The Asia-Pacific (APAC) paints and coatings market revenue stood at $92.5 billion in 2017, and it is expected to reach $148.4 billion by 2023, exhibiting a CAGR of 8.3% during 2018–2023. The bolstering automotive industry, surging construction activities, and rapid industrialization are facilitating the market growth across the region.
Paints and coatings are mastic or liquid compositions that transform into a solid film after being applied upon a substrate in a thin layer. These products are primarily used for decorative and functional purposes.
The acrylic category, within the resin type segment, held the largest share, in terms of sales volume, of 40.0%, in 2017. Acrylic paint is a rapid-drying paint containing pigments suspended in an acrylic polymeric emulsion. It is elastic, water-soluble, water-resistant, non-toxic, and versatile.
In 2017, the water-based category accounted for the largest volume share, of 50.0%, within the formulation segment. This was due to the heavy consumption of water-based industrial paints for usage on storage tanks, piping, and machinery and in water treatment plants.
APAC PAINTS AND COATINGS MARKET, BY RESIN TYPE, KILO TONS (2013-2023)
The architectural and decorative category, under the application segment, held the largest sales volume share in the APAC paints and coatings market, of over 48.0%, in 2017. This can be ascribed to the increasing usage of painting and coating materials for architectural applications in the residential and non-residential facilities of the region. Within the architectural and decorative category, the residential sector generated the higher demand for such products in 2017.
Moreover, the automotive original equipment manufacturer (OEM) classification held the largest volume share, of over 30.0%, in 2017, within the industrial category.
In 2017, China accounted for the largest revenue share, of 60.0%, primarily on account of the soaring construction activities and surging number of manufacturing units in the country.
Mergers and acquisitions and water-based coatings are trending in the APAC paints and coatings industry. Likewise, the flourishing automotive sector and surging construction activities are the key growth drivers for the market.
In recent years, there has been a significant surge in mergers and acquisitions among the market players. For instance, in January 2018, PPG Industries Inc. announced its plan to acquire ProCoatings B.V., an architectural paints and coatings wholesaler. Through this acquisition, the former plans to expand its business by making the most of the new opportunities to support its customers and strengthen its presence in the region.
Similarly, the Sherwin-Williams Company, a key player in the APAC paints and coatings market, acquired Valspar Corporation in 2017. With this acquisition, the former is expanding its paints and coatings product portfolio, technology and innovation platforms, and geographical presence.
Large volumes of paints and coatings are used in the vehicles for protection and aesthetic purposes and to improve their efficiency, durability, and resistance to environmental conditions. Citizens of India and China are increasingly purchasing vehicles due to their rising income. The China Association of Automobile Manufacturers (CAAM) states that in 2017, China recorded sales of 28.88 million new vehicles. Thus, the bolstering automobile sector is facilitating the demand for paints and coatings in APAC.
The soaring raw material prices are expected to hinder the advance of the paints and coatings market in APAC. The increasing cost of resins and pigments is resulting in additional investments in the manufacturing process of paints and coatings. In recent years, the prices of raw materials, such as titanium dioxide and epoxy, have exponentially increased across the region. This has compelled the leading manufacturers to raise the cost of their products, which is hampering their sales.
Some of the major players operating in the market of paints and coatings in APAC are Akzo Nobel N. V., PPG Industries Inc., The Sherwin-Williams Company, Berger Paints India Limited, Shalimar Paints Limited, Kansai Paint Co. Ltd., Chugoku Marine Paints Ltd., KCC Corporation, Nippon Paint Holdings Co. Ltd., Dulux Group Limited, and Asian Paints Limited.
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