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

The global paints and coatings market size was valued at USD 160.03 billion in 2021. The market is projected to grow from USD 167.04 billion in 2022 to USD 235.06 billion by 2029, exhibiting a CAGR of 5% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -6.3% in 2020 as compared to 2019.

Paints and coatings are widely used in the construction, automotive & transportation, and wood industries. They have a major application in the building and construction industry, where they are used to protect structures from any external damage. Also, the product is used in various applications in decorating residential and non-residential infrastructures & buildings, industrial equipment, automobile & marine, industrial wood, and others.

A brief glimpse of the market overview shows that these materials are widely used in diverse applications, owing to their properties such as protection from environmental factors, corrosion protection, reflection-absorption, anti-friction, and hardness.

There is an increasing trend of high-tech coatings that include cationic electrocoating materials, covering all the corners and crevices of multifaceted metal parts, thereby protecting them from corrosion. High-performance ceramic increases the lifespan of aircraft turbine engines as well as automotive. It mostly protects components from high temperatures, wear, and corrosion.

COVID-19 IMPACT

COVID-19 Outbreak has Disrupted the Supply Chain, Compelling Companies to Monitor Conditions Prudently

COVID 19 outbreak has disrupted the supply chain of companies operating in the paint and coatings sector. Companies are concentrated on managing the orders, inventory levels, and in-transit shipments amid the pandemic. During this pandemic, companies are constantly employing innovative techniques to stabilize their operations at manufacturing sites. Similarly, suppliers emphasize smooth logistics and distribution of raw materials during the pandemic. For example, HMG Paints, a U.K.-based manufacturer, was fully operational and maintained higher levels of stocks for finished goods during the pandemic.

LATEST TRENDS

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Sustainability Development in the Coatings Industry to Favor Growth

Paints and coatings preserve and protect the substrates they are applied to, thus conserving material resources and energy. The sustainability aspect is routinely considered by companies while performing their business operations. The main focus is to reduce Volatile Organic Compounds (VOC) to include resource conservation and energy, renewable materials, process efficiency enhancement, and waste minimization. For example, DSM offers Decovery, a plant-based resin for paint. Decovery ingredients are safe and contain low VOCs to protect and improve outdoor & indoor air quality, reducing the carbon footprint by up to 34% by replacing crude oil. Thus, the company focuses on sustainable solutions and transforming the industry from solvent-based to waste-based coatings.

DRIVING FACTORS

Rapid Expansion of the Construction Industry Will Aid Market Growth

Paints and coatings are majorly used to decorate and protect buildings & infrastructures. These architectural enhancements include interior and exterior house paints, primers, sealers, varnishes, and stains. Architectural paints allow for less-VOC, odorless paints with increased scrub resistance, and are available in various textures from even to semi-gloss sheens.

The construction industry is poised to grow by around USD 8 trillion by 2030. An increase in construction activities and government investments in various public infrastructure projects is likely to support the market. In addition to this, advanced cutting-edge technologies are becoming standard in the construction industry. The increasing use of building information modeling (BIM) collaboration and cloud computing is another factor responsible for the construction industry's growth.

The industry's growth resulted in huge product demand in other applications such as residential and commercial construction. Furthermore, such products gain momentum due to applications, such as wood, coils, automotive & transportation, and industrial metals, that will drive the market growth.

RESTRAINING FACTORS

Difficulty Obtaining Thin Films in Powder Coating to Hinder Overall Market Growth

The powder coating process is exceptional at attaining thick and smooth coatings. However, it is difficult to produce with thin coatings. It is difficult to control the speed and amount at which the powder is applied to the substrate. Thicker coatings can easily hide surface imperfections. Thinner coatings tend to show more orange-peeled textures due to inadequate powder addition, insufficient temperature or curing time, and insufficient pre-treatment.

SEGMENTATION

By Resin Analysis

Polyurethane Resin Expected to Generate Highest Revenue Due to Abrasion Resistant and Corrosion Resistant Properties

Based on resin, the market is segmented into epoxy, acrylic, polyester, alkyd, PU, and others. Amongst these, acrylic resin accounts for the largest market share owing to its drying rate, adhesion, flexibility, and relative resistance properties, making it suitable for usage in paints and coatings. The increasing use of acrylic for architectural coatings of interior and exterior walls, windows, and panels is the major factor driving the product demand.

Epoxy resins have major applications in floor coatings, where epoxy thinner, a mixture of solvents and alcohols is utilized for coatings. Epoxy coatings are broadly used due to their exceptional chemical resistance, low porosity, anti-sagging, corrosion-resistant, strong adhesion, durability, and bond strength.

Alkyd resins are mainly used for decorative gloss paints in residential homes and commercial offices. PU resins have good gloss, scratch resistance, and excellent adhesion and thermal stability. As a result of its properties, the demand for PU resin coatings is expected to contribute to the market size substantially.

By Technology Analysis

Water-Borne Coatings Expected to Hold Dominant Share Due to Environment-Friendly and no VOC Emission Properties

Based on technology, the market is segmented into waterborne, solvent borne, powder coating, and others.

Waterborne coatings hold the largest market share due to increased usage in automobiles, furniture, plastic, wood, and printing inks industries. Waterborne coatings have benefits such as no VOC emissions, quick-dry, and easier application, which are the driving factors for this segment’s growth.

Solvent-borne coatings are made of organic compounds used for humid and harsh environments, such as industrial metals and equipment and exterior coatings of buildings.

Additionally, powder coatings are an emerging trend as they do not have a liquid carrier and produce thicker coatings without sagging, no solvent content, and release a very less amount of volatile organic compounds (VOC) into the atmosphere. They are used for various applications, including coatings of complex parts of automobiles, engines, and industrial machinery. Powder coat finishes resist corrosion, scratches, chemicals, detergents, and abrasion.

By Application Analysis

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Architectural Segment to Exhibit a Significant CAGR Owing to Increasing Demand from Construction and Automotive Industries

Based on application, the market is fragmented into marine, architectural, automotive refinish, automotive OEM, coil, general industries, industrial wood, protective coatings, and others.

The architectural segment is expected to remain dominant in terms of revenue and volume during the forecasted period. In architectural applications, coatings and paints are mainly used for decorative purposes for residential and non-residential structures to protect them from environmental harm, UV radiation, and others. Increasing use of these materials in diverse industries such as construction and automotive is expected to drive this market's growth.

High demand for paints and coatings in the automotive industry, owing to their color stability, continuous protective film formation, corrosion resistance, abrasion and scratch resistance, flexibility, and durability will boost the market prospects.

The growth in coil segments can be linked to the high production of sheets of various materials such as polymers, steel, and copper. Coils are used in semiconductors, household wires, cables, automotive, building & construction, etc.

These materials are also applied to commercial and military ships for protection from environmental effects such as water, UV radiation, and thermal instability. Industrial material is also covered through paints coatings that provide heat and fire resistance, electrical resistance to machinery, and industrial wood. Increasing product demand in marine and industrial applications will further boost the market growth.

REGIONAL INSIGHTS

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Asia Pacific accounted for the highest market share in terms of revenue and volume in 2021 and may retain its position during the forecast period. This is ascribable to increasing building & construction activities and automotive industries in China, Japan, and India. Increasing demand for paints and coatings is attributable to their application in coatings of residential and non-residential infrastructures. They have major applications in decorating walls, windows, and furniture. China is the major consumer as the growing population is leading the growth of the residential construction sector, which is fueling the market growth. Additionally, their use in the automotive industry drives the market value in Asia Pacific.

Europe occupied a prominent position and is anticipated to witness substantial growth in the market share, mainly attributable to the increasing demand from the automotive industry. Europe is among the leading global producers of automobiles, owing to higher disposable income and an abundance of raw materials.

North America is expected to witness noteworthy growth in the global market. The U.S. is one of the major consumers of paints for automotive and construction applications globally, which will aid market growth. In the U.S., these products are mainly used to remodel and refurbish old infrastructures and manufacture automotive refinish. Continuous acceptance of innovative technologies, growing disposable income, and increasing consolidation of used vehicles are prime factors that will contribute to the market growth in this region.

In Latin America, Colombia, Brazil, and Peru have planned nationwide infrastructure plans, which will boost the region's investment. The growth in infrastructure and upkeep expenditure by the public and private sectors in these countries is advancing the regional market's growth. Growing industrialization in Brazil may boost the demand for architectural coatings that will further help in increasing revenues.

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The Middle East & Africa is expected to observe substantial growth in the market. Saudi Arabia and Qatar are leading in the regional flourishing of their construction sectors. The surge behind infrastructure and large-scale residential projects across the Middle East indicates the increasing product demand.

KEY INDUSTRY PLAYERS

Key Market Players to Strengthen the Market Position by Majorly Focussing on Construction and Automotive Industries

The paints and coatings market share is competitive and fragmented with key manufacturers operating in the industry such as PPG Industries, Inc., Axalta Coating Systems, Nippon, Kansai (Kansai Paint Co., Ltd.), Jotun, the Sherwin-Williams Company, and AkzoNobel. Most global corporations have integrated raw material production and sales activities to maintain product quality and expand their regional presence. This gives businesses a competitive edge in the form of a cost advantage, which improves profit margins. To remain competitive and meet the changing demands of end-users, corporations are also putting more emphasis on their R&D efforts.

Additionally, companies have adopted strategies, such as acquisition, partnership, and new product launch, to increase their presence in various regions.

• In August 2021, PPG introduced PPG ENVIROCRON PCS P4 powder coatings for architectural, home décor, and furniture applications. This latest generation of powder coatings meets the increased demand for matte and premium-textured surfaces in applications ranging from aluminum and steel substrates for building construction to urban and office furniture.


• In June 2021, AkzoNobel acquired paints and coatings maker Grupo Orbis. This strategic acquisition will allow AkzoNobel to expand its position in South and Central America.


• In December 2020, Jotun launched its Jotacote Universal S120 primer to the global market in the North East Asian and West European market. Jotacote Universal S120 is the world’s first PSPC approved single-coat, solvent-free system.

LIST OF KEY COMPANIES PROFILED:

• PPG Industries, Inc. (U.S.)


• Axalta Coating Systems (U.S.)


• Nippon and Kansai (Kansai Paint Co., Ltd.) (Japan)


• AkzoNobel (Netherlands)


• Kwality Paints and Coatings Pvt. Ltd. (KPCPL) (India)


• Kansai Nerolac Paints Limited (India)


• NIPSEA GROUP (Singapore)


• The Sherwin-Williams Company (U.S.)


• Jotun (Norway)


• Nippon Paint Holdings Co., Ltd. (Japan)


• RPM International Inc. (U.S.)


• TIKKURILA OYJ (Finland)


• Asian Paints (India)


• Dunn-Edwards Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022 - AkzoNobel Powder Coatings introduced the Interpon Futura Collection, which includes three new, on-trend color palettes such as Merging World, Healing Nature, and Soft Abstraction. The collection emits no solvents or volatile organic compounds and contributes to AkzoNobel's overall sustainability program.


• 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.


• February 2022 - H.B. Fuller Company acquired Apollo, the U.K.’s independent manufacturer of liquid adhesives, coatings, and primers for the roofing, industrial, and construction industries.

REPORT COVERAGE

An Infographic Representation of Paints and Coatings Market

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The research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, technologies, and resin types. Also, the report offers insights into paints and coatings industry trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the market's growth rate in recent years.

Report Scope & Segmentation