Paints and Coatings Market Will Rise Significantly in Coming Years With 8.7% CAGR

Published Date : 14 Apr 2023

The paints and coatings market was worth around USD 167.27 billion In 2022 and it is projected to advance at an 8.7% CAGR from 2023 to 2032, hitting USD 373.85 billion by 2032.

The paints and coatings market growth is driven by the growing construction industry, increasing demand from the automotive industry, and growing demand across the semiconductor industry.

Market Overview:

Paints and coatings are ornamental finishes that serve to enhance the visual attractiveness of machinery, walls, and metal component surfaces. It aids in giving the product's exterior abrasion resistance and corrosion resistance, as well as lengthening its lifespan. Pigments, curing agents, solvents, dispersants, resins, and fillers are some of the main basic materials used in the production of paints and coatings. These goods are widely used in the transportation, automobile, aircraft, timber, and construction industries.

Paints and Coatings Market Report Scope:

Report Coverage Details
Market Size in 2022 USD 167.27 Billion
Market Size by 2032 USD 373.85 Billion
Growth Rate from 2023 to 2032 8.7% of CAGR
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
By Material Polyester
By Product Solvent-borne Coatings
Waterborne Coatings
Powder Coatings
High Solids/Radiation Curing
Others (Specialty Coatings)
By Application Non-Architectural
Architectural & Decorative
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa

Report Highlights:

By raw material, the epoxy segment held the largest revenue share and is expected to continue the same pattern during the forecast period. The segment growth is because of its use in floor coverings. Low porosity, extraordinary chemical protection, anti-sagging, powerful adhesion, and binding strength are all characteristics of epoxy resins. These coatings are a top option for industrial-grade floor coatings because they also show long-term resilience to corrosion and gloss retention.

By product, the waterborne coating segment is expected to dominate the market over the forecast period. Growing construction spending and changing customer preferences for green products are anticipated to have an impact on the segment's expansion during the study period. The majority of water-based paints and coatings are used in severe and inadequately ventilated areas. Due to the quick loss of the coating's water content, water-based coatings dry quicker than solvent-based products, in turn, driving the segment growth.

Regional Insights:

Asia Pacific is expected to dominate the market during the forecast period. The region's paints and coatings market is anticipated to rise in terms of revenue as a result of expanding infrastructure development in nations like China, India and Japan. For instance, China intended to establish a 15-year strategy in 2021 for the development of transportation facilities. 

By 2035, the nation hopes to have doubled the size of its high-speed train system. Beijing also plans to expand the length of the nation's high-speed train network by more than 84% from 2020 to 70,000 km (43,500 miles) by 2035. A 460,000 km network of national expressways and regular roads as well as a 25,000 km system of high-quality interior waterways are also part of the plan. However, the working length of China's train network increased by 2.5% in 2021 to 150,000 km. 

The region's rapid development in the automotive and construction sectors is also anticipated to fuel the paints and coatings market. For instance, according to the India Brand Equity Foundation, India's electric vehicle (EV) market is anticipated to be valued $7.09 billion by 2025. Thus, with the growing automotive sector the market will rise significantly in the coming years.

North America is expected to hold a significant rate over the forecast period. The United States is a significant user of building and vehicle paints. It is applied to renovate and upgrade outdated structures. The region's market is anticipated to experience revenue growth due in large part to the ongoing development of new technologies and the rise in discretionary income. Canada recorded an import trade value of USD 4.23 billion in 2021 and is the world's biggest importer of paints, varnishes, enamels, and other products.

Europe is anticipated to experience a moderate rate of revenue growth during the forecast timeframe. The growth of the building industry is anticipated to increase demand for products in several nations, including the UK, the Netherlands, Germany, Hungary, Poland, Sweden, and Ireland. The region's construction sector is anticipated to be driven by increased funding from the European Union and helpful policies put in place by local governments, such as subsidies, tax breaks, and rewards, which are anticipated to boost demand for paints and coatings. The biggest exporter of paints, varnishes, enamels, and other materials is Germany, which reported global trade worth USD 3.16 billion in 2021.

Market Dynamics:


Growing demand from the construction industry

The growing demand for paints and coatings from the construction industry is expected to drive the growth of the market over the forecast period. The increasing population and growing urbanization in the countries like China, India, and Vietnam. There is a growing demand for permanent housing, in turn, driving the demand for Paints and Coatings. 

The Population Division of the UN Department of Economic and Social Affairs (UN DESA) published the 2018 Revision of World Urbanization Prospects, which states that future rises in the size of the world's urban population are anticipated to be heavily concentrated in a small number of nations. India, China, and Nigeria will together be responsible for 35% of the expected increase in the global metropolitan population between 2018 and 2050. 

India is expected to have 416 million more metropolitan residents by 2050, followed by China with 255 million and Nigeria with 189 million. Thus, with growing urbanization, there will need for housing, which is expected to flourish the demand for the paints and coatings market.


Adverse impact on health and environmental consequences

Weather affects paints and finishes. When using latex paint, the external paint temperature should range from 50 to 70 degrees Fahrenheit. The optimal temperature range for an oil-based paint is between 45- and 90 degrees Fahrenheit. Although the paint serves decorative and functional goals, it may also be harmful to human health and the environment. Low-level paint exposure can result in burns to the skin, sinuses, lips, and eyes in addition to migraines, nausea, and others. These adverse effects are usually minor and go away after the initial contact. However, extended exposure to some of the chemicals in the paint at high amounts can have negative effects, such as lung issues, liver or renal damage, as well as other health issues. Thus, this is expected to act as a major restraint for market growth.


Increasing application in the aerospace and marine industry

The General Aviation Manufacturers Association (GAMA) reports that 2,443 aeroplanes in total were delivered to different parts of the globe in 2018. Additionally, the aircraft sector saw a 4.37% increase in shipping volume year over year in 2018. These aeroplanes are painted or covered with paints to prevent corrosion, and since these paints are costly, this drives up the market's value for paints and coatings. Similarly, increased global commerce is causing paint and covering applications on ship surfaces to increase. Ships move farther than before as a result of increased commerce, which accelerates surface corrosion. The market for paints and coatings is once again driven by the need for the irregular application of paints and coatings for maintenance purposes. Thus, this is expected to provide a lucrative opportunity for market growth.

Recent Developments:

  • In October 2022, Asian Paints announced that it would spend USD 324.20 million to establish a vinyl acetate plant monomer production facility in India. The business will benefit from reverse integration due to this funding.
  • In October 2022, a results-driven online tool for additives, ClariCoat was introduced by Clariant, a top worldwide supplier of additives for paints and coatings. The paints and coatings business lacks anything like ClariCoat's product line. It enables tailored property selection for a variety of performance factors, including sustainability and the stability and usability of liquid paint, to mention a few. Once the criteria selection is complete, the product recommendation engine suggests the most appropriate additives addressing the requirements of the paint formulator.

Major Key Players:

  • Akzo Nobel N.V.
  • PPG Industries, Inc.
  • The Sherwin-Williams Company
  • Jotun
  • Axalta Coating Systems, LLC
  • RPM International Inc.
  • Henkel AG & Company, KGaA
  • Kansai Paint Co., Ltd.
  • Hempel A/S
  • Nippon Paint Holdings Co., Ltd.
  • Sika AG
  • Beckers Group
  • 3M
  • The Chemours Company

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