Electrocoat Market size is set to gain notable proceeds during the period 2021-2027 on account of increasing incorporation of organic finishing methods and higher demand from various industrial verticals. The growing need for hazardous air-free components has led to the surging imposition of environmental regulations.
Increasing electrocoat penetration in eyeglass frames, and costume jewelry is another ideal factor driving the industry expansion. The rise in technological advancements and the growing adoption of nanotechnology will further spur the market growth size.
With regards to type, the cathodic electrocoat market is anticipated to rise at an exponential rate through 2027 due to its growing intake in the automotive and appliance sectors. Cathodic electrocoat processes offer enhanced throwing power as well as corrosion protection, even at lower film thicknesses. Increasing popularity in Canada and several parts of the U.S. will additionally add to the segmental market growth.
On the basis of end-use, the electrocoat industry is identified across automotive, heavy-duty equipment, household appliances, military & defense, and others. The revenue share from the automotive sector is expected to reach a significant value with growing product demand in seat tracks, finishers, wheels, and space frames among several other automotive parts. Besides, cathodic epoxy e-coatings are marking extensive presence across automaking companies for prime coat and hood applications on account of their higher resistance to cyclic corrosion and humidity.
Electrocoat industry size from heavy-duty equipment is anticipated to garner momentum given the increase in R&D activities and the rising government initiatives for product innovation and development. The growing consumer household incomes, as well as the rapid urbanization, have potentially triggered the production of household appliances. The higher need for superior color and gloss retention in microwave ovens, water coolers, laundry machines, air conditioners, and refrigerators will stimulate the market expansion in the coming years.
APAC electrocoat market is expected to witness favorable growth due to the higher production of electric vehicles and the rise in the number of upcoming infrastructure development projects in the region. The growing demand for advanced agricultural equipment along with the increasing penetration of electrical and electronic products will contribute significantly to the regional market growth.
The electrocoat market is consolidated by the presence of major business participants that include Coatec India, Barron Metal Finishing, Inc., Axalta Coating Systems Ltd., Clearclad Coatings LLC, Valmont Coatings, and Hartford Finishing, Inc.
These players are placing targeted efforts on inorganic growth strategies, such as acquisitions, partnerships, investments, novel product launches, and production expansions for business portfolio and geographical extension.
For instance, in December 2020, Axalta introduced AquaEC 3500 EP, its novel environmentally friendly edge protection electrocoat, in a bid to expand its industrial coatings portfolio. The novelty is a cathodic and tin-free electrocoat primer that has extensive uses in automotive parts and accessories, agriculture, and construction sectors.
In another instance, PPG Industries, in March 2019, unveiled its next-generation anionic epoxy coating, PPG POWERCRON 160 electrocoat (e-coat) in North America to cater to high film build and low VOC content requirements.
The COVID-19 outbreak brought a significant impact on the global economic landscape and donated to massive and alarming changes in numerous businesses, as well as consumer life patterns. The electrocoat industry is also bearing the brunt of the pandemic owing to the stalled operations mainly across the construction and automotive arenas. The projection of several trade restrictions substantially hampered the supply and distribution of raw materials, along with the dearth of labor. However, with the gradual relaxation of these barriers, and the resumption of most business functions, the market share is likely to rise in the long run.