Industrial Coatings Market Forecasting Continuous Growth

3 Min Read

Sustainability Initiatives, Competitive Landscape Drive Strong Growth 

Industrial coatings are protective and decorative coatings applied to materials such as metal, plastics, and composites. These coatings are used across a variety of industries to enhance durability, corrosion resistance, aesthetics, and more.  

The global industrial coatings market is valued at $157 billion this year and is projected to grow at a compound annual growth rate of 3.7%, reaching $210 billion by 2032.¹ This growth is driven by a rising demand for environmentally friendly coatings, as well as more durable coatings with better aesthetics. 

In addition, rapid urbanization with increased infrastructure, middle-class development, and rising disposable incomes contribute to market growth as consumers opt for advanced coatings on products such as flooring, furniture, and automobiles that offer superior durability, UV resistance, and aesthetics.²  

Last year, the Asia Pacific market dominated the global industrial coatings market with a 42.9% share, due primarily to rapid industrialization, rising automobile production, and government subsidies in the region.³  

The global industrial coatings market is segmented into three categories: 

1. Products 
   
   Acrylic, alkyd, polyurethane, epoxy, polyester 
   
   Acrylic dominates the product segment, holding over 35.75% share of overall revenue in 2022 and continuing to control a significant part of the global market.⁴ This is largely due to the rising use of ceramics in the biomedical industry, which are increasing in popularity due to their biocompatibility and aesthetics. These ceramics are often coated in acrylic to enhance their strength. Additionally, acrylic coatings are widely used across various industries, such as industrial, automotive, construction, and more.⁵ 

2. Technology 
   
   Solvent-borne, water-borne, powder-based 
   
   The water-borne segment held most of the market share due to its low volatile organic compounds (VOC) content.⁶ Government regulations and consumer demand are driving low-VOC coating growth, as VOCs are considered harmful for human and planet health. 

3. End-use
   
   General industrial, automotive/transportation, marine, aerospace, oil and gas, construction 
   
   The general industrial segment is forecasted to dominate, as coatings work well to resist corrosion and chemical damage, which lowers costs for general industrial companies.⁷ 

Investor Insights 

Sectors Driving Market Growth 

Sustainability and Automotive Offer Strong Opportunities 

Focus on Sustainability: Sustainability is becoming increasingly important within the market. Coatings manufacturers are producing greener techniques that consume less energy, result in less waste, and emit fewer pollutants. This is expected to create new opportunities investors should keep an eye on.⁸ 

Automotive OEM to Drive Growth: In addition to the general industrial segment, growing automotive production and sales are expected to create lucrative opportunities for industrial coatings. The demand for improved appearance and greater energy efficiency in the auto OEM industry, as well as rising automotive production and sales, is expected to propel growth and create highly profitable opportunities for the industrial coatings industry.⁹ 

Industry Landscape and Challenges 

Competitive Market, Environmental Factors, and More Shaping the Market 

Competitive Landscape: Highly fragmented and intensely competitive, the market is comprised of global players, as well as small- and medium-scale regional players that are very familiar with supply chain networks, market regulations, and suppliers. Prominent companies include Akzo Nobel N.V., Axalta Coating Systems, LLC, Jotun, and PPG Industries, Inc.¹⁰ Major players are focused on R&D investments, expanding manufacturing facilities, and M&A to ensure competitive effectiveness, satisfy growing demand, and expand their customer base. For example, global coatings company Axalta Coating Systems recently acquired The CoverFlexx Group, which manufactures and sells coatings for the automotive industry.¹¹ An initial $285 million cash consideration was agreed upon, plus a $10 million earn out based on the business’s 2024 performance.¹²

Risks and Restraints: One of the risks to market growth is the negative impact humidity has on the ability of coatings to dry. Acrylic, latex coatings, water-borne, and oil-based coatings are seriously affected in humid regions. Many manufacturers are investing a great deal in humidity test chambers. An additional restraining factor is the careful storage and maintenance required to keep coatings efficient and effective.¹³ Fluctuating raw material prices, EPA regulation compliance, and a shortage of skilled labor also present risks to the industry. 

Invest in a Hot Market  

The industrial coatings market opportunity is strong and growing, fueled by rapid industrial and urban development, automotive OEM growth, and rising demand and regulations surrounding environmentally friendly coatings. The most attractive opportunities for investors are found in the acrylic, water-borne, and general industrial segments. However, each segment in the industrial coatings market is promising and can be analyzed as a sound investment area by private equity firms. 

We connect private equity clients with seasoned advisors who can provide deep analysis and strategic guidance. Contact us to find out more.  

Resources:

¹Fortune Business Insights Industrial Coatings Market Size, Share & Industry Analysis
²Ibid.
³Ibid.
⁴Ibid.
⁵Grand View Report Research Coatings Market Size, Share & Trends Analysis Report
⁶Ibid.
⁷Ibid.
⁸Ibid.
⁹Ibid.
¹⁰Ibid.
¹¹Axalta Completes Acquisition of The CoverFlexx Group
¹²Axalta to Acquire The CoverFlexx Group, a Leading Aftermarket Coatings Business Focused on Economy Customers in North America
¹³Coherent Market Insights Industrial Coatings Market Analysis