PAINTS AND COATINGS MARKET ANALYSIS

The global paints and coatings Market size is valued US$ 202.46 Bn in 2024 and is expected to reach  US$ 252.41 Bn by 2031, growing at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031. Paints and coatings are used as decorative as well as protective coatings. Most of the paints are used to increase surface resistance from harsh environmental conditions. They are classified as waterborne coatings, solvent-borne coatings powder coatings, and specialty coatings. Marine, automobiles, packaging, furniture, aerospace, rail, and construction are some of the major end users of paints and coatings.

Paints And Coatings Market Regional Insights:

• Asia Pacific held the largest share of over 43.0% in 2023. Significant growth of waterborne coating products in the region, along with swiftly rising demand for paint and coating materials, is boosting the market growth in the region.
• North America is estimated to register a CAGR of 3.10%, in terms of revenue, from 2024 to 2031. The product sector in the region is anticipated to be the key factor for the market growth owing to the presence of some of the largest paints manufacturers including Akzo Nobel N.V and Asian Paints.
• Europe is predicted to witness steady growth across the forecast period. Increasing construction activities and growing architecture sector across countries in Western Europe including Italy, the U.K., Germany, France, and Spain will positively influence the market growth in the region.

Figure 1. Global Paints and Coatings Market Share (%), By Region, 2024

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Analyst’s Views:

The global paints and coatings market appears robust, driven by growth in the construction and  automotive industries. The residential construction sector is seeing increased spending globally which will demand more decorative paints and coatings. Infrastructure development across regions like Asia Pacific and Latin America also promotes demand. Paint producers are well positioned to leverage opportunities in these expanding end-use industries. However, stringent environmental regulations could act as a restraint in major markets. Volatile organic compound (VOC) emission norms are tightening, necessitating innovation in low-VOC product formulations. This may temporarily inflate production costs as manufacturers upgrade to greener technologies. Additionally, availability of skilled labor fluctuates with economic cycles in different geographies, is potentially disturbing supply chains.

North America and Europe remain prominent for formulated product sophistication but Asia Pacific demonstrates the highest growth potential. Its massive population and rapid urbanization trends provide the ideal setting for sustained coatings usage. Furthermore, local manufacturers are bolstering capabilities to serve both domestic and export needs. The regional market remains quite fragmented as well, leaving room for consolidation. In summary, while the pro-development environment portends a favorable demand scenario, coating formulators cannot take stable conditions for granted. Continuous product differentiation, cost discipline, and responsible expansion look imperative to capitalize on opportunities while cushioning external shocks.

Paints And Coatings Market Drivers:

Growth in the construction industry: The global construction industry has seen steady growth over the past few years, fuelled by increasing investments in infrastructure development and the real estate sector across major economies. This surge in construction activities has led to a Parallel rise in the demand for paints and coatings used extensively in buildings and structures.

Paints and coatings form an important part of the construction process as they help protect surfaces from wear and tear, while also improving aesthetics. Different types of paints and coatings are applied on walls, ceilings, floors and other structures during construction to ensure durability and longer life. As more buildings and infrastructure projects are built, the requirement for associated paints and coatings also increases substantially. According to data by the World Bank, the total value added by the construction sector across countries rose by 3% between 2019 and 2020.

Growing industrialization and infrastructure development: The rapid industrialization and infrastructure development activities across major countries are fuelling the growth of the market. With the increasing construction of manufacturing plants, roads, bridges, railways and other developmental projects, the demand for paints and coating materials is surging significantly.

Various governments around the world are focusing heavily on improving their industrial and transportation infrastructure to bolster economic growth. For instance, countries like China, India, and several Southeast Asian nations have ambitious plans under their various five-year plans to expand manufacturing capacities and build new smart cities, airports, and metro projects. According to the World Bank data, the total infrastructure spending by these developing countries crossed US$3 Bn in 2021 and is expected to grow by over 12% annually until 2025. Such large-scale investments into building new structures and modernizing existing infrastructure are directly driving the consumption of paints, coatings, adhesives, and sealants.

Rapid urbanization: Rapid urbanization is one of the key factors contributing to the growth of the global paints and coatings market. As more people migrate to cities for employment opportunities and improved quality of living, the demand for residential and commercial infrastructure is expanding significantly. According to 2021 data from the United Nations, around 68% of the world's population is projected to live in urban areas by 2050, up from 56% in 2018.

This rising urbanization rate is translating into a huge demand for buildings, roads, bridges, and other infrastructure projects across major cities worldwide. For every new project, a large quantity of paints and coatings are required not only during construction but also in the subsequent years for renovation and maintenance purposes. For example, according to data published by the World Bank, China plans to builds over 250 million square meters of residential space every year till 2025 to accommodate its growing urban population. Similarly, India's ambitious housing program of building over 80 million new affordable homes in rural and urban areas by 2023 will further accelerate the usage of paints and coatings in the country.

Paints And Coatings Market Opportunities:

Emergence of water-borne and powder coatings: The emergence of water-borne and powder coatings presents a major opportunity for growth in the market. Water-borne coatings are environment-friendly as they emit lower volatile organic compounds (VOCs) compared to solvent-borne coatings. They also allow for quicker drying and have outstanding performance characteristics. This makes them preferable for both architectural and industrial applications from an environmental regulations perspective. Powder coatings have also gained popularity owing to their eco-friendly nature and superior properties over liquid coatings. Powder coatings produce zero VOCs and result in a thicker and more durable finish using an electrostatic spray process. They are increasingly being used in automotive, construction, and white goods manufacturing. For example, according to the 2022 report by the United Nations Environment Programmed, powder coatings now account for over 30% of the total coating demand in the European automobile industry. Their non-polluting nature and consistency in coatings thickness has resulted in most automakers transitioning to powder coatings for various auto parts.

Innovation of bio-based and green coatings: The rapid advancement in bio-based and green coating technologies presents a massive opportunity for the market in the coming years. These innovative and sustainable products not only help reduce environmental footprint but also open new revenue streams for manufacturers.

Bio-based coatings derived from plant oils, resins and other agricultural produce offer compelling advantages over conventional oil-derived alternatives. Being renewable and biodegradable in nature, they lower net carbon emissions and dependency on fossil fuels throughout the product lifecycle. Some outstanding bio-based innovations include coatings made from soybean and corn oil which have equal or better performance than traditional petroleum-based solvents. Their production requires less energy and emits lower greenhouse gases. According to the New Zealand Ministry of Business, Innovation and Employment, establishing a sustainable bio economy in the country is estimated to create over 8,000 new jobs and contribute USS$2.25 billion to GDP by 2025.

Advancements in nanotechnology: Advancements in nanotechnology offer a great opportunity for growth in the market. The use of nanomaterial allows for coatings that have improved properties compared to traditional alternatives. Nanoparticles can be engineered to have unique optical, mechanical, electrical or chemical properties at the molecular level. When added to paints and coatings, they provide benefits such as increased durability, higher resistance to corrosion and wear, better stain resistance, UV protection, antimicrobial properties, and self-cleaning abilities.

For example, the use of nano-silver in paints and coatings provides natural antimicrobial properties. This is very useful in applications such as in hospitals, offices and public spaces where hygiene is important. Nano-silver inhibits the growth of microbes and fungi without using harmful biocides. As per the World Health Organization data from 2020, antimicrobial coatings and surfaces can help prevent the spread of infectious diseases in healthcare and other facilities. The COVID-19 pandemic has further increased the focus on hygiene and disinfection, driving greater demand for such technologies.

Paints And Coatings Market Trends:

Increasing demand for powder coatings: The increasing demand for powder coatings is having a significant influence on the market. Powder coatings have various advantages over liquid coatings as they emit virtually no Volatile Organic Compounds (VOCs) into the environment. Their non-polluting nature makes them more sustainable and environmentally friendly. This growing environmental consciousness among consumers as well as manufacturers is driving greater adoption of powder coating technology.

Powder coatings also provide superior attributes over liquid paints such as uniform thin coatings, ability to coat intricate details and parts, and durability with resistance to scratches, moisture and corrosion. They result in minimal waste and overspray while providing vibrant long lasting colors. Owing to their versatility, powder coatings are being increasingly used across a variety of applications earlier dominated by liquid paints like automotive, furniture, appliances, hardware and outdoor structures. For example, powder coatings now account for over 65% of the needs of North American coil coating market that is used to coat metal sheet and coils for various construction and packaging applications according to the American Coatings Association survey data for 2021. Their low volatile content and curing at comparatively lower temperatures also results in significant energy savings over baking liquid paints.

Consolidation activities amongst key players: Consolidation has been a prominent trend in the global paints and coatings industry over the past few years. Major players have been acquiring smaller to mid-sized companies to expand their product portfolios and geographical reach. For example, in 2022, Akzo Nobel acquired the architectural coatings business of Coronado Paint and Colorant Company, one of the leading paint brands in North America. This strengthened AkzoNobel's position in the lucrative U.S. decorative paints market. Similarly, in 2021, PPG Industries acquired Tikkurila, the leading paints and coatings company in Nordic region. Akzo Nobel N.V., stylized as AkzoNobel, is a Dutch multinational company which creates paints and performance coatings for both industry and consumers worldwide

Paints And Coatings Market Restraints:

Stringent environmental regulations: Stringent environmental regulations are posing hurdles for the growth of the market. Many countries are focusing on reducing the emissions of harmful volatile organic compounds (VOCs) from paints and coatings to curb air pollution. VOCs contribute to increased ozone concentrations at ground level which can cause serious respiratory problems. The European Union has set very strict VOC limits under its VOC Solvents Emissions Directive (SED) for paints, coatings and varnishes used indoors and regulates the amount of VOCs that can be released into the air. Similarly, the South Coast Air Quality Management District (South Coast AQMD) in California has established some of the most stringent VOC standards worldwide to control air pollution in that region.

Counter Balance: The industry is experiencing a shift towards water-based coatings, driven by the need for eco-friendly solutions and regulatory requirements related to volatile organic compounds (VOCs) and air pollution. Additionally, the market is witnessing innovation in the development of low-VOC components that provide performance benefits, such as corrosion and heat resistance, to meet both high-performance and environment-friendly criteria.

Rising popularity of water-based coatings: The global paints and coatings market has been witnessing a noticeable shift towards more sustainable and environment-friendly products over the last few years. One of the key trends gaining significant traction is the rising popularity of water-based coatings. These are seen as a safer alternative to conventional solvent-borne coatings which release volatile organic compounds (VOCs) into the atmosphere.

Water-based coatings have several advantages over solvent-based ones. Since they contain 60-80% water, they emit very little or no VOCs during their application and drying process. This makes them compliant with stringent environmental regulations around the globe which are aiming to reduce VOC emissions from paints and industrial activities. They also have good adhesion properties and result in a smooth finish. With continuous innovations, the quality and performance of water-based coatings is at par or even better than solvent-based alternatives in many cases.

Counterbalance: By the dominance of solvent-based coatings, water-based coatings are gaining momentum, aligning with the industrys shift toward eco-friendly solutions and regulations.

Figure 2. Global Paints and Coatings Market Share (%), By Product Type, 2024

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Recent Developments:

• In December 2022, Akzo Nobel N.V. completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik's aluminum. These acquisitions are part of Akzo Nobel N.V strategy to expand its portfolio and strengthen its position in the global Paints and coatings market.
• In November 2022, Sherwin-Williams Company acquired Oskar Nolte GmbH and Klumpp Coatings GmbH. The acquisition of Oskar Nolte GmbH and Klumpp Coatings GmbH is part of Sherwin-Williams Company' strategy to expand its portfolio and strengthen its position in the global paints and coatings market.

Top Companies in the this market

• Akzo Nobel N.V
• Asian Paints
• Axalta Coating Systems
• BASF SE
• Berger Paints India Limited
• Deutsche Amphibolin-Werke Von Robert Murjahn Stiftung & Company
• Diamond Vogel Paints
• Helios Group
• KCC Corporation
• Masco Corporation
• Nippon Paint
• PPG Industries Inc.

Definition:  Paint is a liquid mixture of solid coloring matter suspended in a liquid medium, used as a decorative or protective coating to various surfaces. Its main purpose is to improve the aesthetics or the look of something temporarily. Coating, on the other hand, is paint with purpose and is used for protection. It provides a physical barrier between the metal and the environment, reducing the chance that it will come into contact with oxygen and moisture that lead to corrosion. Coatings include other materials that can be considered paint-like in their use such as varnishes. Coatings serve as the first line of defense between the facility and the environment.