by The global E-Coat Market is estimated to be valued at US$ 3.90 Bn in 2023 and is expected to exhibit a CAGR of 5.5% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
E-coat, also known as electrocoat or electrocoating, is a surface coating technique that uses electrical current to deposit paint onto a part or assembled product. E-coat provides excellent corrosion resistance, is easily repairable, and offers smooth and decorative finish. It is widely used in various end-use industries such as automotive, consumer appliances, heavy duty equipment, etc. for coating of metallic components and parts. E-coat offers superior adhesion properties, edge coverage, and thickness uniformity as compared to conventional spray painting method.
Market key trends:
The global E-coat market is driven by the increasing adoption of eco-friendly coating technologies. E-coat process produces negligible volatile organic compound (VOC) emissions as compared to traditional spray painting. Moreover, it provides a baked-on finish with uniform thickness that has high corrosion and scratch resistance. Owing to these advantages, E-coat is becoming increasingly popular in automotive industry for coating car bodies. Additionally, growing environmental regulations regardingVOC emissions from coating processes is propelling the demand for low emission coating technologies such as E-coat. Manufacturers are also focusing on development of advanced waterborne E-coat resins with improved characteristics such as flexibility and damage resistance, which is anticipated to support the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The e-coat market requires huge capital investments setting up new facilities and procuring specialized equipment, acting as a barrier for new entrants.
Bargaining power of buyers: The presence of numerous established players in the market gives buyers alternative options to choose from, increasing their bargaining power.
Bargaining power of suppliers: Specialized raw materials and equipment needed in e-coat processes limits the number of suppliers, increasing their bargaining power over buyers.
Threat of new substitutes: Emerging substitutes like powder coatings pose a moderate threat as e-coats have established application areas and performance advantages.
Competitive rivalry: The global e-coat market is a highly competitive space, characterized by rivalry between major players.
Key Takeaways
The global e-coat market size is expected to reach US$ 5.90 Bn by 2030, expanding at a CAGR of 5.5% during the forecast period. Surging demand from automotive, appliance, heavy duty equipment and other metal finishing industries is driving the market.
Regionally, Asia Pacific dominated the global market in 2023 with a share of over 35%, led by China, Japan and India. Abundant availability of raw materials, low labor costs and presence of numerous automotive and electronics OEMs have boosted adoption. North America is another major consumer owing to strong automotive sector in U.S. and Canada.
Key players operating in the e-coat market are PPG Industries, Inc., Akzo Nobel N.V, NIPSEA Group, BASF SE, Axalta Coating Systems, Chugoku Marine Paints Ltd, The Valspar Corporation, and The Sherwin-Williams Company. These companies account for over 50% of the global market. They have implemented strategies like capacity expansion, M&A and new product launches to strengthen their positions.
