In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Performance coatings are the varnishes used to enhance the physical properties of various surfaces. These coatings are resistant to high temperatures, corrosion and abrasion. It is an effective environment-friendly technology which comes in a variety of color combinations. It can also be used in minute-sized components. A performance coating is an affordable option for delivering cosmetically engaging durable finishes to different products. It satisfies the primer coat as well as the basecoat requirements.
Performance coatings are widely used in the fields of automotive and aerospace coatings, industrial coatings, powder coatings, mining and mineral industry, wastewater treatment, infrastructure, power, oil and gas and marine sectors. Performance coatings have a good record of adjusting with surfaces. Its end use includes application on large and small equipment, components, repair & refurbishment and in almost all light and heavy industrial segments. Performance coatings can be used on walls, floors, railings, food and beverage facilities, schools, healthcare facilities, occupied or confined spaces and office buildings. They are compatible with different materials such as wood, aluminum, steel, metal, masonry, drywall, concrete and galvanized metal surfaces etc. Major players in the market are entering into joint ventures to strengthen their position in the performance coatings market. The power sector is so firmly established in the global economic structure that it has been one of the first adopters of performance coatings, which ensure better protection for wires and other electrical instruments. The progressive development of the power sector to make services more reliable is likely to entail the growth of the global performance coatings market. The steady growth of the material sciences has proved essential for the global performance coatings market as it has provided the market an easy channel for innovations. The steady government support and private investment in the sector is expected to boost the growth of the market. Developments in the marine, protective coatings, oil and gas, automotive refinishes and plastic coating sectors has unfolded opportunities for ample investments in the industrial infrastructure sector to boost the growth of the performance coatings market.
Performance Coatings are being adopted in various sectors such as power, marine, automotive & aerospace, mining and mineral, wastewater treatment, oil and gas etc. Performance coatings enhance the physical properties of the product. The key contributors to the growth of manufacturing sector are consumer goods, automotive and aerospace sectors which are expected to boot the growth of the performance coatings market.
The performance market is anticipated to record a CAGR of around 6% during the forecast period i.e. 2019-2027. The market is segmented by resin, coating technology and end user industry, out of which, the polyurethane segment is anticipated to have leading shares on account of being scratch and humidity resistant.
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Performance Coatings are being adopted in various sectors such as power, marine, automotive & aerospace, mining and mineral, wastewater treatment, oil and gas etc. Performance coatings enhance the physical properties of the product. Adoption of performance coatings is wide range of industrial sectors is expected to boot the growth of the performance coatings market.
The key contributors towards the growth of manufacturing sector are consumer goods, automotive and aerospace sectors which are expected to boot the growth of the performance coatings market.
Performance coatings help in maximizing the utility of solar energy installations. The increasing demand for solar power in underdeveloped countries as a mass-scale alternative to costlier forms of energy is expected to boost the growth of the performance coatings market.
It can be harmful to breathe the smell of performance coatings; they require ventilation all the time. This is expected to hinder the growth of the performance coatings market.
Our in-depth analysis of performance coatings market includes the following segments:
On the basis of regional analysis, the performance coatings market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
Asia-Pacific is expected to account for more than 30% of the global market during the forecast period on the back of rising urbanization, booming manufacturing sector growth and introduction of smart cities in the region. Europe is expected to grow at a CAGR of 4.5% on the back of proliferation of the manufacturing sector in the region. North America is expected to expand significantly on the back of growth of local manufacturing sectors in the region. Latin America is expected to observe growth on the back of developments in the marine, protective coatings, oil and gas, automotive refinishes and plastic coating sectors. This unfolds opportunities for ample investments in the industrial infrastructure sector.
The performance coatings market is further classified on the basis of region as follows: