Trends and opportunities shaping the industrial coatings industry in 2025-26

The global industrial coatings market is expected to grow by 5% between 2023 and 2032.¹

As the largest market for industrial coatings, the Asia-Pacific region is expected to see the highest growth in the next five years.

Industry growth stems from demand across multiple end markets—from transportation to building.² For airplanes, thin coatings allow for weight reduction and in turn, fuel savings.³ In automotive, coatings play an important role in the transition to electric vehicles, used in battery cells, power conversion systems, and electric drive systems.⁴ The building sector is driving demand for wood coatings, for example, for furniture and renovation projects.⁵ Sales for protective coatings are predicted to grow most in North America and India.⁶

All industry sub-segments are balancing improved sustainability with performance and durability requirements. Coatings with heat, UV, and corrosion resistance are maintaining their importance for improving durability.⁷ Powder coatings continue to gain popularity for their high efficiency, low waste, and lack of VOCs and solvents.⁷ High-solids coatings offer rapid curing times and lower VOC emissions.¹ Additionally, one-coat directto- metal systems are gaining popularity for their ability to deliver multiple performance benefits in a single application.⁸ For wood coatings, topics such as indoor air quality, formaldehyde-free products, fire retardants, UV curing systems, and anti-bacteria/antivirus solutions remain important. Technological advancements in UV-curable coatings and water-based formulations are used to lower emissions and provide safer options.⁵ 

Coatings are increasingly offering functional properties that enhance performance.¹ For example, nano coatings used for scratch and corrosion resistance, smart coatings that adjust to temperature and light, and self-healing or self-cleaning coatings. 

New technologies such as robotics and automation are changing formulation, application, and quality control processes.² Robotics and Internet of Things (IoT)-enabled sensors allow for precise application for higher quality and more efficient processes with fewer errors. 

While customers are demanding products that promote sustainability, government regulations are also becoming more stringent, especially in Western Europe, North America, and China. We have already seen a reduction in VOC emissions with the transition to water-based and powder coatings. Now, the industry has turned attention towards eliminating other materials like heavy metals, fluorinated compounds, and microplastics.³

A. Three key megatrends—Healthy Future, Efficiency, and Green & Circular—will drive innovation and influence market strategies across the global industrial coatings industry. We see the growing importance of healthier, safer products and the shift towards sustainable practices and circular solutions. As far as efficiency goes, optimising product performance and controlling costs are top priorities. 

A. In the next two years, formulation trends will focus heavily on a green and circular approach to sustainability, while ensuring economic viability through efficiency and resource optimisation. I believe formulations that reduce waste and use recycled materials will be prioritised, not only to decrease raw material costs but also align with environmental goals. The use of special materials will help increase formulation efficiency, resulting in smarter processes with fewer materials, fewer processing steps, reduced energy consumption, as well as higher efficiency in application. 

A. Over the next two years, sustainability will significantly impact the industrial coatings market by shaping product offerings and driving differentiation. For example, water-based coatings are increasingly displacing solvent-based systems, and sectors like wood coatings and metal coatings show high growth potential. However, those systems still require long-term approvals to match the performance of solvent-based systems. Consumer demand, along with increased regulatory pressures, will drive further investment and development in sustainable solutions.