From Protection to Performance: How Coatings Are Evolving in the Digital Age
What if coatings were no longer just about protection, but about performance, intelligence, and system-level impact? Catch the full episode on Spotify, Amazon Music, Apple Podcast, or click here to watch the full episode on YouTube.
Imagine an industry where chemistry meets sustainability, where AI accelerates formulation cycles, and where coatings are no longer just protective layers but functional components of entire systems.
In the latest podcast episode of The Digital Chemical Playbook, Florian Brunet sits down with Atul Nagarkar, Vice President, Global Specialty Chemicals at DKSH, to explore how the coatings industry is transforming through innovation, regulation, and digitalization.
Sustainability and Regulation: A Defining Shift
According to Atul, two major forces are reshaping specialty chemicals today: sustainability and digitalization.
VOC reduction, PFAS restrictions, and the phase-out of substances like lead and chrome are redefining formulation strategies.
“What we should understand is there has been a primary shift on several fronts. One is sustainability… and the second one is digitalization.”
Sustainability is no longer optional or purely values-driven. It is embedded in regulatory compliance and corporate strategy alike. Companies must innovate not only to meet market demands, but also to align with evolving environmental standards.
Digitalization and AI: Enablers, Not Replacements
If sustainability sets the direction, digitalization sets the pace.
AI is increasingly embedded in R&D, from predictive formulation tools to compliance monitoring and carbon footprint calculations.
“What AI really helps is in prediction and also in getting down to your focus point very quickly.”
Atul compares formulation simulators to flight simulators. Just as pilots train virtually before flying, chemists can now simulate adjustments in additives and anticipate impacts across multiple SKUs before running physical trials.
However, he offers a word of caution.
“AI is not always perfect. So we need to also finally cross-check and use our own heads and brains to make sure that what we are doing is indeed the right thing.”
Rather than replacing expertise, AI enhances it. It reduces trial-and-error cycles, shortens development timelines, and enables teams to focus on high-value innovation.
From Product Selling to Solution Partnerships
Commercial models are evolving alongside technology.
Where once suppliers introduced product portfolios in lengthy in-person discussions, today’s customers arrive informed and digitally equipped. Marketplaces such as DKSH Discover provide technical documentation, compatibility data, and sample requests in one integrated platform.
“The customers would have already shortlisted what they are really looking at,” Atul explains. “So the discussion is completely different. It’s about how will this work here or how will it work there.”
Relationships remain central, but conversations have shifted from product pitches to solution-focused collaboration.
“The relationship part is still remaining… but the discussions are more based on providing a solution specific to what they need.”
The Next Wave: Functional and Specialized Coatings
Looking ahead, Atul sees coatings becoming increasingly specialized and functional.
The shift from solvent-based to waterborne systems continues, but performance expectations are rising. Lower VOC formulations must still deliver durability, corrosion resistance, and efficiency.
Beyond that, innovation is unlocking entirely new capabilities:
- Self-healing coatings that repair microcracks
- Nanotechnology-driven hydrophobic surfaces
- Antimicrobial coatings using silver or copper
- Thermal management and flame-retardant systems for electric vehicles
“The coating is actually moving as a part of the system where it manages the temperature,” Atul notes, referring to the rapid growth of EV and electronics applications.
He frames the industry as a pyramid. Commodities will remain at the base, but competitive differentiation will increasingly come from specialty innovations higher up the value chain.
“The ones who have a higher share of specialties are the ones who are going to survive and grow.”
In other words, value will outweigh volume.
The Bigger Picture
The coatings industry is no longer defined solely by protection or aesthetics. It is driven by sustainability, shaped by regulation, accelerated by AI, and differentiated by innovation.
As Atul summarizes, success will belong to companies that combine chemistry expertise with digital intelligence and strategic foresight.
The future of coatings is not just about covering surfaces. It is about enabling smarter systems, faster development cycles, and higher-value solutions across industries.
Catch the full episode on Spotify, Amazon Music, Apple Podcast, or click here to watch the full episode on YouTube.
