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The global paints and coatings market stood at $156,086.2 million in 2019, and it is expected to showcase a CAGR of 4.2% during 2020–2030. A large base of residential, commercial, and industrial end users and growing construction activities, mainly in emerging economies, are the key growth factors.
The industry is being negatively impacted by the coronavirus pandemic, reflected in a rise in the price of titanium oxide, which is a key raw material for paints and coatings. Further, during the first and second quarters of 2020, the market witnessed supply chain disruptions due to the halted trade across countries, owing to border closure, in order to curtail the spread of the pandemic.
On the basis of technology, the water-borne category accounted for the largest size in the paints and coatings industry in 2019. The rising environmental concerns, increasing consumer awareness regarding the hazards of volatile organic compounds (VOC), and growing demand for water-borne paints and coatings among automobile and furniture manufacturers, owing to their cost-effective nature and superior adhesion properties, are some of the factors behind the largest market share of this category.
Based on formulation, the acrylic category dominated the paints and coatings market in 2019. This is majorly attributed to the high-volume consumption of acrylates for the production of paints and coatings. The fast drying ability, versatile nature, which allows for the usage of acrylic paints on any oil- and wax-free surface, and low cost are some of the factors for the high-volume consumption of acrylate-based paints and coatings.
Based on application, the industrial coatings category is expected to witness the highest growth rate during the forecast period, owing to the rapid industrialization across the globe. Manufacturing industries, such as automobile and packaging, are expanding in order to cater to the growing product demand, mainly in developing countries, which will certainly increase the demand for painting and coating products in these industries. For instance, as per the Packaging Industry Association of India, the Indian packaging industry valued $50.5 billion in 2019, and it is expected to reach $204.81 billion by 2025, registering a CAGR of 26.7% during the period 2020–2025.
The APAC region held the largest share in the paints and coatings market in 2019. This is majorly attributed to the large number of manufacturing plants in the region, mainly in China, Japan, South Korea, and India. Further, the increasing consumer disposable income, which helps in augmenting the spending power, boosts the consumption of paints and coatings in the region. The vast population is also one of the key attributable factors for APAC accounting for the highest consumption of such materials in the world.
The APAC region is expected to retain its position during the forecast period, by showcasing the highest growth rate. A shift in manufacturing facilities to the region from Western countries and growing population, for which new housing projects are being developed, are some of the key attributable factors for the highest growth rate forecast for the region.
The prominent trend in the paints and coatings market is smart coatings. Such materials can change their properties according to external environmental stimuli, such as temperature or electric field. Due to their advantageous properties, such as self-cleaning, self-healing, and self-stratifying, smart coatings have gained considerable traction in the market in recent years, as consumers are willing to pay premium prices for them. Hence, these coatings are increasingly being adopted in various application areas, such as military, aerospace, hospitals, and automobiles.
The global population is growing at a significant pace, and therefore, large-scale investments in construction projects, such as hotels, apartments, offices, retail centers, and civic infrastructure, are being poured. For instance, in April 2020, Government of India set a target of constructing roads with a total spending of $212.8 billion (INR 15 lakh crore) in the next two years.
In addition to this, in the 2020–21 Union Budget, the government has given a massive push to the infrastructure sector, by allocating $24.27 billion (INR 1,69,637 crore) to develop transport infrastructure. This would increase the demand for paints and coatings in order to provide aesthetic and protective benefits to the structures. Additionally, the changing lifestyle of people has resulted in the increasing demand for housing, which has further fueled the demand for paints and coatings, globally.
Globally, the increasing demand for automobiles, on account of the rapid urbanization, rising disposable income, and changing lifestyle, is directly affecting the growth of the market, as paints and coatings are widely used in automotive applications. Thus, with the increasing production of automobiles, the demand for coatings and paints is also rising. For instance, in 2019, around 91.3 million automobiles were sold worldwide, while the sales in 2014 stood at 88.3 million.
|Base Year (2019) Market Size||$156,086.2 Million|
|Forecast Period (2020-2030) CAGR||4.2%|
|Report Coverage||Market Dynamics, Value Chain Analysis, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Competitive Benchmarking, Company Profiling|
|Market Size by Segments||Technology, Formulation, Application, Region|
|Market Size of Geographies||U.S., Canada, Germany, Russia, Turkey, France, U.K., Italy, Spain, Poland, China, India, Japan, South Korea, Brazil, Mexico, Colombia, Argentina Saudi Arabia, U.A.E., South Africa, Iran|
|Secondary Sources and References (Partial List)||American Coatings Association, Asian Paint Industry Council, Brazilian Coatings Manufacturers Association, British Coatings Federation, Canadian Paint and Coatings Association, China National Coatings Industry Association, European Coatings Association, Indian Paint and Coating Association, International Monetary Fund|
The paints and coatings market is fragmented in nature; therefore, the leading players are using the strategy of mergers and acquisitions to augment their share in the industry. Some of the key players operating in the market are Akzo Nobel N.V., PPG Industries Inc., The Sherwin-Williams Company, Kansai Paint Co. Ltd., Nippon Paint Holdings Co. Ltd., Asian Paints Limited, RPM International Inc., Jotun A/S, Axalta Coating Systems Ltd., Masco Corporation, and BASF SE.
In recent years, players have entered into merger and acquisition agreements in order to capture a larger share of the market. For instance,
The report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Technology
Based on Formulation
Based on Application
The paints and coatings market will grow from $156,086.2 million in 2019 to $227,834.0 million in 2030.
The waterborne technology dominates the paints and coatings industry because such products do not have VOCs, are cost-effective, and offer better adhesion to the substrate.
Paints and coatings market stakeholders should invest in APAC, which generates the highest revenue.
The strongest growth drivers for the paints and coatings industry are the expanding automotive and construction sectors.
Mergers and acquisitions are prevalent in the paints and coatings market because of its fragmented nature, which is prompting key players to reduce the competition.