The Global Electrocoating market is estimated to reach USD 6.4 billion in 2030, growing at a CAGR of 4.9 % from 2022 to 2030. It was valued at USD 4.2 billion in 2022.
Rising demand for electrocoating from various industries such as automotive and electronic appliances is expected to foster the growth of the global e-coat market over the forecast period, and Technological improvement, increasing agricultural equipment industry, and including applications in the marine and mid-stream industry are likely to deliver opportunities during the forecast period.
Electrocoating (E-coat), also understood as electrocoating, is a method of painting that uses electricity to reduce the paint emulsion on the part of the material. The e-coat shows different advantages over other types of coatings. The first and foremost benefit is the uniform coating of the surfaces—also, e-coat application results in less solid waste production than other coating processes, like electrocoating plays an important role in the automotive sector. The rise in demand for the automotive sector contributes to the increasing demand for the electrocoating market during the forecast period.
The coating industry has concentrated on manufacturing environmentally friendly materials and coatings over the past two decades. It results from more stringent environmental rules and policies of governments across the globe following VOC emissions reduction from coatings. The US and European governments are mainly concerned about air pollution and forming regulations toward less or zero toxic emissions. These regulations for reducing air pollution are expected to play a major role in enhancing the demand for electrocoating.
Owing to very rare or no HAP or VOC emissions during the electrocoating approach, many product manufacturers have shifted to e-coats for their applications. It also assists in product recycling and less hazardous waste generation during recycling, thus meeting the Resource Conservation and Recovery Act (RCRA). It will play an important role in enhancing the application areas of electrocoating and further boosting their market.
The agricultural equipment market is discovering increased demand due to improvements in technology and IoT integration. Due to the increasing market from the agricultural sector and government support for agricultural applications, the market is witnessing increased demand. The agricultural equipment is exposed to moisture and dry environments alternatively, making them lose their resistance to corrosion and wear and tear. It should be provided with Coatings with excellent corrosion resistance and heat dissipation materials to prolong their useful lifespan. E-coats with proven properties of corrosion resistance suit the application well. With increasing sales of agricultural equipment, parts, and accessories, the demand for electrocoating is expected to increase.
In terms of new players entering the electrocoating market, the more increased capital cost implicated in setting up the factories and space limitations to the new entrants or existing players from putting up new production lines. Though coating the entire automobile body within a limited time seems viable, the existing capital costs for the technology restrains many companies from embracing the technology, as there are chances of not operating their production lines daily to meet the demand. On the other hand, some manufacturers install their equipment when its price decreases; subsequently, their production volumes explain the savings from outsourcing the e-coat service.
Before the pandemic period, Growing demand from the automotive industry is the major aspect driving the growth of the global Electrocoating market. The automotive industry application has seen high demand for color customization in the past few years. The availability of electrocoating in a wide range of colors and glosses results in spiked adoption of e-coat in the automotive industry. Furthermore, acceptance of environmental regulation resulted in the adoption of e-coat by various end-use industries and increased the growth before the pandemic.
During the pandemic period, Due to the pandemic, the electrocoating market is expected to witness relatively slow growth in 2021. To control the covid-19 virus, companies have shut down their operations and manufacturing facilities across nations. It has led to a decrease in the production capacities of electrocoating. End-use such as automotive, heavy-duty equipment, appliances, and others have halted production activities. Various automobile manufacturers, including Volkswagen, BMW, and Ford, have witnessed a decrease in their market shares due to the crash of the pandemic on the global economy, which has led to a sharp decline in electrocoating in the automotive industry.
After the covid-19 period, the rapid pace of construction and infrastructure development is one of the key factors fueling the demand for electrocoating. Consequently, the renovation and remodeling of houses and buildings boost the electronic coat market. Apart from this, technological innovation and development associated with e-coat, such as the DOE matrix, are key elements fueling the growth of the global Electrocoating market.
Based on type, the global electrocoating market is segmented into Cathodic Epoxy, Cathodic Acrylic and Anodic. Cathodic epoxy electrocoating has the largest market share in value and volume. Cathodic epoxy electrocoating provides excellent corrosion resistance. It is especially used in the automotive industry as it provides superior salt spray, humidity, and cyclic corrosion resistance. However, the cathodic epoxy technology generally requires a topcoat protected from sunlight. It can be prepared to protect sharp edges and welds without pulling back or exposing the metal underneath. These coatings exhibit excellent throw power, making them a great choice for complex ware packages or parts with cavities or hidden areas that need a coating.
Based on application, the global electrocoating market is segmented into Passengers Cars, Commercial Vehicles, Automotive Parts & Accessories, Heavy-Duty Equipment, Appliances and others. The passenger cars segment is anticipated to catch the highest growth rate, propelled by increasing vehicle adoption across the globe. The emerging vehicle financing market has enabled the passenger cars industry to deliver loans on the vehicle to their customers. Owning a passenger car is usually a status symbol in many developing countries, but nowadays, they are being bought by middle-class families. As income level increases in developing countries, the demand for passenger cars will also continue to rise, pushing the market revenue during the forecast period.
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Based on region, the global electrocoating market is segmented into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. The Asia Pacific carried the largest market share in the electrocoating market. Healthy growth is likely to be witnessed for electrocoating in the Asia Pacific region, especially in China, India, and South-East Asian countries. Rapid industrialization, an evolution in the manufacturing bases of end-use industries, and an expansion in the number of applications are some of the major drivers responsible for the growth of the electrocoating market. Large end-user applications such as passenger cars and commercial vehicles, coupled with increasing demand in the Asia Pacific region, are expected further to increase the demand for electrocoating during the forecast period. Factors such as the massive and increasing population base and the change in manufacturing units from North America and Europe to the Asia Pacific push the electrocoating market in the Asia Pacific region.
The companies include BASF SE, Henkel AG & Co. KGaA, PPG Industries Inc., Dymax Corporation, Axalta Coating Systems LLC, B.L. Downey Company, Nippon Paint Holdings Co. Ltd., KCC Corporation, Kansai Paint Holdings Co. Ltd. and other prominent players in the global electrocoating market.
Key Stakeholders
| Report Attribute | Details |
|---|---|
| Revenue in 2021 | USD 3.9 billion |
| The revenue forecast in 2028 | USD 8.1 billion |
| Growth rate | CAGR of 4.6% from 2022 to 2028. |
| Historical data | 2017 – 2020 |
| Base Year | 2021 |
| Forecast period | 2022 – 2028 |
| Region covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Key companies Profiled | BASF SE, Henkel AG & Co. KGaA, PPG Industries Inc., Dymax Corporation, Axalta Coating Systems LLC, B.L. Downey Company, Nippon Paint Holdings Co. Ltd., KCC Corporation and Kansai Paint Holdings Co. Ltd. are the key players. |
By Type
By Application
By Region
The Global Electrocoating market is estimated to reach USD 6.4 billion in 2030, growing at a CAGR of 4.9 % from 2022 to 2030. It was valued at USD 4.2 billion in 2022.
Electrocoating (E-coat), also understood as electrocoating, is a method of painting that uses electricity to reduce the paint emulsion on the part of the material. The e-coat shows different advantages over other types of coatings.
Rising demand for electrocoating from various industries such as automotive and electronic appliances is expected to foster the growth of the global e-coat market over the forecast period, and Technological improvement, increasing agricultural equipment industry, and including applications in the marine and mid-stream industry are likely to deliver opportunities during the forecast period.
In terms of new players entering the electrocoating market, the more increased capital cost implicated in setting up the factories and space limitations to the new entrants or existing players from putting up new production lines. Though coating the entire automobile body within a limited time seems viable, the existing capital costs for the technology restrain many companies.
BASF SE, Henkel AG & Co. KGaA, PPG Industries Inc., Dymax Corporation, Axalta Coating Systems LLC, B.L. Downey Company, Nippon Paint Holdings Co. Ltd., KCC Corporation and Kansai Paint Holdings Co. Ltd. are the key players.
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