The global green coatings market is estimated to be valued at US$ 70.06 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030. Green or eco-friendly coatings are composed of environment-friendly and sustainable raw materials that produce lower or zero volatile organic compound emissions. These coatings are derived from plant or other natural sources and offer similar or better performance than conventional coatings. Many industries are using green coatings for their benefits such as low odor, minimal hazards, and eco-friendly process. They protect infrastructure from corrosion and deterioration while reducing environmental footprint.
Key Takeaways
Key players operating in the green coatings market are The Sherwin Williams Company, PPG industries, Akzonobel N.V., Axalta Coating System, BASF, Valspar Corporation, Kansai PaintCompany Limited, Tikkurila OYJ, and Masco Corporation among others. These players are focusing on developing new sustainable technologies to cater to growing demand for eco-friendly coatings.
The rising environmental concerns paired with stringent regulations regarding VOC emissions are fueling the demand for green coatings globally. Various industries are opting for sustainable coating solutions to achieve their sustainability targets. Moreover, increasing consumer awareness about eco-friendly products is compelling manufacturers to shift towards green alternatives.
The green coatings market is also expanding rapidly across regions due to growing environmental standards and construction activities worldwide. Manufacturers are investing heavily in R&D to commercialize new biomass-based and bio-sourced coating ranges. Various field trials are conducted to test performance of green coatings in different conditions.
Market Key Trends
Waterborne coatings emerged as one of the major green coating technologies in recent years owing to ease of manufacturing and high performance. These coatings are composed of water instead of VOCs and offer similar aesthetic and protective advantages. Their demand is anticipated to rise substantially during the forecast period owing to stringent environmental norms. Besides, bio-based coating varieties derived from plant or algal sources are gaining prominence due to renewable and sustainable properties. Further innovations are expected to boost the adoption of eco-friendly coatings across end-use industries.
Porter’s Analysis
Threat of new entrants: High capital requirement and stringent environmental regulations pose barrier for new players to enter the market
Bargaining power of buyers: Large buyers can negotiate better pricing while demanding high quality and technical expertise
Bargaining power of suppliers: Suppliers have higher bargaining power due to lesser number of raw material producers and need for technological advancement
Threat of new substitutes: Continuous R&D can lead to new substitute products with improved properties posing threat
Competitive rivalry: Intense competition exists between existing players prompting higher marketing spends and new product innovation
Geographically, North America holds the major share of the green coatings market in terms of value due to stringent environmental regulations and higher consumer awareness. The US alone contributes more than 50% of the regional market.
Asia Pacific is the fastest growing market for green coatings driven by rapid infrastructure growth and rising environmental consciousness in major countries like China and India. Supportive government initiatives towards green buildings further supplement the regional market expansion.
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