The global paints and coatings market is projected to grow from $160.54 billion in 2017 to $209.36 billion by 2022, growing at a CAGR of 5.45 per cent from 2017 to 2022.

The market is largely driven by the increasing demand for paints and coatings from various end-use industries, such as construction, automotive, marine, protective, aerospace, transportation, rail coatings, wood coatings, packaging, and general industrial. The growth of the paints and coatings market can also be attributed to increased investments by the key players to launch efficient and cost-effective products, as well as for expansion and merger and acquisition activities. The growth of the middle-class population in emerging economies is one more important factor driving the paints and coatings market.

The paints and coatings market has been segmented on the basis of resin type, technology, application, and region. By resin type, the acrylic resin segment dominated the paints and coatings market in 2016. This dominance can be attributed to the growing use of acrylic resins in many applications, such as automotive, roof coating, wall coating, and construction.

By technology, the water-based paints and coatings segment accounted for more than 45 per cent share, in terms of volume, of the overall paints and coatings market in 2016. The water-based paints and coatings find applications in automotive, interiors of coal cars, fly ash hoppers, plastic pellet hoppers, and the architectural sector, as they offer advantages such as less flammability, low VOC emissions, and stable viscosity during printing.

The architectural paints and coatings segment is the largest application segment of this market, in terms of volume. The demand from new residential and non-residential applications in the developed and developing countries is leading to the increased usage of architectural coatings.

Asia-Pacific is the largest market for paints and coatings, having accounted for 49.56 per cent share, in terms of volume, in 2016. There is an increased demand from construction in Asia-Pacific, which is mainly backed by the expansion of the region’s increasing household activities. This increased demand, in turn, drives the paints and coatings market in Asia-Pacific. Asia-Pacific is the fastest-growing paints and coatings market with most of the large manufacturers establishing their facilities in this region. Presence of some of the fastest-growing economies, such as China, India, and South Korea, and rising demand from construction and automotive industries play a crucial role in driving the paints and coatings market in the Asia-Pacific region.

The acrylic resin segment dominated the paints and coatings market in 2016

The growth of the paints and coatings market mostly depends on the economic growth of different regions, which in itself is dependent on the global political situation. The political situation is critical in many regions of the world, which may deter the availability of some ink resins used as raw materials for the manufacturing of paints and coatings.

Some of the leading manufacturers of paints and coatings include AkzoNobel (Netherlands), PPG Industries (US), Axalta Coatings Systems (US), BASF Coatings (Germany), The Sherwin-Williams Company (US), Asian Paints (India), Kansai Paints (Japan), Jotun A/S (Norway), RPM International (US), Hempel A/S (Denmark), and Nippon Paint Holdings Co (Japan), among others.

INDUSTRIAL COATINGS

The industrial coatings market is projected to grow from $98.30 billion to $130.97 billion, growing at a CAGR of 5.91 per cent from 2017 to 2022.

The market growth can be attributed to the increased demand for industrial coatings from the Asia Pacific region. The global industrial coatings market is largely driven by the rising demand from the automotive industry .Economic and demographic growth, increasing industrial activities, and growing urbanization are among the important drivers for the global industrial coatings market.

The industrial coatings market has been segmented based on resin, technology, end-use industry, and region. By resin type, the acrylic resin segment dominated the industrial coatings market in 2016. This dominance can be attributed to the growing use of acrylic resins in many applications, such as automotive, industrial wood, transportation, marine, and general industrial applications.

Manufacturers are engaged in business expansion to cater the increased demand for industrial coatings. However, formulation and implementation of new regulations, such as Reach (registration, evaluation, authorisation and restriction of chemicals) and various other directives to control solvent emissions are affecting the growth of the industrial coatings market across the globe. The Eurozone crisis of 2012 has also affected the growth of the industrial coatings market globally, as several companies reduced their production as part of the ircost- cutting strategy to survive in the market, the report said.

By technology, the solvent-based industrial coatings segment accounted for more than 40 per cent share, in terms of volume, of the overall industrial coatings market in 2016. The solvent-based industrial coatings find applications in trenches, tank interiors, containment lining, flooring systems, and joint overlays. Solvent-based industrial coatings can be used in end-use industries such as automotive, marine, aerospace, coil, rail, packaging, protective, electrical & electronics, energy, industrial coatings, and others.

By end-use industry, the automotive OEM segment is projected to grow at the highest CAGR during the forecast period. Increasing demand for industrial coatings from marine, aerospace, coil coating, transportation, rail coating, general industrial, industrial wood, protective, and packaging industries is projected to drive the global industrial coatings market during the forecast period.

Asia Pacific was the largest market for industrial coatings, having accounted for the maximum market share, in terms of volume, in 2016. Key countries in the Asia Pacific market include China, Japan, India, and South Korea.

GLOBAL COIL COATINGS

Key excerpts from Future Market Insights’ new study on the global coil coatings market reveals that by the end of 2027, around 1,368.0 KT of coil coatings will be sold globally. Between 2017 and 2027, the global coil coatings market is expected to register a CAGR of 4.6 per cent, reaching a valuation of $6,312.1 million.

Rising expenditure in the construction industry, especially for non-residential construction is expected to drive the sales of coil coatings over the next couple of years. The recent boom in the construction sector has been fueling the demand for coated steel and aluminium coils of late. In addition, continuous demand for domestic appliances and construction materials across the globe are also supporting the market growth, the report said.

Development of eco-friendly coating products to check emission levels and commencement of grid power projects are some of the key trends governing the global coil coatings market. Amongst the key regions, sales of coil coatings in Asia Pacific excluding Japan (APEJ) will remain robust throughout the forecast period on account of the increasing infrastructure investments in the region, favouring the growth of the market. APEJ’s coil coatings market, which is currently valued at over $1,472 million is expected to surpass $2,525 million over 2027. During the same period, the Middle East and Africa (MEA) will also become a highly attractive market and is expected to witness a relatively higher CAGR as compared to other regions. Meanwhile, North America and Western Europe are currently identified as the second and third largest market for coil coatings respectively.

Throughout the assessment period, sales of topcoats are anticipated to remain relatively higher as compared to all the other major coil coating product types. In 2016, around 369.5 KT of topcoats were sold worldwide, which is expected to increase to 588.6 KT by 2027-end, expanding at 4.3 per cent CAGR.

By material type, demand for polyester coil coating will continue to gain traction owing to the material’s excellent physical and chemical properties, such as good chemical resistance and high durability for interiors and exteriors of buildings and good formability. Coil coatings find widespread application in various steel coating requirements. Moreover, rising preference for pre-coated or pre-painted steel sheets is also fuelling the demand for various coating products including coil coatings from the steel manufacturing industry.

On the basis of end-use, the construction industry is projected to account for the largest value share of the global coil coating market over the forecast period.

EUROPEAN MARKET PICKS UP

Growth in the European paints and coatings market continues to pick up pace. End-user preferences and regulatory requirements are shifting the market towards disruptive technologies such as Big Data and multifunctional/smart coatings, compelling coating companies to move beyond product manufacturing to become total solution providers, finds Frost & Sullivan’s Visionary Science team.