Soft touch polyurethane coatings are widely being used for applications ranging from furniture, automotive interiors, home appliances among others due to their matte finish and luxurious appearance. The soft-touch polyurethane coatings provide an anti-fingerprint and easy-to-clean surface. The global soft touch polyurethane coatings market is estimated to be valued at US$ 7.08 Bn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity for widening the end-use applications of soft touch polyurethane coatings is expected to drive the market growth over the forecast period. Soft touch polyurethane coatings are increasingly finding applications beyond furniture and automotive segments. The ongoing research and development activities are focused on leveraging the properties of soft touch polyurethane coatings for applications in healthcare devices, consumer electronics and various home appliances. The resilient and anti-fingerprint properties make soft touch polyurethane coatings ideal for applications where fingerprint or smudge resistance is crucial. The widening array of end-use applications is anticipated to drive the demand for soft touch polyurethane coatings market.
Porter's Analysis
Threat of new entrants: Low requirement for technical expertise and capital requirements allow new companies to enter the market easily. However, established players have robust distribution networks and customer loyalty which act as barriers.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and indifferent product differentiation. They can negotiate on price and demand value-added services.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative raw material sources and formula flexibility. Fluctuations in raw material prices can impact industry profitability.
Threat of new substitutes: Threat is high due to availability of water-based coatings with comparable properties. Natural substitutes like linseed oil also restrict profitability.
Competitive rivalry: Intense due to many global and regional players competing on basis of pricing, innovation and quality.
SWOT Analysis
Strengths: Excellent durability, flexibility and chemical resistance. Wide usage in construction and automotive industries.
Weaknesses: Potential health hazards during production. Strict environmental regulations increase production costs.
Opportunities: Growing infrastructure and automotive sectors in Asia Pacific and Middle East regions. Development of bio-based and zero VOC coatings.
Threats: Substitution threat from water-based coatings. Economic slowdowns negatively impact demand.
Key Takeaways
The global soft touch polyurethane coatings market is expected to witness high growth between 2023-2030 supported by rising infrastructure investments and automotive sales. The market size is projected to reach over US$ 12 Bn by 2030 at a CAGR of 8.9%.
Regional analysis: Asia Pacific dominates currently with over 35% market share led by China, India and other Southeast Asian countries. The region is expected to maintain its lead supported by exponential infrastructure growth and expanding automotive manufacturing industry. Countries like India and Indonesia are projected to offer most lucrative opportunities.
Key players: Key players operating in the soft touch polyurethane coatings market include Sherwin Williams Company, Akzo Nobel N.V., PPG Industries Ltd Axalta Coatings Systems, Rust-Oleum - RPM International Inc., Aexcel Coatings., Sokan New Materials, and Jotun AS. The industry is consolidated in nature with top 5 players accounting for over 50% share. Players compete on advantages of product portfolio, distribution reach, pricing and innovation.
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