Increased Demand for Electrocoating / E-coat from Automotive & Transportation End-Use Industry to Drive the Growth of the Market?

Increased demand for electrocoating from automotive & transportation end-use industry to drive the growth of the market

Electrocoating is a process used for depositing an organic paint film by means of an electrical charge. In this process, the part is immersed in an electrified tank, and the reaction between the electricity and the solution causes the paint to deposit on the substrate. Although this process is used in different applications, it is mostly known for its application in the automotive industry as a primer coat for automotive bodies. It provides a more uniform texture to the car body than conventional priming systems do and has become the most widely used priming process in the automotive industry.

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Browse?257 market data Tables and?47 Figures spread through?237 Pages and in-depth TOC on "Electrocoating Market by Type (Cathodic Epoxy, Cathodic Acrylic, Anodic), Application (Passenger Cars, Commercial Vehicles, Automotive Parts & Accessories, Heavy-Duty Equipment, Appliances) and Region - Global Forecast"

The major drivers for the electrocoating market include superior performance and better properties of electrocoating in the market, green environmental regulations concerning the product, the least expensive coating, growth in the end-use industries such as appliances, automotive, construction, and furniture, and technological advancements. Only the high capital cost of equipment can restrain the market from growing. Some of the opportunities for manufacturers include growing application in the automotive industry in emerging economies such as China and India and booming agricultural equipment, shipbuilding, and pipeline industries. The major challenges faced by the manufacturers is that different colors require different processing tanks, and changing the tanks is time-consuming coupled with bottlenecks in supply chain due to Covid-19. However, the demand for electrocoating would show recovery with the recovery in demand from end-use industries. The global electrocoating market size is projected to grow from USD 3.9 billion in 2021 to USD 5.0 billion by 2026, at a CAGR of 4.7% during the forecast period.

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Companies operating in the electrocoating market have strengthened their position by adopting expansions, partnerships, agreements, new product/technology launches, joint ventures, contracts, and mergers & acquisitions from 2016-2021. For instance, Axalta Coating Systems launched a new environmentally-responsible, cathodic tin-free electrocoat primer—a new addition to its industrial coatings portfolio in March 2021. AquaECTM 3500 EP has been developed as the next-generation, tin-free electrocoat technology. It is formulated for automotive parts and accessories, agriculture, construction, and earthmoving equipment (ACE), general industry sectors, and industrial job coaters.

PPG Industries, Inc. (US), Axalta Coating Systems, Ltd. (US), BASF SE (Germany), The Sherwin Willaims Company (US), Nippon Paint Holdings Co., Ltd. (Japan), Tatung Fine Chemicals Co., Ltd (Taiwan), KCC Corporation (South Korea), Kansai Paint Co., Ltd (Japan), B.L.Downey Company LLC (US), Hawking Electrotechnology Ltd (England), Therma-Tronx-X, Inc. (US), Parker Trutec, Inc (US) are some of the key players in the electrocoating market.

PPG Industries, Inc. is a global leader in advanced coatings, paints, and specialty materials. The company has two business segments: performance coatings and industrial coatings. It has been pioneering in solutions focused on technology and quality in the industrial market for more than 90 years. PPG is a leader in epoxy and acrylic electrocoat for industrial applications. Its products include black and grey cathodic epoxy electrocoat and PPG POWERCRON 6th Generation products.

The company provides a comprehensive mix of anodic and cathodic electrocoats to various markets. Its products are manufactured globally, supported by local sales and service teams that can provide timely, on-site support. The company is committed to innovation, sustainability, community engagement, and developing leading-edge paint, coatings, and specialty materials technologies. It serves customers in construction, consumer products, industrial, and transportation markets and aftermarkets with manufacturing facilities and equity affiliates in more than 70 countries.

?Axalta Coating Systems, Ltd is one of the largest electrocoat producers globally, supplying e-coat products to most major light vehicles, commercial vehicle original equipment manufacturers, and a wide range of general industrial customers. The company operates under two business segments: performance coatings and transportation coatings. It offers a portfolio of qualified e-coatings formulated to meet unique customer needs with a complete range of the latest generation technologies and a team of technical experts to provide service and support.

Axalta's electrocoats are high-performance products formulated to provide reliable mechanical strength and superior corrosion protection. Each is water-based, and therefore helps support environmental goals, and is formulated to ensure superior performance over various substrates, including hot-rolled steel, cold-rolled steel, galvanized steel, aluminum, and magnesium. It offers a variety of e-coat formulations such as lead-free and tin-free products, low VOC and HAPS-free systems, and formulations with special benefits such as improved edge protection, low-temperature bake capability, and improved throw power. The company has adopted AquaEC as the single name for its entire E-Coat product portfolio.

Recent Developments in E-coat Electrocoating Market

• In March 2021, Axalta Coating Systems launched a new environmentally-responsible, cathodic tin-free electrocoat primer—a new addition to its industrial coatings portfolio. AquaECTM 3500 EP has been developed as the next-generation, tin-free electrocoat technology. It is formulated for automotive parts and accessories, agriculture, construction, and earthmoving equipment (ACE), general industry sectors, and industrial job coaters.
• In August 2021, The Sherwin-Williams Company signed an agreement to acquire the European industrial coatings business of Sika AG. Industrial coatings business is a core competence for Sherwin-Williams. The acquired business is an important strategic opportunity to drive growth and support the expansion of its market position in Europe.

Government regulations regarding use of environment-friendly products to support adoption of electrocoating

The global electrocoating market size is projected to grow from USD 3.9 billion in 2021 to USD 5.0 billion by 2026, at a CAGR of 4.7% during the forecast period. Electrocoating considered in the study is a process in which electrically charged particles are deposited out of a water suspension to coat a conductive part. During the electrocoating process, paint is applied to a part to produce a uniform film thickness that is regulated by the amount of voltage applied. As the name indicates, electrocoating forms a coating film by using electricity. It is far more efficient than spray coating. This is an eco-friendly coating technology that can use approximately 95% or more of the paint used to form a coating film. The paint particles are positively charged. A coating film can be deposited efficiently all over an auto body by charging electricity. The coating efficiency of general spray coating is 40 to 70%.

Developed countries including Germany, the US, and Japan are focusing on increasing the use of environment-friendly products. Regulatory legislation imposed by the EU and other countries such as the US, India, and Japan are expected to increase the use of electrocoating, primarily in the automotive & transportation end-use industry. The EU legislation sets mandatory emission reduction targets for new cars for improvements in fuel economy and the reduction of CO2 emissions. Owing to very less or no HAP or VOC emissions during the electrocoating process, many product manufacturers have moved to e-coats for their applications. This also helps in product recycling and less hazardous waste generation during recycling, thus meeting the Resource Conservation and Recovery Act (RCRA). This will play a major role in improving the application areas of e-coats and further increasing their market in the future.

The US has also imposed stricter Corporate Average Fuel Economy (CAFE) and tailpipe emission standards for the automobile sector. The proposed mandate raised CAFé standards to 39 mpg for passenger cars by 2016 and 54.5 mpg by 2025. China and Japan have also announced vehicle fuel economy regulations. Brazil, India, Mexico, and South Africa are expected to initiate similar measures in the near future. However, the demand for electrocoating witnessed declining trend in last one year due to ongoing crisis of COVID-19. With steady economic recovery, growing demand from end-use industries, the demand for electrocoating will also rise during the forecast period.

Different types of electrocoating include cathodic epoxy, cathodic acrylic and anodic. Cathodic epoxy electrocoating is the most widely used electrocoating across the globe. This is attributed to the high demand from passenger cars, commercial vehicles, automotive parts & accessories, heavy duty equipment, appliances, and other end-use applications.

Asia-Pacific held the largest share in electrocoating market in 2020. This owns to factor as the region consists of countries like China, India, Japan, South Korea, etc. which have well-established automotive sectors which are major users of electrocoating. For instance, as per the 2021 report of the European Automobile Manufacturers Association on global vehicle production from 74 million units, China produced a maximum share of 32% while Japan & Korea produced 16%. Also, as per the International Organization of Motor Vehicle Manufacturing, the global production volume of vehicles increased to 57 million in 2021 from 52 million in 2020, with Asia accounting for 50% of production. Hence, as electrocoating applications are used mostly used in automotive vehicles like in passenger, a commercial for their parts and accessories, so the growing volume of automotive production in Asia-Pacific will increase the demand for electrocoating in the region, thereby positively impacting the growth of electrocoating industry.

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