MARKET OVERVIEW- GLOBAL PAINTS AND COATINGS MARKET
Paints and coatings are used for the decoration and protection of buildings, automobiles, appliances, and equipment. Paints and coatings make products more durable, more attractive, safer, and more saleable. Paints and coatings are used to provide aesthetic appeal or decorative value to surfaces and products. Paints are classified into Decorative paints, Industrial coatings. Paints are formulated according to use such as primer, undercoat, and special finishes (matt, gloss, heat resistance, anti-corrosion, abrasion resistance). The coating is defined as paint with a purpose that is used for protection from corrosion, heat, and other external factors. Coatings are applied to a variety of surfaces using many different application techniques. The coating can provide color retention, flexibility a,nd elasticity, waterproofing, water-shedding, breathability (permeable), rust and corrosion containment and prevention, self-cleaning, ti-microbial properties. The paints and coatings markets are booming due to in the creasing demand of eco-friendly products and increasing construction activities.
MARKET DRIVERS
The key factor driving the market growth is increasing construction activity, along with the increasing demand for eco-friendly products, boosting market growth. Industry players are continuously investing in R&D to develop advanced environmentally friendly paints with the goal of minimizing the VOC content. The rising sales of automobiles along with increasing consumer preference towards improved vehicle aesthetics are driving the paints and coatings market. Moreover, top automobile companies are innovating their product portfolio with improved paints and coatings to reduce corrosion. Advancements in paint technologies, including anti-fingerprint paint finishes, anti-glare coatings, transparent protective coatings, and superior UV protection, are key points in market development in the coming years. The increasing architectural growth due to housing and construction is driving the markets.
MARKET OPPORTUNITIES
The global Paints and Coatings Market is expected to witness increasing new growth opportunities for the market with the ongoing growth in the urbanization and construction industry, especially in the Asia-Pacific region, which offers many opportunities in the coming years. For instance, the rate of urbanization in the Asia-Pacific region is around 1.5% per year, due to which construction and renovation activities are growing rapidly. Besides, the government’s initiative towards infrastructure growth, combined with the differentiated product offerings, waterproofing, construction chemicals, wood coatings, and home hygiene products, provides opportunities during forecast time. The overall force on housing for all/affordable housing measures by the government has helped fresh painting demand and will aid repainting demand in the future.
MARKET RESTRAINTS
The major restraining factor for the global paints and coatings market is that water-based technologies it requires more time to dry out the coating than solvent-based technology. In addition, water-based coatings are more prone to environmental factors such as humidity, and heat affecting the coating application, During the high humidity water takes more time to dry and does not easily evaporate, resulting in poor coatings that make them difficult for industrial use.
MARKET GROWTH CHALLENGES
The paint and coating industry has been facing stringent environmental regulations due to the presence of volatile organic compounds (VOCs) in almost all paints and coatings products. Finding alternatives to these materials and ensuring constant performance whilst reducing the VOC content is a constant challenge for the industry. The increasing cost of raw materials affects production.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Paints and Coatings Market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. The increasing demand for eco-friendly products and increasing construction activity have led to the increasing demand for the market and is expected to witness growth at a specific CAGR from 2022-2028.
PAINTS AND COATINGS MARKET SEGMENTAL OVERVIEW
The global paints and coatings market comprises different market segments like resin type, technology, and end-user industry and geography.
PAINTS AND COATINGS MARKET BY RESIN TYPE
By Resin Type, the paints and coatings market is divided into
- Alkyd Paints
- Vinyl Coatings
- Chlorinated Rubber Coatings
- Epoxy Coatings
- Polyurethanes
- Epoxy Mastic Coatings
- Others
The alkyd paints segment accounted for major share in the market in 2021 and is expected to grow during the forecast period owing to its properties such as drying rate, adhesion, flexibility, and relative resistance making it suitable for usage in paints and coatings. The increasing use of alkyd paints for architectural coatings of interior walls, windows, and panels. Thus, this is a major factor driving the growth of the segment over the forecast period. The demand for epoxy coatings is also increased use of it in floor coatings driving the segment growth in the coming period.
PAINTS AND COATINGS MARKET BY TECHNOLOGY
The Paints and Coatings market is segmented into technology such as
- Water-Based Technology
- Solvent-Based Technology
- Powder Coating
- Others
Based on technology, for the Paints and Coatings market, water-based technology holds the major market share over the forecast period due to increased usage in automobiles, furniture, plastics, wood, and printings ink industries. Moreover, water-based technology is also preferred owing to several benefits associated with it such as no VOC emissions, quick drying, and easier application are some of the factors that drive the segment’s growth over the forecast span.
PAINTS AND COATINGS MARKET BY END-USERS
The Paints and Coatings market has major end users like
- Pharmaceutical
- Chemical
- Electronics
- Automotive
- Architectural
- Food & Beverages
- Packaging
- Others
The architectural segment has been accounted for majority of share in the market in 2021 and is expected to maintain its growth at a considerable growth rate. The increased use of paints and coatings in the architectural sector for building and construction of other warehouses such as office and the residential building. In architectural applications, paints and coatings are mainly used for the decorative purpose for residential and non-residential to protect them from UV rays and other environmental concerns. The increased use of these materials in the construction industry is expected to drive the growth of the architectural segment in the coming time. Moreover, the automotive segment is also growing at an exponential rate due to the demand for coatings and paints in the automotive sector to prevent automobile cars and bikes from corrosion and other factors such as scratch resistance, flexibility, abrasion, and durability will boost the automotive industry to grow over mentioned time.
PAINTS AND COATINGS MARKET BY GEOGRAPHY
The global paints and coatings market is studied for the following region
- North America
- Europe
- Asia-Pacific
- Rest of the world (RoW)
The global Paints and Coatings Market is studied for the following region: North America, Europe, Asia-Pacific, and the Rest of the world (RoW). APAC accounted for the largest share of the global paints and coatings market. The region is holds important share in the because of increasing building and construction activities along with the booming automotive industries in China, Japan, and India. In the Asian countries, China holds the major market share and China is also the largest consumer of industrial coatings. That also makes China dominant in the paint and coating markets in Asia Pacific. Japan and Korea are also believed to have mature markets because of average selling prices and the quality levels are higher. In South Asia including India, Sri Lanka, Pakistan, Bangladesh, Nepal, and Afghanistan. Among South Asian countries, India holds the major market share in the market. .
COVID-19 IMPACT ANALYSIS ON GLOBAL PAINTS AND COATINGS MARKET
The exclusive COVID-19 impact analysis report by Axiom MRC provides a 360 degree analysis of micro and macroeconomic factors in the global Paints and Coatings Market. In addition, a complete analysis of changes in the global Paints and Coatings Market expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. Its effects on their production and revenues have an impact on many industries. The paint and coating industries are no exception to this as the industry has faced unprecedented challenges and faced reduction in production and sales due to operational challenges under COVID-19 safety protocols. The global production of paints and coatings has also declined due to a reduction in raw materials and labor shortages as well as government-mandated plant shutdowns. In COVID-19 marriages got banned, offices also got shutdown for a temporary period of time which again was a prime source of painting. However, during this period, work from home culture got very popular and people stayed at home which adds in-home paintings and DIY activities which showed positive aspects of remote culture and helped to boost the sales of paint products in lockdown.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of paints and coatings market is majorly focused on expanding the global growth of paints and coatings industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in paints and coatings has led the growing demand for the market. Besides, the market offers range of products in different application to fulfill the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- AkzoNobel N.V (Netherlands)
- PPG Industries (United States)
- Sherwin-Williams Co (United States)
- Nippon Paint (Japan)
- RPM International (United States)
- Asian Paints (India)
- Axalta Coating System LLC (United States)
- Jotun A/S (Norway)
- Kansai Paints Co. Ltd (Japan)
- BASF Coatings (Germany)
- Valspar Corporation (United States)
- Tikkurila OYJ (Finland)
- Hempel A/S (Denmark)
- Berger Paints India Limited (India)
- Beckers Group (India)
- Indigo Paints Pvt Ltd (India)
- Vista Paints Corporation (United States)
- Diamond Vogel Paints (United States)
- Tiger Coatings GmbH & Co. Kg (Germany)
- Shalimar Paints (India)
- S K Kaken Co. Ltd (Japan)
RECENT DEVELOPMENT:
March 2021: AkzoNobel one of the leading companies in the paint and coating market, announced acquisition of 100% of the shares of Titan S.A. U. (Titan Paints, the best-known brand in Spain). This acquisition would strengthen its paint business in Spain. This decision would add three production facilities and seven logistics and service centers for decorative paints to AkzoNobel.
April 2021: Covestro AG announced successful acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. This acquisition is expected increase the Group’s revenues by around EUR 1 billion and will add more than 20 production sites to its global network.
August 2021: The Sherwin-Williams Co, the top leading players in global paint and coating markets, signed an agreement to acquire the European industrial coatings business of Sika AG. This transaction will open manufacturing facility in Vaihingen, Germany. The product range includes anticorrosive and fire protection coatings which are mainly sold in Germany, Switzerland, Poland, and Austria.
June 2022: Sherwin-Williams Company has announced that it has acquired Gross & Perthun GmbH, a German company developing, manufacturing, and distributing coatings primarily for the heavy equipment and transportation industries. This strategic move brings the company innovative waterborne and solvent liquid coatings technology and strong relationships with local and multi-national customers. The collision of these businesses provides multiple opportunities for growth throughout Europe and beyond.
May 2022: Sika AG, a Swiss multinational company, completed the acquisition of United Gilsonite Laboratories (UGL) in the United States, a well-known manufacturer of products for consumer and DIY waterproofing applications. This acquisition is likely to increase its presence with major retailers and other building material stores in the United States and open up cross-selling opportunities for the company.
