Global Electrocoating (E-Coat) Market - Segmented by Type, Technology, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The Electrocoating market is expected to witness a CAGR of 5.58% during 2018 to 2023 (the forecast period). Currently, the automotive sector is the largest consumer of electrocoating technology, with increasing demand from the growing automotive sector in developing countries. In Asia-Pacific and the Middle East, the demand for e-coat products is increasing, due to rapid urbanization.
Growing Automotive Sector in Developing Countries
The automotive sector is the largest consumer of electrocoating technology, and the growing automotive sector in developing nations highly contributes to the market growth. High demand for e-coating in the automotive sector is mainly driven by the growing production of passenger cars and commercial vehicles. The market for e-coating is influenced by end-user industries’ awareness about the need for corrosion-free, smooth finish, wide compatibility with other coatings (liquid and powder), applicability on all types of substrates, such as steel, aluminum, electro-galvanized, galvanized, zinc, iron, etc., and the level of protection that can be achieved through this technology. The automotive manufacturers promote the trend of color customization in vehicles, especially in passenger cars. The increasing purchasing power in developing countries, economic growth, growing infrastructure projects supported by respective governments, and the need for automobiles add to the high demand for e-coating.
Cathodic Type to Possess the Higher Share
Cathodic type coatings offer high chemical and corrosion resistance, and are mostly used in automotive and appliance industries. These type of coatings are generally preferred for the complex ware packages, or parts with cavities or hidden portions that need coating. Their availability in a wide range of color and gloss, make them an ideal choice for exterior one-coat final finishes. All the automakers employ cathodic epoxy e-coating for under the hood applications, and as a prime coat. These coatings are used, when there is a requirement for UV durability and corrosion resistance, on ferrous substrates.
Asia-Pacific to Dominate the Market
The increasing population in Asia-Pacific, and the need for automobiles (passenger cars, commercial vehicles, heavy-duty equipment, such as agricultural and construction equipment, military, and aerospace), followed by appliances, decorative & hardware, fasteners, HVAC, steel strapping, general finishing, and other bulk products, are anticipated to increase the global consumption of e-coating. Asia-Pacific leads the e-coating market, with a share of 44% of the global market, followed by Western Europe (21%), North America (20%), and Rest of the World (12%).
In Asia-Pacific, especially, in China and India, the agriculture sector has made progress in the past few decades. With technology meeting the requirements of the farmers in the region, agricultural equipment manufacturers are looking forward to supplying their equipment to these countries.
Key Developments in the market