APAC Powder Coatings Market - Forecast(2023 - 2028)

Report Code: CMR 1459 Report Format: PDF + Excel

APAC Powder Coatings Market Overview

APAC Powder Coatings market size is forecast to reach US$10.7 billion by 2026, after growing at a CAGR of 7.6% during the year 2021-2026. Powder coating is a dry finishing procedure that uses electrostatically charged finely ground pigment and resin particles that are sprayed over electrically grounded parts. The charged powder particles stick to the part and stay there until they're melted and fused in a curing furnace to form a homogeneous coating. Powder coating finishes are not only durable but also adaptable. Metal, concrete, steel, and plastic are among the surfaces it can be used on. It's a versatile finish that can be used both indoors and out, and it's also one of the most cost-effective possibilities. In the near future, the expanding number of consumer products companies in India, China, and Singapore is predicted to boost market development. Moreover, Powder coatings have several advantages over other coatings, including cheaper operating costs, immediate availability, low VOC emissions, good appearance, and consistent thickness which is projected to propel the APAC powder coating market forward in the forecast period.

COVID-19 Impact

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 to the global market. The break in the supplies of raw materials has reduced the production of paints and coatings products. In 2020, all private buildings and construction sites, government constructions, and refinish automotive businesses were hit drastically. Retailers are also canceling already placed bulk orders of paint and coatings products due to the shutdown of the market. End-use consumers are not buying expensive coating technologies such as polyurea and polyurethanes from distributors and retailers due to COVID-19. Overall, the sales of paints and coatings products are hampered at the distributors' level due to the suspension of construction and building activities.

Report Coverage

The report: “APAC Powder Coatings Market Report – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the APAC Powder Coatings Industry.

By Resin Type: Thermoset (Epoxy, Polyester, Acrylic, Fluoropolymer, Polyurethanes, and Others), and Thermoplastic (Polyamide, Polyolefin, Polyethylene, Polyvinyl Chloride, Polypropylene, and Others).
By Coating Method: Fluidized Spray, Electrostatic Fluidized Bed, Electrostatic Spray, and Others.
By Substrate: Metal (Steel, Aluminum, and Others), and Non-Metal (Plastic, Wood, Ceramics, Glass, and Others).
By End-Use Industry: Automotive [Two-wheelers (Scooters, and Bikes) and Three/Four-wheelers (Passenger Cars, Heavy Commercial Vehicles, and Light Commercial Vehicles)], Construction (Outdoor Construction, and Indoor Construction), Appliances (Refrigerator, Water Coolers, Vending Machines, Washing Machines, Air Conditioners/Coolers, Electrical Fans, Kitchen Blenders/Mixers, Vacuum Cleaners, Water Heaters, Ovens & Chimneys, LPG Cylinders, and Others), Electrical & Electronics (Transformers, Generators, ATM Machines, Industrial/Commercial Systems, Electrical Motor Stators/Rotors, Electric Meters & Connectors, Computer Room Floor System, and Others), General Industrial (Industrial Carts & Power Tools, Storage & Racking, Escalators & Elevators, Lockers, Walls & Fittings, Water Pumps, Steel Drums, Pipes & Rebars, and Others), Furniture (Outdoor Metal Furniture, Beds & Chairs, Benches, and Others), Medical, Transportation & Equipment (Railways, Industrial Transportation, Construction Equipment, Agricultural Equipment, Marine, Aerospace), and Others.
By Country: Malaysia, Indonesia, Thailand, India, Australia and New Zealand, Japan, Vietnam, Bangladesh, Philippines, Pakistan, South Korea, and the Rest of APAC

Key Takeaways

  • Japan dominates the APAC powder coatings market, owing to the increasing construction and automotive sector in the country. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the construction and automotive sector in Japan.
  • Powder coating protects and enhances the appearance of household appliances such as refrigerators, dryer drums, water heaters, dishwashers, and microwaves. It can be made of plastic, metal, or concrete, all of which are long-lasting materials. As a result, the overall powder coating market in the Rest of the APAC region is expected to grow.
  • The rise in automobile manufacturing and a surge in demand for electric vehicles is the major factor driving market expansion in developing countries such as India, China, and others. For instance, the Indian government launched the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) scheme in 2019 with an Rs.10,000 crore budget. The scheme was set to expire in 2022.
  •  During the projected period, the profitable construction industry in the Asia Pacific will contribute to increased demand for powder-coated construction equipment in the area. According to the Indian National Investment Promotion and Facilitation Agency, the country's construction equipment industry is expected to generate US$6.5 billion in revenue in 2020.

Figure: APAC Powder Coatings Market CAGR by Country, 2021-2026 (%)

APAC Powder Coatings Market CAGR by Country

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APAC Powder Coatings Market Segment Analysis – By Resin Type

The thermoset segment held the largest share in the APAC powder coatings market in 2020 and is estimated to grow at a CAGR of 7.4% during the year 2021- 2026. Epoxy resin is commonly used as a powder coating material in a variety of industries in the Asia-Pacific region. Epoxy powder coatings are robust, long-lasting, and durable metal coatings. Their superior hardness and impact and abrasion resistance increase the performance of the product over liquid coatings. Also, epoxy powder coatings help maintain the functioning of critical equipment so that production may operate smoothly, thereby improving the bottom line. Fluoropolymer resin owing to its non-stick properties and chemical resistance is widely used in powder coatings. Fluoropolymer powder coatings are almost solely employed in the exterior of commercial, residential, and monumental buildings, including high-value residential, commercial storefronts, curtain walls, skyscrapers, hospitals, malls, government buildings, and stadiums. According to the International Trade Administration (ITA), China is the world’s largest construction market, and the industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. Thus, thermoset powder coatings are becoming more popular in this region, owing to the rising growth of the construction and automotive industries in countries such as China, India, and Japan.

APAC Powder Coatings Market Segment Analysis – By Coating Method

The electrostatic spray segment held the largest share in the APAC powder coatings market in 2020 and is forecasted to grow at a CAGR of 7.8% during the year 2021-2026. The electrostatic spray consists of two sub-segments corona charging and tribomatic static charging. The most common way of applying the powder coating to metal objects is to spray the powder using a corona gun. The gun imparts a positive electric charge to the powder, which is then sprayed towards the grounded object by mechanical or compressed air spraying and then accelerated toward the workpiece by the powerful electrostatic charge. Tribomatic static charging is the second most common method of spraying powder coatings, after corona charging. The powder develops a charge while passing through special hoses and guns. When the powder comes into touch with these non-conductive surfaces, the friction causes electrons to be removed from the particles. After which a powerful positive charge is developed by these particles. There is no utilization of high voltage or lines of force, allowing for easier penetration into deep recesses. Tribomatic charging is efficient in developing a static charge within the powder, however, coatings must be specifically formulated for this system.

APAC Powder Coatings Market Segment Analysis – Substrate

The metal segment held the largest share in the APAC powder coatings market in 2020 and is forecasted to grow at a CAGR of 8.2% during the year 2021-2026. Metal as a powder coating substrate finds widespread use in the building industry due to its exceptional weathering qualities and color and gloss preservation. Exterior architectural applications such as façades, curtain walls, windows, door profiles, sheet metal, cladding, and others benefit from their corrosion resistance and great weather ability. The demand for powder coatings in the metals market is driven by factors such as developments in civil construction and a strong need for efficient paints in developing nations like India, Malaysia, Thailand, and more. In October 2020, Axalta Coating System introduced Alesta AP QualiSteel, a new powder coating system for galvanized steel that is both efficient and long-lasting. Alesta AP QualiSteel is commonly used to coat machine components, outdoor furniture, and more. Such product launches are further assisting the market growth.

APAC Powder Coatings Market Segment Analysis – By End-Use Industry

The construction segment held the largest share in the APAC powder coatings market in 2020 and is forecasted to grow at a CAGR of 8.9% during the year 2021-2026. Powder coating is witnessing increasing adoption in the outdoor construction segment owing to its numerous benefits over the more traditional liquid fluoropolymer coating. Powder coat provides superior UV resistance and durability to traditional paints, thereby decreasing long-term maintenance costs. For instance, Pure Polyester (TGIC) coating can provide gloss retention and prevent color loss for at least 10 years on units such as windows, door frames, outdoor displays, and railings. Besides, a single coat of TGIC coating is equivalent to around 2 coats of liquid polyester. The presence of a well-developed construction sector in major developed economies such as Japan, South Korea, Singapore, and Australia is anticipated to increase product demand during the forecast period. Besides, the rapid rise in outdoor construction in emerging economies such as China, India, and Vietnam are also contributing to the market growth. For instance, Chinese urbanization rates are among the highest in the world. Moreover, the architectural design and engineering industry revenue passed US$1 trillion in 2019.

APAC Powder Coatings Market Segment Analysis – By Geography

India is growing at the fastest CAGR of 9.5% by revenue during the years 2021-2026 in the APAC powder coatings market. India is the major ground for various types of industries including automotive, construction, infrastructure, and more. Being a developing country, it upholds a strong avenue for industrial development. The recent scheme “Make in India” issued by the Indian government is all set to escalate the industrial development in India and attract more foreign investments. The Indian manufacturing sector is estimated to grow tremendously with huge investments from global manufacturers. Automotive along with construction are some of the major industries significantly fueling the growth of the powder coatings market in India. For illustration, according to Invest India, the Indian EV market is expected to grow at a CAGR of 44 percent between 2020 and 2027, with annual sales reaching 6.34 million units by 2027. The construction industry in India is expected to reach US$1.4 Trillion by 2025. In Union Budget 2021, to support initiatives such as “Housing for Al”’ and “Smart Cities Mission”, the government allocated Rs. 13,750 crores (US$1.89 billion) to AMRUT and Smart Cities Mission. As the machinery and equipment related to these industries employ a broad spectrum of powder coatings for protective purposes, the significant growth in these sectors is poised to flourish the powder coatings market in India over the coming years.

APAC Powder Coatings Market Drivers

The increasing use of powder coatings in the automotive sector is driving market growth.

Recently, the demand for modern electric vehicles has increased which is flourishing the automotive industry. In the automotive sector, powder coatings are increasingly playing their part in protecting batteries and associated components from overheating as well as insulating them against other threats that can reduce performance and increase risk. New trends are also emerging in powder coating systems to support manufacturers in bringing a new generation of vehicles and also powder coatings are renowned for their intrinsic benefits of helping to support sustainability and accelerating processing times. Moreover, the Chinese automotive manufacturing industry is the largest in the world and according to the China Association of Automobile Manufacturers, the country grows to become the world’s biggest market for electric vehicles in 2020 with a 40% sales increase. The increase in sales tends to surge the use of powder coating and thus driving the market growth. However, the Chinese government has been consistently trying to increase the sales of electric vehicles through incentives and mandates for automakers, developers of autonomous vehicle technologies, and ride-hailing service companies, which in turn, is expected to increase the demand for powder coatings in the country. In April 2020, the Ministry of Finance of China had issued a notice of promoting financial subsidies for new electric vehicles. It stated that new EVs purchased between January 1, 2020, and December 31, 2022, are free from vehicle purchase tax. This factor helps in increasing the adoption of electric vehicles and therefore accelerating the market growth. Moreover, in India, the automotive industry is seeing significant transformation concerning its sustainable growth and profitability and in 2020 the automotive industry in India shows a 20% growth which gives rise to the need for power coating in the automotive sector.

APAC Powder Coatings Market Challenges

High investment requirement in powder coatings equipment

The initial investment in powder coating tends to be high as the process requires a spray gun, a specialized spray booth, a curing oven, and many others. So, manufacturers need to invest more to collect all the equipment that is needed for powder coatings. Powder coating can be used in a wide variety of manufacturing applications and represent over 15% of the finishing market, thus, manufacturers are focusing more to invest on the powder coatings equipment which can create challenges for the market growth. Some manufacturers choose to complete finishing operations in-house, in which they would need to invest in obtaining or purchasing powder coating equipment. The initial investment in equipment is high, and workers must be trained in using and maintaining the machines. Finishing equipment manufacturing vendors can offer standard powder coating equipment, design and build services for custom powder coating systems, as well as provide the necessary employee training and maintenance services for the systems which increase the investment cost in powder coating equipment. Many organizations have invested heavily in their powder coating machinery and equipment, for instance, AkzoNobel recently invest 40 million euros to make the largest powder coatings plant with a designed annual capacity of 46,000 tons. In many ways, the equipment investment for powder coating is some of the greatest expenses associated with starting powder coating production. Investment costs vary from project to project and they largely depend on how much surface area is needed to be coated. Powder coatings are used in a variety of industries such as automotive, construction, and many more which increases the number of projects in the particular industry. Thus, the rising number of projects increases the investments in powder coatings equipment. 

APAC Powder Coatings Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the APAC Powder Coatings market. Major players in the APAC Powder Coatings market are:

  1. PPG Industries Inc.
  2. The Sherwin Williams Company
  3. AkzoNobel N.V.
  4. KCC Corporation
  5. Axalta Coating Systems
  6. Nippon Paint Holdings Co. Ltd.
  7. Jotun A/S
  8. Dai Nippon Toryo Co. Ltd.
  9. Kansai Nerolac Paints Limited
  10. Berger Paints India Limited

Recent Developments

  • In October 2020, AkzoNobel was building a plant in Chungli District, Taoyuan City, Taiwan, that will allow customers in Taiwan more access to the company’s advanced powder coatings solutions. The fully automated plant, which represents a €20 million investment, will have the increased production capacity to fulfill growing demand in the architecture, auto accessories, telecommunications, electronic components, furniture, domestic appliances, sports equipment, and machine tools markets.
  • In May 2020, PPG acquired Global Coatings Manufacturer Wörwag, a global manufacturer of coatings for industrial and automotive applications. The acquisition of Wörwag is another step forward in PPG’s strategic growth plan that will provide further value to our customers and shareholders.
  • In March 2020, PPG acquired Alpha Coating Technologies, a Light Industrial Powder Coatings Manufacturer, of powder coatings for light industrial applications and heat-sensitive substrates. Financial terms were not disclosed. 

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1. APAC Powder Coatings Market- Market Overview
    1.1 Definitions and Scope
2. APAC Powder Coatings Market- Executive Summary
    2.1 Key Trends by Resin Type
    2.2 Key Trends by Coating Method
    2.3 Key Trends by Substrate
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Country
3. APAC Powder Coatings Market – Comparative analysis 
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. APAC Powder Coatings Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. APAC Powder Coatings Market – Industry Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. APAC Powder Coatings Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes 
7. APAC Powder Coatings Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies 
8. APAC Powder Coatings Market - By Resin Type (Market Size -US$ Million, Kilo Tons)
    8.1 Thermoset
        8.1.1 Epoxy
        8.1.2 Polyester
            8.1.2.1 Pure Polyester (TGIC)
            8.1.2.2 Hydroxyl Polyester (TGIC Free)
            8.1.2.3 Carboxyl Polyester
        8.1.3 Acrylic
        8.1.4 Fluoropolymer
        8.1.5 Polyurethanes
        8.1.6 Others
    8.2 Thermoplastic
        8.2.1 Polyamide
        8.2.2 Polyolefin
        8.2.3 Polyethylene
            8.2.3.1 Low Density Poly Ethylene (LDPE)
            8.2.3.2 Linear Low Density Poly Ethylene (LLDPE)
        8.2.4 Polyvinyl Chloride
        8.2.5 Polypropylene
        8.2.6 Others
9. APAC Powder Coatings Market - By Coating Method (Market Size -US$ Million, Kilo Tons)
    9.1 Fluidized Spray
    9.2 Electrostatic Fluidized Bed
    9.3 Electrostatic Spray
    9.3.1 Corona Charging
    9.3.2 Tribomatic Static Charging
    9.4 Others
10. APAC Powder Coatings Market - By Substrate (Market Size -US$ Million, Kilo Tons)
    10.1 Metal
        10.1.1 Steel
        10.1.2 Aluminum
        10.1.3 Others
    10.2 Non-Metal
        10.2.1 Plastic
        10.2.2 Wood
        10.2.3 Ceramics
        10.2.4 Glass
        10.2.5 Others
11. APAC Powder Coatings Market - By End-Use Industry (Market Size -US$ Million, Kilo Tons)
    11.1 Automotive
        11.1.1 Two-wheelers
            11.1.1.1 Scooters
                11.1.1.1.1 Body Frame
                11.1.1.1.2 Wheels
                11.1.1.1.3 Others
            11.1.1.2 Bikes
                11.1.1.2.1 Wheels
                11.1.1.2.2 Main Stand
                11.1.1.2.3 Oil Tank
                11.1.1.2.4 Others
        11.1.2 Three/Four-wheelers 
            11.1.2.1 Passenger Cars
                11.1.2.1.1 Alloy Wheels
                11.1.2.1.2 Chassis
                11.1.2.1.3 Levers
                11.1.2.1.4 Brake Clips
                11.1.2.1.5 Clamps
                11.1.2.1.6 Others
            11.1.2.2 Heavy Commercial Vehicles
                11.1.2.2.1 Under Body Parts
                11.1.2.2.2 Door Frames
                11.1.2.2.3 Wheel Rims
                11.1.2.2.4 Hood Parts
                11.1.2.2.5 Others
            11.1.2.3 Light Commercial Vehicles
                11.1.2.3.1 Chassis and Frames
                11.1.2.3.2 Nerf Bars
                11.1.2.3.3 Wheel Rims
                11.1.2.3.4 Others
    11.2 Construction
        11.2.1 Outdoor Construction
            11.2.1.1 Windows
            11.2.1.2 Gates, Fencing, & Railings
            11.2.1.3 Façade Profiles and Panels
            11.2.1.4 Metal Ceilings
            11.2.1.5 Industrial machinery
            11.2.1.6 Others
        11.2.2 Indoor Construction
            11.2.2.1 Curtain Walls
            11.2.2.2 Internal Partitioning
            11.2.2.3 Office/Commercial Spaces
            11.2.2.4 Others
    11.3 Appliances
        11.3.1 Refrigerator
        11.3.2 Water Coolers
        11.3.3 Vending Machines
        11.3.4 Washing Machines
        11.3.5 Air Conditioners/Coolers
        11.3.6 Electrical Fans
        11.3.7 Kitchen Blenders/Mixers
        11.3.8 Vacuum Cleaners
        11.3.9 Water Heaters
        11.3.10 Ovens & Chimneys
        11.3.11 LPG Cylinders
        11.3.12 Others
    11.4 Electrical & Electronics
        11.4.1 Transformers
        11.4.2 Generators
        11.4.3 ATM Machines
        11.4.4 Industrial/Commercial Systems
            11.4.4.1 Control Panels
            11.4.4.2 Server Housing Frame Racks
            11.4.4.3 UPS & Inverters Boxes/Trolleys
            11.4.4.4 Others
        11.4.5 Electrical Motor Stators/Rotors
        11.4.6 Electric Meters & Connectors
        11.4.7 Computer Room Floor System
        11.4.8 Others
    11.5 General Industrial
        11.5.1 Industrial Carts & Power Tools
        11.5.2 Storage & Racking
            11.5.2.1 Retail
            11.5.2.2 Industrial
        11.5.3 Escalators & Elevators
        11.5.4 Lockers, Walls & Fittings
        11.5.5 Water Pumps
        11.5.6 Steel Drums
        11.5.7 Pipes & Rebars
        11.5.8 Others
    11.6 Furniture
        11.6.1 Outdoor Metal Furniture
        11.6.2 Beds & Chairs
        11.6.3 Benches
        11.6.4 Others
    11.7 Medical
    11.8 Transportation & Equipment
        11.8.1 Railways
            11.8.1.1 Passenger/Commercial Trains
            11.8.1.2 Metro Coaches
            11.8.1.3 Equipment
        11.8.2 Industrial Transportation
            11.8.2.1 Tractors
            11.8.2.2 Factory Transports
        11.8.3 Construction Equipment
            11.8.3.1 Excavators
            11.8.3.2 Trenches
            11.8.3.3 Bulldozers
            11.8.3.4 Wheel Tractor Scraper
            11.8.3.5 Dump Trucks
            11.8.3.6 Others
        11.8.4 Agricultural Equipment
            11.8.4.1 Farming Vehicles
            11.8.4.1.1 Tractors
            11.8.4.1.2 ATV & UTV
            11.8.4.1.3 Combine Harvester
            11.8.4.2 Tractor Attachments
            11.8.4.2.1 Plows & Harrows
            11.8.4.2.2 Fertilizer Spreaders
            11.8.4.2.3 Wagons or Trailers
            11.8.4.2.4 Others
        11.8.5 Marine
            11.8.5.1 Boats
            11.8.5.2 Cruises
            11.8.5.3 Cargo Ships
            11.8.5.4 Others
        11.8.6 Aerospace
    11.9 Others
12. APAC Powder Coatings Market - By Country (Market Size -US$ Million, Kilo Tons)
    12.1 Malaysia
    12.2 Indonesia
    12.3 Thailand
    12.4 India
    12.5 Australia and New Zealand
    12.6 Japan
    12.7 Vietnam
    12.8 Bangladesh
    12.9 Philippines
    12.10 Pakistan
    12.11 South Korea
    12.12 Rest of APAC
13. APAC Powder Coatings Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. APAC Powder Coatings Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies 
    14.2 Market Share at Regional Level - Major companies
    14.3 Market Share by Key Country - Major companies
    14.4 Market Share by Key Application - Major companies
15. APAC Powder Coatings Market – Key Company List by Country Premium Premium
16. APAC Powder Coatings Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 PPG Industries Inc.
    16.2 The Sherwin Williams Company
    16.3 AkzoNobel N.V.
    16.4 KCC Corporation
    16.5 Axalta Coating Systems
    16.6 Nippon Paint Holdings Co. Ltd.
    16.7 Jotun A/S
    16.8 Dai Nippon Toryo Co. Ltd.
    16.9 Kansai Nerolac Paints Limited
    16.10 Berger Paints India Limited
"*Financials would be provided on a best efforts basis for private companies"