Global Industrial Paint Booth Market to Witness Stunted Growth amid global COVID-19 outbreak
Growing demand for passenger cars, commercial vehicles, and two-wheelers are continuously unlocking latent growth opportunities for industrial paint booth manufacturers. However, the outbreak of coronavirus has caused adverse impact on the global business economy. Most countries have imposed complete lockdowns to contain the spread of COVID-19. This has stalled economic progress, akin to the 2008 sub-prime crisis. Most of the industrial paint booth manufacturing facilities are currently not operational. In addition, disturbed supply chains amid the lockdown has generated a shortage of raw materials, significantly curbing production.
Based on the abovementioned trends, the global industrial paint booth market is poised to witness stagnating growth. The market is projected to expand sluggishly at CAGR of 2.6% in terms of value to reaching over US$ 789 Mn by the end of forecast period (2020 – 2030).
Slowdown in Auto Industry amid COVID-19 Outbreak to Dim Market Prospects
As the COVID-19 pandemic is disrupting businesses, the automotive industry is the most impacted end-use sector of the industrial paint booth market. The demand for industrial paint booth is lowered significantly as the automotive industry is witnessing a major slump due to dormant production facilities amid lockdowns in most of the countries. In addition, demand for automotive vehicles, which was already declining, is impacted drastically due to the COVID-19 pandemic. For instance, according to National Automobile Dealers Association (NADA), in the U.S. new auto sales saw a plunge of ~38% in March 2020 amid measures taken by the government to combat the coronavirus.
Such a decline in the automotive industry is projected to restrain adoption of the industrial paint booths globally as automotive industry accounts for nearly half of the market share among all key end use industries. Therefore, the automotive segment is projected to expand at a value CAGR of 2.2% during the forecast period.
Downdraft Paint Booth to Expand Sluggishly, amid Hindered Adoption during COVID-19 pandemic
Downdraft paint booth, which is mainly used in the automotive industry & industrial goods manufacturing, accounted for the majority share in the global industrial paint booth market. Disrupted automotive sales due to economic uncertainty created by the pandemic has hindered adoption of the downdraft paint booths significantly.
It is anticipated that Tier 2 and Tier 3 suppliers are most affected by supply chain disruptions related to the pandemic. This is expected to continue for the next financial quarter, leading to sluggish business expansion for these companies. This slowdown is poised to decline demand for new downdraft paint booths. Consequently, the downdraft paint booth segment is projected to grow at a CAGR of 2.5% in terms of value, accounting for 36.4% share of the global industrial paint booth market, predicts Fact.MR.
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APEJ to Accumulate Majority Chunk of Revenue Pie in Global Paint Booth Market
Asia Pacific Excluding Japan (APEJ) dominated the global industrial paint booth market throughout the historical period in 2019. The region accounted for 41.3% share of the global market. However, China, the automotive manufacturing hub in the world, is dealing with economic slowdown due to a disrupted business eco-system amid the coronavirus pandemic. Manufacturers are facing nosediving demand, production and revenue as the COVID-19 pandemic intensifies. This has significantly lowered the production. Simultaneously, shortage of workforce and raw materials has presented critical challenges to business owners. As a result there has been significant drop in exports from the region.
However, as the pandemic is being contained, the businesses are experiencing a resurgence. To increase exports, governments in East Asia are giving incentives to companies. For instance, In March 2020, the Chinese government announced a port fee reduction by up to 20%, which is poised to encourage manufacturers to increase production and exports of industrial paint booths in the region. Fact.MR therefore projects that APEJ will retain its position as a market leader and expand at CAGR of 2.8% in terms of value by the end of forecast period.
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Acquisitions to Inject Growth as Market Rebounds
The global industrial paint booth market is highly consolidated. Leading manufacturers are focusing on mergers and acquisitions in order to stimulate growth in the global market. For instance, in June 2017, the U.S. based manufacturer, Col-Met Engineered Finishing Solutions, acquired RP Paint Arrestors, and with this acquisition the company achieved product portfolio expansion. Other key players in the global industrial paint booth market are Accudraft, Spray Systems Inc., Global Finishing Solutions LLC, Standard Tools and Equipment Co. Inc., RelyOn Technologies, Airblast Eurospray, Nova Verta International SpA, CELIBER Cabinas y Bancadas, S.A., Rohner, Epcon Industrial Systems LP, Dürr AG, and Eisenmann SE.
COVID-19 Market Insights:
The entire world is now grappling with the COVID-19 pandemic. The disease has impacted the social as well as commercial outlook of the world. Substantially lowered demand for industrial goods and auto vehicles due to lockdowns across continents has posed a serious challenge to the industrial paint booth market. The adoption of industrial paint booth is projected to dip drastically for a long time. In addition, suspended air travel in most countries as a precaution has created a major slump in the aerospace industry. This is poised to contribute significantly to the falling demand for industrial paint booth market globally. However, as the situation is brought under control, the economy will regain growth trajectory. Consequently, the global industrial paint booth market is also foreseen to create significant opportunity by the end of forecast period, expanding 1.3X by the end of 2030.
“The outbreak of COVID-19 has caused significant impediments to the global industrial paint booth market, which is poised to witness sharp drop in demand for next couple of quarters. However, as the situation is brought under control, the market will grow positively to create significant opportunities by the end of the forecast period.”
Global Industrial Paint Booth Market: Scope of the Report:
The recent global industrial paint booth market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on the key drivers, restraints, opportunities and threats to the expansion of the global industrial paint booth market. A detailed segmental analysis, based on product, end use, and regions, has been provided in the report.
Regional analysis in terms of supply chain analysis, business execution and market value analysis provides an in-depth perspective about the future scope of the global industrial paint booth market. In addition, a separate section on market structure has also been provided. The section provides a detailed analysis of key market players and the strategies for expansion in the industrial paint booth market.
Industrial Paint Booth Market - Scope of the Report
Fact.MR recently published a market study on the global market for industrial paint booth. The study provides a detailed assessment on the key market dynamics, including drivers, trends, opportunities, restraints, and detailed information about the industrial paint booth market structure. The market study presents exclusive information about how the industrial paint booth market will grow during the forecast period of 2020-2030.
Key indicators of market growth, which include Year-on-Year (Y-o-Y) growth of the market, value chain, supply chain analysis, and Compounded Annual Growth Rate (CAGR) are explained in Fact. MR’s study in a comprehensive manner. This information can help readers understand the quantitative growth prospects of the industrial paint booth market in the forecast period.
The study is relevant for stakeholders in the industrial paint booth market, including manufacturers, suppliers, distributors, and investors, and can help them in developing appropriate strategies to grow in the market. Stakeholders in the industrial paint booth market, investors, industry experts, researchers, and journalists, as well as business researchers can leverage the information and data presented in the Fact.MR study.
The study also includes statistics as well as facts related to macro as well as microeconomic factors that are impacting developments in the industrial paint booth market. It also offers actionable insights based on future trends in the industrial paint booth market. Furthermore, small businesses and new entrants in the industrial paint booth market too can make use of the information presented in this study, based on which, they can make appropriate business decisions in order to gain momentum in the market.
Key Segments of the Industrial Paint Booth Market
Fact.MR’s study on the industrial paint booth market offers information divided into two key segments— product, and end use across six major regions. This report offers comprehensive data and information about important market dynamics and growth parameters associated with these categories.
Key Questions Answered in the Fact.MR’s Industrial Paint Booth Market Report
- Which regions will continue to remain the most profitable regional markets for industrial paint booth market players?
- Which factors will induce a change in the demand for industrial paint booth during the assessment period?
- How will changing trends impact the industrial paint booth market?
- How can market players capture the low-hanging opportunities in the industrial paint booth market in developed regions?
- Which companies are leading the industrial paint booth market?
- What are the winning strategies of stakeholders in the industrial paint booth market to upscale their position in this landscape?
Industrial Paint Booth Market: Research Methodology
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the industrial paint booth market, and reach conclusions on future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of conclusions.
Secondary resources referred to analysts during the preparation of the industrial paint booth market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who have contributed to the development of this report as a primary resource.
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