The UV-cured coatings market is expected to grow at a CAGR of above 7.45% during the forecast period of 2019 - 2024.
The major factors driving the growth of market studied are the rising automotive production in Asia-Pacific and Europe, and the increasing demand for wood finishing. On the flipside, the high initial costs of equipment, and difficulty in finishing complex 3D objects are some of the restraints which hinders the growth of the studied market.
Epoxy-based UV-cured coating segment dominated the market in 2018 and is likely to grow during the forecast period, owing to its superior mechanical and chemical properties which makes it widely popular for automotive and industrial applications.
The increasing potential uses in electrical & electronics industry is likely to provide opportunities for the studied market during the forecast period.
Asia-Pacific dominated the market across the globe, with significant demand for UV-curable coatings in China and Japan.
Key Market Trends
Automotive Segment to Dominate the Market Demand
UV-cured coatings demand has been extensively increasing in the automotive industry. The UV-cured coatings, owing to its vastly superior physical durability is highly suitable for application in the automotive industry.
These coatings are used in various parts of the vehicles, such as forward lightings, exterior plastic parts, and sheet molding compound (SMC) body panels. Besides, UV-cured clearcoats are also used in the automotive industry.
Thus, the growth in automotive industry, and innovation & development in the field of automotive coatings are expected to drive the demand for UV-cured coatings for automotive applications.
Though the automotive production witnessed decline in 2018 by 1.1%, factors such as increasing investments into the sector to increase production, continuous efforts of the automakers to develop & launch new cars, and efforts towards development & promotion of electric vehicles of the industry are likely to drive the growth of automotive industry.
Asia-Pacific is already witnessing numerous investments by the global automakers, like BMW, Hyundai Motors, and Honda into the automotive industry to increase production, and cater to the increasing automotive demand of the masses in the region.
Therefore, such market trends, innovations & development, and investments into the automotive industry is likely to increase the demand for UV-cured coatings market in the coming years.
Asia-Pacific Region to Dominate the Market
Asia-Pacific region dominated the global market share in 2018 due to the increasing demand from industries, such as automotive, aerospace, etc.
China and Japan are the main consumers of UV-cured coatings. At present, the Indian market has very small consumption of UV-cured coatings, but is expected to catch pace significantly.
Besides, countries, such as South Korea and Taiwan, have small consumption levels but have high production.
The increasing regulations from the authorities in the region to promote eco-friendly products is expected to lead to further innovation and developments in the industry.
China stands to be the world's largest automotive producer. However, in 2018, the country witnessed about 4.16% decline in the production of vehicles. The performance of the automotive industry was affected by the economic shifts and China's trade war with the United States.
However, China is majorly focusing on increasing the production and sale of electric vehicles in the country. For this purpose, the country has planned to increase the production of electric vehicles (EVs) to 2 million a year by 2020, and 7 million a year by 2025. Such trend is expected to drive the growth of automotive industry in the country during the forecast period.
Besides, China has one of the fastest growing aviation industries in the world with a consistent increase in passenger traffic at about 6.6% per year. Owing to this, the country have planned construction of numerous airports in the next 5 years, which is further expected to increase the demand for commercial jets. With this, the demand for UV-cured coatings for application in jets is also expected to increase in the country.
Similarly, Indian government has planned to construct about 100 airports in the country by 2032, which is further likely to increase demand for commercial jets.
Japan is one of the largest producer of aircrafts. Japan is into manufacturing the F-35A next-generation fighter jet and other military aircrafts and strengthening the foundation of the aerospace manufacturing in the country. The production of commercial aircraft is increasing from last couple of years, owing to the increasing cargo demands.
Besides, countries, such as India, Indonesia, Malaysia, and Thailand have been witnessing noticeable increase in automobile production, which further provides opportunity for the UV-curable coating to increase automobile application in such countries.
Hence, all such market trends in the region are expected to drive the demand for UV-cured coatings market in the region during the forecast period.
The UV-cured coatings market is a fragmented market, where numerous players holds insignificant share of the market to affect the market dynamics individually. Some of the noticeable players in the market include AkzoNobel, PPG Industries, Nippon Paints, Dymax Corp., and The Sherwin-Williams Company, amongst others.
Key Topics Covered:
1 INTRODUCTION 1.1 Study Deliverables 1.2 Study Assumptions 1.3 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS 4.1 Drivers 4.1.1 Rising Automotive Production in Asia-Pacific and Europe 4.1.2 Increasing Demand for Wood Finishing 4.2 Restraints 4.2.1 High Initial Costs of Equipment 4.2.2 Difficulty in Finishing Complex 3D Object 4.3 Industry Value-Chain Analysis 4.4 Porters 5 Force Analysis 4.5 Regulatory Policies Analysis