Kerry Pianoforte, Editor05.31.19
According to a recent report from Markets and Markets, the global industrial coatings market is expected to grow from $98.30 billion in 2017 to $130.97 billion by 2022, at a CAGR of 5.91 percent from 2017 to 2022. For the purposes of this report industrial coatings are defined as thin films applied on materials to add or enhance their specific properties such as corrosion resistance, wear resistance and conductivity.
Industrial coatings are used in a wide variety of applications and encompass many end-use industries such as industrial wood, protective, general industrial, rail, coil coatings OEM and consumer goods & appliances.
According to research from Markets and Markets, the industrial coatings market in APAC (Asia Pacific) is expected to grow at the highest CAGR during the forecast period. APAC is rapidly expanding the market, owing to the growing economy and increasing middle-class population. The study authors noted that the increasing number of industrial activities due to growing urbanization, mainly in China and India, are expected to drive the market during the forecast period. There is an increased demand from the automotive industry in APAC, which is mainly backed by the expansion of the region’s industrial activities. This increased demand, in turn, drives the industrial coatings market in APAC.
APAC is the fastest-growing market with most of the large manufacturers establishing their facilities in this region. Presence of some of the fastest-growing economies, such as China, India and South Korea, and rising demand from the automotive industry play a crucial role in driving the industrial coatings market in the APAC region.
The industrial coating market recorded growth for 2018, despite a challenging year.
“Despite the rising costs of raw materials and the impact of increasingly volatile geopolitical influences on key commodity markets, most sectors where Hempel Industrial focuses on have shown revenue growth in the last year,” said Michael Bredfeldt, head of Industrial Group Product Management, Product and Portfolio, Hempel. “Hempel Industrial is involved in the heavy-duty equipment, heavy-duty truck, consumer products and general finishes areas and these are driven by a number of factors including overall Gross Domestic Product (GDP), residential and commercial construction, infrastructure projects, and energy costs. Hempel Industrial will continue to focus on these sectors as we continue to see growth and market share gain.”
“The market for industrial coatings has been steady and growing in line with industrial production at a 3-3.5 percent rate over the past 12 months,” said Dave Heflin, VP, Global Industrial Liquid Coatings, Axalta Coating Systems. “A strong economy and consumer confidence have driven growth, but other factors like infrastructure spending, a strong agricultural season, and growth in capital spending have been important contributors to healthy growth as well.”
“We really see growth across all of our Industrial businesses, led by the continued mid-single-digit growth in new commercial architecture as well as maintenance of existing facilities, then followed closely by agricultural, construction and earthmoving equipment with similar growth rates,” Heflin added. “We have also seen strong growth in pipeline spending at high single-digit rates, as oil and gas exploration and transmission spending has come back online.”
Growth Regions
In line with the paint and coatings industry as a whole, Asia Pacific region represents the most opportunity for growth, but even the mature markets in North America and Western Europe have some bright spots.
Hempel has been focusing its industrial coatings activity in the North American and Western European markets.
“We have the added benefit that we are supported by our Centres of Excellence in Dallas, Texas and Kampen, Netherlands,” said Bredfeldt. “Both sites offer holistic technical services, from product development to field technical expertise. Furthermore, these Central Distribution and R&D Centres (Centres of Excellence) allow us to offer further efficiencies to our customers as orders can be fulfilled and shipped in record time and at a reduced cost. We anticipate continuing to see gains in these regions.”
For Axalta Coating Systems, China is, by far, the fastest growing region in the world for industrial coatings. “But we have also seen very healthy growth rates in our mature markets in Europe and the U.S.,” noted Heflin. “In the past year, Axalta launched more than 80 new products across our Industrial businesses, and, while the thirst for new products is universal, the demand from China has been especially strong.”
Meeting Customer Demands
Users of industrial coatings are interested in coatings manufacturers increasing the lifecycle of the products that they develop to extend the service life of their assets.
“Coatings can have a positive impact by improving performance in areas such as corrosion resistance and UV durability,” said Bredfeldt. “In addition, they are continually seeking out solutions that will improve their processes by minimizing waste, conserving energy and water while boosting production efficiencies and also reducing the impact to the environment and exposure of workers to hazardous chemicals.”
According to Heflin, the biggest thing customers are looking for is a partner to their business, not just a paint supplier. “In times of growth, coupled with new opportunities for most of our customers, they are faced with new challenges like increased production rates, faster turnaround times, more customization in color and appearance provided by their customers – all great challenges to have, but in many cases, the paint shop can be the lifeblood of growth (or the limiting factor). Customers who are winning have migrated to those paint suppliers who have strong technical service to help them successfully absorb significant growth and position their businesses to gain share.”
Environmental Compliance
Sustainability is a key driver for the industrial coatings market in terms of meeting stricter and constantly evolving environmental regulations, as well as increasing public awareness.
“There are a notable trend towards higher solids/lower volatile organic compounds (VOC) solvent-based coatings and an increase in demand for water-based (waterborne) coatings in certain sectors,” said Bredfeldt. “This trend will continue across all sectors as the demand increases and the coatings continue to be more robust for application. The focus on developing ever-more sustainable industrial coatings solutions also contributes to Hempel’s overarching sustainability agenda. This seeks to protect and prolong the lifecycle of assets and thereby leads to less heavy-duty equipment being produced. This minimizes waste which helps owners minimize their environmental footprint.”
Axalta’s Helfin also sees the drive for more environmentally-friendly coatings, particularly in China and Europe.
“This shift isn’t just waterborne coatings, but also higher solids solvent-borne products. As an example, we launched a zero VOC primer in Europe this past fall, and we can’t keep up with demand from heavy-duty equipment suppliers as well as metal component manufacturers.”
Hempel Industrial will continue to develop sustainable and scalable solutions that have the potential to expand our geographic footprint and support our global customers. Investments at our two Centers of Excellence in Dallas, TX and Kampen, Netherlands support our drive to improve our customers’ experience.
In overall Hempel terms, 2019 will be a year of progress. The global coatings market is expected to pick up, and Hempel anticipates delivering underlying organic growth in line with or slightly better than the market. As a leading company within the global coatings industry, Hempel expects to bring more new companies into the Hempel family, as it continues its journey towards becoming a €3 billion revenue company.
New Products
Hempel is launching a new epoxy primer for heavy-duty equipment and trucks – Hempaprime Shield 700 HS.
This new coating is specifically designed to improve productivity and quality for original equipment manufacturers (OEMs) by reducing production times and maximizing service life.
Following its launch in North America, Hempaprime Shield 700 HS is now available in Europe.
Hempaprime Shield 700 HS is specifically designed to optimize production. A two-component high solids epoxy primer with exceptional adhesion to ferrous metals and substrates that delivers long term corrosion resistance in the harshest environments. It is fast drying and has short minimum overcoat intervals without compromising the high-volume solids content.
This robust coating provides improved crack and wrinkle resistance even at a high dry film thickness (DFT) and dries to a smooth finish without the need for sanding.
“When designing coatings for customers it is important to understand their drivers and these generally include superior long-lasting protection, optimized production, environmentally friendly, the potential to enhance operational efficiencies, and a finish that looks good,” Hempel’s Head of Industrial Group Product Management, Product and Portfolio, Michael Bredfeldt said. “Hempaprime Shield 700 HS delivers all of this and more. It is easy to apply, fast drying and offers consistent high-quality performance. There is no need for thinning, and the coating has been optimized for airless and air spray.
“Importantly, the low VOC content is better for the environment, safer for the applicators and meets all legislative requirements. Hempaprime Shield 700 HS is the ideal primer for OEMs, including heavy duty equipment such as forklifts, excavators, harvesters, earth moving equipment, as well as trucks, trailers and commercial vehicles.”
Axalta’s Nap-Gard powder coatings are formulated for use on external and internal oil, gas and water pipelines with single, dual and multi-layer application options. Nap-Gard also provides corrosion protection solutions for valves, fittings and rebar. Axalta’s functional coatings offer innovative solutions for today’s epoxy-based coating applications and are designed to provide superior corrosion protection for substrates in harsh, demanding environments.
• PPG Industries introduced Durastar Ultra-Cool coatings that enhance the beauty and extend the service life of metal roofing, siding, panels, and other building components.
• Axalta Coating Systems expanded to optimize manufacturing capabilities for its Alesta brand at its powder coatings production facilities in Germany to cater the growing market demand.
• AkzoNobel N.V. acquired the industrial coatings business of BASF SE. This strategy would help strengthen its position in the coil coatings market.
Data provided by Markets and Markets
Industrial coatings are used in a wide variety of applications and encompass many end-use industries such as industrial wood, protective, general industrial, rail, coil coatings OEM and consumer goods & appliances.
According to research from Markets and Markets, the industrial coatings market in APAC (Asia Pacific) is expected to grow at the highest CAGR during the forecast period. APAC is rapidly expanding the market, owing to the growing economy and increasing middle-class population. The study authors noted that the increasing number of industrial activities due to growing urbanization, mainly in China and India, are expected to drive the market during the forecast period. There is an increased demand from the automotive industry in APAC, which is mainly backed by the expansion of the region’s industrial activities. This increased demand, in turn, drives the industrial coatings market in APAC.
APAC is the fastest-growing market with most of the large manufacturers establishing their facilities in this region. Presence of some of the fastest-growing economies, such as China, India and South Korea, and rising demand from the automotive industry play a crucial role in driving the industrial coatings market in the APAC region.
The industrial coating market recorded growth for 2018, despite a challenging year.
“Despite the rising costs of raw materials and the impact of increasingly volatile geopolitical influences on key commodity markets, most sectors where Hempel Industrial focuses on have shown revenue growth in the last year,” said Michael Bredfeldt, head of Industrial Group Product Management, Product and Portfolio, Hempel. “Hempel Industrial is involved in the heavy-duty equipment, heavy-duty truck, consumer products and general finishes areas and these are driven by a number of factors including overall Gross Domestic Product (GDP), residential and commercial construction, infrastructure projects, and energy costs. Hempel Industrial will continue to focus on these sectors as we continue to see growth and market share gain.”
“The market for industrial coatings has been steady and growing in line with industrial production at a 3-3.5 percent rate over the past 12 months,” said Dave Heflin, VP, Global Industrial Liquid Coatings, Axalta Coating Systems. “A strong economy and consumer confidence have driven growth, but other factors like infrastructure spending, a strong agricultural season, and growth in capital spending have been important contributors to healthy growth as well.”
“We really see growth across all of our Industrial businesses, led by the continued mid-single-digit growth in new commercial architecture as well as maintenance of existing facilities, then followed closely by agricultural, construction and earthmoving equipment with similar growth rates,” Heflin added. “We have also seen strong growth in pipeline spending at high single-digit rates, as oil and gas exploration and transmission spending has come back online.”
Growth Regions
In line with the paint and coatings industry as a whole, Asia Pacific region represents the most opportunity for growth, but even the mature markets in North America and Western Europe have some bright spots.
Hempel has been focusing its industrial coatings activity in the North American and Western European markets.
“We have the added benefit that we are supported by our Centres of Excellence in Dallas, Texas and Kampen, Netherlands,” said Bredfeldt. “Both sites offer holistic technical services, from product development to field technical expertise. Furthermore, these Central Distribution and R&D Centres (Centres of Excellence) allow us to offer further efficiencies to our customers as orders can be fulfilled and shipped in record time and at a reduced cost. We anticipate continuing to see gains in these regions.”
For Axalta Coating Systems, China is, by far, the fastest growing region in the world for industrial coatings. “But we have also seen very healthy growth rates in our mature markets in Europe and the U.S.,” noted Heflin. “In the past year, Axalta launched more than 80 new products across our Industrial businesses, and, while the thirst for new products is universal, the demand from China has been especially strong.”
Meeting Customer Demands
Users of industrial coatings are interested in coatings manufacturers increasing the lifecycle of the products that they develop to extend the service life of their assets.
“Coatings can have a positive impact by improving performance in areas such as corrosion resistance and UV durability,” said Bredfeldt. “In addition, they are continually seeking out solutions that will improve their processes by minimizing waste, conserving energy and water while boosting production efficiencies and also reducing the impact to the environment and exposure of workers to hazardous chemicals.”
According to Heflin, the biggest thing customers are looking for is a partner to their business, not just a paint supplier. “In times of growth, coupled with new opportunities for most of our customers, they are faced with new challenges like increased production rates, faster turnaround times, more customization in color and appearance provided by their customers – all great challenges to have, but in many cases, the paint shop can be the lifeblood of growth (or the limiting factor). Customers who are winning have migrated to those paint suppliers who have strong technical service to help them successfully absorb significant growth and position their businesses to gain share.”
Environmental Compliance
Sustainability is a key driver for the industrial coatings market in terms of meeting stricter and constantly evolving environmental regulations, as well as increasing public awareness.
“There are a notable trend towards higher solids/lower volatile organic compounds (VOC) solvent-based coatings and an increase in demand for water-based (waterborne) coatings in certain sectors,” said Bredfeldt. “This trend will continue across all sectors as the demand increases and the coatings continue to be more robust for application. The focus on developing ever-more sustainable industrial coatings solutions also contributes to Hempel’s overarching sustainability agenda. This seeks to protect and prolong the lifecycle of assets and thereby leads to less heavy-duty equipment being produced. This minimizes waste which helps owners minimize their environmental footprint.”
Axalta’s Helfin also sees the drive for more environmentally-friendly coatings, particularly in China and Europe.
“This shift isn’t just waterborne coatings, but also higher solids solvent-borne products. As an example, we launched a zero VOC primer in Europe this past fall, and we can’t keep up with demand from heavy-duty equipment suppliers as well as metal component manufacturers.”
Hempel Industrial will continue to develop sustainable and scalable solutions that have the potential to expand our geographic footprint and support our global customers. Investments at our two Centers of Excellence in Dallas, TX and Kampen, Netherlands support our drive to improve our customers’ experience.
In overall Hempel terms, 2019 will be a year of progress. The global coatings market is expected to pick up, and Hempel anticipates delivering underlying organic growth in line with or slightly better than the market. As a leading company within the global coatings industry, Hempel expects to bring more new companies into the Hempel family, as it continues its journey towards becoming a €3 billion revenue company.
New Products
Hempel is launching a new epoxy primer for heavy-duty equipment and trucks – Hempaprime Shield 700 HS.
This new coating is specifically designed to improve productivity and quality for original equipment manufacturers (OEMs) by reducing production times and maximizing service life.
Following its launch in North America, Hempaprime Shield 700 HS is now available in Europe.
Hempaprime Shield 700 HS is specifically designed to optimize production. A two-component high solids epoxy primer with exceptional adhesion to ferrous metals and substrates that delivers long term corrosion resistance in the harshest environments. It is fast drying and has short minimum overcoat intervals without compromising the high-volume solids content.
This robust coating provides improved crack and wrinkle resistance even at a high dry film thickness (DFT) and dries to a smooth finish without the need for sanding.
“When designing coatings for customers it is important to understand their drivers and these generally include superior long-lasting protection, optimized production, environmentally friendly, the potential to enhance operational efficiencies, and a finish that looks good,” Hempel’s Head of Industrial Group Product Management, Product and Portfolio, Michael Bredfeldt said. “Hempaprime Shield 700 HS delivers all of this and more. It is easy to apply, fast drying and offers consistent high-quality performance. There is no need for thinning, and the coating has been optimized for airless and air spray.
“Importantly, the low VOC content is better for the environment, safer for the applicators and meets all legislative requirements. Hempaprime Shield 700 HS is the ideal primer for OEMs, including heavy duty equipment such as forklifts, excavators, harvesters, earth moving equipment, as well as trucks, trailers and commercial vehicles.”
Axalta’s Nap-Gard powder coatings are formulated for use on external and internal oil, gas and water pipelines with single, dual and multi-layer application options. Nap-Gard also provides corrosion protection solutions for valves, fittings and rebar. Axalta’s functional coatings offer innovative solutions for today’s epoxy-based coating applications and are designed to provide superior corrosion protection for substrates in harsh, demanding environments.
• PPG Industries introduced Durastar Ultra-Cool coatings that enhance the beauty and extend the service life of metal roofing, siding, panels, and other building components.
• Axalta Coating Systems expanded to optimize manufacturing capabilities for its Alesta brand at its powder coatings production facilities in Germany to cater the growing market demand.
• AkzoNobel N.V. acquired the industrial coatings business of BASF SE. This strategy would help strengthen its position in the coil coatings market.
Data provided by Markets and Markets
