Growth in the construction and automotive industries, mainly in emerging economies, is creating a significant demand for paints and coatings. These materials are used for both aesthetic and protective purposes; therefore, the demand for them is growing in all sectors, which include residential, commercial, and industrial. The increasing construction of houses and other buildings, in order to accommodate the rising population, is also creating a demand for paints and coatings. Owing to such factors, the paints and coatings market is expected to showcase a CAGR of 4.2% during the forecast period (2020–2030), in order to reach $227,834.0 million by 2030.
COVID-19 has created an adverse impact on the global economy due to the implementation of lockdowns and curtailment of trade activities. The global market is no exception in the current scenario. The market is highly backward-integrated with petrochemical feedstock and titanium dioxide producing industries and forward-integrated with the residential, commercial, and industrial sectors. The pandemic has led to a temporary halt in commercial and industrial construction, which will certainly lead to a low requirement for paints and coatings. Further, the crude oil supply–demand imbalance and its future uncertainty have impacted the price of the feedstock, thus affecting the paints and coatings market negatively.
Based on technology, the paints and coatings market is categorized into water-borne, solvent-borne, high-solids, powder coatings, and ultraviolet (UV). Among these, water-borne coatings dominated the market during the historical period (2014–2019), on account of the increasing demand for low- and no-volatile-organic-compound (VOC) products. VOCs can damage the central nervous system and cause cancer. Further, the increasing government regulations regarding products containing VOCs are impelling manufacturers to produce water-borne paints and coatings.
Based on application, the market is categorized into architectural coatings, industrial coatings, and special coatings. Among these, industrial coatings are expected to showcase the highest growth rate during the forecast period. The growing demand for automobiles and increasing consumption of packaged products in emerging economies are some of the key attributable factors for the highest growth rate of this category.
Geographically, the paints and coatings market in the Asia-Pacific (APAC) region is expected to be the largest in the coming years, on account of the growing construction activities in the region and shifting manufacturing facilities from Western economies to those in APAC. Further, the rising disposable income of the people is enhancing their spending power, which is expected to propel the demand for painting and coating products in the region.
The paints and coatings market is fragmented in nature; therefore, key players are using the merger and acquisition model in order to consolidate it. For instance, in April 2020, Akzo Nobel N.V. completed the acquisition of Mauritius-based paint and coating company Mauvilac Industries Limited. The acquisition helped Akzo Nobel N.V. strengthen its footprint in Sub-Saharan Africa, with the addition of a production facility and four concept stores and access to a vast distribution network.
In addition, in August 2017, Kansai Plascon Africa Limited, a subsidiary of Kansai Paint Co. Ltd., acquired Sadolin Paints East Africa Limited, a paint manufacturer in East Africa, to expand its presence in the region.
Some of the key players operating in the market include 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.
