Paints and Coatings Market Research Report: By Technology (Water-Borne, Solvent-Borne, High-Solids, Powder Coatings, Ultraviolet), Formulation (Acrylic, Polyester, Polyurethane, Epoxy), Application (Architectural Coatings, Industrial Coatings, Special Coatings) - Global Industry Analysis and Demand Forecast to 2030

Paints and Coatings Market Overview

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.

Water-Borne Technology Dominated Market

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.

Acrylic Paints and Coatings Captured Largest Market Share

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.

Industrial Coatings Are Projected To Witness Fastest Growth

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.

Asia-Pacific (APAC) Is Largest Paints and Coatings Industry and To Retain Its Dominating Position during Forecast Period

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.

Increasing Adoption of Smart Coatings Is a Major Trend Observed In the Industry

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.

Growing Construction Industry and Increasing Demand for Automobiles Are Boosting the Demand for Paints and Coatings

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.

Mergers and Acquisitions Adopted by Leading Players to Increase Their Market Share

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,

• In April 2020, Akzo Nobel N.V. acquired Mauvilac Industries Limited, a Mauritius-based paint and coating manufacturer. The acquisition helped Akzo Nobel N.V. strengthen its position in the Middle East and Africa (MEA) region and increase its market share.
• In April 2018, Kansai Nerolac Paints Ltd., a subsidiary of Kansai Paint Co. Ltd., acquired Marpol Pvt. Ltd., a local producer of paints in India, for $5.53 million. The acquisition helped Kansai Nerolac Paints Ltd. in not only strengthening its presence in the country, but also considerably reducing its production cost.

Some Key Players in Paints and Coatings Industry Are:

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Technology

• Water-Borne
• Solvent-Borne
• High-Solids
• Powder Coatings
• Ultraviolet (UV)

Based on Formulation

• Acrylic
• Polyester
• Polyurethane
• Epoxy

Based on Application

• Architectural Coatings
• Industrial Coatings
• Automotive original equipment manufacturer (OEM) coatings
• Other transportation coatings
• Wood finishes
• Powder coatings
• Coil coatings
• Packaging finishes
• General industrial finishes
• Special Coatings
• Automotive refinish coatings
• Protective coatings
• Marine coatings 

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • Russia
  • Italy
  • U.K.
  • Turkey
  • France
  • Spain
  • Poland
• Asia-Pacific (APAC)
  • China
  • India
  • Japan
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Argentina
  • Colombia
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa
  • U.A.E.
  • Iran