% during the forecast period.

For this study, the end-user industries included in the high performance coatings market are industrial, building & construction, automotive, marine, aviation & defense, other transportations (railways, heavy buses & trucks, etc.), and other end-user industries (wood, consumer goods, etc.).


High performance coatings market by end-user industry | Essential Market Research Report

The growing demand for efficient and low VOC vehicles has increased the demand for high performance coatings. The automotive sector has various applications for high performance coatings. For example:

  • High heat resistance coatings for engine components

  • Corrosion-resistant coatings on fittings, castings, stampings, and numerous other automotive components

  • High-temperature resistant coatings to exhaust gaskets, abrasion-resistant coatings on brake clips

In Q1 2021, the higher growth in high performance coatings is mainly because of the growing demand in automotive, building & construction, and industrial.


Resin Usage Analysis


Polyurethane resins are majorly used as topcoats on structural steel, bridges, tank exteriors, and above-waterline structures. These are excellent resins to use in exterior exposure to weather, and they are also outstanding resistance to abrasion and impact, which makes them suitable for extended durability. The other resin types included in the study are epoxy, acrylic, alkyd, fluoropolymer, polyester, silicon, and a few more.


Key Market Players


The high performance coatings market has very high competition with many international and local players in each region. The market is partly consolidated with top 10 players. The market also has some specific players with expertise in specialized end-use applications. The key players include PPG Industries, Inc., The Sherwin-Williams Company, Akzo Nobel N.V., Axalta Coating Systems, Jotun, Nippon Paint Holdings Co., Ltd., Hempel A/S, BASF, Kansai Paint Co., Ltd., KCC Corporation, RPM International, Chugoku Marine Paints, Ltd, Beckers Group, Endura Coatings, Metal Coatings Corporation, Tiger Coatings, Toefco Engineered Coating Systems, Inc., Daikin Industries Ltd., Wacker Chemie AG, etc. Covid-19 has allowed big players to take advantage of M&A, collaboration, R&D, new product development, etc., strategies to increase their presence in a new geographic region or expand their business segments to acquire more shares and provide innovative solutions for sustainable development.


Key Recent Developments


5 Recent Development in Coatings Market | Intelligent Market Research Report
  • On 19th April 2021, PPG announced that the company had acquired Cetelon Lackfabrik GmbH, a manufacturer of coatings for automotive and light truck wheel applications. This strategic acquisition will expand the existing coatings product portfolio of PPG and their liquid and powder coating technologies and color matching capabilities.

  • On 28th April 2021, Stahl achieved the Level 3 certification of Zero Discharge of Hazardous Chemicals Foundation (ZDHC) compliance for multiple Performance Coating products. It aligns the sustainability and commitment of the company to its transparency and product stewardship ambitions.

  • On 11th May 2021, Hempel announced that the company had signed a purchase agreement to acquire Farrow & Ball, a luxury decorative paint and wallpaper company with an annual turnover of over EUR 100 million. This acquisition will benefit the company by adding product lines of high performance interior and exterior finishes eco-friendly products.

  • On 17th May 2021, PPG announced that the company has successfully acquired Wörwag, the global manufacturer of coatings for industrial and automotive applications. Wörwag is specialized in developing sustainable liquid, powder, and film coatings and has operating locations in Germany, the USA, China, South Africa, Mexico, Spain, Switzerland, and Poland.

  • On 18th May 2021, Hempel launched Hempafire Pro 400 in the UK and in those countries where BS-476 is accepted. It is a new passive fire protection coating product that maintains the stability of steel structures in the event of a fire for up to 120 minutes and optimizes maximum efficiency in the loadings for a 90-minute duration. This product can be used in exterior conditions and corrosion environments up to C4 according to ISO 12944.

3 Takeaways

  1. The high performance coatings are specific coating products used for protection and aesthetics. Consumers should be aware of their requirements and the right product to avoid extra costs.

  2. The high performance coatings are more sustainable products and emit low VOC or no VOC. Companies are focusing on using high performance resins and pigments to follow government rules and guidelines and enhance the quality.