Who’s winning the digital race in chemical manufacturing?

The sector is valued at $190 billion as of 2024.

The global paints and coatings industry is leading the charge in digital transformation amongst chemical sectors, with companies investing heavily in customer-centric platforms and digital solutions to maintain competitive advantage in a rapidly evolving $190b market.

According to a Frost & Sullivan Frost Radar analysis released in May 2025, coating companies are adopting digital technologies across seven key domains: innovation, sourcing, plant operations, products, customer engagement, marketing, and business models. The study benchmarks major industry players including AkzoNobel, Asian Paints, Axalta, BASF, Hempel, Jotun, Kansai Paint, Nippon Paint, PPG Industries, and Sherwin-Williams.

The analysis reveals that coating companies are prioritising customer-centric digital initiatives over traditional operational improvements. Whilst significant investment flows into digital platforms, mobile applications, and enhanced customer services, the adoption of digital technologies for research and development and raw material sourcing remains in the early stages.

"The paints and coatings space leads in terms of the extent of digitalisation adopted in various domains of the value chain to address unmet needs," the report states, noting that large chemical companies have made more substantial investments in R&D digitalisation compared to specialised coating firms.

$190b market
The coating industry's landscape has undergone significant transformation through mergers, acquisitions, and divestiture deals completed over the past two years. The entry of more diversified companies is intensifying competition, making digital adoption imperative for traditional paint and coating companies to maintain or expand their market positions.

The automotive industry's electrification is pushing coating companies to innovate and commercialise advanced products more compatible with electric vehicle substrates and application environments. This shift is accelerating digital adoption in product development and manufacturing processes.

The global paints and coatings industry encompasses diverse product categories, including architectural, general industrial, automotive, aerospace, and marine coatings.

The Frost Radar methodology evaluates companies based on two major indices: the Innovation Index, measuring the ability to develop globally applicable solutions aligned with customer needs; and the Growth Index, assessing growth performance and strategic execution capabilities.