The E-coat Market is estimated to be valued at US$ 3.90 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
E-coat refers to electrodeposition coating which involves applying a conductive coating to a part acting as cathode using electrical current. E-coat provides excellent corrosion resistance and is widely used for coating of automobile components and other metal parts. It offers advantages such as uniform coating thickness and compatibility with various substrates. The protective e-coat helps extend product life.
Market key trends:
Growing automobile industry especially in Asia Pacific is driving the e-coat market. There is significant growth in automobile production in countries such as India and China. E-coat technology is highly adopted in automotive OEM applications for coating of metal automobile components due to its ability to provide uniform and defect-free coating. The increasing vehicle production is thus augmenting demand for e-coat from automotive industry. This is considered as a major trend fueling market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the E-coat market is moderate. Large capital investment is required to set up an E-coat plant. However, the growing market size offers opportunities for small players to enter.
Bargaining power of buyers: The bargaining power of buyers in the E-coat market is high due to the presence of several national and international players offering a variety of E-coat products. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key raw materials required for E-coating such as resins and pigments have many suppliers globally.
Threat of new substitutes: Threat of substitutes is moderate as alternative coating technologies are available but E-coating offers better corrosion resistance.
Competitive rivalry: High due to presence of numerous international and domestic players competing on basis of product quality, price and innovation.
SWOT Analysis
Strength: E-coats provide excellent corrosion resistance and adhesion to substrates. Growing automotive industry drives market growth.
Weakness: High initial investment and complex manufacturing process increase production costs.
Opportunity: Increasing demand from general industrial machinery and electronic goods sectors offers scope. Growing construction industry boosts demand.
Threats: Stringent environmental regulations raise compliance costs. Threat from new alternative eco-friendly coating technologies.
Key Takeaways
The global E-Coat market is expected to witness high growth, exhibiting CAGR of 5.5% over the forecast period, due to increasing demand from automotive industry. The automotive industry accounts for over 60% share of the e-coat market.
Regionally, Asia Pacific dominated the global E-coat market in 2021 with over 35% share driven by automotive industries of China, Japan, and India. North America is the second largest region with over 25% share powered by well-established automotive and general industrial sectors of U.S. and Canada. Europe is another major region owing to presence of major automotive manufacturers.
Key players operating in the E-coat market are PPG Industries, Inc., Akzo Nobel N.V, NIPSEA Group, BASF SE, Axalta Coating Systems, Chugoku Marine Paints Ltd, The Valspar Corporation, and The Sherwin-Williams Company. PPG Industries, AkzoNobel, and BASF are the top players in the global market due to their diverse product portfolio and wide geographic presence across regions.
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