Core Viewpoint - The powder coating industry in China is entering a new phase of green development, driven by the ongoing "source substitution" efforts and increasing demand from emerging sectors such as construction machinery and new energy [1][2] Group 1: Industry Trends - The demand for powder coatings is significantly increasing due to the transformation from traditional coatings to powder coatings in various sectors, particularly in engineering machinery and new energy [1] - The real estate market is currently in a downturn, but the shift towards powder coatings is accelerating, driven by the need for VOCs (Volatile Organic Compounds) management [1] - The principle of "liquid to powder" is being adopted by coating manufacturers, leading to a faster transition to powder coatings [1] Group 2: Market Projections - In 2024, the sales volume of thermosetting powder coatings in China is expected to reach approximately 2.65 million tons, representing a year-on-year growth of 6.6% [1] - The overall profitability of most powder coating companies is expected to improve in 2024 due to a decrease in raw material prices, alleviating cost pressures and enhancing gross profit margins [1] Group 3: Policy and Future Outlook - The implementation of national policies related to new urbanization, urban renewal, and marine protection is anticipated to release a multi-trillion yuan domestic market space, providing further growth opportunities for the powder coating market [2] - The "14th Five-Year Plan" emphasizes the development of emerging pillar industries and the upgrading of key industries, which will guide the structural optimization and technological advancement of the powder coating sector [2] - The powder coating industry is encouraged to enhance the collaboration between production, education, research, and application to facilitate the transformation of scientific achievements and promote high-quality development of the industry chain [2]