Industrial Maintenance and Highway Spending Drive Growth in Protective & Specialty Coatings Market
US demand for protective and specialty coatings will be fueled by additions to the industrial building stock and federal highway maintenance spending. Growth was dampened in 2015 as oil prices reached historic lows, which impacted several protective and specialty markets, particularly marine coatings applied to offshore rigs and platforms. The automotive refinishing sector, which accounts for a large share of protective and specialty coatings demand, will post subpar gains as OEM coatings become more durable and accident rates continue to decline.
Key Findings in the Protective & Specialty Coatings Study:
Waterborne Formulations Will Surpass Solvent-Based Coatings
Like the rest of the paint and coatings industry, the protective and specialty segment has had to adapt product offerings to reduce the amount of volatile organic compounds (VOCs) emitted by their products. As environmental regulations become stricter and technological advances increase the quality of other formulation types, demand for waterborne coatings will surpass their solventborne counterparts by 2020. The automotive refinishing market is a heavy end-user of solvent-based coatings. However, water-based refinish coatings are gaining favor due to their fast curing times, outstanding color matching properties, and their adherence to VOC regulations.
Legislation Has Mixed Effects Protective & Specialty Coatings Market
For the most part, government regulation has limited growth in this industry as manufacturers have been forced to develop more eco-friendly coatings due to the high VOC emissions of traditional solventborne coatings. However, the passage of the Fixing America’s Surface Transportation Act (FAST) in late 2015 has bolstered demand for coatings applied to roads and bridges. In addition, recent legislative efforts to address the problems presented by the ever increasing number of structurally deficient bridges in the US will fuel demand for road and bridge coatings.
Industrial Construction Bolsters Growth
Recent increases to the industrial building stock will boost demand for industrial maintenance coatings. A rapid rise in industrial building construction from 2014-2015 benefited the industrial maintenance segment for both interior and exterior formulations. In addition, coatings and preservatives for wood and metal substrates will enjoy steady growth.
This Freedonia industry study analyzes the $4.9 billion US protective and specialty coatings industry. It presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by market (industrial maintenance, automotive refinishing, marine equipment, roads and bridges, and other niche protective and specialty 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, BASF, and Ennis-Flint.