The global polyurethane (PU) coatings market is estimated to witness a healthy growth, at an estimated CAGR of around 4%, over the forecast period. Burgeoning wood coatings industry and growing demand from the building and construction industry are expected to drive the market growth.

  • Declining automotive industry is likely to hinder the markets growth.
  • In addition, shift to water-borne PU coatings is expected to fuel the demand for polyurethane coatings over the forecast period.
  • Asia-Pacific holds the major share in the consumption of polyurethane coatings. The region is also expected to witness the fastest growth during the forecast period, powered by the growing demand from automotive, aerospace, and construction industries in the region.



Key Market Trends

Increasing Demand from Construction Industry

  • Emulsion and epoxy paints are significantly used for wall and floor coatings. With increasing focus on improvement in performance, polyurethane coatings is slowly emerging as the go-to-stop for applications, like high-performance architectural coatings.
  • Two-component (2K) aliphatic polyurethane coatings have outstanding weathering, chemical, abrasion, and scratch resistance. In addition, these coatings are also tough but flexible.
  • Water-borne polyurethane coatings are used for both floor and wall coatings.
  • For floor coatings, polyurethane coatings are the topcoat over a functional layer. The areas of application include offices, lobbies, showrooms, warehouses, supermarkets, schools, tennis courts, industrial workshops, etc.
  • In case of wall coatings, these coatings are a high-performance functional topcoat to fulfil easy-to-clean, stain-resistant, acid-rain-resistant, and anti-graffiti requirements. The key application segments include the interior walls as well as exterior walls of food process plants, electronics plants, schools, hospitals, metro/railway stations, kitchens, bathrooms, etc.
  • These coatings are also used in construction, where building floors, steel trusses, and concrete supports are spray-coated to make them more durable and less costly to maintain. For instance, these coating, for example, makes a suspension bridge easier to clean, helps to keep its support beams from rusting, and improves its appearance even from a great distance
  • The construction industry is expanding at a vigorous growth rate and there are no signs of this growth slowing down soon.
  • These factors are expected to increase the usage of polyurethane coatings in construction applications.



China to Dominate the Market in Asia-Pacific Region

  • China dominated the Asia-Pacific market share. With growing investments and the construction activities in the country, the demand for polyurethane coatings is projected to grow during the forecast period.
  • The continuous improvements in economic conditions in the region have enhanced the financial status of the consumers, in turn, boosting the demand for buildings and other infrastructural activities in the country.
  • China’s 13th Five Year Plan started in 2016 as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition to this, the country ventured into new business models domestically and internationally, during the year. Although the construction sector slowed down after 2013, it is still a major contributor to the GDP of the country.
  • Moreover, restrictions on foreign investment on land development, high-end hotels, office buildings, international exhibition centers, and construction and operation of large theme parks have also been lifted.
  • China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products, in order to ensure fuel economy, and to minimize emissions (owing to the growing environmental concerns due to mounting pollution in the country).
  • All the aforementioned factors, in turn, are projected to increase the demand for polyurethane coatings in the region during the forecast period.



Competitive Landscape

The market for polyurethane coatings is a consolidated market, as there are very few players, who are able to control major market share. Key players in the market include Akzo Nobel N.V., BASF SE, Axalta Coating Systems, PPG Industries, Inc., and The Sherwin-Williams Company, among others.

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