Global Paints and Coatings Market - 2024-2031

Overview

Global Paints and Coatings Market reached US$ 197.8 billion in 2023 and is expected to reach US$ 260.5 billion by 2031, growing with a CAGR of 3.5% during the forecast period 2024-2031.

The paints and coatings market is experiencing robust growth due to demand recovery among major sectors like automotive, construction, and marine shipbuilding. The aerospace industry has become a major source of demand, especially with many airlines placing large-sized orders with Boeing and Airbus to expand their fleet operations in the post-pandemic period.

The pace of innovation and new product launches has slowed noticeably in the post-pandemic period. Companies have delayed the launch of new products several times citing tougher market conditions. For an industry that derives growth from value generation and innovation, it is a major challenge for future growth and expansion.

Dynamics

Growing Popularity of Electric Vehicles

The post-pandemic period has fueled a boom in the production and sales of electric vehicles. Government stimulus to the automotive industry as part of a broad-based economic revival has led to breakthroughs in battery technology and vehicle production techniques. Nearly 14.2 million battery electric vehicles (BEVs) were sold in 2023, marking the highest increase since EV mass production began.

Analysts expect the price of electric vehicles to decrease further in the coming years, with most models achieving price parity with petrol and diesel-based vehicles in the next 4 to 5 years. The U.S. and China have witnessed the largest decrease in overall EV prices. According to data from Forbes magazine, the average EV price in the U.S. was around US$ 45,000 in mid-2023, significantly down from nearly US$ 59,000 during the previous year.

Through mastery of the supply chain and large production capacity, China has almost brought down electric vehicle prices to the level of premium petrol and diesel vehicles. The average cost for a Chinese EV begins at roughly US$ 10,000, nearly 4 times cheaper than an equivalent western EV. The ongoing development of electric vehicles opens up new growth opportunities for the global paints and coatings market. It will propel the demand for advanced paints and coatings for body and electric battery protection.

Expansion of Global Manufacturing Activity

Global manufacturing activity has picked up pace and experienced rapid recovery in the post COVID-19 pandemic period. The rise has mainly been aided by the recovery of China's manufacturing sector. Recent data indicates that China's manufacturing PMI grew to 52.6 in February 2023, after falling to a record low of 47.6 in April 2022. Global multinational companies are undertaking active de-risking of their supply chains by shifting manufacturing operations away from China.

India, Vietnam, Malaysia, Thailand, and Indonesia are major beneficiaries of this move. The Indian government has also introduced production-linked incentives (PLI) schemes to further encourage the expansion of manufacturing operations in the country. As new industrial facilities are built and existing ones are expanded, the demand for paints and coatings from the industrial sector will increase significantly throughout the forecast period.

Stringent Regulations on Industrial Wastewater Disposal

Most of the paint manufacturing facilities are located in emerging countries, which have business-friendly environments and low production costs, however, the waste disposal infrastructure in most countries is highly underdeveloped. Many times, the industrial effluents are discharged completely untreated into rivers and lakes. Furthermore, industrial regulations and their enforcement are lax, hence many industries can blatantly violate the law without any consequences.

In recent years, due to pressure from citizens and environmental groups, many governments have started implementing stringent regulations to curb industrial pollution. From fines and other stiff penalties, governments have also stepped up capital investment in expanding waste treatment facilities. Many small players thrive on wafer-thin margins and cannot cope with the implementation of these strict regulations. The long-term adaption of these regulations might create major problems for global market growth.

Segment Analysis

The global paints and coatings market is segmented based on resin, technology, resin characteristics, end-user, and region.

Acrylic Paints Continue to Lead the Global Market

The acrylic segment accounts for the highest market share due to the higher usage of acrylic paints and coatings in various industries including the automobile, medical devices, and construction industries because of their chemical characteristics and unique esthetic properties. Acrylic paint is a fast-drying paint made of pigment suspended in acrylic polymer emulsion. It is water-soluble but becomes water-resistant when dry.

Acrylic paints and coatings are useful for modifying the appearance, hardness, flexibility, texture, and other characteristics of the paint surface. Acrylic surface coatings are used in all three of the paint and coatings including architectural coatings, product finishes for original equipment manufacturers (OEM), and special-purpose coatings. The acrylic coatings are used in organic solvent-borne, waterborne, powder, or radiation-curable formulations. The coatings and paints are used in architectural or decorative, finishes and to coat industrial goods.

Geographical Penetration

Asia-Pacific Continues to Remain the Most Lucrative Region for the Market

The Asia-Pacific market growth is strongly backed by the recovery of automotive manufacturing in the region. China is the world's largest producer and buyer of automobiles. According to the China Association of Automobile Manufacturers, Chinese automobile sales climbed by approximately 2.1% in 2023 compared to the previous year. Compared to the 26.17 million autos sold in 2022, around 26.86 million were sold in 2023.

A similar recovery is being recorded in the Indian automotive industry, which clocked a 12.5% growth in 2023-24, according to data from the Society of Indian Automobile Manufacturers (SIAM). An ongoing boom in residential and commercial construction, especially in Southeast Asian countries like India, Indonesia, Malaysia, Thailand, and Vietnam is also likely to become another highly motivating factor behind the growth in demand for paints and coatings over the long term.

COVID-19 Impact Analysis

The COVID-19 pandemic had an outsized impact on the paints and coatings market. With the spread of COVID-19 infections globally, paints and coatings manufacturers had to adapt to new working conditions with a reduced workforce. Many manufacturers also had to dip into their stock of reserve materials to ensure the continuity of production during the pandemic.

Demand for paints and coatings from the industrial and construction sectors dropped drastically during the initial phase of the pandemic. Many small and mid-sized players had to temporarily suspend production. With a rapid rebound in demand in the immediate aftermath of the pandemic, the global market is once again set for a period of stable growth.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has impacted the paints and coatings market and the broader end-user industries. The conflict, also led to a surge in energy and commodity prices, causing production disruptions for European paints manufacturers. Many companies are shifting production to Asia-Pacific and North America to escape high energy prices.

The displacement of millions of people as well as the all-round destruction of infrastructure has drastically slumped demand in Ukraine, although some demand remains persistent, especially for reconstruction efforts. Many international paint companies left the Russian market following the imposition of economic sanctions. However, many of these companies began to use roundabout methods to re-enter the Russian market.

By Resin

• Acrylic
• Alkyd
• Polyester
• Epoxy
• Polyurethane
• Fluoropolymer
• Polyether ether ketone (PEEK)
• Polyaryletherketone (PAEK)
• Polyetherketone (PEK)
• Others

By Technology

• Water-based
• Solvent-based
• Powder
• UV Cured Coating
• Electron Beam (EB) Coating
• Others

By Resin Characteristics

• Commodity Coating
• Thermoset
• Engineering Coating
• Thermoplastic

By End-User

• Architectural
  • Residential
  • Non-Residential
• Industrial
  • General Industrial
  • Automotive
  • Industrial Wood
• Marine
• Packaging
• Aerospace
• Rail
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In December 2023, the Indian subsidiary of Nippon Paints acquired the local paint manufacturer Vibgyor Paints and Chemicals. The acquisition is expected to strengthen the company's foothold in the Indian and South Asian markets.
• In February 2024, INEOS Automotive signed an agreement with BASF SE, the German chemicals manufacturer, to develop an entire range of automotive body refinish paints and coatings.
• In March 2024, Clariant, a major multinational specialty chemicals manufacturer, showcased its new range of sustainably produced coatings at the American Coatings Show 2024.

Competitive Landscape

The major global players in the market include AkzoNobel N.V., PPG Industries, Inc., The Sherwin-Williams Company, Axalta Coating Systems, Jotun, Nippon Paint Holdings Co., Ltd., Asian Paints, Kansai Paint Co., Ltd., RPM International Inc., and Tikkurila.

Why Purchase the Report?

• To visualize the global paints and coatings market segmentation based on resin, technology, resin characteristics, end-user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of paints and coatings market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Resin mapping available as Excel consisting of key products of all the major players.

The global paints and coatings market report would provide approximately 70 tables, 78 figures, and 205 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Construction Companies
• Automotive Manufacturers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies