Europe Industrial Coatings Market

Europe Industrial Coatings Market Size (2023-2028):

The Europe Industrial Coatings market is anticipated to grow at a CAGR of 4% over the forecasted period of 2023-2028 

Europe is the second-largest market for the Industrial coatings business in the world. Investment of up to USD 26 billion in the power sector has increased the demand for protective coatings. With investments in the renewable energy sector, the demand for protective industrial coatings has significantly increased.  

Market Drivers and Restraints:

Growth in demand for the use of protective coating is a huge driving factor for industrial coating in this area. European countries are heavily invested in producing clean energy. Projects like offshore wind power generation have caused a huge demand for protective coatings. Nanotechnology and its use in paints is also another driving force.
Development in the construction sector triggers the use of protective coatings as consumers want to reduce their O&M costs. Architectural coatings account for more than 50% of the total demand from the industry. The automobile industry in Germany is one of the most renowned in the world, they are also heavily reliant on the coating industry for their smooth functioning, which adds to the growth of the European industrial coatings market.

Factors holding back the market

Europe industrial coatings market growth is hindered by the growing concerns regarding the harmful impacts of solvent-borne industrial coatings.  Water-borne industrial coatings require a longer duration of drying time. This is a major drawback for the industry as these products are not able to catch up with the requirements. UV-cured coatings are in demand but at the same time, they are quite expensive to purchase as well as produce. The profitability of this segment is very shallow.

Market Segmentation:

Europe Industrial Coatings Market - By Resin:

• Epoxy
• Acrylic
• Polyester
• Alkyd

Europe Industrial Coatings Market - By Technology:

• Solvent-Borne
• Water-Borne
• UV-Cured Coating
• Powder Coating

Europe Industrial Coatings Market - By End Use:

• Architectural
• Wooden
• Automotive
• Protective Coatings
• Marine
• Aerospace
• Packaging

Europe is quickly becoming a global leader in the renewable energy department. Scandinavian countries are heavily dependent on wind power generation to meet their demands. Industrial coatings are an important element that safeguards the protection of the parts of the machinery.  

Europe is the second-largest market for industrial coatings after the Asia-Pacific region.
The wooden Industry in Europe is slowing down and hence the demand for wooden-based coatings is also low compared to other segments.

The European region is full of modern and medieval architecture and a continuously growing market in the architectural department. UK has invested more than 2 billion USD in the architectural industry and this has also helped the industrial coating industry.

Market Regional Analysis:

Germany accounts for a prominent share in Europe automotive market with almost 41 assembly and engine production plants, contributing to one-third of the regional vehicle production in Europe. The new vehicle business in Germany exceeded three million in the review period. This tremendously increased the demand for the industrial coating market in Europe. However, there was a small halt as the vehicles needed to fulfill the environment-friendly regulations.

Many industrial coating companies have been given contracts to provide protective coatings for the same. On top of this, a significant number of infrastructure projects have been taken up in Poland, Romania, and the Czech Republic, which will increase the demand for industrial coating in Europe further.

Impact of COVID-19 on the European Industrial Coatings Market:

COVID-19 has exposed severe challenges for the coatings market by impacting the architectural and industrial sectors. With Europe being an early hotspot of the virus, all production activities and economic activities were shut down in Italy, Germany, and Spain. Automotive manufacturing, Construction projects were all halted and as a consequence, the demand for industrial coatings significantly dropped. Packaging industries are expected to grow thanks to the increase in demand for packaged goods. In this sector, the demand for has slightly increased for the coating materials. But overall, the industry is expected to be negatively impacted by the end of 2021. Economic recoveries can be expected after 2021 but till then there is a very slight chance of growth.

Key Market Players:

1. The Sherwin-Williams Company
2. AKZO Novel NV
3. BASF SE
4.  Jotun
5. Hampel A/S

Market Recent Developments:

• During the second quarter of 2020(Q2) the pandemic did not have a significant impact on AKZO Nobel, and the company delivered robust profitability. Though, revenues dropped by 19%.
• In 2019, Jotun’s sales went up by 19% because of improvements in marine protective coatings segments and good growth in decorative painting segments.
• Powder coating sales also increased and overall profits went up to 71%