Low Temperature Coating Market - Global Forecast to 2021

The global low temperature coating market is projected to reach USD 5.13 billion by 2021, at a CAGR of 6.7% from 2016 to 2021. Low temperature coating has applications in various end-use industries such as automotive, industrial, heavy-duty equipment, architectural, and furniture. Increase in energy savings due to the reduction in cure temperatures and growing demand for low temperature coating from industries such as heavy-duty equipment, and automotive in the Asia-Pacific are expected to boost the growth of the global low temperature coating market.

Expansion was the key strategy adopted by major players to enhance their presence in the global Low Temperature Coating Market between 2013 and 2016. This strategy accounted for a major share of all development strategies adopted by leading players during the above mentioned time period. Key players operating in the global low temperature coating market include E.I. DuPont de Nemours and Company (U.S.), PPG Industries, Inc. (U.S.), The Valspar Corporation (U.S.), Axalta Coating Systems (U.S.), Bowers Industrial (U.S.), Tulip Paints (India), Platinum Phase SDN BHD (Malaysia), VITRACOAT America, Inc. (U.S.), Forrest Technical Coatings (U.S.), and Specialty Polymer Coatings, Inc. (Canada) among others.

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Besides expansions, new product launches, and mergers & acquisitions were other key strategies adopted by market players to enhance their market shares and expand their geographical reach.

In November 2016, PPG Industries Inc. launched POWERCRON electrocoat at FABTECH 2016, U.S. These coatings are available in different formulations to help OEMs use lightweight metals and achieve environmental compliance without compromising on corrosion resistance. In September 2015, PPG expanded its San Juan del Rio, Queretaro, Mexico, coatings manufacturing facility with an investment of USD 27 million to meet the rising demand for industrial coatings from the local customers and OEMs. The company focuses on serving the local automotive manufacturing industry with this expansion. New product launches and expansions are the key strategies adopted by PPG Industries Inc. to target potential customers. It has strategically concentrated on expanding its regional presence through expansions. PPG Industries Inc. is emphasizing on R&D activities to broaden its product portfolio and strengthen its presence in the global low temperature coating market.

In January 2017, Axalta Coating Systems launched Alesta Lync, a Dry-On-Dry (DOD) powder coating for general industrial applications. Alesta Lync is energy efficient and provides protection against corrosion. In April 2016, the company expanded its powder coatings production capacity in Montbrison, France to serve its customers by improving lead times and providing greater flexibility. Axalta Coating Systems aims to increase its efficiency through a dedicated delivery service to serve its clients effectively. The company aims to leverage the extensive market expertise and excellent technical capabilities of its distributors to increase its product portfolio in various regions. 

In April 2015, The Valspar Corporation expanded the production capability of Pipeclad powder products in France, Europe. Through this expansion, the company aims to meet the growing demand for industrial coatings worldwide. Valspar has well-recognized brands of low temperature coating and has a strong operational network in the U.S., which, in turn, helps the company enhance its regional presence.

The global low temperature coating market was valued at USD 3.50 billion in 2015 and is projected to reach USD 5.13 billion by 2021, at a CAGR of 6.7% from 2016 to 2021. Low temperature coating has been specifically formulated to develop a fully cured coating which can be set at lower oven temperatures or with shorter dwell times at conventional oven temperatures. These coatings are well suited for heat sensitive substrates and assemblies. The growing popularity of environment friendly powder-based low cure solutions has led to an increase in the demand for low temperature coating.

The growing demand for low temperature coating from the manufacturing industry in the Asia-Pacific and expansion of the heavy-duty equipment industry, especially in emerging economies, are factors contributing to the growth of the global low temperature coating market.

Automotive and industrial are the major end users of the global low temperature coating market. Low temperature coating are used on wheels, grills, bumpers, door handles, roof racks, trailer hitches, and exterior & interior trims in the automotive industry. Application of low temperature coating in the industrial segment includes soccer goals, basketball backstops, lockers, camping equipment, golf clubs and golf carts, ski poles, and exercise equipment.

Based on coating type, the powder-based segment of the global low temperature coating market is projected to grow at the highest CAGR during the forecast period. Powder-based low temperature coating have near zero VOC emissions and produce much thicker coatings than conventional liquid coatings without running or sagging. They also exhibit superior properties over conventional paints, including high resistance to corrosion, high-quality finish, chipping and abrasion resistance, durability, cost-effectiveness, and reduced processing time.

In 2015, the Asia-Pacific accounted for the largest share of the global low temperature coating market, followed by North America. The high demand for low temperature coating in the Asia-Pacific is attributed to the growth of the heavy-duty equipment and manufacturing industries over the past few years. The Middle East & Africa low temperature coating market is projected to grow at a relatively slower rate in comparison to other regions.

Market players have adopted both, organic and inorganic growth strategies such as regional expansions, mergers & acquisitions, and new product developments, to expand their businesses worldwide. Key companies operating in this market focus on providing innovative products and enhancing their presence in emerging markets. They also focus on strengthening their research & development facilities to provide cost-effective product grades. These developments are expected to lead to the sustainable growth of the global low temperature coating market in the near future.