According to study by The Freedonia Group, powder coatings will continue to achieve gains above the overall paint and coatings market average, taking share from competing products. However, advances in powder coatings market value will continue to be restrained by downward pricing pressure, as overcapacity in the industry persists and the manufacture of durable goods shifts to developing regions, particularly Asia.

Other highlights of the report: thermoset powder coatings (e.g., epoxy, epoxy/polyester hybrid, polyurethane, polyester, acrylic, and silicone) represent the vast majority of the overall powder coatings market, accounting for 91% of demand in 2008. Epoxy is the single-largest product type in the thermoset segment, favored for its excellent corrosion and chemical resistance in interior applications.

Thermoplastic powder coatings (e.g., polyvinyl chloride, nylon, fluoropolymer, polyolefin, and ethylene acrylic acid copolymer) account for the remainder of demand. Polyvinyl chloride is the largest product type in the thermoplastic segment, benefitting from its position as the lowest-cost powder coating on the market. Nylon powder coatings exhibit excellent resistance to chemicals, solvents, scratches, and corrosion, proponents say.

Another key finding: The motor vehicle market will likely provide the strongest gains through 2013, based largely on an expected rebound in motor vehicle output following the significant declines of the 2003–2008 period. Product developments, which will allow for greater use of powder coatings in exterior applications, will also offer opportunities for growth in this market, the reported concluded.