Soft Touch Polyurethane Coatings are Estimated to Witness High Growth Owing to Increased Demand for Automotive Coatings

Soft touch polyurethane coatings are widely used as topcoats in various end-use industries such as automotive, consumer goods, and construction. Soft touch polyurethane coatings impart an aesthetic appearance and provide scratch resistance, chemical resistance, and durability to substrates. Growing automotive production and increasing preference for luxurious and aesthetic interior and exterior automotive components is fueling the demand for soft touch polyurethane coatings.

The global soft touch polyurethane coatings market is estimated to be valued at US$ 7.71 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Increased demand for automotive coatings from emerging economies represents a key market opportunity. Rapidly growing automotive production in countries such as China, India, Brazil, and Mexico to cater to the increasing vehicle demand is driving the soft touch polyurethane coatings market. Moreover, the preference for luxurious and aesthetic features in automotive interiors and exteriors is also surging the consumption of soft touch polyurethane coatings in the automotive industry. Expanding automotive fleets and rising disposable income in emerging nations allow individuals to opt for feature-rich vehicles, thereby providing lucrative growth opportunities for soft touch polyurethane coatings manufacturers over the forecast period.

Porter's Analysis

Threat of new entrants: Low-medium as this market requires large capital investments and stringent regulations to operate. However, few small players can enter locally.

Bargaining power of buyers: Medium. Major buyers in this market include automotive, furniture and construction industries which have reasonable bargaining power.

Bargaining power of suppliers: Medium. Key raw materials like polyols and MDI are supplied by large chemical companies internationally with some bargaining power.

Threat of new substitutes: Low. Soft touch polyurethane coatings have advantages over other finishes making substitution difficult in the near future.

Competitive rivalry: High. The market has presence of large players competing on factors like pricing, quality, service and innovation.

SWOT Analysis

Strength: Superior qualities like flexibility, resistance to abrasion and chemicals. Growing use in automotive, construction and other industries.

Weakness: Vulnerable to price fluctuations of raw materials. Compliance with stringent environmental regulations increases cost of production.

Opportunity: Rising infrastructure and construction activities in developing nations. Potential in applications like protective coatings and industrial machinery.

Threats: Volatility in crude oil prices impacting raw material costs. Increased popularity of powder and waterborne coatings.

Key Takeaways

The Global Soft Touch Polyurethane Coatings Market Size is expected to witness high growth. The global soft touch polyurethane coatings market is estimated to be valued at US$ 7.71 Bn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.

The Asia Pacific market accounted for more than 40% of the global market share in 2024 and is expected to maintain its dominance during the forecast period. China, India, Japan and South Korea are major consumers with growing industrial and construction activities. For instance, China's 14th five year plan has earmarked large investments in infrastructure development projects. This will boost the demand for soft touch polyurethane coatings from the construction and related industries. North America and Europe are also sizable markets driven by automotive production.

Key players operating in the soft touch polyurethane coatings market are Sovereign S, BASF SE, Williams Hydraulics, Atlas Minerals & Chemicals, and Kao Corporation. Sovereign S is a leading manufacturer with a wide portfolio of soft touch polyurethane coatings used in automotive interiors, furniture, and construction applications.

 
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