Americas Paints and Coatings Market Expected to Reach $75.4 Billion by 2032

According to a new report published by Allied Market Research, titled, "Americas paints and coatings market by resin type, by product type, and by application: Americas opportunity analysis and industry forecast, 2023–2032, " Americas paints and coatings market was valued at $51.3 billion in 2022, and is projected to reach $75.4 billion by 2032, growing at a CAGR of 4.0% from 2023 to 2032. Paints are compounds that are used to improve the aesthetics of substrate on which it is applied, while coatings are used principally to prevent substrate deterioration or for corrosion protection purposes. Paints and coatings provide specific properties such as anti-fouling, flame retardancy, and anti-microbial properties in architectural, industrial, automotive, aerospace, and other end use sectors.

Increase in investments in building infrastructure in countries such as the U.S., Canada, Mexico, and others have led the building & construction sector to witness a significant growth where paints and coatings are used for flooring, wall finishing, and roofing applications. In addition, sustainable economic growth coupled with increasing demand for consumer goods has led the automotive & transportation sector to witness a significant increase in demand where paints and coatings are widely used for corrosion protection applications in under hood parts, engine components, interior of containers, and storage vessels. These factors are predicted to contribute toward the market growth.

However, there are certain health hazards associated with the use of volatile organic compounds (VOC)-containing paints & coatings. For instance, high levels of VOCs in paint could particularly affect asthma and sinusitis patients. Furthermore, VOCs can also cause severe irritation to the throat and eyes, and a burning sensation to the nasal membranes. These factors may restrain the customers from purchasing VOC-containing paints & coatings; thus, hampering the market growth.

On the contrary, the emergence of high solid paints and coatings that produce little or no volatile organic compounds (VOCs) have surged the potential applications of paints and coatings among several end-use sectors. For instance, high solid epoxies are widely used in decking, hull, cargo tank, and others.

Furthermore, high solid paints and coatings require less drying and are easy to apply. These factors make high solid paints and coatings highly preferred for coating applications in various end-use sectors. This is anticipated to increase the sales of high solid paints and coatings; thus, creating lucrative opportunities for the market.

The Americas paints and coatings market is segmented on the basis of resin type, product type, and application. By resin type, the market is segregated into acrylic, alkyd, epoxy, polyester, polyurethane, vinyl, and others. The acrylic segment dominated the market in terms of revenue in 2022, with 32.7% of the total share. This is attributed to the fact that acrylic paints offer numerous advantages such as it dries quickly, it is water soluble, it is less toxic as well as safer around children & pets, and it is flexible & durable. These factors have made customers become more linear toward using acrylic resin-based paints for home decor and other applications.

By product type, the market is divided into waterborne coatings, solvent-borne coatings, powder coatings, and others. The waterborne coatings segment dominated the market in terms of revenue in 2022, with 44.4% of the total share. This is attributed to the increase in demand for a wide range of furniture items, which in turn have surged the popularity of waterborne coatings owing to their high gloss and good pigmentation characteristics. Furthermore, customers in both developed and developing economies have become more attracted toward using sustainable products, which in turn fosters the popularity of waterborne coatings among various end use sectors.

As per application, the market is classified into coil and can coating, automotive car refinishing, automotive parts (OEM coatings), wood coatings, industrial coatings, architectural coatings, marine protective coatings, and others. The architectural coatings segment dominated the market in terms of revenue in 2022, with 38.6% of the total share.

This is attributed to the fact that governments of economies such as the U.S., Canada, Brazil, Mexico, and others, have increased spending on the development of townships, housing, built up infrastructure, and construction of development projects where paints and coatings are widely used for exterior and interior coating applications.

Key players operating in the Americas paints and coatings market include Akzo Nobel N.V., Axalta Coating Systems, Kansai Paint Co., Ltd., Nippon Paint Holdings Co., Ltd., PPG Industries, RPM International Inc., The Sherwin-Williams Company, BASF SE, Sinteplast, and Jotun.

COVID-19 analysis

The novel coronavirus was an incomparable global pandemic that had spread to over 180 countries and caused huge losses of lives and disrupted the economy around the globe. The COVID-19 pandemic had a significant impact on the paints and coatings market in the Americas, as it did on many industries worldwide.

The pandemic disrupted supply chains globally, affecting the availability of raw materials, chemicals, and packaging materials used in the production of paints and coatings. This led to supply shortages and price volatility. Moreover, lockdowns and social distancing measures resulted in delayed or halted construction projects across the Americas. The construction industry is a major consumer of architectural coatings, and the slowdown in construction had a direct impact on demand. Furthermore, the architectural sector, a key consumer of coatings, experienced a significant slowdown in construction of buildings which in turn had a negative impact on sales of paints and coatings in America region during the pandemic.

However, there was a growing interest in sustainable and eco-friendly coatings as consumers and businesses became more environmentally conscious during the pandemic. Low volatile organic compounds (VOCs) and environmentally friendly coatings gained popularity. In addition to this, the construction industry is expected to rebound as economic conditions stabilize and construction projects resume. Increased infrastructure spending by governments can further boost demand.

Furthermore, with the easing of lockdowns and improved consumer confidence, the automotive industry is expected to recover. This recovery will lead to increased demand for coatings used in both OEM and refinish applications. Additionally, the trend of home improvement and DIY projects, which gained momentum during the pandemic, is expected to continue. This will drive demand for decorative coatings as homeowners undertake painting and renovation projects.

Key findings of the study

• By Resin, the acrylic segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.2% from 2023 to 2032.
• By product type, the waterborne coatings segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.0% from 2023 to 2032.
• By application, the architectural coatings segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.3% from 2023 to 2032.
• North America garnered the highest share of more than 75% in 2022 in terms of revenue, growing at a CAGR of 3.7%.