The market for paints and coatings is expected to register a CAGR of 4.5% during the forecast period. The major factors driving the market studied are rapidly increasing housing construction activities in the Asia-Pacific region. The rise in prices of raw materials is expected to hinder the growth of the market studied.
- Architectural coatings dominated the market and the segment is expected to grow during the forecast period, owing to the increasing construction activities across the world.
- Growing investments in the infrastructure and construction industry in emerging economies is likely to act as an opportunity in the future.
- Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China, India, and Japan.
Key Market Trends
Architectural to Dominate the Market
- In terms of revenue, Asia-pacific is expected to witness the highest growth in the demand for paints and coatings for application in the architectural sector during the forecast period.
- Paints and coatings are extensively used in the architectural sector for both exterior and interior applications.
- Modern advances in paint technology, specifically in the acrylic formulations have offered a wide range of weatherproof coatings.
- However, moisture causes problems for paint. Dew, rain, snow and ice on the outside, or vapor and moisture buildup from the inside can cause problems with exterior paint. When moisture penetrates the paint, blisters can form and the paint might peel. Moisture blisters, unlike temperature blisters, go through all coats of paint down to the wood.
- Besides this, paints and coatings are also used in interiors of houses to add colors or decorative purposes, along with a wide range of other functions.
- Furthermore, in Asia-pacific, China is expected to witness the highest growth in the construction activities, followed by India.
- In China, government spending has been increasing in order to construct affordable housing facilities to cater to the housing demand.
- In India, the infrastructure sector has become one of the major focus areas for the government.
- Hence, all such construction activities and favorable government measures are likely to boost the construction activities in the region, which is further projected to boost the demand for architectural paints & coatings.
China to Dominate the Market in Asia-Pacific Region
- China is globally recognized for its architectural boom. The demand for low-cost housing and commercial housing is the reason for its growth in recent years.
- China's real estate sector has been growing rapidly with increased investment by the government. Recently, property prices in China rose by about 30.0% due to increased activity in the real estate space. The growth in construction is expected to positively affect the paints & coatings market in the country.
- The investments in the transportation sector increased in the near past. In April 2019, the government of China invested around USD 73 billion for constructing key transportation projects, which include railways, highways, waterways, airports, and urban rail. The investment plan would enhance the country's connectivity between the major cities, which helps for the wider economic and social development of the region.
- Furthermore, China accounts for almost 40% of global furniture production. The production is further increased at a rapid rate, owing to the rising domestic demand, coupled with increasing export to European countries.
- The number of packaged cans in China is likely to expand by more 6% in the next few years. Additionally, major beverage-can manufacturer, such as Crown Holdings is likely to expand the beverage can production capacity in the country to meet the rapidly growing demand.
- These factors, in turn, are fueling the demand for paints & coatings in the country.
The global paints and coatings market is moderately consolidated among the global majors and highly fragmented, with numerous regional players of the market. The major companies include The Sherwin-Williams Company, PPG Industries Inc., Akzo Nobel NV, Nippon Paint Holdings Co., Ltd, RPM International Inc.
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