Paints and Coatings Market To Generate Revenue worth $266,243.2 Million by 2030

The expanding construction industry, rising demand for automobiles, surging requirement for paints and coating in the oil and gas industry, and increasing consumer spending are the major growth drivers for the global paints and coatings market. Due to the aforementioned factors, the industry is projected to generate $266,243.2 million revenue in 2030, advancing at a CAGR of 5.8% during 2020–2030.

As per the International Energy Agency (IEA), the global oil demand fell in 2020 due to the COVID-induced financial shock and a shift in the focus toward clean energy. The demand–supply imbalance with respect to crude oil and the industrial slowdown due to the pandemic have resulted in the slowdown of several industries. Further, on account of COVID-19, companies experienced a liquidity crunch, with limited room to cut fixed costs, and a decline in the cash flow due to the shutdown of manufacturing plants and commercial offices during the lockdown period. Therefore, the market for paints and coatings has also witnessed a slowdown.

Water-Borne Category Dominated Market

The paints and coatings market is categorized into water-borne, solvent-borne, high solids, powder coating, and ultraviolet (UV), based on technology. Among these, the water-borne category held the largest share in the market in 2020. This is majorly attributed to the increasing demand for these coatings from several automobile, plastic, printing ink, and furniture manufacturers owing to their cost-effective nature and superior adhesion. In addition, these coatings lead to no volatile organic compound (VOC) emissions, dry quickly, and are easier to apply.

Moreover, the market for paints and coatings is categorized into acrylic, polyester, polyurethane, epoxy, and others, based on formulation. Among these, the polyester category is projected to register the fastest growth during the forecast period (2021–2030) owing to the expansion of the automotive industry, increasing defense budget, and rising industrialization and urbanization rate in emerging economies.

Geographically, the Asia-Pacific (APAC) region held the largest share in the paints and coatings market in 2020, and it is expected to maintain its position and witness the highest growth rate in the forecast period. In countries such as India and China, the rising government and private investment in the construction industry and surging disposable income are driving the market growth. The increasing population in the region, accompanied by the rising spending on the industrial sector and infrastructure development in China, India, and Indonesia, is projected to make this region an ideal destination for paints and coatings market players.

Mergers and Acquisitions Are Most-Effective Strategic Measures Taken by Players

Players in the global paints and coatings industry are extensively involved in mergers and acquisitions to gain a significant position. For instance, in September 2021, Hempel A/S acquired Farrow & Ball Limited, a decorative paint and wallpaper company with an annual turnover of over $114.0 million (EUR 100 million). The acquisition strengthens the decorative paints segment of the former company.

Similarly, in May 2021, PPG Industries Inc. acquired Karl Wörwag Lack- und Farbenfabrik GmbH & Co. KG, a manufacturer of coatings for industrial and automotive applications. This acquisition strengthens the former company in the field of automotive coatings.

Major players operating in the paints and coatings market include Akzo Nobel N.V., PPG Industries Inc., The Sherwin-Williams Company, Kansai Paint Co. Ltd., Nippon Paint Holdings Co. Ltd., BASF SE, RPM International Inc., Jotun A/S, Axalta Coating Systems Ltd., Masco Corporation, and Asian Paints Limited.