Global Statistics Representing Paints and Coatings Market Scenario
Paints and coatings are primarily used to impart a decorative and glossy finish to the surfaces of metals, architectural structures, and other substrates. They improve a product’s life span and performance by offering excellent adhesion, higher resistance to corrosion, and other benefits. The production of paint mainly includes three components – pigments, binder, and solvent. Both organic and inorganic pigments provide features such as color, opacity, film cohesion, and corrosion resistance. Binder is the film forming component while the solvent is used to dissolve the binder and facilitate the application of paint.
According to the World Paints and Coatings Industry Association (WPCIA), in 2015, the global consumption of paints was pegged at about 37.27 million tons, or about USD 128.23 billion in terms of sales value – recording 3.5% growth over the previous year.
Growing demand for paints and coatings from various end-use sectors such as automotive, construction, marine, and others is the primary factor driving market growth. Expansion of the automotive sector in developing countries such as China and India is expected to affect the market growth positively. According to the Japan Paints Manufacturers Association, in 2015, Japanese companies produced 30% of all automotive coatings in the world, and the Japan paints and varnishes market recorded 0.3% growth.
The introduction of low-VOC paints and coatings is expected to boost market growth, owing to the growing inclination towards environment-friendly products. Furthermore, various industrial companies are focusing on the manufacturing of low VOC nano paints and coatings with higher advantages. Recent innovations such as UV-resistant and electrically-conductive paints and coatings are also significantly propelling market growth.
The global paints and coatings market are mainly segmented based on product type, raw material and application. Based on product type, the market is segmented into High solids, Powder, Water based, Solvent based, and Others. The water-based segment is estimated to dominate the market during the forecast period, owing to the growing demand from various sectors such as construction, furniture, and others. The extensive use of water-based paints and coatings with no harmful effects propels the demand for this segment.
Based on raw material, the market is bifurcated into Polyurethane, Epoxy Resin, Acrylic, Alkyd, Others. High flexibility, solvent eistance, good plasticizer resistance, and impact resistance are some of the advantages offered by the acrylics over resins along with high gloss, good color, and retention performace properties at a high temperature. Owing to these properties the growth of scrylic raw material segmet is espected to upsurge the market.
On the basis of application, the market is segmented into architectural and non-architectural. Architectural application segment of paint and coating is expected to supplement the growth of market during the forecasted period. This is attributed to the growing renovation and interior decoration activities in developing and developed countries.
The global paints and coatings market has been analyzed across North America, Europe, Asia-Pacific, and Latin America and the Middle East and Africa (LAMEA).
Asia-Pacific is expected to dominate the market during the forecast period, owing to the high consumption in countries such as China, India, and others. According to the WPCIA, in 2015, Asia-Pacific’s sales of paints and coatings accounted for about 49%; out of which China accounted for 60% and India 14%. Rapid expansion in automobile and construction sectors is a key factor driving market growth in the region.
The U.S.’s growing construction sector drives the paints and coatings market in North America. According to data released by the U.S. Census Bureau, in 2018, spending in the non-residential construction segment was about USD 749 billion – an annual growth rate of about 3% over the previous year.
High demand for paints and coatings from automotive players and OEMs is the primary factor driving market growth in Europe. Certain trends such as the adoption of environment-friendly coatings with reduced volatile organic compounds and residual formaldehyde levels are generating significant demand from construction and automotive sectors.
Increasing demand from various end-use sectors such as construction and industrial is largely driving the growth of the market in LAMEA. The presence of some of the largest automobile manufacturing units in Mexico is also imparting momentum to the growth of LAMEA’s paints and coatings market.
Some of the key players operating in the market are Akzo Nobel N.V. (Netherlands), PPG Industries, Inc. (U.S.), Axalta Coating Systems LLC (U.S.), Nippon Paint Holdings Co., Ltd. (Japan), BASF SE (Germany), Asian Paints Limited (India), Kansai Paints Co., Ltd. (Japan), Berger Paints India Limited (India), Shalimar Paints (India), and RPM International Inc. (U.S.).
One of the leading companies in the paints and coatings market, Akzo Nobel N.V., acquired Colourland Paints to improve customer experience and expand its product offering and distribution network.
In December 2016, Akzo Nobel acquired the industrial coating business of BASF. The total value of this transaction was about € 475 million.
Paints and Coatings Market Segmentation
By Product Type
By Raw Material