Protective & Specialty Coatings Market in the US By Market, Formulation and Substrate

Protective & Specialty Coatings Market in the US By Market, Formulation and Substrate

  • December 2016 •
  • 114 pages •
  • Report ID: 4895355 •
  • Format: PDF
Once dominated by solventborne coatings, the US protective and specialty coatings market has increasingly shifted toward more environmentally friendly formulations such as waterborne, powder, and radiation curables.

Industrial maintenance and automotive refinishing coatings will continue to account for the majority of demand in this market, although automotive refinishing coatings will experience subpar growth due to declining accident rates, among other factors. Overall, demand for protective and specialty coatings in the US is expected to reach 180 million gallons in 2020.

The Protective & Specialty Coatings study answers the following questions and more:
- How will Sherwin-Williams' acquisition of Valspar and Akzo Nobel's purchase of BASF's industrial coatings business change the landscape of the industry?
- Will solventborne formulations continue their long-term decline?
- To what extent will the increased durability of manufacturing (OEM) coatings limit growth in this market?

Industrial Maintenance and Highway Spending Drive Growth in Protective & Specialty Coatings Market
US demand for protective and specialty coatings will be fueled by additions to the industrial building stock and federal highway maintenance spending. Growth was dampened in 2015 as oil prices reached historic lows, which impacted several protective and specialty markets, particularly marine coatings applied to offshore rigs and platforms. The automotive refinishing sector, which accounts for a large share of protective and specialty coatings demand, will post subpar gains as OEM coatings become more durable and accident rates continue to decline.

Key Findings in the Protective & Specialty Coatings Study:

Waterborne Formulations Will Surpass Solvent-Based Coatings
Like the rest of the paint and coatings industry, the protective and specialty segment has had to adapt product offerings to reduce the amount of volatile organic compounds (VOCs) emitted by their products. As environmental regulations become stricter and technological advances increase the quality of other formulation types, demand for waterborne coatings will surpass their solventborne counterparts by 2020. The automotive refinishing market is a heavy end-user of solvent-based coatings.

However, water-based refinish coatings are gaining favor due to their fast curing times, outstanding color matching properties, and their adherence to VOC regulations.

Legislation Has Mixed Effects Protective & Specialty Coatings Market
For the most part, government regulation has limited growth in this industry as manufacturers have been forced to develop more eco-friendly coatings due to the high VOC emissions of traditional solventborne coatings. However, the passage of the Fixing America’s Surface Transportation Act (FAST) in late 2015 has bolstered demand for coatings applied to roads and bridges. In addition, recent legislative efforts to address the problems presented by the ever increasing number of structurally deficient bridges in the US will fuel demand for road and bridge coatings.

Industrial Construction Bolsters Growth
Recent increases to the industrial building stock will boost demand for industrial maintenance coatings. A rapid rise in industrial building construction from 2014-2015 benefited the industrial maintenance segment for both interior and exterior formulations. In addition, coatings and preservatives for wood and metal substrates will enjoy steady growth.

Study Coverage
This Freedonia industry study analyzes the $4.9 billion US protective and specialty coatings industry. It presents historical demand data (2005, 2010, and 2015) and forecasts (2020 and 2025) by market (industrial maintenance, automotive refinishing, marine equipment, roads and bridges, and other niche protective and specialty markets). The study also evaluates company market share and competitive analysis on industry competitors including PPG Industries, Sherwin-Williams, Valspar, RPM International, Axalta Coating Systems, Akzo Nobel, BASF, and Ennis-Flint.