ARCHITECTURAL COATINGS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The architectural coatings market is estimated to be valued at USD 79.01 Bn in 2024 and is expected to reach USD 116.47 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.

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The demand for architectural coatings is expected to rise steadily over the next decade. The growth of the construction industry, along with increasing investments in infrastructure development projects across major countries worldwide, will drive the demand for architectural coatings. Rapid urbanization, rising disposable income, and changing architectural styles are also contributing to the increased consumption of architectural coatings. Furthermore, advancements in coating technologies that allow for lower VOC emissions and self-cleaning properties are expected to boost the market growth during the forecast period. New product launches focusing on sustainability and performance improvement will further aid the architectural coatings industry in garnering greater revenue share.

Expanding Global Construction Industry

The global architectural coatings market is primarily driven by the rapid growth of the construction industry worldwide. For instance, according to data published by Invest India in 2023, the construction industry in India is expected to reach US$1.4 Tn by 2025. There has been a massive increase in the number of infrastructure projects, such as roads, bridges, airports, and commercial buildings being constructed globally, both in developed and developing regions. This is propelling the demand for coating materials that are used to protect and beautify the surfaces of these structures from wear and tear. The residential construction sector is also thriving due to rising disposable incomes, growing urbanization, and increasing home ownership, especially in Asia Pacific and Middle Eastern countries. This has augmented the sales of paints, varnishes, and other coatings that are applied on interior and exterior surfaces of houses, apartments and other residential spaces. 

Market Concentration and Competitive Landscape

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Rapid Urbanization and Growing Home Improvement Activities

Another key driver for the architectural coatings market growth worldwide has been the swift pace of urbanization. As more people migrate to cities in pursuit of education and employment opportunities, the demand for housing and commercial infrastructure grows exponentially. This phenomenon is very prominent in developing regions where over 50% of the population now resides in urban areas. The aging building stocks in mature cities also require regular maintenance through painting, wallpapering, and other remodeling activities. On the residential front, home improvement has become a huge industry driven by changing aesthetics and rising disposable incomes. People are frequently upgrading and beautifying their homes through interior and exterior painting work. The do-it-yourself culture is inspiring homeowners to handle minor painting jobs themselves, which is propelling the sales of architectural coatings through retail channels. Architects and builders also recognize that regular coats of top-quality paints, stains, and other facade products can protect the exteriors as well as enhance curb appeal of buildings significantly.

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Market Challenges: Strict environmental regulations

Strict environmental regulations around the world aim to reduce volatile organic compound (VOC) emissions from paints and coatings. This increases production costs for manufacturers. Furthermore, architectural designs are becoming more innovative, requiring advanced, multi-functional coating solutions. Keeping up with the latest design trends and delivering customized product offerings is difficult. Fluctuating raw material prices also impact the market. The recent pandemic disrupted global supply chains, creating shortages of critical inputs. Economic uncertainties led to reduced demand from the construction industry.

Market Opportunities: Rapid Infrastructure

The market sees several opportunities for growth. With rapid urbanization, infrastructure and building construction are booming globally. This drives the need for large volumes of coatings. Growing consumer preference for environmentally-friendly, low-VOC products.

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Insights, By Resin Type: Durable properties and customization drive Acrylic resin demand

In terms of resin type, acrylic contributes 41.6% of the market due to its versatility and durable properties. Acrylic resin provides UV protection and durability against weathering and fading. It forms a smooth and hard film on surfaces providing an aesthetic appeal. Acrylic paints are highly customizable with options for glossy, satin, or flat finishes. This allows builders and homeowners to match the exact design aesthetic and enhances facade beauty. Additionally, the automotive industry also contributes to the demand for acrylic resins, as they are used in coatings and adhesives for vehicles. For instance, according to data published by Invest India in 2023, India is the world's third-largest automobile market.

Insights, By Function: Growing construction industry construction industry

In terms of Function, Ceramics contributes the 42.1% share of the market. Ceramic coatings have seen increased demand from the construction industry in recent years. The smooth, non-porous and durable nature of ceramic coatings make them ideally suited for applications in both commercial and residential construction. Ceramic coatings are widely used as tile adhesives and grouts for wall and floor coverings. They help create waterproof and stain-resistant surfaces that can withstand heavy foot traffic and harsh cleaning chemicals. Growing urbanization and rising incomes have fueled a boom in new construction across major markets. The commercial real estate sector in particular has experienced significant growth, with more office spaces, malls and other commercial buildings being erected each year. This has created steady opportunities for ceramic coating producers to supply tile adhesives and grouts for bathroom fixtures, wall panels and flooring materials. Meanwhile, consumers are also spending more on home improvements and renovations, benefiting ceramic coating makers that offer do-it-yourself product lines.

In terms of technology, water borne contributes the 35.2% share of the market due to stringent regulations and sustainability benefits. Water borne coatings are solvent-free and utilize water as the primary carrier of binders and pigments. They contain less than 50 grams of VOC per liter and comply with the most stringent local air quality standards. Many countries and districts have imposed restrictions on VOC content to under 250 or 100 grams per liter since 2000s. This fueled a transition from solvent borne to water borne technology. Water borne coatings meet such low VOC emission norms easily without expensive additions. Additionally, they avoid hazardous air pollutants from toxic solvents compared to traditional oil and alkyd based paints.

Insights, By End-Use Industry: In terms of End-use Industry, Non-Residential contributes the highest share of the market owing to increasing construction activities

In terms of End-use Industry, Non-Residential contributes the 41.2% share. The non-residential segment in the architectural coatings market has been witnessing significant growth over the past few years owing to increasing construction activities across different sectors such as healthcare, education, retail and hospitality. Rapid urbanization along with growing population has boosted the demand for buildings and infrastructure in both developed and developing countries. Moreover, rising consumer spending on leisure and entertainment has prompted renovation and expansion of existing malls, exhibition centers and multiplexes. Growing tourism worldwide has driven investment in building and refurbishing of hotels, resorts and convention centers. Various governments are also focusing on improving existing healthcare facilities as well as setting up new hospitals and clinics in order to provide better medical services to citizens. This has positively impacted the consumption of architectural coatings in the non-residential segment.

Regional Insights

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North America has dominated the global architectural coatings market with market share 45.6% for decades, owing to the strong presence of coating manufacturers as well as their wide scale adoption across various end-use industries in the construction and painting sectors. The U.S. accounts for the largest share in the region due to the huge construction industry and increasing residential and commercial construction activities over the years. Moreover, major coating companies like PPG Industries, Sherwin-Williams, and Axalta Coating Systems are headquartered in the U.S., which gives it an edge over other countries.

Asia Pacific region has emerged as the fastest growing market for architectural coatings globally. China is the forerunner in the region owing to the rapid urbanization and industrialization, which have escalated numerous infrastructure projects and construction activities over the past few years. Also, low production costs and growing foreign investments in the real estate and infrastructure sectors have augmented the coatings demand. Furthermore, other Asian countries like India, Indonesia, and Vietnam are anticipated to offer ample opportunities, as they are witnessing increased construction of commercial buildings, residential buildings, and civil construction works. This will propel the use of decorative and protective coatings in the coming years.

Market Report Scope

Key Developments

• In June 2021, AkzoNobelV., a global paints and coatings company, announced its plan to grow its operations in South and Central America by acquiring Colombia-based Grupo Orbis, a leading paints and coatings manufacturer with a presence in ten countries in the region
• In June 2021, PPG completed its acquisition of Tikkurila, a leading Nordic paint and coatings company, for a total transaction value of approximately USD 1.18 Bn, including the assumption of debt and cash. This acquisition was aimed at helping PPG extend its paint and coating selections, which now include Tikkurila's environmentally friendly ornamental products as well as high-quality industrial coatings. The combination of PPG and Tikkurila is expected to provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers.
• On March 11, 2022, AkzoNobel opened a new global research and development center in Slough, UK, which will act as a major hub within the company's worldwide R&D network and help to further advance AkzoNobel's innovation capabilities, especially in the area of decorative paints.
• On February 10, 2022, Hempel, a global coatings manufacturer, completed the acquisition of the coatings division of Khimji Paints LLC, an Omani conglomerate, to expand its operations in the Middle East. This acquisition is part of Hempel's strategy to double its size by 2025 through both acquisitions and organic growth, as well as investments in sustainability, innovation, and digitalization.

Market Segmentation

• Resin Type Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Acrylic
  • Alkyd
  • Epoxy
  • Polyurethane
  • Polyester
  • Urethane
  • Others (PTFE & PVDF)
• Function Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Ceramics
  • Inks
  • Lacquers
  • Paints
  • Powder Coatings
  • Primers
  • Sealers
  • Stains
  • Others (Varnishes, etc.)
• Technology Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Solvent Borne
  • Water Borne
• End-use Industry Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Residential
  • Non-Residential
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • PPG Industries
  • Asian Paints
  • Nippon Paints
  • The Sherwin-Williams Company
  • Axalta Coatings
  • RPM International Inc.
  • The Valspar Corporation
  • Midwest Industrial Coatings Inc.
  • Sumter Coatings
  • BASF SE
  • JSW
  • Jotun
  • AkzoNobel N.V.
  • Chemours Company
  • Arcat
  • FUJIKURA KASEI CO., LTD.
  • Syensqo
  • Metcon Coatings & Chemicals India Private Limited.
  • Acro Paints
  • Varuna Paints Private Limited

*Definition: The architectural coatings market consists of paints and coatings that are used for decorative and protective purposes on interior and exterior surfaces of residential, commercial and industrial infrastructure. Key products in this market include emulsion paints, enamels, alkyd paints, epoxy coatings, vinyl acetate-ethylene (VAE) emulsions, polyurethane coatings and various specialty coatings.