Polyurethane Coating Market - Forecast(2024 - 2030)

Polyurethane Coating Market Overview

The Polyurethane Coating market size is estimated to reach US$30.5 billion by 2027 after growing a CAGR of 5.1% from 2022 to 2027. Polyurethane coating is a layer of polyurethane applied on surface of substrate for protecting from various types of defects like corrosion, weathering, abrasion and deteriorating process. Polyurethanes are formed by combining a variety of chemicals with isocyanates being the most important ingredient. Polyurethanes based on aliphatic polyisocyanates are renowned for their outstanding mechanical & electrical properties and are used as finish coat in surface coating like in automotive coating, aircraft coating and vessels & pipeline coating. Hence, due to its corrosion and abrasion resistance nature, polyurethane coating is used in various sectors like automotive, construction, oil & gas, aircraft, electronics and textiles. Factors such as increase in production of automotive, growing construction activities, high sales of textile items and increase in oil production are driving polyurethane coating market growth. However, the sensitivity of polyurethane coating towards moisture can affect its usage in industrial sectors, which can hamper the polyurethane coating industry growth.

COVID-19 Impact

Polyurethane coating due to its rich corrosion and abrasion resistance nature, is majorly used in sectors like automotive, construction and oil & gas sector for surface coating. The lockdown implemented by countries all across the world caused restrictions on the functioning of these sectors which decreased their productivity. For instance, according to International Organization of Motor Vehicles Manufacturer, in 2020, the global vehicles production was 77.7 million units compared to 92.1 million units made in 2019 globally. Also, according to Eurostat, in March & April of 2020, construction production in EU declined by 25.9%. Further, according to US Energy Information Administration, in 2020, US crude oil production decreased by 8%, showing the largest annual decrease on record. Polyurethane is used in automotive coating as scratch resistant paint, in construction sector it is sprayed on steel & concrete to make them less susceptible to rust, while in oil & gas sector it is used in pipeline coating and for refurbishing of oil extracting tools. The decrease in productivity of automotive, construction and oil & gas sector, reduced the usage of polyurethane coating in them, which negatively impacted the polyurethane market growth.

Report Coverage

The report: “Polyurethane Coating Market Report – Forecast (2022 – 2027)”, by IndustryARC covers an in-depth analysis of the following segments of the polyurethane coating industry.

Key Takeaways

• Asia-Pacific dominates the polyurethane coating industry as the region consists of major end use industries of polyurethane such as automotive and textiles in country like China and India which are the leading producer in these sectors.
• Polyurethane coating is used in power & energy sector for coating on bases of wind turbines and blades so as to increase their energy efficiency and to protect the machinery from corrosion & rust.
• Polyurethane as coating material also has high applicability in marine sector where it is applied on categories of boats and ships, of various sizes and uses, so as to seal marine hulls from corrosion, coastal elements, and harsh weather.

Figure: Asia-Pacific Polyurethane Coating Market Revenue, 2021-2027 (US$ Billion)

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Polyurethane Coating Market Segment Analysis – By Grade

Industrial grade held a significant share in polyurethane market in 2021, with a share of over 65%. Polyurethane coating is used as finishing coat in various industrial sectors like automotive, construction and textile. The rapid development in these major end users of polyurethane has increased their level of productivity, resulting in more usage of polyurethane coating. For instance, according to European Automobile Manufacture Association, in first nine months of 2021, US automobile manufacturers produced 4.8 million passenger cars showing 10.8% increase from 2020, while Chinese car production was 14 million units showing 10.2% increase for same period. Also, according to Eurostat, in October 2021, construction production increased by 4.2% in the EU. Further, according to Ministry of Industry and Information Technology, in 2021, China’s garment export grew by 8.4% and operating profit of Chinese textile firms increased by 25.4% due to high textile consumption. Polyurethane coating is used as scratch resistance paint in cars, as corrosion resistance agent for construction material like steel, and it is used to makes clothes water resistance. The increase in productivity of these sectors will lead to more usage of polyurethane coating in them, which will boost polyurethane industry growth.

Polyurethane Coating Market Segment Analysis – By End Use Industry

Automotive sector held a significant share in polyurethane coating market in 2021, with a share of over 21%. Polyurethane coating has high comprehensive performance, chipping resistance and chemical resistance. Hence, due to such rich & durable properties it is used in automotive bodies as primer, intermediate coat and finishing paint. The rise in production of automotive on account of growing demand has positively impacted the usage of polyurethane automotive sector. For instance, according to European Automobile Manufacture Association, in 2021, 2.1 million commercial vehicles were produced in the EU, showing 1% increase compared to 2020. According to another report by European Automobile Manufacture Association, in 2019, new-car registrations increased by 1.2% across the European Union, reaching more than 15.3 million units in total. Such increase in production and consumption of automotive vehicles will lead to more usage of polyurethane coating in automotive sector, resulting in more growth of polyurethane coating industry.

Polyurethane Coating Market Segment Analysis – By Geography

Asia-Pacific held the largest share in polyurethane coating market in 2021, with a share of over 34%. The region consists of economies like China, India, Australia, and Vietnam which consists of major end user of polyurethane coating such as automotive, textile, and construction. Rapid economic developments of these nations have increased their industrial productivity. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, Asia held 50% share of global automobile production volume, with China producing 26 million units, India 4.3 million units, Thailand 1.6 million units, and Indonesia 1.12 million units. According to 2021 report of the United States, Fashion Industry Association, in 2021, major apparel sourcing destination were Asia based led by China (93%), Vietnam (87%), India (77%), and Bangladesh (73%). Further, according to Australian Bureau of Statistics, in February 2022, the number of dwellings approved in Australia rose 43.5% with private sector house approvals showing 16.5% rise. Such increase in productivity of these sectors will lead to more usage of polyurethane in their coating applications, resulting in positive growth of polyurethane coating industry.

Polyurethane Coating Market Drivers

Increase in Automotive Production

Polyurethane made with major ingredients like isocyanates coating is used in automotive sector under various automotive coating items such as primer and finishing paint. Hence, due to its rich mechanical, corrosion resistance and abrasion resistance properties, it has high applicability in automotive sector. The increase in level of automotive production on account of growing demand for new vehicles has positively impacted the usage of polyurethane coating. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, the global vehicles production was 80.1 million compared to 77.7 million in 2020, showing a 3% increase. Such increase in automobile production on account of high demand will increase the usage of polyurethane coating in automotive sector. This will have positive impact on growth of polyurethane coating industry.

Increase in Volume of Crude Oil Production

Polyurethane is a perfect middle ground between plastics and metals, capable of withstanding formidable levels of corrosiveness, pressure, abrasion, impact and heat. Polyurethane coating is applied on tools and components relating to oil extraction, transporting or compressing, in order to increase their durability. Growing economies has increased their demand for fuel energy, especially in transportation sector for taking goods & materials from producers to consumers. Hence, such growing demand for oil fuel has increase the production output of crude oil. For instance, according to Organization of Petroleum Exporting Countries, in November 2021, crude oil output increased to 9.87 million barrel per day in Saudi Arabia, 4.24 million barrel per day in Iraq and 1.42 million barrel per day in Nigeria. Such increase in oil production will lead to more usage of polyurethane coating for tool & component coating. This will positively impact the growth of polyurethane coating industry.

Polyurethane Coating Market Challenge

Sensitivity of Polyurethane towards Moisture

While polyurethane coatings are ideal for numerous applications, they are not a one-size-fits-all solution. One of the main shortcomings of this coating material is its sensitivity to moisture. When moisture attacks polyurethane-coated floors, bubbles can form, leaving unsightly stains and imperfections on the surface. Hence, due to this weakness, polyurethane coatings are unsuitable for areas with high levels of moisture or humidity. Moreover, polyurethane also has a limited pot life, i.e., the coating remains viscous for a limited time, after which it is no longer usable. Such sensitivity of polyurethane coating towards moisture can restrict its usage in some sectors, which can hamper the growth of polyurethane coating industry.

Polyurethane Coating Industry Outlook

The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In polyurethane coating market report, the polyurethane coating top 10 companies are:

1. PPG Industries
2. BASF SE
3. Sherwin William
4. Axalta Coating System
5. Jotun
6. Akzo Nobel N.V.
7. Techchoat Contractors Inc.
8. Ellsworth Adhesives
9. RPM International Inc.
10. Valspar Corporation

Recent Developments

• In 2022, PPG Industries acquired Versa Flex which specializes in polyurea, epoxy and polyurethane coatings for water and wastewater infrastructure, flooring, transportation infrastructure, and industrial applications.
• In 2022, Sun Chemicals acquired SAPICI one of the global leading companies in high performance polyurethane coating and industrial adhesives, and this acquisition expands Sun Chemicals product portfolio in areas like industrial coating & elastomers.
• In 2021, BASF launched Elastollan® Thermoplastic Polyurethane (TPU) which offers a high-performance and sustainable drop-in solution for premium synthetic leather applications in fashion consumables, furniture, and automotive segments.

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