Paints and Coatings Market Expected to Reach $278.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Paints and Coatings Market," The paints and coatings market was valued at $175.8 billion in 2021, and is estimated to reach $278.4 billion by 2031, growing at a CAGR of 4.7% from 2022 to 2031.

Paints are compounds that are used to improve the aesthetics of the 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.

An increase in investments in building infrastructure in countries such as the U.S., China, Japan, Mexico, and India, has led the building & construction sector to witness significant growth where paints and coatings are used for flooring, wall finishing, and roofing applications. In addition, sustainable economic growth coupled with a surge in 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 underhood parts, engine components, the interior of containers, and storage vessels. These factors are predicted to contribute to the growth of the paints and coatings industry.

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 the paint could particularly affect asthmatic and sinusitis patients. Furthermore, VOCs can cause severe irritation to the throat & 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 ongoing paints and coatings market trend including the emergence of high solid paints and coatings that produces little or no volatile organic compounds (VOCs) has 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 tanks, 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 paints and coatings market analysis is classified based on resin type, product type, application, and region. By resin type, the market is segregated into acrylic, alkyd, epoxy, polyester, polyurethane, vinyl, and others. The acrylic segment dominated the global market in terms of revenue in 2021, with 33.2% 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 global market in terms of revenue in 2021, with 44.2% 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 linear toward using sustainable products, which in turn fosters the popularity of waterborne coatings among various end-use sectors.

By application, the market is divided into architectural, industrial, and others. The architecture segment dominated the global market in terms of revenue in 2021, with 58.0% of the total share. This is attributed to the fact that governments of developing economies such as China, India, 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. For instance, according to a report published by the National Investment Promotion and Facilitation Agency of India, the Indian Parliament passed a bill, in March 2021, to set up the National Bank for Financing Infrastructure and Development (NaBFID) to fund infrastructure projects in India.

Region-wise, the paints and coatings market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific paints and coatings market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major paints and coatings market share in 2021, owing to rise in automotive, building & construction, aerospace, and industrial sectors that have enhanced demand for paints and coatings in Asia-Pacific.

China's industrial sector is increasing rapidly, which in turn has enhanced the performance of the paints & coatings market in the region. Furthermore, countries such as India, Australia, Indonesia, and Malaysia have witnessed a rapid increase in the building & construction sector where paints and coatings are employed as protective coatings in various residential and commercial building & construction sites, such as hotels, hospitals, homes, flats, warehouses, showrooms, garages, and offices.

Key players operating in the global paints and coatings market include Akzo Nobel N.V, Asian Paints, Axalta Coating Systems, LLC, Indigo Paints Ltd, Kansai Paint Co., Ltd., Kwality Paints and Coatings Pvt. Ltd., Nippon Paint Holdings Co., Ltd, PPG Industries, Inc., RPM International Inc., and The Sherwin-Williams Company.

COVID-19 Impact Analysis:

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The paints and coatings market has been negatively impacted due to the wake of COVID-19 pandemic owing to its dependence on building & construction, automotive & transportation, industrial, aerospace, and other sectors. According to a report published by Society of Indian Automobile Manufacturers (SIAM), sale of passenger cars and sport utility vehicles declined by 52%, and 45% respectively in March 2020. Moreover, several automotive companies were either shutdown or shrank their operations due to the risk of infections among the workforce.

This has temporarily hampered the demand for paints and coatings market amid the COVID-19 pandemic. In addition, the falling income of customers and international travel restrictions have led to contraction of the demand of paints and coatings among the aerospace sectors.

For instance, according to a report published by Airlines for America, the commercial airline passenger volume in September 2020 was 68% less than September 2019, affecting long-term existential threat to manufacturers, the supply chain, and to the entire air travel industry. Furthermore, COVID-19 has put a temporary break on various aircraft manufacturing projects, which in turn has shrank the demand for paints and coatings used for interior coating and flooring applications among the aerospace & aviation sectors. In addition, the paints and coatings market has witnessed a downfall in demand among the construction sectors, owing to temporary halt on various building and construction project amid the COVID-19 pandemic.

In 2020, paints and coatings prices were high in Asia-Pacific. The price rise was due to continued regional demand trends and tight product availability. Firm downstream demand for paints & coatings and stronger upstream costs are expected to sustain the price gain.

However, the rise in awareness for using eco-friendly products among citizens of both developed and developing economies may surge the popularity of paints and coatings with minimal or no volatile organic compounds (VOCs) emissions in various end-use sectors post COVID-19 scenario. Furthermore, the building & construction and transportation activities have been back on track and started functioning with a full capacity post-COVID-19 period, which is expected to contribute to the paints and coatings market growth.

Key Findings Of The Study:

• By resin type, the acrylic segment is anticipated to register the highest CAGR of 5.1% during the forecast period
• By product type, the waterborne coatings segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 4.8% from 2022 to 2031.
• By application, the architectural segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.0% from 2022 to 2031.
• By region, Asia-Pacific garnered the highest share of 48.2% in 2021, in terms of revenue, growing at a CAGR of 5.2%.