Industrial Coatings are essential paints applied on steel or concrete. They are used extensively across several sectors, with corrosion protection as their most common application. Currently, Mexico is witnessing an augmented demand for industrial coatings, mainly due to the increasing number of manufacturing businesses & burgeoning construction activities in the country.
According to MarkNtel Advisors, the Mexico Industrial Coatings Market is expected to grow at a CAGR of around 19% during the forecast period, i.e., 2022-27. The market growth ascribes primarily to massive investments in manufacturing vehicles & their components that have established new industrial facilities across Mexico and, in turn, has propelled the demand for industrial coatings in the country.
Additionally, Mexico's Free Trade Agreements (FTA) with the USA, Canada, & European Union encouraging several global players to set up their manufacturing units across the country is another crucial aspect driving the market, further states the research report, “Mexico Industrial Coatings Market Analysis, 2022.”
|Study Period||Historical Data: 2016-9|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Axalta Coating Systems, PPG Industries, Inc., Sherwin Williams, Henkel AG & Co. KGaA, Akzo Nobel N.V.|
|Unit Denominations||USD Million/Billion|
Covid-19 Impact on the Mexico Industrial Coatings Market
In 2020, the Covid-19 pandemic brought severe disruptions in the Mexico Industrial Coatings Market. The slowdown in construction activities led to a decrease in the demand for construction equipment, such as excavators, graders, etc. Moreover, to limit the spread of the deadly virus, various production facilities (automotive, construction & agriculture equipment manufacturing), were temporarily shut down, thereby slowing the demand for Industrial Coatings in Mexico.
Furthermore, global microchips supply shortages lead to a deceleration in the manufacturing of automobiles in the country, which in turn lead to the decline in demand for the industrial coatings and thus, created a significant impact on the Mexico Industrial Coatings market. For instance, in 2020, the Mexico automotive market experienced a production decline of light vehicles to around 28% in comparison with 2019, which negatively impacted the revenue growth of the Mexico Industrial Coatings markets.
With Largest Market Share, OEMs to Significantly Promote Growth through 2027
Of both Demand Types, the OEM segment acquired more than 90% market share in 2021, owing to the extensive presence of OEM companies across various end-user verticals in Mexico. Mexico is the fourth largest automotive exporter worldwide and is considered a hub for automobiles, medical devices, consumer electronic goods, etc.
Mexico’s supported trade policies with major economies like the US, Europe, etc., coupled with the cost-effectiveness in manufacturing, availability of highly skilled labor, & technological advancements, have contributed incredibly to the market growth around the OEM segment.
Automotive Sector to hold a Substantial Market Share through 2027
The market growth across Mexico's Automotive sector owes to the country being one of the largest exporters of commercial vehicles to the US, followed by Canada & other Latin American countries. As a result, the demand for industrial coatings used while manufacturing these vehicles is also flourishing rapidly. According to the Mexican Association of Automotive Industry, production and exports of light vehicles are expected to increase by 12% in 2021, selling 1,055,919 new units, which is Likely to drive the demand for industrial coatings in the market.
Moreover, the country has observed massive investments for bolstering commercial vehicle manufacturing & exports to other nations, which is another crucial aspect contributing to the overall market growth through 2027. For instance, in April 2021, General Motors announced to invest USD 1 billion in an Electronic Vehicle production facility in Mexico. However, the production of Electronic vehicles in the manufacturing facility will begin by 2023 and will be exported initially in the United States and Canada. Additionally, in June 2021, the government of Puebla (Mexico), announced strategic investments in the state’s automotive industry to revive the economy.
High-Tech Electronics Manufacturing in Mexico Drives the Industrial Coatings Market through 2027
The rapid growth in Mexico's consumer electronics industry is anticipated to propel the demand for industrial coatings in the country during 2022-27. Besides, the rise in foreign investments and the surging foothold of companies through business expansion in the country are other crucial aspects expected to flourish the mexico Industrial coatings market growth.
For instance: Intel planned to invest USD 3.5 billion in chip expansion over the next three years to start assembly & test operations in Mexico, which, in turn, would fuel the production & sales of industrial coatings in the country.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Mexico Industrial Coatings Market is projected to grow at a CAGR of 19% during 2022-27
A. The Packaging sector is likely to gain immense momentum and continue attaining the largest market share during 2022-27, which, in turn, would create lucrative growth opportunities for the leading players in the industry.
A. Increasing infrastructural investments leading to various construction & manufacturing activities across Mexico are the crucial factors augmenting the growth of the Industrial Coatings Market during 2022-27.
A. With the gradual improvements in the pandemic situation and the rapidly expanding e-commerce sector, the Mexico Industrial Coatings Market shall continue witnessing significant growth in the coming years.