Coatings' principal roles have traditionally been to preserve and decorate substrates. Recently, there has been an increase in the research and development, as well as the commercialization, of coatings with innovative functionalities in addition to typical protection and decorating capabilities. These coatings are also known as functional coatings. For over two decades, materials such as thermochromic, energy-efficient building coatings, and antireflective coatings for eyeglasses have been commercially accessible. These types of coatings typically provide tremendous value.
Furthermore, decorative coatings give the products an appealing and elegant appearance. They are used to decorate and protect buildings and other structures. As a result, fast urbanization, increased demand for a colorful and glossy look, and an excessive increase in infrastructure investments are fueling the expansion of building and construction in emerging and established nations, which in turn increases market growth.
The technologies used for coating include physical vapor deposition (PVD), plasma-assisted chemical vapor deposition (PAVCD), chemical vapor deposition (CVD), thermal spraying, and others. Additionally, decorative and functional coatings can be done using a variety of materials, such as aluminum, chromium, graphite, tungsten carbide, titanium, and zirconium.
Industry Demand
According to OMR Research, the global decorative and functional coatings market is projected to grow at a CAGR of 5.1% during the forecast period (2023-2029). The key industries that utilize these coatings include consumer and household appliances, the medical industry, the automotive industry, and the construction industry, among others. The growth of these industries is expected to boost the demand for coatings as well. For instance, according to the US Census Bureau, about 1,553,300 residential units were started in 2022, with an estimated 1,649,400 housing units allowed by construction permits.
Additionally, in the automotive industry, PVD coatings are in high demand. Due to increasingly stringent government regulations, the automotive industry has been driven to improve the fuel economy of the vehicles it produces. The companies have done this by employing plastic materials instead of metal for many of their aesthetic touches, which has helped to lower the weight of the cars they make. However, PVD coated materials provide a significant benefit for firms looking for interior and exterior decorative parts with the typical metal appearance customers expect but the lower weight of plastic. This will increase the growth of decorative and functional coatings in the automotive industry. Moreover, as the automotive industry grows, the market will resultantly grow. For instance, according to the International Organization of Motor Vehicle Manufacturers’ report for 2021, the total number of vehicles produced in 2021 was 80 million globally. Of which, about 57 million were cars and 23 million were commercial vehicles. The total production of cars was 55.8 million in 2020. This shows the market’s constant growth in the near future as well.
Recent Developments
The key companies in the decorative and functional coatings market include AkzoNobel N.V., All Tech Decorating., Asian Paints Ltd., Avaluxe, BASF SE, Benjamin Moore & Co., Jotun A/S, Kansai Paints Co., Ltd., Masco Corp., Nippon Paint Holdings Co., Ltd., PPG Industries, Inc., and others. To maintain a strong market position, these players use a variety of techniques, such as product launches, partnerships, collaborations, mergers, and acquisitions. Some of the recent developments in the market include-
• In January 2023, AkzoNobel launched its Interpon Ready-to-Ship (RTS) powder coatings in China. The RTS line for North Asia provides architectural product coaters with access to Interpon D powder coatings with proven, superdurable performance. It is available in a variety of on-trend hues, textures, and cutting-edge finishes. Similarly, the RTS product line includes great solutions for the industrial sector, such as the Interpon 700 epoxy and Interpon 600 polyester powder coatings, which protect and improve a wide range of surfaces for usage both indoors and outdoors.
• In January 2023, Engineered Polymer Solutions (EPS) introduced EPS 2585, a high-solids waterborne acrylic emulsion with the capacity to formulate direct-to-metal applications at 100g/L VOC. EPS 2585 is ideal for high-performance common industrial and railcar coatings that require high hardness, block resistance, and early water resistance.
• In December 2022, BASF's ColorBrite Airspace Blue ReSource basecoat made its debut in China, having been certified by REDcert2 using a biomass-balancing technique. BASF's biomass balancing automobile OEM coatings were launched in Asia for the first time after their first official release in Europe in May 2022. This basecoat product reduces the carbon impact of the product by about 20%.