Powder coating manufacturers prospect to the growth of powder coating demand

According to analysis by market research firm Frost & Sullivan,rapid growth of key application segments in the Asia-Pacific(APAC)and Rest of the World markets is accelerating demand for high-performance and sustainable powder coatings. With economic contraction and saturation in European and North American markets, demand is shifting to APAC. Powder coating manufacturers will be wise to target this region, as it is the strongest regional market in the construction industry, accounting for approximately 40% of global construction spending.

APAC is expected to hold 48% of automotive industry demand by 2020 . The region is also likely to play a dominant role in the global household appliances market due to its stable economy, increasing disposable income, and rising standard of living, especially in China, Japan,Singapore, Malaysia and Vietnam . In Europe and North America, demand will be for technologically advanced products that meet stringent regional regulations.

The new analysis from Frost&Sullivan, Global Powder Coatings Market finds that the market earned revenue of $7.77 billion in 2013 and estimates this to reach$12.53 billion in 2020.

Powder coatings are gaining popularity as they are priced much Lower than liquid coatings and offer several cost advantages over the long term; for example, the use of a single layer of powder coating is sufficient in an application that requests multiple layers of liquid coating. ” said Frost&Sullivan Chemicals, Materials&Food Research Analyst Soundarya Shankar.“The growing demand for powder coatings also emanates from their ability to reduce energy consumption, maximize material reclamation and optimize production costs by shortening cycle time.

However, a shortage of aw materials for powder coatings is leading to higher prices and reduced profitability. Powder coating manufacturers are under intense pressure to keep prices low due to the desire of customers such as original equipment manufacturers(OEMs)to remain cost efficient, especially in the appliance and automotive markets.

The increasing use of plastics most of which can be molded in color – in the automotive segment is diminishing the need for powder coatings. The move towards precoated metals by air conditioner OEMs and the deployment of unplasticized polyvinyl chloride material in the architectural segment are also dampening market potential.

In addition, the market is limited as a result of customer reluctance to switch from conventional liquid coating technologies to powder coatings. This reluctance stems from potential customers not being convinced of powder coatings’ performance and cost advantages, uncertainty surrounding the return on investment, and skepticism about the surface finish and aesthetics that powder coatings can provide.

“Technological advances, including thin-film powders, high temperature resistant powders, and radiation technologies are addressing these challenges and making powder coatings more competitive than liquid coatings.” noted shankar. “Market participants would do well to complement these technological advances with initiatives designed to educate customers on the advantages that powder coatings offer over conventional coatings.”

Comments are Closed