| Published | Report Code | Available Format | Pages |
|---|---|---|---|
| June 2018 | CM10371 | 161 |
Paints and Coatings Market Overview
The global paints and coatings market generated revenue worth $186.7 billion in 2017, which is projected to reach $262.5 billion by 2023, demonstrating a CAGR of 6.0% during the forecast period 2018–2023. Expansion in the automotive industry, growth in construction activities, and rising consumption of paints and coatings by the oil and gas industry are the key factors helping the market prosper.
Initially a liquid or mastic composition, a paint or a coating converts into a solid film when applied as a thin layer on a substrate. Paints and coatings are widely used across the globe to serve functional and decorative purposes.
GLOBAL PAINTS AND COATINGS MARKET, BY RESIN TYPE, KILO TONS (2013-2023)
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When segmented by resin type, the market can be classified into polyester, acrylic, epoxy, polyurethane, and others, where the “others” category consists of nitrocellulose lacquer, nylon, and polycarbonates. Among these, the acrylic category accounted for over 40.0% sales volume in the paints and coatings market in 2017, which can be mainly attributed to the high adoption of acrylic paints on account of their high elasticity, solubility, versatility, water-resistance, and non-toxicity.
Based on formulation, the paints and coatings market has solvent-based, powder, water-based, and UV coatings as its key categories. Among these, water-based formulations contributed over 45.0% revenue to the market in 2017. The demand for these coatings is expected to grow substantially during the forecast period, due to their increasing application in home furnishing and automobile manufacturing on account of their excellent adhesion and cost-effectiveness.
Paints and coatings find wide usage in industrial, architectural and decorative, and marine applications. Among these, the architectural and decorative category held the largest share in the paints and coatings market, accounting for over 55.0% sales volume in 2017. The category’s dominance can be attributed to the increasing requirement for paint and coating solutions in construction activities in residential spaces, triggered mainly by rapid growth in the population across the globe.
The architectural and decorative category of the paints and coatings market is subcategorized into non-residential and residential applications. Of the two, residential application accounted for the higher consumption of paints and coatings, thereby contributing the larger revenue to the market in the historical period. Similarly, the industrial application is further divided into automotive refinish, automotive OEM, coil, wood, manufacturing, can, and other categories. Among these, the automotive OEM category accounted for over 30.0% sales revenue in 2017.
On the global level, Asia-Pacific (APAC) dominated the paints and coatings market in the historical period. Besides, the market, during the forecast period, is expected to witness the fastest growth in APAC due to the increasing repair and renovation activities in the houses, commercial buildings, schools, and malls of the region. In addition, the rise in foreign and government investments is helping the APAC paints and coatings market advance. According to the 2017 data of the India Brand Equity Foundation (IBEF), foreign investors are increasingly showing interest in the Indian infrastructure, thus offering impetus to the demand for paint and coatings solutions.
Paints and Coatings Market Dynamics
A major trend being witnessed in the paints and coatings market is the growing adoption of smart coatings. Besides, expansion in the construction industry, rising demand for automobiles across the world, and increasing requirement for paints and coatings in the oil and gas sector are the key factors contributing to the growth of the market.
Trend
Smart coatings are those materials that have the capability to transform their properties as per stimuli provided by the external environment, such as electric field and temperature. Smart coatings are fast gaining popularity in numerous commercial applications, including restoration of historical buildings. This is because of the several advantages offered by these coatings, including the ability to mask the damage caused to an aircraft engine and the ability to be utilized as a composite to make lightweight aircraft. Thus, the rapid adoption of smart coatings can be viewed as a trend in the paints and coatings market.
Growth Driver
The construction industry is expanding at a considerable rate in countries such as China, the U.S., the U.K, and India, on account of the rapid growth in population and rise in the number of overseas buyers. This is leading to large-scale investments in residential apartments, hotels, retail centers, and civic infrastructure. For example, in 2017, construction activities in Europe and China rose by 3.5% and 10.0%, respectively, when compared to 2016. Such rapid expansion in the construction sector in the European and APAC regions is driving the growth of the paints and coatings market, globally.
Restraint
The common raw materials employed for the manufacturing of paints and coatings include resins, pigments, solvents, and additives. The rising cost of these raw materials is resulting in additional investments on the part of paint and coating manufacturers. In the past few years, the prices of raw materials, including titanium dioxide and epoxy, have increased considerably across the globe, forcing the leading producers of coatings and paints to raise the prices of their product offerings. Therefore, the rise in raw material prices hinders the growth of the paints and coatings market to some extent.
Paints and Coatings Market Competitive Landscape
PPG Industries Inc., Akzo Nobel N.V., Berger Paints India Limited, The Sherwin-Williams Company, Kansai Paint Co. Ltd., Shalimar Paints Limited, RPM International Inc., BASFR SE, Axalta Coating Systems Ltd., Jotun A/S, and Masco Corporation are among the key players operating in the global paints and coatings market.
