In 2017, cumulative grid-connected wind capacity had reached 515 GW from which 497 GW onshore and 18 GW offshore wind energy, according to the International Energy Agency. Furthermore, the organization estimates that the demand for energy will escalate by 65% globally between 2018 and 2023.[1] Evidently, this augmented demand will lead to definite production growth of wind turbines that are coated with polyurethane coatings as they impart longevity and better wind energy efficiency. The demand influx in the wind energy sector and the subsequent growth in the manufacturing of wind turbines is poised to drive the polyurethane coating market that is valued at $16 billion as of 2018. Furthermore, the demand in the global polyurethane coating market from various sectors is projected to observe a healthy compound annual growth rate (CAGR) during the forecast period of 2019 to 2025.
Automotive industry and building & construction are major industries that are driving the demand influx in the APAC polyurethane coating market. From all the countries, China is gauged as the major consumer of polyurethane (PUR) coating material for various purposes such as the application of coatings on automotive parts, wind turbines, and structures and buildings. In 2018, China contributed with more than 200 GW of wind energy to the world’s total wind energy output,[2] according to the World Wind Energy Association (WWEA). This attributes to the heavy usage of wind turbines that chiefly supported the polyurethane coating market. Furthermore, there is a noticeable consumption of polyurethane coatings in other countries of Asia that include India, Indonesia, and Japan. APAC had the maximum regional polyurethane coating market share of 36% in 2018.
Polyurethane Coating Market Outlook:
Polyurethane coatings are surface coatings that have organic units of carbamate (or urethane) links or even thermoplastic polyurethanes. The coating was used as an aircraft coating during World War II. Owing to their properties such as high resistance and durability, polyurethane coatings are used in various sectors such as automotive, construction, and wind energy.
In 2018, the total number of vehicles produced were gauged to be 91,538,640,[3] and the future foresees more vehicles with the evolution of the electric vehicles market and self-driven trucks market along with demand for autonomous cars. This will lead to a greater demand influx in the polyurethane coating market as the key application of the product is found to be in the automotive sector. The demand for polyurethane coating in the automotive application segment is estimated to observe a CAGR of 4% through to 2025.
Polyurethane Coating Market Growth Drivers:
The Expansion of the Building & Construction Industry
The population growth through to 2050 as documented by the United Nations (UN) will lead to a definite demand for building & construction across the globe in order to suffice the infrastructural needs. Apparently, water-borne polyurethane coatings are prevalently used for both wall and floor coatings for abrasion resistance, chemical resistance, and weathering. According to the Institution of Civil Engineers (ICE), the volume of construction output will grow by 85% that will translate to $15.5 trillion worldwide by 2030.[4] Subsequently, this will lead to a consistent demand for polyurethane coating in the building & construction industry.
The Application of Polyurethane Coating on Wood
The increase in disposable personal income has enabled people across the globe to afford expensive wood flooring. Polyurethane coatings are used in wooden floorings as they are found to retain the texture of the wood that deteriorates over time due to water-rot. Additionally, wood flooring is also used in some showrooms and shops. The palpable prevalence of wooden floorings and ceilings in the homes and commercial complexes across the globe is further flourishing the polyurethane coating market.
The Growth of the Aerospace Industry Leading to Demand Influx
There is a tangible growth of aerospace industry predominantly in North America and some countries of APAC such as China and India. Polyurethane coatings when applied on aircraft implant durability and resistance to ultraviolet (UV) light, weathering, and chemicals that can be detrimental to the body of aircraft. Moreover, PUC protects aircraft against corrosion by reducing oxidation and itching of aluminum skin. The enhanced production of aircraft in order to suffice the foreseeable need for transportation in the future will significantly support the polyurethane coating market.
Polyurethane Coating Market Trends
Water-Based Polyurethane Coatings – Two component water-based acrylic polyurethane coatings are found to be useful for coating concrete and rigid substrates. This application is poised to observe growth in the future.
In January 2018, Pidilite Industries announced the acquisition of majority shares in CIPY Polyurethanes Pvt. Ltd. According to CIPY which is a major player in the polyurethane coating market, the partnership is envisioned to position the company in the floor coating segment.
In October 2018, Covestro developed the first bio-based coating hardener for polyurethane coatings. This will impart a better ecological footprint in the application of coatings and will help save energy. The adaptation of organic products has become rampant in each sector, and this award-winning innovation is expected to bring a shift in the polyurethane coating market.
Polyurethane Coating Market Challenges
The biggest challenge in front of the vendors in the polyurethane coating market is that despite its durability, toughness, and high gloss, the coating is harmful to the environment as they release VOCs during application. However, water-based polyurethane and 100% solid polyurethane coatings have sustained their position in the market. Furthermore, the vendors are minimizing the use of isocyanides in the polyurethane coatings and re-inclining their manufacturing strategies and making the product eco-friendly.
Polyurethane Coating Market Key Players Perspective
The major players crusading for polyurethane coating market share are Akzo Nobel NV, Asian Paints Limited, Axalta Coating Systems LLC, PPG Industries Inc., Valspar Corporation, Sherwin Williams, Jotun, RPM International, BASF, Bayer, Solvosol, and Endura.
Polyurethane Coating Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the polyurethane coating market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The polyurethane coating market research report also analyses the application of the product in the automotive, aerospace, building & construction, and other industries.
