Paints & Coatings Market

The Paints and Coatings market is projected to grow from USD 190.1 billion in 2022 to USD 223.6 billion by 2027, at a CAGR of 3.3%. Paints and Coatings industry is categorized into two end use industry types: Decorative (Architectural) and Industrial Paints and Coatings. Almost 40% of the market is made up of the decorative paint category, which also includes ancillary items like primers and putties. This category comprises several subcategories, including exterior wall paints, interior wall paints, wood finishes, and enamels. The remaining 60% of the paint industry is made up of the industrial paint category, which spans a wide range of industries like automotive, marine, packaging, powder, protection, and other general industrial coatings. Since the coatings sector is one of the most strictly regulated in the world, manufacturers have been compelled to use low-solvent and solventless technology. There are many manufacturers of coatings, but the majority are small regional manufacturers, with only ten or so large multinationals. However, most of the huge multinationals have expanded their operations in rapidly developing nations like India and mainland China. Consolidation has been the most notable trend, particularly among the biggest manufacturers.

Attractive Opportunities in Paints and Coatings Market

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Paints and Coatings Market Dynamics

Driver: Over the next five years, housing and construction activities are expected to gradually expand across North America and Europe. Construction industry in China is anticipated to increase more quickly than in Europe or North America, despite a significant slowdown during the previous two to three years. Construction levels are rising in nations like India, Southeast Asia, and South America to keep up with the increased rates of urbanization brought on by people moving from rural areas to cities for the better earnings. Construction activity will increase as a result of infrastructure investment. To increase the productive capacity of their economies and fuel the post-Covid economic recovery, governments around the world continue to support significant infrastructure investments. The construction market's fastest-growing industry will be civil engineering. Australia's construction output is anticipated to decrease by roughly 3% in 2023. High inflation and rising interest rates have an effect on residential construction, causing property values to decline and construction costs to soar. In 2023, Belgium expects its construction output to decline by 1.3% after a 0.8% decrease in 2022, mainly due to lower activity in the residential and industrial construction segments. Both are impacted by increasing inflation and rising building activity financing costs.

Restraints: Thin-film powder coatings offer excellent flow properties, fine perforations, reduced edge build-ups, and consistent distribution of the raw materials throughout the powder mixture. They can be used in paints and, protective, and optical coatings. However, it is difficult to produce thin finishes using conventional powder coatings, as the thickening of the polymer can lead to the formation of an uneven texture. Powder coatings produce a thick finish on metal products. Uniform flow and levelling are prerequisites for thin films.

A successful thin-film application involves the correlation between color and opacity of pigmentation of powder coatings. Polyurethane resins are preferable for obtaining thin films because of flow, physical properties, and lower costs. Substrate smoothness and wetting are important issues faced in thin-film powder coating applications. It is difficult to obtain thin films similar to the ones formed using wet paint systems.

Opportunity: In the building & construction industry, fluoropolymers such as polyvinylidene difluoride (PVDF) are used in both industrial as well as architectural coatings. PVDF is used in architectural applications, where both excellent appearance and substrate protection must be maintained for a long period. PVDF is the most preferred fluoropolymer since it has enough solvency in ester and ketone solvents, and the same can be formulated into solvent dispersion coatings.

PVDF-based coatings can be applied by spray coating or conventional coil techniques and baked at temperatures from 230°C to 250°C. They have high dielectric strength, excellent resistance to weathering, and the ability to self-extinguish. Moreover, PVDF is stable to sunlight and other sources of ultraviolet radiation. It is widely used as a base resin for long-lasting exterior coatings. PVDF coatings also offer long-lasting performance in architectural coating applications and are used by licensed industrial paint manufacturers in formulating hard, long-lasting coatings.

All the properties of PVDF and other fluoropolymers such as polytetrafluoroethylene (PTFE), fluorinated ethylene propylene (FEP), and ethylene tetrafluoroethylene copolymer (ETFE) make them very useful in the building & construction industry, especially in countries where coatings need to sustain high temperatures in summer. The inherent long-life characteristics of fluoropolymer coatings outperform silicone-modified performance polyester, polyester, acrylics, plastisol’s, thick film urethanes, and other resin coil coatings in the building & construction industry. Thus, fluoropolymer-based coil coatings are important building & construction coatings, and in the future, the demand for PVDF-based coil coatings is expected to increase.

Challenges: With the increasing number of regulatory policies adopted by various governments, paints & coatings producers have to constantly improve their processes to comply with the new policies. Products that fail to meet the legal requirements are not allowed in countries that have strict environmental regulations, especially in Western Europe and North America.

Unfortunately, some legislators continue to limit emission values based only on the concentration of VOC in exhaust gases. This can lead to the approval for high mass emissions from processes, which require high airflows as against low mass emissions that need only very low airflows. The concentration approach also ignores the reduced atmospheric emissions when low-VOC coatings are used.

Paints And Coatings Market Ecosystem

Based on Technology, powder coating segment is estimated to account for the largest market share of the Paints and Coatings market

A powder coating is a dry finishing process in which the finely grounded particles of pigments and resins are electrostatically charged and sprayed on to electrically grounded parts. The powder-based industrial coatings offer low VOC emission, providing superior performance and cost efficiency for applications that require maximum abrasion resistance and hardness. Powder coatings contain 100% of solid components (binders, pigments, and additives) in the form of finely atomized powder. They do not contain solvents. There are two types of powder coatings, thermoplastic and thermosetting. They can be used in a variety of commercial and industrial applications such as in mailboxes, bathroom fixtures, ornamental fencing, vacuum cleaners, aluminum extrusions microwave ovens, garbage disposals, kitchen appliances, fans, dishwashers, desk accessories, wheelchairs, gasoline pumps, vending/ice-making machines, and toolboxes.

Based on application, Architectural, segment is anticipated to dominate the market

Architectural paints & coatings, also known as decorative paints & coatings or building paints, are applied to the interior and exterior walls of all residential, commercial, industrial, and institutional buildings. Apart from their decorative features, architectural paints & coatings also possess some protective features. For instance, exterior architectural paints & coatings protect a building from extreme rain, sunlight, and wind. These are applied by building contractors or by direct customers. Architectural coatings also find use in decorative interiors such as furniture, wood flooring, wall paintings, and sculptures. An increase in environmental awareness among consumers and manufacturers has led to technological innovations in the coating industry to provide affordable quality products that possess value-added features and meet global trends. Similarly, growing safety standards will raise the demand for waterproof and fireproof coatings for buildings.

By platform, the residential segment of the Paints and Coatings market is projected to witness the highest CAGR during the forecast period.

Paints & coatings are widely used in the residential sector to reduce the shrinkage and cracks in concrete and to improve its aesthetic quality and workability. The primary factor determining a finishing coating's durability is crack resistance. Significant shrinkage deformations that take place both during operation and the hardening of finishing coats are the primary causes of cracks. Economic growth and higher incomes have resulted in the growth of construction activity/new houses and remodeling. Architectural paints and coatings for residential construction include new paint and repainting. Architectural paints and coatings are used in both interior and exterior applications in the residential sector. Repainting gives a new look to a construction's old or worn-out interior and exterior.

The Asia Pacific market is projected to contribute the largest share for the paints and coatings market.

Asia Pacific is expected to lead the paints and coatings market in 2022. According to the IMF and World Economic Outlook, China and Japan were the world’s second- and third-largest economies, respectively, in 2022. The United Nations Population Fund states that Asia Pacific accounts for 60% of the world’s population, which is 4.7 billion people. The region includes the world’s most populous countries, China and India. This is projected to become an increasingly important driver of the global construction industry over the next two decades. The market will also be fueled by the rapidly rising household income and the fast-growing demand from smaller towns and rural areas because of increased customer awareness.

Asia Pacific encompasses a diverse range of economies with different levels of economic development and multiple industries. The development of the market is mainly attributed to the high economic growth rate followed by heavy investment across industries, such as automotive, consumer goods & appliances, building & construction, and furniture. Key players are expanding their paints and coatings production in Asia Pacific, especially in China and India. The advantages of shifting production to the region are the low cost of production and the ability to better cater to the emerging local markets.

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Key Market Players

The paints and coatings market is dominated by a few globally established players such as The Sherwin-Williams Company (US), PPG Industries, Inc (US), AkzoNobel N.V. (The Netherlands), BASF Coating GMBH (Germany), Jotun A/s (Norway), Asian Paints Limited (India), Kansai Paint Co., Ltd (Japan), Nippon Paint Holding Co., Ltd (Japan), RPM International, Inc (US), Masco Corporation (US), among others, are the key manufacturers. Major focus was given to the contracts and new product development due to the changing requirements of commercial, and residential users across the world.

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Scope of the Report

Based on resin type, the paints and coatings market has been segmented as follows:

• Acrylic
• Alkyd
• Epoxy
• Polyester
• Polyurethane
• Fluoropolymer
• Vinyl
• Others

Based on technology, the paints and coatings market has been segmented as follows:

• Waterborne coatings
• Solventborne coatings
• Powder coatings
• Others

Based on end use, the paints and coatings market has been segmented as follows:

• Architectural
  • Residential
    • New construction
    • Remodel and Repaint
  • Non-residential
    • Commercial
    • Industrial
    • Infrastructure
• Industrial
  • General industries
  • Protective
  • Automotive Refinish
  • Automotive OEM
  • Wood
  • Marine
  • Coal
  • Packaging
  • Aerospace
  • Rail

Based on the region, the paints and coating market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In December 2022, AkzoNobel N.V. has completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik GmbH, a deal which strengthens the company’s performance coatings portfolio. The acquired business will complement AkzoNobel’s existing powder coatings offering and expand the range of innovative products the company supplies.
• In April 2022, PPG today announced that it has completed its acquisition of the powder coatings manufacturing business of Arsonsisi, an industrial coatings company based in Milan, Italy.
• In November 2022, The Sherwin-Williams Company acquired Oskar Nolte GmbH and Klumpp Coatings GmbH. This acquisition creates opportunities to accelerate their profitable growth in the global industrial wood market and fits company strategy of acquiring complementary, high-quality and differentiated businesses.

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