Europe and North America Paints and Coatings Market Size, Share & COVID-19 Impact Analysis, By Resin (Epoxy, Acrylic, Polyester, Alkyd, Polyurethane, and Others), By Technology (Waterborne, Solvent Borne, Powder Coatings, E-coatings, and Solvent-less Coatings) By Application (Architectural, Automotive OEM, Marine, Coil, General Industries, Protective Coatings, Automotive Refinish, Industrial Wood, and Others), and Regional Forecast, 2022-2029

The Europe and North America paints and coatings market size was valued at USD 59.54 billion in 2021. The market is projected to grow from USD 61.76 billion in 2022 to USD 84.15 billion by 2029, exhibiting a CAGR of 4.5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with paints and coatings experiencing lower-than-anticipated demand across Europe and North America compared to pre-pandemic levels. Based on our analysis, this market exhibited a decline of 6.2% in 2020 as compared to 2019.

Paints are primarily used for aesthetics, while coatings are principally used to prevent substrate deterioration or corrosion. Paints and coatings refer to the type of coverage that is used most often to prevent the surface from accumulating oxidation and exposure to sunlight. Coatings are widely used in the automotive, transportation, construction, and wood industries. Moreover, they have major applications in the construction industry for the protection of buildings from external damage.

Paints and coatings products are also used in numerous applications for embellishing non-residential and residential and building infrastructure, industrial equipment, industrial wood, automotive and marine, and more. These materials with structural properties such as adhesive, waterproofing, and corrosion resistance are applied to the surface to prevent corrosion, rusting, and erosion that can lead to soil spoilage.

COVID-19 IMPACT

Pandemic Hindered the Supply Chain which Led Companies to Watch Conditions Carefully

The coronavirus outbreak had a significant impact on the automotive paints & coatings sector. As a result of lockdown measures, majority of the manufacturers had to shut down or suspend their ongoing projects. The shutdown of several industries also had an impact on the automotive industry. Another important impact of the COVID-19 pandemic has been the disruption of the supply chain, which resulted in a significant drop in demand for paints and coatings and investments in the sector.

Several countries' trade restrictions, along with a restricted workforce and a lack of freight containers, created an unusual environment that caused obstacles for both manufacturing companies and end-use sectors.

COVID-19 had a significant influence on Europe and North American automotive business. Throughout the year, automotive coating consumption and production were severely impacted even though the numbers began to improve in the fourth quarter of 2020.

LATEST TRENDS

Green Chemistry Promoting Sustainability to Act as a Trend for Market Growth

The concerns about the impact on human health and the environment have prompted the adoption of green chemistry in this industry. However, establishing regulatory compliance, affordable products, and enhanced performance are all challenges in the transition to green chemistry. These constraints hinder the progress toward commercial adoption. Rising consumer awareness and stringent government norms or rules may create a wider adoption of “sustainable chemistry” or "green chemistry".

In the coatings industry, green chemistry is widely used in consumer and industrial end-user industries such as aerospace, electronics, automotive, marine, construction & buildings, and consumer goods. Thus, green chemistry aims at reducing the Volatile Organic Compounds (VOCs) and enabling the process efficiency, use of feedstock, and minimizing waste. However, due to rising concerns, companies are adopting green chemistry and thus, efficiently promoting sustainable product development.

DRIVING FACTORS

Demand from Automotive and Aerospace Industries to Drive the Market Growth

Rising automobile sales and the governments adopting regulations addressing environmental issues are surging the demand in the automotive sector. Increased automobile manufacturing in countries such as China, Mexico, Indonesia, Japan, the U.S., South Korea, Germany, and India is expected to increase market development even further. The metal in automobiles is painted or coated with resin to prevent corrosion and rusting. With the rising adoption of electric vehicles, autonomous trucks, and self-driving automobiles, the automotive sector is expected to witness significant transformation during the forecast period, resulting in increased production rates, which will benefit and drive the Europe and North America paints and coatings market growth.

Change in customer preferences toward attractive paint textures and improved vehicles aesthetic appearance is augmenting the automotive coatings market expansion. The advancements in technology and strict fuel emission regulations regarding manufacturing processes and carbon footprints will boost industry growth.

RESTRAINING FACTORS

Environmental Challenges of Wastewater Discharge to Hinder Market Growth

The market had to deal with several environmental concerns, with an increasing emphasis on compliance with state and local wastewater treatment rules and regulations. The powder coating operation produces a high number of metals, oils, and grease in their wastewater streams throughout the cleaning and pre-treatment phases. Due to their dirty water streams, powder coating companies find it difficult to comply with numerous state and local requirements. Heavy metal contamination has long been an issue for metalworking businesses that utilize different electroplating processes.

European and North American economies are being impacted by political developments. Additionally, climate change and greenhouse gas emissions are causing global warming, which is affecting global temperatures. These temperature changes affect the composition as well as the drying time. Due to temperature change, companies are prompted to upgrade their operating processes and develop new product types that are more resistant to temperature variations. However, this difficulty does not appear to be a worry for the sale of coatings, but future investments in R&D activities to generate better paints and coating materials will certainly rise.

The emergence of COVID-19 led to a range of obstacles in the market, particularly in the construction and industrial sectors. The pandemic has had an impact on each region's major economies, resulting in a drop in production in this industry. Even though the market is enormous with huge capital, the sector is facing problems as a result of economic fluctuations in Europe, North America, and other regions of the world. Certain industries, such as packing, are predicted to prosper during the forecast period. Since industrial and transportation activities are getting back on track and are expected to be operating at full capacity, the market is expected to rebound.

SEGMENTATION

By Resin Analysis

Acrylic Resin Segment Dominated the Market Due to Rising Demand from Construction and Automotive Industries

By resin, the market is divided into epoxy, acrylic, polyester, polyurethane, alkyd, and others.

The acrylic segment dominated the paints and coatings market share in North America. The acrylic paints market is gaining momentum in Europe and North American regions due to the high consumption of acrylic paints in the construction and automotive industries. The acrylic resin market is driven by increasing demand from building & construction, automotive, paints & coatings, furniture, and other industries. The rising popularity of new painting models that offer better texture and finishing, and manufacturers' efforts to introduce various waterproof, dust-proof, odorless, and eco-friendly paints have led to the industry’s growth. Acrylic paint is mostly applied to exterior home buildings as it is water-resistant, especially during the rainy season, thus increasing the demand. The growing use of acrylics in building and construction activities with government spending on different infrastructure projects shall boost the acrylic paints market.

However, the concentration of infrastructure and construction works, different project opportunities, and the demand for acrylic painting in North America are likely to have a positive impact in the near future.

By Technology Analysis

Solvent-Borne Coating Segment to Exhibit a Significant CAGR Owing to its Superior Properties

Based on technology, the market is divided into solvent borne, waterborne, powder, e-coatings, and solvent-less coatings.

The demand for solvent borne coating is estimated to have a significant share in the Europe and North America paints and coatings market. The main utilization of solvent borne (without water) coating is to promote the formation of a durable film on the substrate. In Europe, the rising automotive industry had led to the demand for solvent-borne coatings. Solvent-borne are additives are used to improve the properties of coatings, these additives add many features and specifications such as top-notch finishes and gloss paints as well as coatings. The market growth is driven by various end-user markets, where coating additives are widely used due to their ability to visually and naturally improve coatings performance and improve UV protection in high-quality structures where high durability is required. These high-skill additives make them suitable for automotive, construction, chemical processing, household goods, medicine, and other industries.

By Application Analysis

Automotive OEM to Grow at the Highest CAGR Due to Performance and Additional Benefits

On the basis of application, the market is classified into architectural, automotive OEM, marine, coil, general industries, protective coatings, automotive refinish, industrial wood, and others.

The automotive segment is set to dominate the application segment with strict government standards and regulations on carbon emissions. Most automakers in North America are shifting their vehicle production toward vehicle electrification, which has increased the demand for commercial vehicles, and the logistics and e-commerce businesses are benefiting the most from this shift, driving the regional market growth. According to OICA, the U.S. accounted for 1,926,795 car sales in 2020 and 6,895,604 commercial vehicle sales in the same year. In addition, the increasing focus on reducing carbon emissions from vehicles has shifted the focus of various manufacturers to electric vehicles, thereby boosting the growth of the market in the region.

REGIONAL INSIGHTS

The growth of the market in North America is attributed to increase in commercial construction activities. The use of nanotechnology in paint and coatings is expected to serve as an opportunity for future market growth in the region. The U.S. is the world's second-largest manufacturer in this industry. The country's infrastructure is among the primary consumers of architectural coatings, leading to rising demand for architectural coatings, thus driving the market growth in the region.

The growing commercial construction sector in the U.S. due to positive market fundamentals of the real estate market, a strong economy, and increase in government and political funding for institutional and public works are driving the growth of the market in North America.

The market growth in Europe is due to factors such as the fast-growing automotive sector, increasing use of protective coatings in the offshore wind energy industry, and growing investments in the European wind energy sector. The use of nanotechnology in paints and coatings and the increasing demand for bio-based and environment-friendly products are likely to offer potential opportunities in the future. Due to the increasing demand in the construction industry, Germany is the largest market in the entire European region.

KEY INDUSTRY PLAYERS

Key Players are Adopting Organic Growth Strategies to Maintain their Position in the Market

The Europe and North America paints and coatings market share is fragmented, with major players operating in the industry being AkzoNobel, Axalta Coating Systems, Ltd., BASF SE, Hempel A/S, and Henkel Corporation. Other key players include Jotun, PPG Industries, Inc., RPM International Inc., Sika AG, Teknos Group, the Sherwin-Williams Company, and others. Manufacturers are also expanding their businesses to gain competency in the industry and alleviate new entrants’ threats.  

Market participants are fiercely competing with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies signed contracts, acquisitions, and strategic partnerships with other market players to expand their existing markets.

LIST OF KEY COMPANIES PROFILED:

• AkzoNobel (Netherlands)


• Axalta Coating Systems, Ltd. (U.S.)


• BASF SE (Germany)


• Hempel A/S (Denmark)


• Henkel Corporation (Germany)


• Jotun (Norway)


• PPG Industries, Inc. (U.S.)


• RPM International Inc. (U.S.)


• Sika AG (Switzerland)


• Teknos Group (Finland)


• The Sherwin-Williams Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2022- Hempel A/S launched Hempablade Edge 171, a new coating for Leading Edge Protection (LEP) on wind turbine rotor blades. It reduces costs and time during the application and offers long-term protection against rain erosion.


• February 2022- Hempel A/S acquired the coatings division of the Omani conglomerate, Khimji Ramdas, to expand its Oman operations and further establish itself as a market leader.


• February 2022- PPG agreed to acquire the powder coatings division of Arsonsisi, an industrial coatings company situated in Milan, Italy. Arsonsisi is a prominent producer of architectural and industrial specialty powder coatings.


• October 2021- AkzoNobel introduced the new Dulux Wash & Wear Anti-Viral paint. The new range complements Dulux's current interior washable paint portfolio as an upgraded version of the Wash & Wear range that includes the patented KidProof+ Technology and an added layer of anti-viral protection from the Silver Ion Technology.


• June 2021- PPG acquired Tikkurila, a Nordic Paint and Coatings Company. This acquisition will help PPG to expand paint and coatings options that will include Tikkurila’s environmentally friendly decorative products and high-quality industrial coatings.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and end-use industries. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

This report includes historical data & forecasts revenue growth at the regional level and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation