Powder Coatings
Demand to grow
7.5 percent annually
Demand for powder coatings in the
US is forecast to grow 7.5 percent
per annum to 525 million pounds
in 2005.
Powder coatings offer significant
environmental benefits compared
to their conventional solvent-based
counterparts, particularly in the
area of volatile organic compound
(VOC) emissions which, combined
with their excellent adhesion and
favorable performance in both
interior and exterior applications,
will promote ongoing displacement
of non-compliant coatings. Also,
while powders will continue to find
the majority of their use on metal
substrates, suppliers are rapidly
expanding the functional range of
powders into non-metal substrates,
such as wood and plastics, opening
new applications to these coatings.
Despite the favorable outlook, the
US powder coating market faces
a number of challenges through
2005, including a slowing US
economy and intense functional
competition from other types of en-vironmentally
compliant coatings,
such as water-based formulations.
Also, uncoated plastics are dis-placing
coated metal parts in many
key markets, thus reducing the
potential market base for powders.
Thermosets vs.
Thermoplastics
The powder coating industry en-compasses
two major segments:
thermosets and thermoplastics.
Thermosets will continue to
dominate the industry due to their
lower pricing structure, although
thermoplastics exceed thermosets
in certain performance characteris-tics.
Less expensive polyester,
polyurethane and acrylic powder
coatings, which exhibit good
weatherability, will continue to
find favorable opportunities in
exterior applications. Arising from
a small base, silicone powder
coatings are expected to experience
favorable growth where high heat
resistance is required.
Durable good
markets dominate
Powders will continue to find the
bulk of their uses in durable good
markets. Motor vehicle markets
continue to offer excellent long
term prospects for powders as
suppliers parlay the strong com-petitive
position held by powders
in engine and mechanical compo-nents
into new applications in
exterior primer and clearcoats.
Although a relatively mature
market, powders are experiencing
expanded opportunities in the
furniture market due to the de-velopment
of low temperature and
UV-cured powders that can be used
on wood substrates. Continued
improvements of these products
will further expand applications
into other heat sensitive substrates
New US Industry Study
forecasts to 2005 & 2010
such as plastics, which would help
to provide favorable opportunities
in the furniture, sporting goods
and lawn and garden equipment
markets. The construction market
(e.g., aluminum extrusions and
window and door frames) is also
providing favorable opportunities
for certain powders, due to
improvements in weatherability
and durability.
Study Coverage
Powder Coatings, a new Freedonia
study available for $3700, provides
historical data as well as forecasts
to 2005 and 2010 in pounds for the
major products and markets of this
US industry. Current dollar pro-jections
are also included for major
powder coating products. In addi-tion,
market share is provided for
leading suppliers, along with com-pany
profiles of key US players.
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