Paints & Coatings Market

Updated on : October 08, 2024

Paints and Coatings Market

The global paints and coatings market is valued at USD 194.5 billion in 2024 and is projected to reach USD 227.5  billion by 2029, growing at 3.2% cagr from 2024 to 2029. The worldwide paints & coatings market has been expanding steadily, and this development pattern is anticipated to continue. Important industries include architecture, car manufacture, automotive repair, and construction are the main drivers of demand. The paint & coatings market is dominated by China and India. The major markets are in Asia Pacific, followed by North America and Europe. The robust economic performance and significant investments made in a range of industries in the Asia Pacific region are credited with this expansion. The manufacturing sector has prospered due to the global economic recovery, and the need for new infrastructure and building has increased due to rising urbanization.

Attractive Opportunities in the Paints and Coatings Market

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Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

Paints and Coatings Market Dynamics

Drivers: Environmental regulations boosting the demand for VOC-free coatings

One of the most significant developments in the coatings industry over the past ten years has been the growing demand for environmentally friendly features. This trend has been largely driven by strict EU regulations pertaining to the reduction of volatile organic compound (VOC) emissions throughout the coating life cycle. This has caused a shift in consumer demand from solventborne coatings to more environmentally friendly goods like powdered and aqueous paints and coatings.

Federal government agencies and the European Commission develop new legislation and guidelines, like the Eco-product Certifcation Scheme (ECS). These rules guarantee a sustainable and green environment with negligible or no emissions of hazardous volatile organic compounds. Additionally, in 2016, the Quality Council of India (QCl, Pollutom Control Board Authorities) introduced regulations for lead control in houses and paints and coatings.

The Government of India (GO1) was strongly advised by the National Referral Centre for Lead Projects in India (NRCLPi) to set the lead content limit for all household and decorative paints at 90 parts per million. These rules incentivize producers of paints and coatings to make investments in bio-based raw materials, resulting in more environmentally friendly finished goods. The adoption of new, low-polluting coating technologies will also be influenced by government restrictions in the US and Western Europe, particularly those pertaining to air pollution.

Restraints: Requirement of more drying time for waterborne coatings

More drying time is needed for aqueous coatings

Waterborne coatings require longer drying and cure times than solventborne coatings. Furthermore, the outstanding flow characteristics of aqueous coatings vary with humidity, impacting the coating application. Water does not evaporate easily in high humidity conditions, which leads to poor cure and decreased effectiveness. Waterborne paints are not functional.

Opportunities: Increasing applications of fluoropolymers in the building & construction industry

Fluoropolymers are being used in the building and construction sector more and more.Fluoropolymers, such as polyvin/lidene difluoride (PVDF), are utilized in architectural and industrial coatings in the building and construction sector. PVDF is employed in architectural applications where long-term substrate protection and outstanding appearance are required. Because it can be formed into solvent dispersion coatings and has sufficient solubility in ester and ketone solvents, PVDF is the most desirable fluoropolymer.

PVDF-based coatings can be baked at temperatures between 230°C and 250°C after being applied by spray coating or traditional coil processes. They may self-extinguish, have good weather resistance, and a high dielectric strength. PVDF is also stable in the presence of sunshine and other UV radiation sources.

Challenges: Difficulties: Strict regulations

Paint and coating manufacturers are required to continuously enhance their processes in order to comply with the growing number of regulatory laws that are being implemented by different governments. North America and Western Europe are two examples of nations with severe environmental standards that do not allow products that do not comply with the law.

Regrettably, some lawmakers still base their emission limits only on the amount of volatile organic compounds (VOCs) in exhaust emissions. This may result in the approval of processes that produce high mass emissions but only require extremely low airflows, as opposed to procedures that produce low mass emissions but demand high airflows. The lower atmospheric emissions that result from the use of low-VOC coatings are also disregarded by the concentration technique.

Paints and Coatings Market Ecosystem

Prominent companies in this market include well established, financially stable manufacturers of paints & coatings. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in the market include Akzo Nobel N.V. (Netherlands), PPG Industries Inc. (US), The Sherwin-Williams Company (US), Axalta Coating Systems LLC. (US), Jotun A/S (Norway).

“Growing share of waterborne coatings to support eco-friendly coatings”

The increasing need for eco-friendly products is driving a substantial growth in the market for waterborne coatings. The decorative coatings market is the main industry witnessing the trend of waterborne paints and coatings replacing solventborne paints and coatings. Manufacturers are making paint in a greener manner as a result of growing public awareness of the negative effects of volatile organic compounds (VOCs). Waterborne coatings are predicted to continue to grow in market share within the paints and coatings industry.

The necessity for environmentally friendly goods has led to a demand for environmentally friendly raw materials, especially for waterborne resins like epoxy, acrylic, and alkyd. For example, improvements in waterborne alkyd technology have made it possible to produce alkyd resins with almost no volatile organic compounds (VOCs) and comparable performance to solventborne alkyd resins.

“Acrylic Resins is projected to be the  fastest growing resin type of  paints & coatings market .”

Acrylic resins' remarkable qualities, such as their superior hardness, durability, adherence to a variety of substrates, gloss, weather resistance, and chemical resistance, have made them the one of the fastest-growing segment in the coatings business. These resins are widely utilized in architectural and automobile coatings, especially in developing nations like China and India where the need for premium paints has been fueled by rising infrastructure spending and rising living standards. One major factor predicted to propel infrastructure growth in Asia and increase demand for acrylic resins in the coatings sector is China's Belt and Road Initiative, a huge infrastructure development initiative that spans Asia, Africa, the Middle East, and Europe.

“Asia Pacific leads the paints & coatings market with global growth trends and regional shifts”

The paint and coatings industry is changing quickly, and the largest market worldwide is currently in the Asia Pacific region, followed by North America and Europe. The region's strong economic growth and significant investments in industries like building, architecture, automotive, and industry are major factors contributing to this expansion. The demand for new residential and infrastructural projects has been fueled by expanding urbanization, and the global economic recovery has greatly boosted manufacturing. The requirement for paints and coatings has grown even more as a result of the construction and repair of smart cities, water and sewage systems, highways, and bridges. On the other hand, the market has grown in industrialized nations including the US, Germany, the UK, France, and Japan. As a result, businesses are concentrating on areas with consistent demand to make up for falling revenues in their established sectors.

In developed regions, manufacturers have several obstacles like unstable economies, erratic prices for raw materials, unstable exchange rates, slow economic expansion, and disparities in supply and demand. In order to tackle these problems, businesses are expanding into emerging markets, investing in R&D, and diversifying their product offerings in order to meet the increasing demand that exists throughout the world.

In order to prosper in a constantly changing global market, players in the sector must strike a balance between innovation, sustainability, and strategic relationships as it adjusts to these changes.

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Paints and Coatings Market Players

Akzo Nobel N.V. (Netherlands), PPG Industries Inc. (US), The Sherwin-Williams Company. (US), Jotun A/S (Norway), Axalta Coating Systems (US) are the key players in the global paints & coatings market.

Axalta Coating Systems Ltd. is a diversified coatings company. It majorly operates through Performance Coatings and Transportation Coatings segments. The Performance Coatings segment is further sub segmented into refinishing and industrial segments. In contrast, the transportation segment is sub segmented into light and commercial vehicles. The company manufactures liquid and powder coatings used for various applications by automotive OEMs in automotive refinish, transportation, general industrial, and architectural & decorative coatings.

Paints and Coatings Market Report Scope

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

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

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

• Water-borne Coatings
• Solvent-borne Coatings
• Powder-based
• Others

Based on end-use industry, the paints & coatings market has been segmented as follows:

• Architectural
  • Residential
    • New Construction
    • Remodel & Repaint
  • Non-Residential
    • Commercial
    • Industrial
    • Infrastructure
• Industrial
  • General Industrial
  • Protective
  • Automotive Refinish
  • Automotive OEM
  • Wood
  • Marine
  • Coil
  • Packaging
  • Aerospace
  • Rail

Based on the region, the paints & coatings market has been segmented as follows:

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

Recent Developments

• In May 2021, Axalta completed the expansion of its waterborne coatings plant in Jiading, Shanghai, China. The expanded site is designed to meet the rising demand for sustainable coating solutions for automotive, commercial vehicle, and industrial markets in China and the Asia Pacific region.

Frequently Asked Questions (FAQ):

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