European Paints and Coatings Market

The European Paints and Coatings market is projected to grow from USD 37.2 billion in 2023 to USD 41.6 billion by 2028, at a CAGR of 2.3% between 2023-2028 respectively. High demand for sustainable coatings from professional and DIY industries will lead to an increase in the market for European Paints and Coatings.

Attractive Opportunities in the European Paints and Coatings Market

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Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

Market Dynamics

Driver: Technological evolution in powder-based coatings

Technological advancements in advanced curing methods, powder coating materials, and their unique applications have enhanced the use of powder coatings in heat-sensitive substrates. Medium-density fibreboard (MDF), a combination panel bonding synthetic resin with wood particles, is one of the most important advancements in powder coatings. Owing to its low porosity and homogeneous surface MDF is suitable for powder coating applications. Powder coatings are increasingly used on MDF products for finishing. The MDF products include doors, kitchen and bath cabinets, office furniture, store fixtures and displays, and ready-to-assemble furniture for offices and homes. Furthermore, the powder coatings have also rendered the coating failure problem to enhance the longevity of a coated asset. Nowadays, Hyper-durable powder coating technology is well-positioned to take on the high-performance architectural market for skyscrapers and other monumental building products.

Restraint: Requirement of more curing time for waterborne paints and coatings

Waterborne paints and coatings have become increasingly prevalent in all industries, from industrial to automotive applications, to help reduce the environmental impact of painting processes. But the drying and curing of waterborne coatings require more time than that of solvent-borne coatings and can become very critical depending on the volume. In addition, waterborne coatings have excellent flow properties that change with humidity, affecting the coating application. During high humidity, water does not easily evaporate and gets trapped on the surface of the substrate resulting in poor cure and a decrease in performance. Sometimes to accelerate the cure time, heat is used, which can disrupt the substrate surface. Waterborne coatings are also sensitive to freezing conditions. Many waterborne coatings are not usable after freezing.

Opportunities: Attractive prospects for powder coatings in the electric vehicles segment

The increasing awareness of powder coatings as an eco-friendly solution with zero-VOC and zero hazardous components create an attractive opportunity in the industrial coatings market. Of the powder coatings used in the automotive industry, 25% is used on wheels, 15% on exterior trim parts, and 40% for under-the-hood components, leaving 20% in miscellaneous applications. Powder coatings used for under-the-hood components will gradually shift from protecting the drive train for internal combustion engines (ICE) to protecting components for the electric powertrain, which offers attractive opportunities for powder coating material and equipment manufacturers.

Challenge: Stringent environmental regulations

Based only on the concentration of VOC in exhaust gases, some legislators continue to limit emission values. This leads to approval for high mass emissions processes that require high airflows as compared to low mass emissions that need only very low airflows. The concentration approach also ignores the reduced atmospheric emissions when low-VOC coatings are used. VOC limits in Europe affecting the coatings industry are governed by two main legislations, namely: The Paint Product Directive (Directive 2004/42/CE), which is enacted in the UK by the Volatile Organic Compounds in Paints, Varnishes, and Vehicle Refinishing Products Regulations 2012 SI 2012 No 1715. The Industrial Emissions Directive (IED – Directive 2010/75/EU) limits VOC emissions in certain industrial activities, enacted in the UK by the Environmental Permitting (England and Wales) Regulations 2010 SI 675.

Market Ecosystem: European Paints & Coatings

Paints and Coatings are formed of solvent, binder, additives, hardeners, and pigments which are supplied by a number of raw material manufacturers and suppliers or distributors. These are used for their esthetic and protective haracteristics in residential, non-residential, commercial and industrial applications such as automotive, marine, awerospace, wood, protective, and coil coatings. The paints and coatings industry is nowadays focusing on advanced, cost-effective, high-performance materials that offer permeability, thereby increasing the product’s shelf life. It is undergoing continuous technological up-gradation concerning the design and development of raw materials.

Industrial end-use industry is the fastest-growing segment in Europe between 2023 and 2028.

An industrial coating or paint is defined by its protective rather than its aesthetic properties, although it often provides both. They are used for corrosion control of steel or concrete, but this is a complex market segment with numerous applications. Industrial application is segmented into general industrial, automotive OEM, automotive refinish, wood, protective, marine, coil, packaging, aerospace, and others. The outbreak of the COVID-19 pandemic and consequent containment measures widely introduced by Member States significantly impacted the EU’s industrial production in 2020. Industrial production in European Union decreased by 7 %   in the same year compared with 2019, which has recovered in 2021 by 8 % compared with 2020. The recent increase was recorded in almost all industrial activities, with the highest peak in manufacturing basic metals and fabricated metal products, followed by manufacturing chemical products, including paints and coatings.

Powder-based Coating is the largest segment in the Industrial end-use market of Europe between 2023 and 2028.

Powder-based coatings are of two types: thermosets and thermoplastics. Thermosets incorporate cross-linker into the formulation. The powder is baked and reacted with other chemical groups in the powder to polymerize, improving the performance properties. Whereas, thermoplastics do not undergo any additional action during the baking process but rather only flows out into the final coating. Powder coatings offer attractive opportunities from a pollution prevention standpoint because no solvents are used in the coating formulation. These have high transfer efficiency with no hazardous waste to dispose off.

Germany is the fastest-growing European Paints and Coatings market.

Germany is the largest economy in the European region and the fourth largest globally. It is the most industrialized and populous country in Europe. The country accounts for the largest share of decorative as well as industrial coatings market in Europe. Also, it is a leading exporter of decoarative coatings globally and accounted for an export percentage of 16.9 in the year 2021. The growth in the construction sector is expected to outpace the overall economic growth of the country.

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Key Market Players

Akzo Nobel NV (Netherlands), PPG Industries, Inc. (US), The Sherwin-Williams Company (US), BASF Coatings GmbH (Germany), Jotun A/S (Norway), and Axalta Coating Systems LLC (US) are the key players in the global European Paints and Coatings market.

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Scope of the Report

This research report categorizes the European Paints and Coatings market based on resin type, technology, end-use industry, and region.

By Resin Type:

• Acrylic
• Alkyd
• Epoxy
• Polyester
• Polyurethane
• Fluoropolymer
• Vinyl
• Other Resins

By Technology:

• Waterborne
• Solventborne
• Powder
• Other Technologies

By End-use Industry:

• Architectural
• Industrial

By Country:

• Germany
• Russia
• UK
• France
• Italy
• Spain
• Turkey
• Poland
• Sweden
• Denmark
• Norway
• Finland
• Lithuania
• Latvia
• Estonia
• Rest of Europe Europe

Recent Developments

• In December 2022, Akzo Nobel completed the acquisition of the wheel-liquid coatings business of Lankwitzer Lackfabrik GmbH, a deal that strengthened the company’s performance coatings portfolio. The acquired business will complement Akzo Nobel’s existing powder coatings offering and expand the range of innovative products the company supplies.
• In June 2021, PPG acquired Tikkurila, which helped the company to expand paint and coating options with Tikkurila’s environment-friendly decorative products and high-quality industrial coatings.
• In April 2020, The company launched the scuff-resistant Dulux Easy Care+ for stain-free walls. It forms a durable matte coating, providing extraordinary mechanical strength

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