Protective. Anti-fouling and anti-microbial. Self-healing and superhydrophilic. Conductive. Colour shifting and thermochromic. The world of functional coatings is extremely diverse, but each of its segments is gaining more and more traction thanks to increasing demand from the industry and, of course, end consumers.

Protective Coatings Specialist (PCS) James Kunkle says: “Year to date 2023 continues to be a strong growth year globally for performance coatings as manufacturers manage production interruptions and overcome raw materials shortages that occurred throughout 2021 to the third quarter 2022.”

Indeed, as Rajib Barman – AVP from Transparency Market Research confirms, “Functional coatings are experiencing a higher growth rate than conventional ones, i.e. close to 6 %. We estimate the current global size of this market at almost EUR 520 million, bound to reach almost EUR 950 million in 2031.”

Precedence Research agrees, although its data are a little more conservative: they estimate that the functional coating market reached “EUR 464 billion in 2022 and is projected to hit around USD 778 billion by 2032, growing at a compounded annual growth rate (CAGR) of 5.3 % during the forecast period from 2023 to 2032.”

Functional Coatings: Driving Forces and Market Sectors

Market research company Sky Quest says: “The automotive sector is witnessing a surge in demand for functional coatings: the automotive coatings market is projected to grow at a CAGR of 6.6 % from 2020 to 2027.” Rajib Barman from Transparency Market Research concurs: “The automotive industry alone accounts for about 35-40 % of the whole functional coatings market, followed by the building industry (around 35 %), the general industry (e.g. heavy machinery), the aerospace sector, and the marine sector. Altogether, these industries contribute to 80 to 90 % of the entire market.”

Kunkle focuses on different fields: “Sectors that continue to drive the growth are: oil and gas, marine, infrastructure, petrochemical, power generation, water treatment and associated tank storage and transport (pipelines). The global oil and gas industry is a major driver of revenue and volume for functional coatings. This industry sector provides one of the most difficult ranges of environments and micro-environmental conditions. Performance coatings are required which can provide long service life and be able to deal with protracted exposures to penetrating UV radiation, corrosive chemistries, microbiological corrosion, corrosion under insulation, wide-swing temperature ranges, erosion, corrosion, and other alloy damaging conditions.”

Corrosion protection and other special properties

Indeed, functional coatings can provide the treated surfaces with the most varied special properties. The most sought-after one appears to be corrosion protection.

Market research company Precedence Research states: “By product type, the corrosion-resistant coating segment held the largest share in 2022. Functional coatings are being used more often in various sectors as a result of the need to increase product functionality, performance, and durability while lowering maintenance costs and raising energy efficiency. The expansion is being fuelled by rising R&D investments. To provide improved functionality and performance, new technologies including nanocoatings, smart coatings, and self-healing coatings are being developed.” The increasing need for lightweight materials is another major driver for this market, notes Barman.

Focus on Asia-Pacific, Europe and North America

“Global growth of performance coatings continues to be led by Asia-Pacific and mention must be made of the rapid industrial growth in India, which is benefiting the performance coatings industry,” indicates Kunkle. Indeed, for the Asia-Pacific region, market research company Sky Quest estimates a projected CAGR of 6.1 % from 2020 to 2030 and confirms that “The government of India has launched the ‘Make in India’ program to encourage domestic manufacturing across various sectors, including automotive, aerospace, and construction. This initiative is expected to increase the demand for functional coatings in the country.”

“The APAC region is the largest producer and consumer of functional coatings,” confirms Barman, “with a focus on South Korea and Japan (particularly for the automotive industry, e.g. Hyundai, and the marine one, thanks to the presence of many shipbuilding companies), but also on China, which is among the countries with the highest production and consumption share and which is anticipated to dominate the market for about a decade.” China and other countries in the area have indeed introduced regulations to promote sustainable coatings that are expected to drive the demand for functional coatings in the region.

“Europe and North America are important markets, too,” indicates Barman, “especially because most automotive OEMs are headquartered here, as well as key companies from the aerospace and defence industry (e.g. Airbus in France and Boeing in the USA).” According to Sky Quest, growth here relates to the “rising demand for high-performance products and the development of advanced technologies, producing more efficient and durable coatings.”

Fluctuating prices

“In this particular market, price fluctuations are very concerning at the moment,” states Barman, “as fluctuations in raw materials’ costs result in volatility in the prices of the final coatings.”

The already-mentioned regulatory pressure on the worldwide functional coating sector to employ fewer dangerous chemicals and promote environmental sustainability is proving to be at the same time a market threat and a great opportunity for new developments. “The shift towards more sustainable paint products has been surging, involving everyone in the industry,” says R&D coating consultant Giovanni Cicatiello. “The number of substances on ECHA’s candidate list is increasing, forcing manufacturers to adapt their formulations and production processes to the new safety standards. Raw material suppliers have been updating their catalogues with organically derived (or recycled) resins and additives to replace those of fossil origin. Technical and commercial communication towards end users focuses on new messages, marketing sustainable products through environmental certifications and more appealing labels. The trend is towards greater use of water-based systems – which have now reached very good performance levels – to reduce VOC emissions. Companies in the industry will spend more and more time and resources on research and development to introduce new organically derived raw materials and to assess and improve the application performance of their new ‘green’ products.”

Reading tip for Functional Coatings

EC Tech Report Functional Coatings: Dive into this new multimedia EC Tech Report and learn more about super-hydrophobic finishes that offer special easy-to-clean effects in clouding an antimicrobial effect; multifunctional additives that regulate several paint properties at once, and further recent key innovations that have occurred in functional coatings.