Architectural Metal Coatings Market

Updated on : April 15, 2024

Architectural Metal Coatings Market

The global architectural metal coatings market was valued at USD 5.3 billion in 2023 and is projected to reach USD 6.7 billion by 2028, growing at 4.6% cagr from 2023 to 2028. The architectural metal coatings market is poised for growth, primarily driven by the anticipated rise in building and construction activity over the next five years. This surge in construction activity is expected to fuel the demand for polyester resin-based architectural metal coatings, as these coatings continue to be the go-to choice for achieving superior durability and performance in a wide range of architectural applications. The architectural metal coatings market's resilience and preference for polyester resin-based coatings are rooted in the exceptional properties that this resin type offers. As the building and construction sector experiences heightened activity, the demand for these coatings is expected to grow, underlining the pivotal role they play in enhancing the longevity and quality of architectural structures.

Attractive Opportunities in the Architectural Metal Coatings Market

To know about the assumptions considered for the study, Request for Free Sample Report

Architectural Metal Coatings Market Dynamics

Driver: The building and construction sector is a broad field encompassing the modification, renovation, and development of residential, non-residential, and infrastructure projects. A report by Global Construction Perspectives and Oxford Economics projects a significant expansion in the global construction market, with an 85% increase forecasted, reaching a value of USD 15.5 trillion by 2030. This surge is anticipated to be primarily driven by China, the United States, and India, which are expected to account for more than half of this growth.

This robust expansion is largely attributed to the economic revitalization in major global economies. A confluence of factors is propelling this industry forward: the forces of globalization and urbanization, an uplift in living standards, enhanced purchasing power, and the strategic push towards infrastructural advancement. The need for large-scale urban centers in burgeoning economies is also a significant driver, with a growing demand for paints and coatings as a direct corollary of these construction activities.

In terms of economic impact, the construction industry represents a substantial portion of the GDP, accounting for approximately 5% in advanced economies and up to 8% in developing nations. Looking forward, the demand for infrastructure is poised to escalate dramatically. Projections suggest an annual global infrastructure investment requirement of USD 3.7 trillion by the year 2040, signaling a period of intense activity and opportunity within the construction sector on a worldwide scale.

The construction industry in 2023 witnessed positive growth trends, characterized by a notable 7% increase in nominal value added and a 6% increase in nominal gross output compared to the previous year. These figures reflected a robust performance in the sector. However, it's crucial to analyze these statistics in the context of real GDP data, where it becomes evident that a significant portion of the growth is driven by price inflation rather than an increase in the actual volume of construction activity. This inflationary pressure has been a key factor shaping the industry's landscape.

Restraints: In the extrusion coating industry, traditional polymers such as Low-Density Polyethylene (LDPE), Ethylene-Vinyl Acetate (EVA), and Polypropylene (PP) have been the standard. The production and processing of these polymers, however, pose environmental concerns due to the potential release of harmful by-products, which can contribute to an increased carbon footprint. Furthermore, these materials are derived from non-renewable resources, adding to their environmental impact.

In response to these challenges, there has been a shift toward bio-based polymers, which are derived from renewable agricultural by-products or feedstocks. Examples include corn starch, wood cellulose, vegetable fats and oils, and wheat fiber. These bio-based alternatives are categorized into two distinct types: natural and synthetic bio-based polymers.

Bio-based polymers offer several advantages over their conventional counterparts. They are considered more sustainable due to their renewable origins and have been shown to significantly lower the carbon footprint of the extrusion coating process—studies indicate a potential reduction of up to 42%. This substantial decrease in carbon footprint represents a compelling case for the industry to adopt bio-based polymers as a means to align with global sustainability goals and reduce the overall environmental impact of polymer production and processing.

Opportunity: the developing economies collectively referred to as BRICS - Brazil, Russia, India, China, and South Africa - are currently steering their focus towards substantial infrastructural development and the execution of large-scale, long-term projects. This strategic investment drive has engendered a high-growth environment in these economies, which stands in stark contrast to the relatively subdued market conditions prevailing in North America and Western Europe. Companies headquartered in the latter regions are keenly vying for growth opportunities within the burgeoning markets of these developing countries.

The Asia Pacific region, in particular, has emerged as a focal point for companies such as Akzo Nobel, ArcelorMittal, and Tata Steel. These industry leaders have strategically initiated the relocation of their coil coating facilities from regions like Sweden, France, Portugal, and the UK to rapidly expanding markets such as China, Saudi Arabia, and India. This shift underscores the region's compelling potential, offering remarkable opportunities for these companies to tap into the evolving landscape of the coatings industry.

The driving force behind this significant shift and investment lies in the escalating demand and robust industrial growth observed in these emerging economies. As these nations continue to experience substantial economic expansion and urbanization, there is a growing need for advanced coatings solutions across a spectrum of industries. This surge in demand is pivotal in propelling the expansion of the global coatings market.

Challenges: The coatings industry is contending with significant operational hurdles due to a critical shortfall in essential raw materials coupled with escalating prices. This disruption can be attributed to a confluence of four major trends. Firstly, an intensified demand across global markets is leading to a pronounced scarcity of numerous raw materials. Concurrently, there has been a marked 58% rise in oil prices since November 2020, reaching a current level of USD 68 per barrel, which directly influences the cost of petrochemical-derived materials used in coatings. Compounding these issues is a worldwide shortage of shipping containers, which has precipitated a spike in freight costs from Asia to Europe, thereby constricting the supply lines and availability of materials. Additionally, the recent implementation of new customs protocols between the UK and the EU has resulted in extra non-tariff costs that are inflating the expenses for raw materials imported into the UK from European countries. These trends collectively are exerting upward pressure on costs and stretching the industry's ability to maintain steady supplies, necessitating strategic adaptations to navigate the increased cost landscape and supply chain volatility.

Solvents are a category where prices are going through the roof. Some examples in BCF’s (British Coatings Federation) monthly raw material prices survey show the largest increases in solvent prices in January 2021 versus the previous year- acetone (123%), n-butyl acetate (91%), IPA (41%), and n-butanol (54%).

Architectural Metal Coatings Market Ecosystem

Based on resin type, the fluoropolymer segment is estimated to account for one of the highest CAGR in architectural metal coatings market

Fluoropolymers play a pivotal role in the coatings industry, serving as binders for various applications. Notable fluoropolymer variants employed in coatings include polyvinylidene fluoride (PVDF), polytetrafluoroethylene (PTFE), fluorinated ethylene propylene (FEP), polyvinyl fluoride (PVF), ethylene tetrafluoroethylene copolymer (ETFE), and fluoroethylene vinyl ether (FEVE). Within the architectural systems domain, PVDF and FEVE stand out as the most extensively utilized fluoropolymers.

In PVDF coatings, achieving optimal workability is crucial, and this is typically accomplished through a resin system consisting of 70% PVDF and 30% acrylic. The final formulations, however, can vary based on the choice of additives, acrylic resins, and pigment packages selected by paint producers. It's important to note that not all PVDF products are identical in terms of applied performance and application properties. Historically, PVDF coatings were exclusively available as factory-applied coil coating formulations, requiring a melting process before application. However, contemporary advancements have led to the availability of water-based formulations suitable for field-applied spray coatings.

Based on application, the extrusion coatings segment is estimated to account for the highest CAGR in architectural metal coatings market

The applications of extrusion coatings in the architectural metal coatings market are segmented into curtain walls, store front, door & windows, and others such as railings and light poles. To meet increasing demands for cost-effectiveness and durability in addition to long-lasting beauty, builders and architects choose extrusion coatings for a wide range of applications. They prefer extrusion coating that fulfills the performance and appearance characteristics their projects demand.

The Asia Pacific market is projected to contribute to the largest shares of the architectural metal coatings market.

The Asia Pacific territory is witnessing substantial advancement in the architectural metal coatings sector, propelled by its expansive industrial landscape and surging requirements for sophisticated coating technologies. Highlighted by its leading position in the market's value in 2022, forecasts suggest this region will see the most rapid annual growth rate from 2023 to 2028. Within this sphere, China, Japan, and India stand out as key contributors, with China taking the forefront due to its extensive manufacturing base and heightened demand for premium coating features. Despite economic hurdles, the construction arena in Asia Pacific achieved notable expansion in 2022, with a steady demand for housing projects in major economies and amplified funding in infrastructure development. Additionally, construction firms across the region are venturing into new territories, boosting the need for architectural metal coatings. This dynamic underscores the Asia Pacific's critical role as an epicenter of innovation and expansion in the global architectural metal coatings market.

To know about the assumptions considered for the study, download the pdf brochure

Architectural Metal Coatings Market Players

The Sherwin-Williams Company (US), PPG Industries, Inc. (US), AkzoNobel N.V. (Netherlands), Axalta Coating Systems Ltd (US), Beckers Group (Germany), Kansai Paint Co., Ltd. (Japan), Nippon Paint Holdings Co., Ltd (Japan), Wacker Chemie AG (Germany), Hempel A/S (Denmark), and NOROO Paint & Coatings Co., Ltd. (South Korea) are the key players operating in the global market.

Architectural Metal Coatings Market Report Scope

Based on resin type, the architectural metal coatings market has been segmented as follows:

• Polyester
  • Silicone Modified Polyesters
  • Others
• Fluoropolymer
  • Polyvinylidene Fluorides
  • Others
• Polyurethane
• Others

Based on application, the architectural metal coatings market has been segmented as follows:

• Coil Coatings Application
  • Roofing & Cladding
  • Wall Panels & Facades
  • Fascia & Soffits
  • Others
• Extrusion Coatings Application
  • Curtain Walls
  • Store Front
  • Doors & Windows
  • Others

Based on the region, the architectural metal coatings market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst