Manufacturing (OEM) Coatings Market in the US, by Market, Formulation and Substrate

Report Overview

Construction Activity and Durable Goods Output Drive Growth in Manufacturing Coatings Market

US demand for manufacturing (OEM) coatings is forecast to advance 1.4 percent annually to 379 million gallons in 2020, valued at $10.5 billion. Gains will be fueled by advances in building construction activity and the production of durable goods such as furniture, machinery, and appliances. Additionally, healthy growth in nonresidential fixed investment spending will bolster demand for coatings used in the fabricated metal products and metal building components markets. However, a less than stellar motor vehicle production outlook, industry maturity, and more efficient coating processes will limit demand for manufacturing coatings in the US.

Key Findings in the Manufacturing (OEM) Coatings Study:

Envrionmentally Friendly Formulations Continue to Gain Market Share

Industry regulations have expedited the growth of waterborne, radiation curable, and powder coatings at the expense of solventborne formulations. Solvent-based manufacturing coatings have been the target of recent environmental restrictions due to the emissions of volatile organic compounds (VOCs) that these coatings produce. Water-based, radiation curable, and powder coatings allow for more environmentally friendly, low or zero-VOC product offerings. In addition, manufacturers and end-users have taken the initiative to limit the amount of VOC emissions in solventborne coatings.

Acquisitions are Among the Top Growth Strategies

In the past year, game changing acquisitions have taken place in the manufacturing coatings industry as major producers search for growth opportunities in a mature market. In March 2016, Sherwin-Williams agreed to acquire Valspar for $11.3 billion. Despite regulatory scrutiny, the deal is expected to be completed in early 2017 and will have a significant impact on the structure of the manufacturing coatings industry. Additionally, Akzo Nobel strengthened its position in the manufacturing coatings market by acquiring BASF’s industrial coatings business in early 2016.

Study Coverage

This Freedonia industry study analyzes the $8.8 billion US manufacturing (OEM) coatings industry. It presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by market (furniture and fixtures, motor vehicle (automotive OEM), metal building components, packaging, machinery, appliances, aerospace and other transportation equipment, fabricated metal products, and other manufacturing markets). The study also evaluates company market share and competitive analysis on industry competitors including PPG Industries, Sherwin-Williams, Valspar, RPM International, Axalta Coating Systems, Akzo Nobel, and BASF.

Construction Activity and Durable Goods Output Drive Growth in Manufacturing Coatings Market

US demand for manufacturing (OEM) coatings is forecast to advance 1.4 percent annually to 379 million gallons in 2020, valued at $10.5 billion. Gains will be fueled by advances in building construction activity and the production of durable goods such as furniture, machinery, and appliances. Additionally, healthy growth in nonresidential fixed investment spending will bolster demand for coatings used in the fabricated metal products and metal building components markets. However, a less than stellar motor vehicle production outlook, industry maturity, and more efficient coating processes will limit demand for manufacturing coatings in the US.

Key Findings in the Manufacturing (OEM) Coatings Study:

Envrionmentally Friendly Formulations Continue to Gain Market Share

Industry regulations have expedited the growth of waterborne, radiation curable, and powder coatings at the expense of solventborne formulations. Solvent-based manufacturing coatings have been the target of recent environmental restrictions due to the emissions of volatile organic compounds (VOCs) that these coatings produce. Water-based, radiation curable, and powder coatings allow for more environmentally friendly, low or zero-VOC product offerings. In addition, manufacturers and end-users have taken the initiative to limit the amount of VOC emissions in solventborne coatings.

Acquisitions are Among the Top Growth Strategies

In the past year, game changing acquisitions have taken place in the manufacturing coatings industry as major producers search for growth opportunities in a mature market. In March 2016, Sherwin-Williams agreed to acquire Valspar for $11.3 billion. Despite regulatory scrutiny, the deal is expected to be completed in early 2017 and will have a significant impact on the structure of the manufacturing coatings industry. Additionally, Akzo Nobel strengthened its position in the manufacturing coatings market by acquiring BASF’s industrial coatings business in early 2016.

Study Coverage

This Freedonia industry study analyzes the $8.8 billion US manufacturing (OEM) coatings industry. It presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by market (furniture and fixtures, motor vehicle (automotive OEM), metal building components, packaging, machinery, appliances, aerospace and other transportation equipment, fabricated metal products, and other manufacturing markets). The study also evaluates company market share and competitive analysis on industry competitors including PPG Industries, Sherwin-Williams, Valspar, RPM International, Axalta Coating Systems, Akzo Nobel, and BASF.