High-Tech Paints and Coatings Market To Generate $267.5 Billion Revenue by 2030

The high-tech paints and coatings market size is expected to advance at a CAGR of 10.4% during 2022–2030, to reach USD 267.5 billion by 2030.

The major growth factors for the market are the rapid urbanization and trend of the nuclearization of families, as well as the rising demand for automobiles, due to the increasing disposable incomes, and a shorter repainting cycle.

High-tech paints and coatings with properties such as self-cleaning, faster drying, and air cleaning, have been invented as a result of technological innovations. Moreover, these materials are able to maintain their color for a longer time than conventional products. In addition, because of the use of nanotechnology in their development, surface friction is reduced, thus allowing dust and water droplets to easily slide off, without leaving any stain behind.

Water-Borne Technology Category Dominated Market

The technology segment is categorized into water-borne, solvent-borne, powder coatings, and others. Among these, the water-borne category held the largest share in high-tech paints and coatings market in 2022. This is majorly ascribed to the fact that these products are able to meet a wide range of end user needs, such as printing inks, industrial maintenance, and corrosion protection. Resins based on vinyl and acrylic make up the majority of these products.

Additionally, in the industrial sector, permits for the quantity of volatile organic compounds (VOCs) a factory can emit are becoming more stringent, which is why customers are being forced to switch to water-borne coatings for their production plants. Water-borne coatings account for approximately 80% of all the architectural coating products sold, according to the American Coatings Society.

Rapid Urbanization and Nuclearization of Families

The growth of the industry is influenced by a number of macroeconomic and demographic factors, such as an increase in the gross household income, rate of urbanization, and number of nuclear families.

Paint demand has been rising due to the growing requirement for real estate and improved civic infrastructure, as a result of urbanization. By 2030, about 40% of India's population will live in urban areas, according to the UN. Moreover, according to the World Bank, by 2045, the global urban population will reach 6 billion. Therefore, as the urbanization rate rises, the decorative paints industry will benefit.

The demand for housing has also been driven by the nuclearization of families, as more nuclear families mean more houses sold or rented. The rise in the number of people availing of home loans is another factor that drives house sales. As of FY20, retail housing loans grew at a CAGR of more than 16%, indicating that consumers' desire to own a home is growing.

Mergers and Acquisitions Are Key Strategic Developments Taken by Players

To improve their positions in the market, companies are adopting merger and acquisition strategies. For instance, in December 2022, KANSAI HELIOS acquired German powder coating and resin producer CWS Lackfabrik GmbH.

Similarly, in December 2022, AkzoNobel completed the acquisition of Lankwitzer Lackfabrik’s aluminum wheel liquid coatings business. The acquired business will complement AkzoNobel’s existing powder coating offerings.

Moreover, in November 2022, Specialized Industrial Coatings Holding (SIC Holding), a Peter Möhrle Holding and GP Capital UG venture consisting of Oskar Nolte GmbH and Klumpp Coatings GmbH, was acquired by The Sherwin-Williams Company. SIC Holding’s portfolio of solutions includes radiation-cured and water-based coatings, as well as foil coatings.

The biggest global high-tech paints and coatings market players are Abrisa Technologies, AccuCoat Inc., Akzo Nobel N.V., Axalta Coating Systems LLC, BASF SE, Chase Corporation, Ferro Corporation, GXC Coatings, Hentzen Coatings Inc., Indestructible Paint Limited, Kansai Paint Co. Ltd., Mankiewicz Gebr. & Co. (GmbH & Co. KG), Nippon Paints Holdings, PPG Industries Inc., RPM International Inc., Shalimar Paints, and The Sherwin-Williams Company.