The global industrial paint booth market is projected to grow at a sluggish CAGR of 2.6% in terms of value between 2020 and 2030. Owing to the anticipated economic slowdown in the upcoming year and a dip in consumption of industrial goods globally, the global industrial paint booth market is projected to witness stagnancy for the next couple of financial quarters. However, after the coronavirus pandemic is brought under control, the market is expected to regain traction and surpass a valuation of US$ 789 million by the end of the forecast period (2020 – 2030).
Key end-use industries of industrial paint booth such as automotive and industrial goods are witnessing massive slump in demand and production halts due to lockdowns imposed in many countries.
For instance, in April 2020, the European Automobile Manufacturers Association concluded in a report that, in the first quarter of 2020, Europe has seen a decline in automotive production by around 2 million motor vehicles. This is turn, poses serious challenges to the global industrial paint booth market. This is because the automotive industry is a leading end user of industrial paint booth, capturing nearly half of the global market.
Key Takeaways of Industrial Paint Booth Market Study
- The global industrial paint booth market is anticipated to create an absolute $ opportunity of more than US$ 178 Mn by the end of the forecast period (2020 – 2030).
- By product type, downdraft paint booth segment is anticipated to accumulate the majority share in terms of value, growing at a value CAGR of 2.5% during the forecast period.
- In the end user segment, the automotive industry is projected to show sluggish growth, poised to create an absolute $ opportunity of more than US$ 76.4 million by the end of forecast period.
- Asia Pacific Excluding Japan (APEJ) is projected to create an absolute $ opportunity of more than US$ 78 million and is expected to hold 41.1% market share in terms of value in the global industrial paint booth market by the end of the forecast period.
“The downtrend witnessed in end-use sectors amid COVID-19 pandemic is projected to hinder growth of the global industrial paint booth market in near future. However, in the long run, when the leading countries regain economic stability, the market will gain moderate traction” says a Fact.MR analyst.
Mergers & Acquisitions to Leverage Growth as Market Rebounds
The global industrial paint booth market is highly consolidated in nature, with few major players serving a large portion of customers. Prominent players are focusing on mergers and acquisitions in order to expand their business. For instance,
- In June 2019, one of the leading investing company MPE Partners acquired industrial paint booth and finishing solutions manufacturer Garmat USA, LLC.
- In January 2017, Ecolab Inc. acquired Abednego Environmental Services, a paint booth management company for auto manufacturers.