POWDER COATINGS (US industry forecasts for 2013 & 2018)

Abstract

US powder coatings demand is projected to expand 3.5 percent annually to 445 million pounds in 2013, with a market value of $1.4 billion. Volume growth is expected to significantly outpace the gains of the 2003-2008 period as durable goods shipments are forecast to rebound from a weak 2008 base. However, gains in powder coatings market value will be limited by a substantial moderation in pricing following the particularly rapid increases experienced over the latter part of the 2003-2008 period.

Thermoset powder coatings represented more than 90 percent of total US powder coatings demand in 2008, due largely to their lower prices and good performance characteristics. Epoxy is the single largest product type, favored for its excellent corrosion- and chemical-resistance in interior applications. Epoxy/polyester hybrids are also well-represented and combine the best characteristics of straight epoxy and polyester powder coatings. The superior resistance to weathering of polyester and polyurethane powder coating formulations makes these the products of choice for exterior applications. Smaller volume types, such as acrylic and silicone coatings, are expected to register above-average growth from relatively small bases, with silicone benefitting from its use in high heat applications.

Thermoplastic powder coatings will account for the remainder of demand. The favorable performance characteristics of thermoplastic powder coatings -- such as chemical resistance, toughness and flexibility -- will support gains. For instance, fluoropolymer powder coatings offer the best weatherability and outdoor durability of all powder systems in the US and will benefit from use in the construction and industrial machinery markets where these properties are highly valued.

The motor vehicle market will provide the strongest gains through 2013 based mostly on an expected rebound in motor vehicle output following the significant declines of the 2003-2008 period. Product developments that will allow for greater use of powder coatings in exterior body applications will also offer opportunities for growth in this market. On the other hand, demand in appliances and

housewares will be restrained by market maturity, as well as continued declines in appliance shipments, which reflect the inroads that imports have made in both small and major household appliances. The furniture market will benefit from an improving outlook for furniture production, as well as the development of powder coatings that can be used on wood and plastic substrates.

Study coverage

Powder Coatings is a new Freedonia industry study presents historical demand data (1998, 2003 and 2008) plus forecasts for 2013 and 2018 for both thermosets and thermoplastics by market. All data on powder coatings are reported in pounds and in current US dollars. In addition, this study assesses key market environment factors, evaluates company market share and profiles 34 participants in the US industry.

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