Resins in Paints and Coatings Market

Market Overview

The global resins in paints and coatings market size was valued at USD 33.94 billion in 2022. It is expected to reach USD 52.56 billion by 2031, growing at a CAGR of 4.98% during the forecast period (2023–2031).

Resins are organic compounds that can be polymerized and either solid or highly viscous. They can have either a natural or synthetic origin. Paints and coatings, especially those intended for outdoors, are made using a wide variety of resins that offer benefits such as resistance to hydrolysis, good weather resistance, excellent gloss, and color retention. In addition to being transparent and resistant to UV rays, they can also take on a wide range of hues in coating solutions.

Coatings are primarily used to protect against corrosion or to prevent substrate deterioration. In contrast, paints are substances used to enhance the aesthetics of the substrate on which they are applied. In the architectural, industrial, automotive, aerospace, and other end-use sectors, paints and coatings offer anti-fouling, flame retardancy, and anti-microbial properties.

Market Dynamics

Global Resins in Paints and Coatings Market Drivers

Growing Construction Activity in Asia-Pacific

The largest consumer of paints and coatings worldwide is the construction industry. Nearly 40% of total consumption is accounted for by the industry alone. The industry's demand for paints and coatings significantly influences the demand for resins used in manufacturing paints and coatings. According to Straits Research, the global construction industry is anticipated to grow in real terms by an average of 3.2% per year over the next ten years, reaching a nominal value of more than USD 6.0 trillion. The Asia-Pacific region is predicted to have the world's largest and fastest-growing construction market. The demand for residential construction is anticipated to rise significantly due to the rapid population growth in China and India. This will likely increase the use of architectural paints and coatings, fueling the market's demand for resins.

Due to rapidly expanding economies, rapid urbanization, and rising infrastructure spending, the construction sector in the Asia-Pacific region has been experiencing steady growth in recent years. The development of the Asia-Pacific region's construction industry is fueled by the presence of more foreign businesses, which has increased the demand for new offices, buildings, production facilities, etc.

Global Resins in Paints and Coatings Market Restraints

Difficulty Obtaining Thin Films in Powder Coating

The powder coating process is exceptional at attaining thick and smooth coatings. However, it is not easy to produce with thin coatings. It is not easy to control the speed and amount of powder applied to the substrate. Thicker coatings can easily hide surface imperfections. Also, thinner coatings tend to show more orange-peeled textures due to inadequate powder addition, low temperature or curing time, and insufficient pre-treatment.

Global Resins in Paints and Coatings Market Opportunities

Advance of Environmentally Safe Refineries

Several businesses have received financial rewards for their efforts in harmful product reformulation. Others have seen significant market share losses due to their steadfast support for conventional goods that are bad for the environment. Additionally, organizations' commitment to reducing the environmental impact of their current and future product mixes is expected to have a significant impact as consumers' awareness of sustainability and the environment grows. The factors above are anticipated to create a wide range of applications for bio-based and environmentally friendly paints and coatings, primarily in the construction sector.

Regional Analysis

By region, the global resins in paints and coatings market are segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.56% during the forecast period. China is renowned for its manufacturing sector's industrialization and needs for paints and coatings. Automotive, industrial, and construction are a few major industries in the nation that use paints and coatings. Presently, more than one-fourth of the global coatings market is accounted for by China. Additionally, it is anticipated that the nation’s demographics will continue to fuel the expansion of residential construction. The country's demand for residential construction is anticipated to be driven by rising household income levels and an increase in the number of people moving from rural to urban areas. Infrastructure that is not residential is anticipated to expand significantly. The nation's aging population is driving the need for new hospitals and healthcare facilities. Colossal commercial and office buildings have been built due to the structural changes in the Chinese economy over the past few years, which have seen the service sector account for a more significant portion of the GDP overall. Developments in the residential and commercial construction sectors, supported by the country's expanding economy, primarily drive China's economy.

Europe is expected to grow at a CAGR of 4.31% during the forecast period. Regarding GDP consumption, Germany is the biggest nation in Europe. With manufacturing making up 80% of all industrial production in Germany, this industry is the most significant. One of Europe's top producers of paints and coatings is Germany. There are about 300 paint and printing ink manufacturers and many small and medium-sized businesses. With some of the leading paint manufacturers like BASF SE, Dow, Beckers Group, Brillux, Altana Chemie, Meffert, and Mankiewicz, Germany is one of the world's largest producers of paints and coatings. As a result, the nation's market demand is anticipated to rise. Europe's largest construction market is in Germany. The country's construction industry is slowly expanding, primarily due to an increase in the number of new residential construction projects.

The United States is one of the world's largest and most developed economies. Due to its dominant position, the nation has become one of the world's leading suppliers of resins for the paints and coatings industry. With more than 1,400 manufacturing companies, it is one of the top-producing countries for paints and coatings worldwide. The American Institute of Architects predicts that in 2021, the non-residential sector will grow by 1.5% overall. Although it is anticipated to increase by 0.7% in 2021, hotel construction decreased by 1% in 2020. In 2021, a 3% increase in office space construction was anticipated. To encourage the construction of affordable homes for low- and middle-income households, Microsoft announced its intention to invest about USD 500 million in the Puget Sound region of the United States in the early months of 2020.

Brazil has seen slow economic growth in the past few years. The production of paints and coatings in Brazil was estimated at 1.623 billion liters in 2020, up from 1.569 billion liters in the previous year, according to Associaço Brasileira dos Fabricantes de Tintas. The expanding paint industry is anticipated to drive the country's demand for resins. Due to historically low-interest rates in Brazil, the Sao Paulo State Housing Union (Secovi-SP) reported the sale of 4,341 new residential units in Sao Paulo in July 2020, an increase of 32.3% from the previous year. Additionally, the nation's rising housing demand fueled the building of homes for middle-class families.

Saudi Arabia is a significant market. Demand for resins will likely increase due to the rising infrastructure and commercial construction spending in developing economies and the adoption of building information modeling (BIM). In order to support Saudi Arabia's economic development, the National Transformation Plan (NTP) and its associated Vision 2030 announcement have increased investments in several fields, including healthcare and education. The country's social infrastructure is the subject of extensive government plans. The country's commercial building construction activities are anticipated to increase due to government and private investments in various sectors.

Segmental Analysis

The global resins in paints and coatings market are segmented by type and end-user industry.

Based on type, the global resins in paints and coatings market are bifurcated into epoxy, acrylic, polyurethane, polyester, polypropylene, and alkyd.

The acrylic segment is the highest contributor to the market and is expected to grow at a CAGR of 5.49% during the forecast period. Acrylic resin is one of the polymers frequently used in the paint and coatings industry. Thermoplastic and thermoset acrylics are the two types most commonly used. The polymerization of various acrylic monomers produces synthetic resins known as thermoplastic acrylic resins. Thermoset acrylic resins are cured by reacting with other polymers at high temperatures. Thermoset acrylic resins are utilized in original equipment manufacturer finishes for metal furniture coatings, automotive topcoats, maintenance coatings, appliances, and other products. In terms of gloss, exterior durability, corrosion resistance, chemical resistance, solvent resistance, and hardness, they perform significantly better.

A thermosetting resin, polyurethane, does not melt when heated. Diisocyanates and polyols are the main building blocks. In areas prone to high wear and resistivity toward a wide range of solvents, polyurethane paints, and coatings are typically applied over primers and intermediate coats to provide a lustrous and glossy finish while maintaining resistivity and providing excellent performance against high levels of UV and other extreme weather conditions. Polyurethane resins are used as dispersions to epoxy-based paints and coatings in the paint and coatings industry.

Based on the end-user industry, the global resins in paints and coatings market are bifurcated into industrial, architectural, automotive, and packaging.

The architectural segment owns the highest market and is expected to grow at a CAGR of 5.13% during the forecast period. The market under study is dominated by the architectural segment, which has a more than 35% share. Growing global construction activity is driving demand for different resins in the paints and coatings industry. The need for resins in the architectural sector is caused by increased paint and coating production and consumption due to the strong demand for new construction activities and renovations of various commercial and residential buildings in many countries. The market for architectural coatings is primarily dominated by the most frequently used resins, such as vinyl acrylate, styrene acrylics, and pure acrylics. In the architectural industry, paints and coatings are widely used for interior and exterior applications.

Industrial uses more than 25% of paint and coating resins. This segment includes power, infrastructure, oil and gas, electrical and electronic, and other industrial resins. Epoxy, polyester, polyurethane, and epoxy-polyurethane blends are popular resins. Fire retardant paints and coatings are the fastest, easiest way to cover any surface without changing its properties. Fire-retardant paint helps prevent a building’s fire's spreading. In industrial facilities, fire-retardant paint gives occupants and equipment more time to control fires. Expanding industrial activities around the world drive demand for resins in industrial coatings. Thus, industrial coatings are increasing demand for the studied market.

Recent Developments

• March 2022- D.R. Coats Ink and Resins Pvt. Ltd. (DRC), located in Maharashtra, India, sold its coating resins business to Allnex, a top supplier of resins for environmentally friendly coatings solutions.
• October 2022- BASF opened a surface treatment innovation and technology center in China for Chemetall.