Coil coatings are protective and decorative liquid coatings applied to continuous coils of sheet metal before fabrication and construction. They provide long-lasting corrosion resistance, durability and attractive appearance to metal roofing, siding, rain gutters, HVAC equipment, automobiles and appliances. The growing construction industry across the globe is leading to rising demand for metal coatings in end-use industries like construction and automobiles.

The global coil coatings market is estimated to be valued at US$ 1,510.97 billion in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity to increase decorative appeal and extend lifecycle of metal coatings is expected to drive the growth of coil coatings market over the forecast period. Coil coatings are extensively used in metal building products as they provide aesthetic appeal along with UV protection and corrosion resistance. They can be easily customized with different textures and gloss levels to match the interior and exterior design trends in construction. This allows architects and builders to be more creative and customize the look of metal buildings. Furthermore, coil coatings stay on the metal surface and resist fading, peeling or cracking for decades, extending the service life of metal parts and reducing maintenance costs. Their longevity and low lifecycle costs are major attractions for construction and durable goods industries. Rising commercial construction and replacement demand for long-lasting metal coatings will support the market growth.

Porter’s Analysis

• Threat of new entrants: The threat of new entrants in the coil coatings market is moderate. High capital investment required for starting a production facility poses significant entry barriers. However, the availability of raw materials and technologies makes new market entry feasible.
• Bargaining power of buyers: The bargaining power of buyers in the coil coatings market is high. Buyers have various established coil coating manufacturers to choose from. They can negotiate on price and demand better quality and service.
• Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major raw materials like resins and pigments have numerous global suppliers. However, suppliers may have some control over price and supply due to their specialized manufacturing process.
• Threat of new substitutes: The threat of substitutes is low. There are limited substitutes for coil coatings which provide corrosion protection and aesthetic appeal for building exteriors. However, demand for substitutes like PVDF coatings is increasing.
• Competitive rivalry: The competitive rivalry in the global coil coatings market is high due to presence of numerous global and regional players. Manufacturers focus on new product development, geographical expansion, and strategic alliances to gain market share.

SWOT Analysis

• Strengths: Growing construction industry worldwide resulting in increased demand for pre-painted steel/aluminum coils. Coil coatings offer protection against UV radiation, corrosion and scratches.
• Weaknesses: Strict environmental regulations regarding VOC emissions requiring ongoing formulations changes. Fluctuating raw material prices affect the overall product cost.
• Opportunities: Rising use of coil coatings in end-use industries like automotive, appliances, and packaging. Development of sustainable waterborne and powder coatings technologies.
• Threats: Availability of alternative coating materials like PVDF and architectural PVC films. Threat from aluminum composites due to their lightweight and rust-resistant property. Stringent health and safety regulations regarding use of hazardous chemicals.

Key Takeaways

aThe global coil coatings market is expected to witness high growth at a CAGR of 4.3% during the forecast period of 2023 to 2030. The market size was valued at US$ 1,510.97 billion in 2023 and is projected to reach US$ 2,153.96 billion by 2030.

Regional analysis- Asia Pacific region dominated the global coil coatings market in 2023 with a share of more than 40%. China led the regional market owing to largest construction industry. India and Southeast Asian countries are expected to be fastest growing markets due to rapid urbanization and infrastructure development projects.

Key players- Key players operating in the coil coatings market are Beckers Group, Akzo Nobel N.V., PPG Industries, Inc., The Sherwin-Williams Company, Nippon Paint Holdings Co., Ltd. These companies focus on expanding their production facilities in emerging countries and adopt sustainable technologies to strengthen their market position.