Paints and Coatings Market by Resin Type (Acrylic, Polyester, Polyurethane, Epoxy), by Formulation (Water-Based, Solvent-Based, Powder Coatings, UV Coatings), by Application (Architectural & Decorative, Industrial, Marine), by Country (China, Japan, India) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Paints and Coatings Market Overview

The global paints and coatings market was valued at $186.7 billion in 2017 and is projected to reach $262.5 billion by 2023, witnessing a CAGR of 6.0% during the forecast period. Expanding automotive industry, growing construction activities, and increasing demand from the oil and gas industry are the major factors driving the growth of the market.

 

GLOBAL PAINTS AND COATINGS MARKET, BY RESIN TYPE, KILO TONS (2013-2023)

Paints and coatings are liquid or mastic compositions, which convert into a solid film after being applied upon a substrate in a thin layer. These are used for functional or decorative purposes.

Based on resin type, the paints and coatings market is categorized into acrylic, polyester, polyurethane, epoxy, and others. Other resins include nylon, nitrocellulose lacquer, and polycarbonates. Of these, acrylic was the largest type in the market, with its volume sales exceeding 40.0% in 2017. The largest share of the category is attributable to its properties of high solubility, elasticity, versatility, non-toxicity, and water-resistance properties.

On the basis of formulation, the paints and coatings market is categorized into water-based, solvent-based, powder coatings, and UV coatings. Water-based formulation accounted for more than 50.0% revenue share in the market in 2017. Water-based coatings are expected to see substantial growth in the market over the forecast period, owing to increasing demand from several automobile and home furnishes manufacturers due to their cost-effective and superior adhesion properties.

In terms of application, the paints and coatings market is segmented into architectural and decorative, industrial, and marine. Of these, architectural and decorative was the largest application area in the market, accounting for more than 55.0% volume sales share in 2017. The largest share of the category is attributable to the growing demand for residential construction owing to the rapidly growing population, globally.
The architectural and decorative application is further categorized into residential and non-residential applications in the paints and coatings market. Of these, residential was the larger architectural and decorative application area in the market. Industrial application is further categorized into automotive OEM, automotive refinish, wood, coil, can, manufacturing, and others in the market. Of these, automotive OEM was the largest category in the market, with more than 30.0% contribution in terms of volume, in 2017.

Globally, APAC is the leading paints and coatings market, followed by Europe. The market is also expected to witness growth during the forecast period owing to the growing demand for renovation and repair of commercial buildings, houses, malls, and schools in the region. Additionally, increase in government and foreign investment is another factor driving the market in the region. As per the India Brand Equity Foundation (IBEF) data of 2017, India is experiencing a significant interest from foreign investors in the infrastructure space.

Paints and Coatings Market Dynamics

Increasing adoption of smart coatings is the major trend witnessed in the paints and coatings market. Growth of the construction sector, increasing demand for automobiles worldwide, and growing demand from the oil and gas industry are the major drivers fueling the growth of the market.

Trends

Materials that possess capabilities to change their properties according to external environmental stimuli, such as temperature, electric field, among others, are called smart coatings. Currently, smart coatings are gaining popularity in commercial applications as these are increasingly being used for the restoration of historical buildings. This is attributed to the many advantages that these coatings offer, such as the ability to cover damage on an aero engine or oil and gas platform or the ability to be used as a composite to save weight on an aircraft. Thus, the growing adoption of smart coatings is setting a trend in paints and coatings market.

Drivers

The construction sector is growing at a significant pace in countries such as the U.S., China, India, and the U.K, owing to the rise in population and increase in number of foreign buyers. This is resulting in large-scale investment in the construction of projects such as hotels, apartments, offices, retail centers, and civic infrastructures. For instance, in 2017, construction activities in Europe grew by 3.5% and in China, these activities grew by 10%, as compared to previous year. Such growth in the construction industry in both Europe and APAC, is fueling the paints and coatings market growth.

Restraint

Pigments, resins, solvents, and additives are some of the common raw materials used in the manufacturing of painting and coatings solutions. The increasing prices of raw materials results in additional investment in the production process of paints and coatings. In the recent years, the prices of raw materials such as epoxy and titanium dioxide have risen significantly across the globe, compelling the leading painting and coating producers to increase the prices of their products. Therefore, the upsurge in prices of raw materials is expected to hinder the growth of the paints and coatings market.

Paints and Coatings Market Competitive Landscape

Some of the major players operating in the global paints and coatings market are Akzo Nobel N. V., PPG Industries Inc., The Sherwin-Williams Company, Berger Paints India Limited, Shalimar Paints Limited, Kansai Paint Co. Ltd., BASFR SE, RPM International Inc., Jotun A/S, Axalta Coating Systems Ltd., and Masco Corporation.