The market for aerosol paints is expected to expand at a CAGR of more than 5% during the forecast period. Major factor driving the market studied is increasing demand for architectural coating applications.
- Stringent VOC emission laws is expected to hinder the growth of the market studied.
- Shifting focus toward developing eco-friendly alternatives is likely to act as an opportunity in the future.
Key Market Trends
Architectural to Dominate the Market
- The architectural segment dominates the demand for the aerosol paints market. Architectural coatings include interior and exterior paints, primers, sealers, varnishes, and stains that are applied on-site to new and existing residential, commercial, institutional, and industrial buildings.
- Mostly conventional paints are used for architectural coatings application. However, after realizing the cost benefits and aesthetic quality associated with aerosol paints when used on a small scale, manufacturers are increasingly developing aerosol paints for architectural applications.
- The Asia-Pacific and North American regions have been witnessing strong growth in residential construction. Asia-Pacific has been witnessing strong growth in residential construction in countries, such as India, China, the Philippines, Vietnam, and Indonesia. Besides, in North America, high housing demand, owing to the growing population demand for homes and increased immigrants, and trend of nuclear families are some of the factors driving the residential construction in the region.
- For instance, in Indonesia, the government planned to invest about USD 450 billion in the construction sector by 2021, which is expected to provide a boost to residential construction in the country.
- On the other hand, the Asia-Pacific and the Middle East & African regions are experiencing huge domestic, as well as foreign, investments for setting up industrial units, hospitals, malls, multiplexes, the hospitality industry, and the IT sector.
- Thus, such a robust performance of the construction industry across various regions has been driving the demand for the aerosol paints market.
- Besides, the trend is likely to remain the same over the next few years, which is expected to continue providing growth opportunities for the aerosol paints market during the forecast period.
Germany to Dominate Europe Region
- Germany's construction industry is the largest in Europe. The residential construction segment is expected to have moderately high growth.
- Furthermore, Germany is the largest market for furniture in the European region, and a major furniture consumer in Western Europe. The growing corporate sector has been driving the growth of the office furniture industry.
- Demand from the furniture industry is expected to further increase, owing to the robust growth in residential construction in the region, fueled by the high demand for residential houses.
- Some of the key players in the German furniture industry are Huls AG & Co. KG, Topstar GmbH, and Rauch GmbH & Co. KG, among others. Most of the companies are located in Bavaria, Baden-Wurttemberg, and North rhine-Westphalia. Currently, there are over 22,000 furniture manufacturers across the country.
- Due to the booming housing market and real estate demand, the German construction and building industry are expected to grow rapidly. This, in turn, is expected to increase the demand for aerosol paints in various applications, over the forecast period.
- Additionally, the German automotive industry is the largest automotive producer in Europe. Twenty-one of the world's top 100 automotive suppliers are German companies.
- However, in the past few years, the automotive industry has been witnessing a decline in production in the country, due to the high cost and shifting of production to countries like China. In 2018, automotive production declined by 9.3%, indicating a significant fall in production.
- The new car market in the country overall exceeded 3 million vehicles, but there was a small contraction in the new car market due to the introduction of new WLTP emission control regulations, as numerous manufacturers were unable to register new cars. However, there is still significant demand from the automotive aftermarket.
- All the aforementioned factors are likely to increase the demand for the market over the forecast period.
The aerosol paints market is partially consolidated. Some of the key players in the market studied include Krylon Products Group., Ppg asianpaints, Rust-Oleum, and Nippon Paints, amongst others
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