Coil coatings are applied to steel or aluminium rolled coils which are then shaped and formed for use in home appliances, automotive components, building & construction and other industrial applications. Coil coatings provide superior corrosion resistance, durability and architectural finishes to metal coils. With increased construction activities globally, demand for pre-painted metal coils for roofing, sidings, doors and other architectural components is growing substantially.
The global coil coatings market is estimated to be valued at US$ 1,510.97 Bn 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
Increased demand from construction industry: Growth in the construction industry, especially in Asia Pacific region is driving demand for pre-painted or coated metal products like roofing, sidings, doors and other architectural components. Emerging economies are witnessing increased investment in infrastructure development and commercial construction which is fueling the consumption of coil coatings. The opportunity of more than 7% annual growth in the global construction industry until 2030 will continue to drive the coil coatings market during the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements required to enter the coil coating market poses low threat. However, established presence of key players and customers loyalty increases entry barriers.
Bargaining power of buyers: Large buyers like construction and automotive industries have significant bargaining power. However, specialized needs of coil coating keeps buyers dependency in check.
Bargaining power of suppliers: Suppliers of raw materials like resins and pigments wield some bargaining power. However, availability of substitutes mitigates their influence.
Threat of new substitutes: Limited threat as coil coating provides corrosion protection and longevity than alternatives. However, new technologies can disrupt the market.
Competitive rivalry: Intense competition amongst key global players. Large players focus on expanding product portfolio and regions to win market share.
SWOT Analysis
Strength: Wide applications in construction and transport industries generating high demand. Superior protective and aesthetic properties than traditional methods.
Weakness: Heavy dependence on cyclical end-use industries impacting sales. Require high capital and operating costs.
Opportunity: Expanding construction and automotive manufacturing sectors especially in Asia present new opportunities. Growing DIY culture and e-commerce also support market growth.
Threats: Volatility in raw material prices and regulations around VOC emissions. Shift towards more sustainable products pose threats.
Key Takeaways
The global coil coatings market is expected to witness high growth during the forecast period supported by growing construction activities worldwide. The global coil coatings market is estimated to be valued at US$ 1,510.97 Bn in 2023 and is expected to exhibit a CAGR of 4.3% over the forecast period 2023 to 2030.
Asia Pacific dominates the global coil coatings market and is expected to maintain its lead over the forecast period. This can be attributed to high industrial and construction activities in major economies like China and India. China alone accounts for over 50% of the regional market share. Additionally, ongoing infrastructure development projects, affordable housing schemes and growing automotive manufacturing will continue driving the market growth. Other high potential markets in Asia include Japan, Indonesia, Malaysia and Thailand.
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. Leading players are focused on new product development, mergers and acquisitions to expand their global presence. They are also investing in innovation and sustainability initiatives to cater changing market demands.
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