Industry Outlook   

The global Coatings Resins market accounted for USD 53.7 Billion in 2022 and is expected to reach USD 97.5 Billion by 2035, growing at a CAGR of around 5.9% between 2023 and 2035.  

Coating resins are essential components used in the formulation of various surface coatings, such as paints, varnishes, and adhesives. These resins provide protective and decorative properties to substrates, enhancing their durability, appearance, and performance. They are typically made from synthetic materials and can be classified into different types based on their chemical composition, such as acrylics, polyurethanes, and alkyds. Coating resins play a crucial role in industries like automotive, construction, and consumer goods, where high-quality finishes and long-lasting protection are required. Their application ensures superior aesthetics, corrosion resistance, weather ability, and adherence to surfaces.

Report Scope:

The booming construction sector, driven by urbanization, infrastructure development, and increased demand for buildings, is a major driver for coating resins. These resins are essential for architectural coatings, providing protection, durability, and aesthetic appeal to structures.

Market Dynamics

Coating resins are integral components used in the production of various surface coatings, including paints, varnishes, and adhesives. These resins provide protective and decorative properties to substrates, augmenting their durability, appearance, and overall performance. Synthesized from synthetic materials, coating resins encompass diverse chemical compositions, such as acrylics, polyurethanes, and alkyds. They are crucial in industries like automotive, construction, and consumer goods, where superior finishes and long-lasting protection are paramount.

The coating resins market has been experiencing significant growth due to several key factors. One of the primary growth drivers is the booming construction industry, fueled by rapid urbanization, infrastructural development, and increased demand for residential and commercial buildings. Coating resins are extensively used in architectural coatings to enhance aesthetics, protect against corrosion, and provide weather resistance, thereby driving market growth.

Another growth driver is the expanding automotive industry, particularly in emerging economies. Rising disposable incomes, changing lifestyles, and increased demand for vehicles have led to a surge in automotive production, consequently boosting the demand for coating resins. These resins are used for automotive coatings to provide a glossy finish, protection against harsh environmental conditions, and resistance to scratches and chemicals.

The industry also witnesses a rising focus on sustainability and environmental regulations, which has driven the development of eco-friendly coating resins. Manufacturers are investing in research and development to produce resins with lower volatile organic compound (VOC) content, reduced toxicity, and improved sustainability profiles. This shift towards sustainable solutions aligns with consumer preferences and stringent regulations, creating new opportunities in the market.

Despite the positive growth trajectory, the coating resins industry faces certain challenges. Fluctuating raw material prices and supply chain disruptions can impact production costs and profit margins. Additionally, the industry is influenced by stringent regulatory standards for VOC emissions and environmental impact, requiring manufacturers to comply with complex guidelines. However, amidst these challenges, several business opportunities exist in the coating resins market. Technological advancements, such as the development of high-performance resins with enhanced functionalities, present opportunities for innovation and product differentiation. The rising demand for waterborne and powder coatings, which are eco-friendly alternatives, opens avenues for market expansion. Furthermore, the growing popularity of value-added coatings, such as anti-microbial and self-cleaning coatings, offers additional prospects for growth and market penetration.

In conclusion, coating resins play a vital role in enhancing the performance, aesthetics, and durability of surface coatings. The market is driven by factors like the construction boom, automotive industry growth, and focus on sustainability. Challenges include raw material price volatility and regulatory compliance, but opportunities arise from technological advancements and the demand for eco-friendly and value-added coatings. As industries continue to prioritize quality finishes and environmental sustainability, the coating resins market is expected to thrive in the coming years.

Event Analysis

The COVID-19 pandemic has had a significant impact on the coating resins market. The global lockdowns, supply chain disruptions, and economic uncertainties caused by the pandemic resulted in a decline in construction and automotive activities, leading to reduced demand for coating resins. Manufacturing operations faced challenges due to workforce limitations and restrictions, affecting production capacities. However, as economies gradually recover and vaccination efforts progress, the market is expected to rebound. The increased focus on hygiene and the growing demand for sustainable coatings may also present opportunities for the market as industries adapt to the post-pandemic landscape.

Pricing Analysis

The pricing of coatings resins is a complex issue that is affected by a variety of factors, including:

• The type of resin: Different types of resins have different properties and therefore different price points. For example, epoxy resins are typically more expensive than acrylic resins.
• The application: The application of the coating resin will also affect the price. For example, coatings for the automotive industry are typically more expensive than coatings for the construction industry.
• The volume: The volume of the coating resin purchase will also affect the price. Larger volumes typically receive a lower price per unit.
• The supplier: The supplier of the coating resin will also affect the price. Some suppliers may offer lower prices than others.
• The market conditions: The market conditions, such as supply and demand, can also affect the price of coatings resins.

The cost of coating resins has generally been rising in recent years. This is caused by a number of variables, including the rising demand for coatings in recent years as a result of the increased demand for performance, decoration, and protection in a range of applications. Petrochemicals and bio-based compounds, which are utilized as raw materials to make coating resins, are becoming more expensive. The development of new, more expensive resins that comply with laws on the use of volatile organic compounds (VOCs) in coatings is a result of the expanding regulations in this area. Prices are projected to rise as a result of both the rising cost of raw materials and the increased demand for coatings. The development of new, more effective manufacturing techniques and the growing usage of bio-based resins, however, may help to somewhat counter the upward price pressure. Looking ahead, it is anticipated that the price of coating resins would remain unstable in the foreseeable future.

Segment Analysis

Based on the type, the market of Coatings Resins has been classified into Acrylic, Epoxy, Polyurethane, Alkyd, Vinyl, Unsaturated and Saturated Polyesters, and Radiation Cured. The Acrylic segment dominated the market of PET performance with a major market share of more than 30% in 2022. The resin type acrylic is widely employed in coating resins. It is an inexpensive material that offers superior water resistance, improved stain protection, and low cost. The greatest CAGR is anticipated for the Asia Pacific acrylic coating resins market. To take advantage of the expanding paints and coatings market and boost their profitability, the majority of coating resin manufacturers have established manufacturing facilities in the area. Additionally, the use of acrylic resins with a water base is expanding more quickly than those with a solvent base. Their outstanding durability, short drying times, and minimal odour can be credited for this increase in use.

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Based on the Technology, the market is segmented into Industrial Borne, Solvent-borne, High Solid, Powder Coating, and Radiation Cured. Due to the decreased volume of VOCs these coatings contain, the radiation-cured coating resins market is anticipated to register the highest CAGR during the forecast period. Due to their quicker curing times and ability to generate coatings of superior quality and durability, the market for radiation-cured coating resins is anticipated to expand. Additionally, scratch, impact, abrasion, chemical, and mechanical resistant coatings are made with radiation-cured coating resins.

Regional Analysis

Regionally, Asia-Pacific has been the global market leader for Coatings Resins and is expected to maintain its leadership position in the years to come with a market share of more than 30% in 2022.  Over the past ten years, the area's economy has expanded. The major market participants for coating resins are increasing their production capacity throughout Asia Pacific, particularly in China and India. Production relocation to Asia Pacific has several benefits, including cheap production costs, access to trained labour at reasonable rates, and improved ability to serve regional rising markets.

Competitive Landscape

Key operating players in the Coatings Resins market are Royal DSM, Hexion Inc, Allnex group, Bayer AG, BASF SE, Evonik Industries AG, The Dow Chemical Company, Polynt SpA, Arkema Group, The Sherwin-Williams Company (The Valspar Corporation).

Coatings Resins Market, Company Shares Analysis, 2022

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Recent Developments:

• In 2022, BASF acquired Huntsman's Performance Coatings business for $11.6 billion. This acquisition gave BASF a significant foothold in the coatings resins market, particularly in the automotive and construction industries.
• In 2022, AkzoNobel launched its new Coral Xtreme range of coatings resins. These resins are designed to provide superior performance in demanding applications, such as automotive refinish and industrial coatings.

The global Coating Resins Market is segmented as follows:

By Type

• Acrylic
• Epoxy
• Polyurethane
• Alkyd
• Vinyl
• Unsaturated and Saturated Polyesters
• Radiation Cured

By Technology

• Industrial Borne
• Solvent-borne
• High Solid
• Powder Coating
• Radiation Cured

By Application

• Architectural
• Industrial
• Protective & Marine
• Automotive OEM
• Vehicle Refinishes
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Switzerland
  • Sweden
  • Finland
  • Netherlands
  • Poland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Indonesia
  • Malaysia
  • Philippines
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Chile
  • Peru
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of the Middle East & Africa

Frequently Asked Questions (FAQs)