The coating pigments market remains consolidated at the top and fragmented at the bottom, with a large-scale presence of regional players. The tier 1 players account for around 55-60% of revenue share with strategic policies in tune with latest market trends and diverse customer needs.

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Some of these leading companies have adopted two-step business models as a latest differential strategy to gain competitive benefits. With large-scale global presence, these leading companies are investing in research and development to scale up in terms of product innovations and developments. Moreover, these key companies are also eyeing on opportunities across emerging economies for business expansion and enhanced footprint in the global market space.

Leading automotive giants, in a bid to generate greater consumer interest, are offering products with appealing colors and textures by making use of effect pigments. For example, pearlescent micas and aluminum pigments are used in both liquid as well as powder coatings to produce luster and brilliance, thereby creating a vibrant look. Effect pigments also possess the ability to withstand ravages of weather as well as UV rays, which is further enhancing its demand in case of automotive coating applications.

Inorganic pigments are fundamentally manufactured from mineral compounds comprising of complex metal oxides. The popularity of inorganic coating pigments is increasing amid the end-user marketplace, owing to exceptional color stability and heat resistance offered. Functionality of inorganic pigments offers the convenience to be tailored as per requirement with excellent durability, which is another key factor accentuating its demand. However, potential side-effects related to the use of inorganic coating pigments might dent end-user confidence by a certain level.

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The adoption of organic coating pigments remains relatively less, owing to their minimal resistance to heat and susceptibility to eventual fading. Moreover, organic coating pigments are incompetent in terms of mitigating penetration of UV rays and oxygen, which might lead to the disruption of chemical bonds. However, no or minimal side effects associated with its use might be a crucial aspect restoring the end-user confidence.

In the current business ecosystems of highly competitive nature, application requirements have become of utmost importance. In tune with the aforementioned, manufacturers of high-performance and specialty pigments are striving to offer products with superlative attributes, such as enhanced durability, exceptional colour strength, and robust chemical stability, For instance- Pearlescent pigments are being used across multiple applications, ranging from plastics to automotive topcoats, owing to its ability to mimic the inherent luster of natural pearls.

The advent of new-age coating technologies such as waterborne paint, wherein performance of pigments are required to be up-to-the-mark, are likely to push the adoption of high performance and specialty pigments. Furthermore, the competency of high performance and specialty coating pigments to be extremely compatible with diverse applications is another key factor fostering their popularity across various end-use verticals.

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