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Growth of Major Application Segments Stimulates Demand in Global Powder Coatings Market Finds Frost & Sullivan - Material shortages and competitive pricing present most challenging obstacles - Chemicals.Frost.com
Growth of Major Application Segments Stimulates Demand in Global Powder Coatings Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2014/06/26 - Material shortages and competitive pricing present most challenging obstacles - Chemicals.Frost.com.

   
 
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Rapid growth of key application segments in the Asia-Pacific (APAC) and rest of the world markets is accelerating demand for high-performance and sustainable powder coatings. With economic contraction and saturation in European and North American markets, demand is shifting to APAC. Powder coating manufacturers will be wise to target this region as it is the strongest regional market in the construction industry, accounting for approximately 40 percent of global construction spending.

Furthermore, APAC is expected to hold 48 percent of automotive industry demand by 2020. The region is also likely to play a dominant role in the global household appliances market due to its stable economy, increasing disposable income, and rising standard of living, especially in China, Japan, Singapore, Malaysia and Vietnam. In Europe and North America demand will be for technologically advanced products that meet stringent regional regulations.

New analysis from Frost & Sullivan, Global Powder Coatings Market, finds that the market earned revenue of $7.77 billion in 2013 and estimates this to reach $12.53 billion in 2020.

"Powder coatings are gaining popularity as they are priced much lower than liquid coatings and offer several cost advantages over the long-term; for example, the use of a single layer of powder coating is sufficient in an application that requires multiple layers of liquid coatings," said Frost & Sullivan Chemicals, Materials & Food Research Analyst Soundarya Shankar. "The growing demand for powder coatings also emanates from its ability to reduce energy consumption, maximize material reclamation, and optimize production costs by shortening cycle time."

However, a shortage of raw materials for powder coatings is leading to higher prices and reduced profitability. Powder coating manufacturers are under intense pressure to keep prices low due to the desire of customers such as original equipment manufacturers (OEMs) to remain cost-efficient, especially in the appliances and automotive markets.

The increasing use of plastics most of which can be molded in color in the automotive segment is diminishing need for powder coatings. The move towards pre-coated metals by air conditioner OEMs and the deployment of unplasticized polyvinyl chloride material in the architectural segment are also dampening market potential.

In addition, the market is limited as a result of customer reluctance to switch from conventional liquid coating technologies to powder coatings and are not convinced of its superior performance and cost advantages. This reluctance also stems from uncertainty surrounding the return on investment and skepticism about the surface finish and aesthetics that powder coatings can provide.

"Technological advances, including thin-film powders, high-temperature-resistant powders, and radiation technologies are addressing these challenges and making powder coatings more competitive than liquid coatings," noted Shankar. "Market participants would do well to complement these technological advances with initiatives designed to educate customers on the advantages that powder coatings offer over conventional coatings."

Global Powder Coatings Market is part of the Chemicals & Materials (chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Analysis of the Industrial Paints and Coatings Market in South Africa, Nigeria and Kenya, and Analysis of the Egyptian Paints and Coatings Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Global Powder Coatings Market / ND89-39

 
 
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Growth of Major Application Segments Stimulates Demand in Global Powder Coatings Market Finds Frost & Sullivan

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Frost & Sullivan | Powder Coatings
Contact: Ariel Brown - Frost.com 
210-247-2481 ariel.brown[.]frost.com
 
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