Paints and Coatings Market

Paints And Coatings Market Research, 2031

The global paints and coatings market was valued at $175.8 billion in 2021, and is projected to reach $278.4 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031.

The paints and coatings market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on building & construction, automotive & transportation, industrial, aerospace, and other sectors. However, the building and construction and transportation activities have been back on track and operating at full capacity post-COVID-19 period, which is expected to enhance the paints and coatings demand.

Paints are compounds that are used to improve the aesthetics of the substrate on which it is applied, while coatings are used principally to prevent substrate deterioration or for corrosion protection purposes. Paints and coatings provide specific properties such as anti-fouling, flame retardancy, and anti-microbial properties in architectural, industrial, automotive, aerospace, and other end use sectors.

Rise in population coupled with rapid urbanization has surged the growth of the architecture & construction sector in both developed and developing economies such as the U.S., China, India, and others where paints and coatings growth where paints and coatings are used for flooring, wall finishing, and roofing applications. For instance, according to a report published by National Investment Promotion and Facilitation Agency, the infrastructure activities accounted for 13% share of the total foreign direct investment (FDI) inflows in 2021. This is expected to boost the demand for paints and coatings in the growing architecture & construction sector. Furthermore, factors such as surge in disposable income, technological upgrades, and spurring rise in original equipment manufacturers (OEMs) have led the automotive sector to witness a significant growth where paints and coatings are used for corrosion protection applications in under hood parts, engine components, interior of containers, and storage vessels. For instance, according to a report published by India Brands Equity Foundation, the domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016-20 with 26.36 million vehicles being manufactured in India in 2020.

However, there are certain health hazards associated with the use of volatile organic compound (VOC)-containing paints & coatings. For instance, high levels of VOC's in paint could particularly affect asthmatic and sinusitis patients. Furthermore, VOCs can cause severe irritation to the throat & eyes, and a burning sensation to the nasal membranes. These factors may refrain the customers from purchasing VOC-containing paints & coatings; thus hampering the paints and coatings industry growth.

On the contrary, the emergence of high solid paints and coatings that produces little or no volatile organic compounds (VOCs) has surged the potential applications of paints and coatings among several end-use sectors. For instance, high solid epoxies are widely used in decking, hull, cargo tanks, and others. Furthermore, high solid paints and coatings require less drying and are easy to apply. These factors make high solid paints and coatings highly preferred for coating applications in various end-use sectors. This is anticipated to increase the sales of high solid paints and coatings; thus creating lucrative opportunities for the market.

The paints and coatings market is segmented into Resin, Product Type, Application and Region. On the basis of resin type, the market is fragmented into acrylic, alkyd, epoxy, polyester, polyurethane, vinyl, and others. By product type, the market is classified into waterborne coatings, solvent-borne coatings, powder coatings, and others. Depending on the application, it is fragmented into architectural, industrial, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major companies profiled in this report include Akzo Nobel N.V, Asian Paints, Axalta Coating Systems, LLC, Indigo Paints Ltd, Kansai Paint Co., Ltd., Kwality Paints and Coatings Pvt. Ltd., Nippon Paint Holdings Co., Ltd, PPG Industries, Inc., RPM International Inc., and The Sherwin-Williams Company.

The Asia-Pacific paints and coatings market is projected to grow at the highest CAGR of 5.2% during the forecast period and accounted for 48.2% of paints and coatings market share in 2021. This is attributed to the rise in building & construction, automotive, electronics, and other sectors have enhanced the performance of the paints and coatings in the Asia-Pacific region. In addition, China's industrial sector is increasing rapidly, which in turn has enhanced the performance of the paints & coatings market in the region. Furthermore, countries such as India, Australia, Indonesia, and Malaysia have witnessed a rapid increase in the building & construction sector where paints and coatings are employed as protective coatings in various residential and commercial building & construction sites, such as hotels, hospitals, homes, flats, warehouses, showrooms, garages, and offices.

By resin type, the acrylic segment contributed the most to the paints and coatings market size globally and is anticipated to grow at a highest CAGR of 5.1% during the forecast period. This is attributed to the fact that acrylic paints offer numerous advantages such as it dries quickly, it is water-soluble, it is less toxic as well as safer around children & pets, and it is flexible & durable. These factors have made customers become more linear toward using acrylic resin-based paints for home decor and other applications.

In 2021, the waterborne coatings segment was the largest revenue generator, and is anticipated to grow at a CAGR of 4.8% during the forecast period. This is attributed to the increase in demand for a wide range of furniture items, which in turn have surged the popularity of waterborne coatings owing to their high gloss and good pigmentation characteristics. Furthermore, customers in both developed and developing economies have become more linear toward using sustainable products, which in turn fosters the popularity of waterborne coatings among various end use sectors.

By application, the architectural segment was the largest revenue generator and is anticipated to grow at a CAGR of 5.0% during the forecast period. This is attributed to the fact that governments of developing economies such as China, India, and others, have increased spending on the development of townships, housing, built-up infrastructure, and construction of development projects where paints and coatings are widely used for exterior and interior coating applications. For instance, according to a report published by the National Investment Promotion and Facilitation Agency of India, the Indian Parliament passed a bill, in March 2021, to set up the National Bank for Financing Infrastructure and Development (NaBFID) to fund infrastructure projects in India.

IMPACT OF COVID-19 ON THE GLOBAL PAINTS AND COATINGS MARKET

• The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe.
• The paints and coatings market has been negatively impacted due to the wake of the COVID-19 pandemic owing to its dependence on building & construction, automotive & transportation, industrial, aerospace, and other sectors. According to a report published by the Society of Indian Automobile Manufacturers (SIAM), the sale of passenger cars and sport utility vehicles declined by 52%, and 45% respectively in March 2020.
• Moreover, several automotive companies were either shut down or shrank their operations due to the risk of infections among the workforce. This has temporarily hampered the demand for paints and coatings market amid the COVID-19 pandemic.
• In addition, the falling income of customers and international travel restrictions have led to a contraction of the demand of paints and coatings in the aerospace sector. For instance, according to a report published by Airlines for America, the commercial airline passenger volume in September 2020 was 68% less than in September 2019, affecting a long-term existential threat to manufacturers, the supply chain, and to the entire air travel industry
• Furthermore, COVID-19 has put a temporary break on various aircraft manufacturing projects, which in turn has shrunk the demand for paints and coatings used for interior coating and flooring applications in the aerospace & aviation sectors. In addition, the paints and coatings market has witnessed a downfall in demand among the construction sectors, owing to a temporary halt on various building and construction projects amid the COVID-19 pandemic.
• In 2020, paints and coatings prices were high in Asia-Pacific. The price rise was due to continued regional demand trends and tight product availability. Firm downstream demand for paints & coatings and stronger upstream costs are expected to sustain the price gain.
• However, the rise in awareness for using eco-friendly products among citizens of both developed and developing economies may surge the popularity of paints and coatings with minimal or no volatile organic compounds (VOCs) emissions in various end-use sectors post COVID-19 scenario. Furthermore, the building & construction and transportation activities are have been back on track and start functioning with a full capacity post-COVID-19 period, which is expected to contribute to the paints and coatings market growth.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the paints and coatings market analysis from 2021 to 2031 to identify the prevailing paints and coatings market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the paints and coatings market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global paints and coatings market trends, key players, market segments, application areas, and market growth strategies.

 Paints and Coatings Market Report Highlights