The global decorative coatings market size was evaluated at USD 85.14 billion in 2022, and it is expected to hit around USD 126.76 billion by 2032, poised to grow at a CAGR of 4.06% during the forecast period from 2023 to 2032.
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All varieties of varnishes, paints, and lacquers are employed as decorative coatings on buildings and related structures. In this industry, building walls, wood fences, decking, and other surfaces receive the majority of the paint applications. Water-based emulsion paints are frequently used, especially for wall paints. In addition, compared to other coatings segments, the DIY segment in decorative coatings is one of the largest. The use of decorative coatings, which are scratch-resistant and give metal and plastic substrates a vibrant color, is widespread. Examples include automotive interior and exterior components and various consumer products. The growing construction industry along with rising demand for eco-friendly products is anticipated to augment the growth of the decorative coatings market during the forecast period.
Decorative coatings are applied for both residential and commercial purposes, including in homes, offices, hotels, and retail stores. These coatings are available in a variety of colors, textures, and patterns, and can be customized to meet the specific design needs of a particular space. The construction industry is growing rapidly in emerging economies such as China, India, and Southeast Asia, driven by factors such as population growth, urbanization, and infrastructure development. This is likely to increase the demand for decorative coatings for use in residential, commercial, and industrial applications. Furthermore, there is a growing trend towards sustainable and eco-friendly coatings worldwide. Consumers are becoming more aware of the environmental impact of products they use and are demanding eco-friendly alternatives which has resulted in an increase in demand for low-VOC and zero-VOC coatings, which are more environmentally friendly.
Additionally, the decorative coatings market is constantly evolving, with new technologies and materials being developed to improve the performance and aesthetics of coatings. Manufacturers are investing heavily in research and development to develop new and innovative coatings that offer superior performance, durability, and aesthetics. Also, there is a growing demand for premium coatings worldwide, which offer superior aesthetics, durability, and performance. This is also expected to drive the demand for decorative coatings during the forecast period.
| Report Coverage | Details |
| Market Size in 2023 | USD 88.6 Billion |
| Market Size by 2032 | USD 126.76 Billion |
| Growth Rate from 2023 to 2032 | CAGR of 4.06% |
| Largest Market | North America |
| Fastest Growing Market | Asia Pacific |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | By Resin Type, By Product, By Technology, By Coating Type, and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Drivers:
Growing construction industry
The increase in construction activities is anticipated to augment the growth of the decorative coatings market during the forecast period. This is owing to the increasing population across the globe. According to the UN's most recent estimate, by 2030, there may be 8.5 billion people on the planet. In addition to significant changes in fertility rates, rising urbanization, and significant migration, the population rise has been primarily driven by an increase in the number of people who survive to reproductive age. Future generations will be significantly impacted by these tendencies.
Additionally, improvements in contemporary medicine and the decline of world poverty have contributed significantly to the expansion of the world's population during the past two centuries. Due to this, child, newborn, and maternal mortality have been greatly reduced, which has increased life expectancy.
With this rising population, there is a need for new residential and commercial buildings to accommodate the expanding population. These buildings require decorative coatings for aesthetic appeal as well as for protection. Additionally, as the disposable income of the consumers and consumer spending increases, the demand for renovation and remodeling of the construction products also increases. Thus, owing to the increasing construction activities the demand for decorative coatings is expected to rise during the forecast period to enhance the appearance of homes, buildings and furniture.
Restraints:
Innovation of new paint & coating technologies
The introduction of new paint and coating technologies are expected to act as alternatives to decorative coatings and are likely to restrain the growth of the market during the forecast period. These technologies include solar paint and self-cleaning paint, among others. Even some modern painting techniques can assist in going greener. Tiny light-sensitive particles are used in solar paint, which collects sunlight and turns it into electricity.
To bind this energy, some wiring is essential, but the majority of the installation is as simple as painting a wall. One may use solar paints to transform the roof or a wall into a sizable solar panel. Even though this technology isn't yet as effective as traditional solar panels, it can help them produce the cleanest energy possible. The globe may then more readily make the transition to a greener future. Thus, with the introduction of such new technologies, the market for decorative coatings is expected to slow down within the estimated timeframe.
Opportunities:
Rising demand from emerging economies
The increasing demand from emerging economies such as China and India is expected to offer lucrative opportunities for the growth of the decorative coatings market in the years to come. The strong growth in the economy of the emerging economies has resulted in an increase in construction projects which is expected to drive the demand for decorative coatings. Furthermore, the government in these economies is heavily investing in the infrastructure development and housing projects which in turn is likely to support the growth of the market. For instance, infrastructure in India is a significant promoter in the country's growth to a US $26 trillion economy.
The investments in physical infrastructure remain crucial to raising efficiency and costs, especially when made in coordination with initiatives to make conducting business easier. Given the number of projects that have lately been introduced, it is clear that the government is focused on developing the future infrastructure. In order to bring about systematic and effective reforms in the sector, the national master plan of US $1.3 trillion for infrastructure, Gati Shakti, has been a pioneer and has already made tremendous progress. Thus, this is expected to increase the demand for decorative coatings in the years to come.
Impact of COVID-19:
The COVID-19 pandemic caused disruptions in the global supply chain, leading to shortages in raw materials and delays in the delivery of end products. The economic slowdown reduced construction activities and hence the demand for decorative coatings. Many decorative coatings manufacturing facilities were temporarily shut down due to lockdowns and other restrictions, leading to reduced production.
The pandemic changed consumer behavior, with many people staying at home and prioritizing health and safety. This led to a shift in demand towards coatings that offer better protection and hygiene, such as antimicrobial coatings. However, the pandemic also accelerated the adoption of digital technologies, leading to greater use of virtual and augmented reality tools in the design and selection of decorative coatings. Manufacturers are expected to invest in digital technologies that can help customers visualize the final look of their homes or buildings before making a purchase and offer growth prospective for the market in the years to come.
On the basis of resin type, the acrylic segment held the largest revenue share in 2022. Acrylic resin is made up of acrylic monomers. They are often functionalized by adding other chemical classes and are esters of acrylic, methacrylic, or a mixture of these acids. In general, these resins are resistant to both chemical and photochemical attack. They are frequently employed in a wide range of applications, including coatings that are both solvent- and water-based. Acrylic resins offer superior properties such as good adhesion, flexibility, weather resistance, and durability, making them an ideal choice for decorative coatings. These properties make acrylic resin-based coatings suitable for a wide range of applications, including exterior and interior walls, wood, concrete, and metal surfaces. Water-based acrylic resin coatings are gaining popularity due to their low VOC content, low odor, and ease of application. Consumers are becoming more environmentally conscious and are demanding coatings that are safe for the environment and human health. This is likely to support the segment growth of the decorative coatings market during the forecast period.
On the basis of technology, the powder coatings segment is expected to grow at a considerable CAGR during the forecast period. Powder coatings are known for their superior durability and longevity compared to other types of coatings. They are resistant to scratches, fading, chipping, and corrosion, which makes them ideal for applications in high-traffic and harsh environments. Powder coatings are considered to be more environmentally friendly compared to traditional solvent-based coatings. This is because they contain very less VOCs or no volatile organic compounds (VOCs) that can contribute to air pollution and health problems. This is likely to support the segment growth of the decorative coatings market during the forecast period.
Based on application, the residential segment dominated the global decorative coatings market. As consumers are becoming more conscious about the appearance and décor of their homes, and are increasingly seeking visually appealing interior and exterior spaces, the demand for decorative coatings in the residential segment has increased, as they offer a wide range of color and texture options to enhance the appearance of homes. Additionally, the growing middle-class population in emerging economies along with an increase in disposable income and purchasing power is also expected to support the segment growth of the decorative coatings market during the forecast period.
North America held considerable revenue share in 2022. This is owing to the increasing demand for sustainable and eco-friendly coatings in the region as consumers are becoming more aware of the environmental impact of products they use. Furthermore, the increase in residential as well as non-residential construction in the region is also likely to support the regional growth of the market. Additionally, presence of key players such as PPG Industries, Sherwin-Williams, RPM International and Axalta Coating Systems, among others is also expected to contribute to the growth of the market in the region.
Asia-Pacific is expected to grow at the fastest CAGR during the forecast period. This is attributable to the increasing rapid urbanization and industrialization, driven by factors such as population growth and economic development in the region. Additionally, the rising disposable income in countries like China, India, and Southeast Asia is also likely to support the market growth in the region. Furthermore, the growing demand from the application sector is also likely to support the regional growth of the decorative coatings market during the forecast period.
Segments Covered in the Report:
By Resin Type
By Product
By Technology
By Coating Type
By Application
By Geography
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