The Paints and Coatings market is projected to grow from USD 190.1 billion in 2022 to USD 223.6 billion by 2027, at a CAGR of 3.3%. Paints and Coatings industry is categorized into two end use industry types: Decorative (Architectural) and Industrial Paints and Coatings. Almost 40% of the market is made up of the decorative paint category, which also includes ancillary items like primers and putties. This category comprises several subcategories, including exterior wall paints, interior wall paints, wood finishes, and enamels. The remaining 60% of the paint industry is made up of the industrial paint category, which spans a wide range of industries like automotive, marine, packaging, powder, protection, and other general industrial coatings. Since the coatings sector is one of the most strictly regulated in the world, manufacturers have been compelled to use low-solvent and solventless technology. There are many manufacturers of coatings, but the majority are small regional manufacturers, with only ten or so large multinationals. However, most of the huge multinationals have expanded their operations in rapidly developing nations like India and mainland China. Consolidation has been the most notable trend, particularly among the biggest manufacturers.
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Driver: Over the next five years, housing and construction activities are expected to gradually expand across North America and Europe. Construction industry in China is anticipated to increase more quickly than in Europe or North America, despite a significant slowdown during the previous two to three years. Construction levels are rising in nations like India, Southeast Asia, and South America to keep up with the increased rates of urbanization brought on by people moving from rural areas to cities for the better earnings. Construction activity will increase as a result of infrastructure investment. To increase the productive capacity of their economies and fuel the post-Covid economic recovery, governments around the world continue to support significant infrastructure investments. The construction market's fastest-growing industry will be civil engineering. Australia's construction output is anticipated to decrease by roughly 3% in 2023. High inflation and rising interest rates have an effect on residential construction, causing property values to decline and construction costs to soar. In 2023, Belgium expects its construction output to decline by 1.3% after a 0.8% decrease in 2022, mainly due to lower activity in the residential and industrial construction segments. Both are impacted by increasing inflation and rising building activity financing costs.
Restraints: Thin-film powder coatings offer excellent flow properties, fine perforations, reduced edge build-ups, and consistent distribution of the raw materials throughout the powder mixture. They can be used in paints and, protective, and optical coatings. However, it is difficult to produce thin finishes using conventional powder coatings, as the thickening of the polymer can lead to the formation of an uneven texture. Powder coatings produce a thick finish on metal products. Uniform flow and levelling are prerequisites for thin films.
A successful thin-film application involves the correlation between color and opacity of pigmentation of powder coatings. Polyurethane resins are preferable for obtaining thin films because of flow, physical properties, and lower costs. Substrate smoothness and wetting are important issues faced in thin-film powder coating applications. It is difficult to obtain thin films similar to the ones formed using wet paint systems.
Opportunity: In the building & construction industry, fluoropolymers such as polyvinylidene difluoride (PVDF) are used in both industrial as well as architectural coatings. PVDF is used in architectural applications, where both excellent appearance and substrate protection must be maintained for a long period. PVDF is the most preferred fluoropolymer since it has enough solvency in ester and ketone solvents, and the same can be formulated into solvent dispersion coatings.
PVDF-based coatings can be applied by spray coating or conventional coil techniques and baked at temperatures from 230°C to 250°C. They have high dielectric strength, excellent resistance to weathering, and the ability to self-extinguish. Moreover, PVDF is stable to sunlight and other sources of ultraviolet radiation. It is widely used as a base resin for long-lasting exterior coatings. PVDF coatings also offer long-lasting performance in architectural coating applications and are used by licensed industrial paint manufacturers in formulating hard, long-lasting coatings.
All the properties of PVDF and other fluoropolymers such as polytetrafluoroethylene (PTFE), fluorinated ethylene propylene (FEP), and ethylene tetrafluoroethylene copolymer (ETFE) make them very useful in the building & construction industry, especially in countries where coatings need to sustain high temperatures in summer. The inherent long-life characteristics of fluoropolymer coatings outperform silicone-modified performance polyester, polyester, acrylics, plastisol’s, thick film urethanes, and other resin coil coatings in the building & construction industry. Thus, fluoropolymer-based coil coatings are important building & construction coatings, and in the future, the demand for PVDF-based coil coatings is expected to increase.
Challenges: With the increasing number of regulatory policies adopted by various governments, paints & coatings producers have to constantly improve their processes to comply with the new policies. Products that fail to meet the legal requirements are not allowed in countries that have strict environmental regulations, especially in Western Europe and North America.
Unfortunately, some legislators continue to limit emission values based only on the concentration of VOC in exhaust gases. This can lead to the approval for high mass emissions from processes, which require high airflows as against low mass emissions that need only very low airflows. The concentration approach also ignores the reduced atmospheric emissions when low-VOC coatings are used.
A powder coating is a dry finishing process in which the finely grounded particles of pigments and resins are electrostatically charged and sprayed on to electrically grounded parts. The powder-based industrial painting and coating offer low VOC emission, providing superior performance and cost efficiency for applications that require maximum abrasion resistance and hardness. Powder coatings contain 100% of solid components (binders, pigments, and additives) in the form of finely atomized powder. They do not contain solvents. There are two types of powder coatings, thermoplastic and thermosetting. They can be used in a variety of commercial and industrial applications such as in mailboxes, bathroom fixtures, ornamental fencing, vacuum cleaners, aluminum extrusions microwave ovens, garbage disposals, kitchen appliances, fans, dishwashers, desk accessories, wheelchairs, gasoline pumps, vending/ice-making machines, and toolboxes.
Architectural paints & coatings, also known as decorative paints & coatings or building paints, are applied to the interior and exterior walls of all residential, commercial, industrial, and institutional buildings. Apart from their decorative features, architectural paints & coatings also possess some protective features. For instance, exterior architectural paints & coatings protect a building from extreme rain, sunlight, and wind. These are applied by building contractors or by direct customers. Architectural coatings also find use in decorative interiors such as furniture, wood flooring, wall paintings, and sculptures. An increase in environmental awareness among consumers and manufacturers has led to technological innovations in the industrial coating industry to provide affordable quality products that possess value-added features and meet global trends. Similarly, growing safety standards will raise the demand for waterproof and fireproof coatings for buildings.
Paints & coatings are widely used in the residential sector to reduce the shrinkage and cracks in concrete and to improve its aesthetic quality and workability. The primary factor determining a finishing coating's durability is crack resistance. Significant shrinkage deformations that take place both during operation and the hardening of finishing coats are the primary causes of cracks. Economic growth and higher incomes have resulted in the growth of construction activity/new houses and remodeling. Architectural paints and coatings for residential construction include new paint and repainting. Architectural paints and coatings are used in both interior and exterior applications in the residential sector. Repainting gives a new look to a construction's old or worn-out interior and exterior.
Asia Pacific is expected to lead the paints and coatings market in 2022. According to the IMF and World Economic Outlook, China and Japan were the world’s second- and third-largest economies, respectively, in 2022. The United Nations Population Fund states that Asia Pacific accounts for 60% of the world’s population, which is 4.7 billion people. The region includes the world’s most populous countries, China and India. This is projected to become an increasingly important driver of the global construction industry over the next two decades. The market will also be fueled by the rapidly rising household income and the fast-growing demand from smaller towns and rural areas because of increased customer awareness.
Asia Pacific encompasses a diverse range of economies with different levels of economic development and multiple industries. The development of the market is mainly attributed to the high economic growth rate followed by heavy investment across industries, such as automotive, consumer goods & appliances, building & construction, and furniture. Key players from paint industries are expanding their paints and coatings production in Asia Pacific, especially in China and India. The advantages of shifting production to the region are the low cost of production and the ability to better cater to the emerging local markets.
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The paints and coatings market is dominated by a few globally established players such as The Sherwin-Williams Company (US), PPG Industries, Inc (US), AkzoNobel N.V. (The Netherlands), BASF Coating GMBH (Germany), Jotun A/s (Norway), Asian Paints Limited (India), Kansai Paint Co., Ltd (Japan), Nippon Paint Holding Co., Ltd (Japan), RPM International, Inc (US), Masco Corporation (US), among others, are the key manufacturers. Major focus was given to the contracts and new product development due to the changing requirements of commercial, and residential users across the world.
Report Metric
Details
Market size available for years
2017-2027
Base year considered
2021
Forecast Period
2022-2027
Forecast Units
Value (USD Billion)
Segments Covered
By Technology, By Resin Type, By End Use Industry, By Region
Geographies Covered
North America, Europe, Asia Pacific, South America, and Middle East & Africa
Companies covered
The Sherwin-Williams Company (US), PPG Industries, Inc (US), AkzoNobel N.V. (The Netherlands), BASF Coating GMBH (Germany), Jotun A/s (Norway), Asian Paints Limited (India), Kansai Paint Co., Ltd (Japan), Nippon Paint Holding Co., Ltd (Japan), RPM International, Inc (US), Axalta Coating Systems LLC (US)
A total of 25 players are covered.
What is the current competitive landscape in the paints and coatings market in terms of new applications, production, and sales?
The market has various large, medium, and small-scale players operating across the globe. Many players are constantly innovating and developing new products and expanding to developing countries where the demand is constantly growing; thereby boosting sales.
Which all countries are considered in the report?
US, China, Japan, Germany, UK and France are major countries considered in the report.
What is the total CAGR expected to be recorded for the paints and coatings market during 2022-2027?
The CAGR is expected to record 3.3% from 2022-2027
Does this report cover the different resin type of paints and coatings market?
Yes, the report covers the different resin type of paints and coatings.
Does this report covers different technologies of paints and coatings?
Yes, the report covers different technologies of paints and coatings. .
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China's coatings industry is poised for bright growth, driven by several key factors shaping its development prospects. As China continues to invest in infrastructure and construction projects, the demand for paints and coatings continues to escalate, creating significant opportunities for the industry.
One of the key drivers of China's coatings industry growth prospects is China's continued urbanization and infrastructure development. With the rapid growth of urban population and the emphasis on improving the quality of infrastructure, the demand for architectural coatings is increasing for residential, commercial and public infrastructure projects. Additionally, the government’s ambitious infrastructure plans, such as the Belt and Road Initiative, are expected to further stimulate demand for industrial coatings in transportation, energy and other key industries.
In addition, growing concerns about environmental sustainability and safety are shaping the development of China's coatings industry. Strict regulations and changing consumer preferences are driving industry innovation and the adoption of environmentally friendly formulations and manufacturing practices. The emphasis on sustainable and low-VOC (volatile organic compound) coatings is in line with global trends and enables Chinese coatings manufacturers to cater to domestic and international markets with environmentally friendly products.
Another important factor boosting the industry's growth prospects is rapid technological advancement in coating formulations and manufacturing processes. Chinese paint companies are investing in research and development to improve product performance, durability and application efficiency. These advances are critical for the industry to meet the diverse and changing needs of industries such as automotive, aerospace, marine and industrial manufacturing.