Coat Equipment Market Size, Share & COVID-19 Impact Analysis, By Coating Type (Powder Coating Equipment, Liquid Coating Equipment, and Specialty Coating Equipment), By End-User (Automotive, Medical, Aerospace, Building and Construction, and Others), and Regional Forecast, 2023-2030

The global coat equipment market size was valued at USD 18.22 billion in 2022 and is projected to grow from USD 18.78 billion in 2023 to USD 27.63 billion by 2030, exhibiting a CAGR of 5.7% during the forecast period. The Asia Pacific dominated the coat equipment market with a share of 37.93% in 2022.

Coating equipment comprises industrial machinery designed to apply coatings onto surfaces. These coatings encompass paints, varnishes, powders, liquids, and other protective or decorative substances. Various industries utilize this equipment, including automotive, aerospace, construction, electronics, furniture, packaging, among others, as coatings protect them from rust, decay, and corrosion, extending their lifespan and reducing maintenance and replacement costs.

Coatings play a crucial role in protecting the surfaces of electric cars against rust, enhancing their appearance and quality. Moreover, the increasing demand from end-users across various industries, including the Electric Vehicle (EV) sector, is another significant factor driving market growth.

Furthermore, governments worldwide are introducing various initiatives to promote electric vehicles. These initiatives encompass subsidies for installing charging stations and budget allocations to enhance electric battery production, addressing climate change issues. These factors are expected to propel the growth of the coating equipment market.

COVID-19 IMPACT

Halted Manufacturing Activities Restricted Market Growth during COVID-19

The COVID-19 pandemic severely disrupted the supply chain network and reduced demand for industrial products, significantly impacting market growth. However, the demand for products from the pharmaceutical industry increased, supporting the market's growth. The heightened sales of hygiene products worldwide during this period also accelerated market growth. Nevertheless, the pandemic adversely affected end-user industries such as footwear and foam.

Moreover, it resulted in the suspension of operations in a majority of production plants for several months due to lockdowns in various parts of the world aimed at preventing the spread of the COVID-19 virus. Demand for coat equipment in the aerospace and automotive industries declined due to reduced travel, as many individuals spent more time at home due to the pandemic. The decline in the export and import of vehicles and electronics further constrained market growth. For example, according to the information portal Marlines, car sales in China decreased by 10% in 2021 compared to 2020. The electronics and aerospace sectors also reported a decline in retail sales and disruptions in their supply chains, significantly affecting global market growth.

LATEST TRENDS

Technological Advancements in Equipment to Bolster Market Growth

Major players such as Axalta Coating Systems Ltd., Anest Iwata Corporation, Nordson Corporation, and IHI Corporation are actively engaged in providing technologically advanced coat equipment for various industries, including the automotive, transportation, and aerospace sectors. Key market trends include the integration of automation and Industry 4.0, the introduction of eco-friendly and high-performance coating solutions, and the implementation of Augmented Reality and Virtual Reality. Additionally, significant investments in research and development programs are contributing to the advancements in the market.

• For example, in November 2022, J. Wagner GmbH introduced the new FlexControl Smart coating equipment, featuring an advanced control system for powder coating equipment. The equipment is equipped with Internet of Things (IoT) technology and a robot control system. It offers several benefits such as an adaptive injection system, electronic control machine, ease of use, and quick start.

Moreover, major market players have expanded their production facilities to meet the increasing demand for coat equipment and enhance their market share. These factors represent the latest trends in the global market.

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DRIVING FACTORS

Rising Product Demand from Automotive Sector to Drive Market Growth

Electric vehicles represent one of the significant users of surface equipment. Coatings provide crucial protection to Electric Vehicle (EV) platforms and their components, safeguarding them from rust and other forms of damage. Moreover, coatings play a pivotal role in enhancing the aesthetic qualities of EVs. The escalating use of coatings on electric vehicles and electronic equipment is expected to drive the demand for coat equipment. Additionally, governments are actively promoting electric cars by subsidizing their purchase, encouraging the development of charging stations, and allocating funds for advancements in electric battery technology, aiming to address climate change issues. They are also setting targets for the deployment of electric vehicles and charging stations. Furthermore, the development of key technologies for electric cars leads to significant cost savings.

Moreover, the growth in the global automotive and electric vehicle sectors will subsequently drive the market's expansion. For instance, according to the World Motor Vehicle Production survey, electric motor sales in Europe experienced a 5.7% growth in 2022 compared to 2021. This factor is expected to propel the growth of the electric vehicle industry and consequently increase the demand for coat equipment. All the aforementioned factors are poised to boost the growth of the global market.

RESTRAINING FACTORS

Presence of Low-Cost Substitutes to Restraint Market Growth

Alternative methods of achieving similar results, such as different surface treatments or types of coatings, can have a negative impact on the demand for traditional coat equipment. If these substitute technologies offer the same performance at a lower cost or with greater environmental benefits, they might impede the sales of coating machines. Equipment cost is a significant factor when considering the choice of coatings and application processes. Alternatives such as brushes and rollers are less expensive and, in some applications, outperform other equipment.

Therefore, the availability of low-cost alternatives may limit market development in certain applications. Moreover, high investment costs could restrict market growth. Additionally, the availability of low-cost products for specific applications and the introduction of affordable alternatives will facilitate their penetration into various end-user industries. These key factors are expected to constrain coat equipment market growth.

SEGMENTATION

By Coating Type Analysis

Powder Coating Equipment to Dominate Market Owing to Rising Demand in Medical and Construction Sectors

Based on coating type, the market is segmented into powder coating equipment, liquid coating equipment, and specialty coating equipment. The powder coating equipment segment is anticipated to dominate the market. The reason behind this segment’s dominance is its effective coating of products with properties such as prevention of abrasion, corrosion, de-icing, and heat resistance. Additionally, this technique generates less waste, driving the market's growth.

The specialty coating equipment segment is projected to record the highest CAGR during the forecast period owing to the increasing adoption of physical vapor deposition technology across the automotive, aerospace, and defense sectors. Such factors are expected to maintain the growth of this segment.

The liquid coating segment is predicted to record moderate growth during the forecast period owing to its affordability compared to other products. Additionally, this product is increasingly used in the construction sector and painting applications. These factors are expected to increase the global coating equipment market share.

By End-User Analysis

Automotive to Lead Market Owing to Increasing Product Demand in Electric Vehicle Industry

Based on end user, the market is segmented into automotive, medical, building & construction, aerospace, and others. The automotive industry is dominating the market and is projected to register the highest CAGR during the forecast period due to the rising manufacturing of automotive products and increasing demand for powder coating in painting applications.

The medical and aerospace segments are projected to display moderate growth during the forecast period due to factors such as the rising disposable income of end users, growth in the adoption of medical devices, and rapid urbanization. For instance, according to the RBSA Advisors Report, the Indian healthcare sector is projected to record a CAGR of 39% and reach up to USD 50 billion by 2033.

The building & construction segment is also projected to exhibit moderate growth during the forecast period owing to factors such as rising per capita income, high standards of living, and rapid industrialization across the globe. Additionally, powder coating and liquid coating equipment are widely adopted in the construction sector, driving the expansion of the global market.

The others segment consists of the oil & gas, electrical & electronics, and agriculture sectors. This segment is expected to register moderate growth during the forecast period owing to increased energy and food consumption across the globe.

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REGIONAL INSIGHTS

The market report offers an in-depth analysis of five main regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South America.

Asia Pacific is projected to dominate the market with the largest coat equipment market share over the forecast period due to the growing construction sector and infrastructure development. The demand for automobiles is also significantly high in the region. For instance, automobile sales in India increased by 35.9% from 2021 to 2022. Moreover, factors such as strong population growth, industrialization, and the demand for more efficient coatings will drive regional market progress.

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China to Witness Fastest Growth owing to Increasing Product Demand from Automotive and Aerospace Sectors

China is one of the most significant countries for coat equipment in the Asia Pacific. Factors such as rising disposable income of the population, high population growth, an increase in the standard of living, and growing demand for coatings with better efficiency are important contributors to the market growth in the country. The growth of the automotive sector, increasing product demand from the building & construction sectors, and sales of advanced coat equipment to end-user industries across China drives market's growth.

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North America is projected to record commendable growth during the forecast period owing to the presence of key players, technological advancements, growing purchasing power, stable economic growth, and rising demand for coat equipment among various industry verticals such as aerospace, automotive, medical, and construction sectors. Moreover, government investments in industrial development are supplementing the market growth in North America.

Europe is anticipated to register significant growth during the forecast period owing to strong economic growth, rapid urbanization, and government safety regulations on environmentally friendly paints used in the marine, automotive, and agriculture sectors. Additionally, the increasing construction of new buildings and renovation in Germany, France, and the U.K., among others, will stimulate the demand for coating machines from end-users in Europe.

The Middle East & Africa and South America markets are projected to grow steadily due to rising technological advancements in these machines, demand for eco-friendly coatings, and robust expansion of industrial infrastructure projects in Qatar, Dubai, Saudi Arabia, Brazil, and Argentina. Additionally, growth in the construction, oil & gas, manufacturing, and automotive sectors will supplement the growth of the regional market.

KEY INDUSTRY PLAYERS

Major Players Are Focusing on Formulating Strategies to Strengthen Market Competition

Market players such as IHI Corporation, Carlisle Companies, Axalta Coating Systems Ltd., CVD Equipment Corporation, and Nordson Corporation, among others, are engaged in executing key growth strategies such as product launches, acquisitions, and partnerships. These initiatives will help the companies increase their product portfolios and improve their overall market presence. For instance, in January 2023, Graco Inc. planned to invest in its manufacturing facility in San Antonio, Texas. The investment was made to expand the production capacity of these systems to cater to the automotive, aerospace, and medical sectors. These factors will drive the growth of the market.

List of Key Companies Profiled:

• Anest Iwata Corporation (Japan)


• Axalta Coating Systems Ltd. (U.S.)


• Carlisle Companies (U.S.)


• CVD Equipment Corporation (U.S.)


• Graco Inc. (U.S.)


• IHI Corporation (Japan)


• J. Wagner GmbH (Germany)


• Miba AG (Austria)


• Nordson Corporation (U.S.)


• OC Oerlikon Management AG (Switzerland)

KEY INDUSTRY DEVELOPMENTS:

• July 2023: Austria-based Miba AG planned to invest USD 17.6 million in opening a new manufacturing facility in South-Eastern Styria. The aim of the expansion was to double the production area from 3,000 square meters to 6,300 square meters. Also, the manufacturing facility was built to improve the production of coating systems and related equipment.


• May 2023: Sames Kremlin launched a new electrostatic spray gun named Nanogun Airmix Xcite for automotive and wood coating applications. It claims to deliver excellent performance during operation and is available in 3 pressure ranges: 120, 200, and 400 bar.


• April 2023: J. Wagner GmbH introduced the PEA-X1, an advanced automatic powder gun integrated with a robot-based system. The key features of this innovative product include automatic control, high efficiency, superior coating quality, flexibility, user-friendly design, and cost-effectiveness in maintenance.


• March 2023: Carlisle Fluid Technologies, a subsidiary of Carlisle Companies, introduced a new range of diaphragm pumps named Binks DX200 pumps. These pumps are used for high-pressure fluid operation during coating and are expected to be widely adopted in the automotive, aerospace, and construction sectors.


• August 2022: PPG Industries Inc. acquired Germany-based Karl Worwag Lack Und Farbenfabrik GmbH & Co. Kg, a company dealing in industrial coatings. The acquisition was made to improve the company’s product portfolio and supply chain network.

REPORT COVERAGE

The market research report offers an in-depth analysis of the leading coating type and end-user. It provides information about key players in the market and their business overview, product offerings, investments (R&D and expansions), revenue analysis, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, trends analysis, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the above mentioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

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