Overall Industry Trends
Differentiated Development: In 2023, the industrial coatings market in China showed a trend of both growth and decline. Segments such as marine coatings, wind power coatings, and powder coatings expanded steadily, supported by policies and increasing demand. In contrast, 3C coatings, container coatings, and construction machinery coatings faced declines due to weak market demand.
Output and Market Size
Output: In 2023, the output of industrial coatings in China reached 20.70 million tons, showing a significant increase compared to previous years.
Market Size: In 2023, the market size of industrial coatings in China was approximately 283.78 billion yuan, with some reports indicating 301.6 billion yuan.
Performance of Sub-sectors
Marine Coatings: In 2023, with the overall growth of China's shipbuilding industry, including significant increases in shipbuilding completions, new orders, and order backlogs, the market demand for marine coatings rose sharply.
Wind Power Coatings: In 2023, China's newly installed wind power capacity reached 75.9 GW, a record high. As an important supporting material for wind power equipment, the demand for wind power coatings increased significantly.
Powder Coatings: Driven by environmental policies, powder coatings continued to grow rapidly in 2023. Due to the deepening trend of "converting paint to powder", the application of powder coatings gradually expanded in new energy vehicles, energy storage equipment and other fields, with an output growth of 8%.
Rail Transit Coatings: The continuous expansion of rail transit equipment also drove the growth of the rail transit coatings industry. In 2023, 3,637 kilometers of new railway lines were put into operation nationwide, including 2,776 kilometers of high-speed railway new lines.
Aerospace Coatings: The aerospace coatings industry achieved breakthrough growth relying on the delivery of the domestic C919 large aircraft.
3C Coatings: Affected by the continuous decline in shipments of smartphones and personal computers, the market demand for 3C coatings was generally weak in 2023.
Container Coatings: In 2023, container production decreased by more than 50% year-on-year, and the market scale of container coatings shrank by 63.79% year-on-year, leaving only a market scale of 2.1 billion yuan.
Construction Machinery Coatings: The construction machinery coatings industry is also facing cyclical downward pressure. As construction machinery sales decreased by 28.21% year-on-year, the demand in the coatings market shrank simultaneously.
Performance of Key Enterprises
PPG: In 2023, PPG achieved record sales globally, with sales revenue of $182.46 billion, an increase of 3% year-on-year, and global industrial coatings revenue of $70.82 billion. It is estimated that the sales of PPG's industrial coatings in China in 2023 were close to 10 billion yuan.
Jotun: In 2023, Jotun's total sales revenue in China was 6.47 billion yuan, an increase of 10.28% year-on-year. Its industrial coatings sales revenue was approximately 6.3 billion yuan, when counting protective coatings, marine coatings, and powder coatings as industrial coatings.
Nippon Paint China: In 2023, Nippon Paint China achieved sales of 24.256 billion yuan, an increase of 7.1% year-on-year. Among them, the industrial coatings business segment included automotive coatings, industrial coatings, and other coatings businesses, with automotive coatings revenue of approximately 2.53 billion yuan and industrial coatings revenue of approximately 1.11 billion yuan.
Market Scale
Steady Growth12: As the global economy recovers and manufacturing upgrades, the demand for industrial coatings in China will keep rising, especially in industries like automobiles, ships, new energy, transportation equipment, and electronics. China, being the world's largest producer and consumer of coatings, will see its industrial paint market continue to expand. It's estimated that the market penetration rate will grow at 5% annually in the next five years, and the market size could reach 4.238 trillion yuan in 2027.
Technological Trends
Innovative Technologies2: The industry will focus on developing high-performance, high-value-added products. For example, the application of nanotechnology in coatings can enhance their weather resistance, stain resistance, and antibacterial properties. With the promotion of intelligent manufacturing and green development, the industry will accelerate its transformation towards intelligence and greenness. New technologies such as artificial intelligence and big data will be introduced to automate, intelligentize, and refine the coating production process, improving production efficiency and product quality.
Product Characteristics
Environmentally Friendly and Functional12: Due to increasing environmental requirements, the industry is moving towards high-performance, environmentally friendly, and functional development. Environmentally friendly coatings such as waterborne coatings and powder coatings will gradually replace traditional solvent-based coatings to reduce environmental pollution. Meanwhile, developing coatings with special functions to meet the needs of specific industrial fields is an important trend. For instance, in 2023, green industrial coatings in China accounted for 36% of total industrial coatings and are expected to increase.
Competitive Landscape
Increased Localization12: With the acceleration of technological innovation and industrial upgrading, domestic coating enterprises are strong in R&D, product quality, and market expansion. In the future, they will further replace imported products and increase their market share with the advantages of cost-effectiveness, customized services, and quick response to market demands. The localization process of China's industrial coatings will accelerate, and there is huge room for improvement.
Industry Concentration
Increased Concentration1: China's industrial paint industry is currently in a crucial stage of accelerated integration. The market position of leading brands will be further consolidated, while small and medium-sized enterprises will face more challenges. It is expected that the industry concentration will increase in the future.
Demand Drivers
Infrastructure and Urbanization: China's continuous urbanization and infrastructure development, such as the Belt and Road Initiative, will boost the demand for industrial coatings in transportation, energy, and other key industries. For example, infrastructure projects like high-speed railways, bridges, and ports will drive the demand for anti-corrosion and protective coatings.