Paints and Coatings Market Overview:
According to the International Trade Center (ITC), the trade of iron and steel across the globe was valued to be $428.6 billion worth in 2018. This is attributable to the prevalent application of iron and steel in a broad spectrum of industries. However, iron and steel that are used in industries undergo the process of painting and coating, which protects the metal and alloy from corrosion, thereby reducing the maintenance and replacement costs. Evidently, the increasing trade of iron and steel worldwide is significantly supporting the paints and coatings market that had a market size of $127,855 million as of 2018. Furthermore, the demand for paints and coatings in various industries is projected to escalate with a healthy compound annual growth rate (CAGR) of 4.69% during the forecast period of 2019 to 2025.
APAC has been observing a tectonic shift in the economy owing to the growth in the industrial sector and construction, which is leading to growth prospects in the APAC paints and coatings market. Furthermore, according to the Indian Brand Equity Foundation (IBEF), India is the third largest crude steel producer in 2017. The tons of steel production in India and other parts of APAC leads to an augmented demand for paints and coatings. China, Indonesia, and the Philippines are major industrial regions that contribute to the soaring sales in the paints and coatings market. Moreover, the growing automotive industry in the region has incremented the demand for paints and coatings. In 2018, APAC had the maximum paints and coatings market share of 44%.
Paints and Coatings Market Outlook:
Paints and coatings are materials with properties such as adhesion, wettability, and corrosion resistance that are applied to a surface in order to protect it from corrosion, rusting, and erosion that can lead to surface spoilage. Previously, cave paintings were drawn by using hematite and manganese oxide that were the earliest invention of paints. Paints and coatings are used in a gamut of industries that include construction, automotive, real estate, and others. The paints can be decorative and protective based on the application and the impact of external factors on the surface.
According to the United Nations, the real estate industry will be playing a vital role in the sustainable development goals (SDGs) envisioned by the organization. This is attributed to the population outflow that is anticipated in the future. Subsequently, the new building and construction projects will be leading to an augmented application of decorative or architectural paints and coatings. The key application of paints and coatings is found to be the decorative ones, and the application of the same for architectural purpose is estimated to grow with a steady CAGR of 5.10% through to 2025.
Paints and Coatings Market Growth Drivers:
· The Growth of the Automotive Industry –
According to the International Organization of Motor Vehicle Manufacturers (OICA), the total number of vehicles produced in 2018 was 95,634,593. Evidently, motor vehicles are painted or coated with resins that protect the metal from corrosion and rusting. With the advent of electric vehicles, autonomous trucks, and self-driven vehicles and trucks, the automotive industry is poised to observe a seismic shift with an incremented production rate in the future which will further flourish the paints and coatings market, and the industry will observe a definite demand influx which will raise the revenues.
· The Application in Aerospace and Marine Industry –
According to the General Aviation Manufacturers Association (GAMA), in 2018, total 2,443 number of aircraft were shipped to various regions in the world. Additionally, the aviation industry witnessed a 4.37% growth in terms of shipment year on year in 2018. Evidently, these aircraft are painted or coated with paints for protection from corrosion, and these paints are expensive, which shoots up the valuation of paints and coatings market. Similarly, the increasing trade across the globe is leading to an amplified application of paints and coatings on the surface of ships. Due to the enhanced trade, ships travel more than before which instills corrosion of the surface at a faster rate. This creates a need for the sporadic application of paints and coatings for maintenance purpose which again drives the paints and coatings market.
· The Semiconductor Industry Supporting the Market –
The semiconductor market was valued to be $426.4 billion in 2018, and the demand for semiconductors is estimated to grow with a substantial CAGR of 5.88% during the forecast period of 2019 to 2025. These semiconductors are nowadays coated with a particular kind of spray paint, which imbues properties such as magnetic response and electrical conductivity. Given that the semiconductor market is poised to observe growth, the vendors in the paints and coatings market will subsequently witness opportunities.
Paints and Coatings Market Trends –
· In June 2017, Sherwin Williams completed the acquisition of Valspar for $113 per share and became the global paints and coatings market leader.
· In December 2018, PPG Industries Inc. announced to acquire the global coatings manufacturer Whitford Worldwide Company in order to diversify its product portfolio.
· In November 2017, AkzoNobel agreed to acquire V.Powdertech business in order to position the company in the middle-east paints and coatings market.
· In March 2017, Nippon Paints USA completed merger agreement with Dunn-Edwards which is one of the major manufacturers of industrial, architectural, and high performance paints.
Paints and Coatings Market Challenges –
Despite the large and lucrative paints and coatings market size, the industry is facing challenges due to economic dynamism in Europe, North America, and other parts of the world. The political changes are making an impact on the economy which is affecting the paints and coating industry worldwide. Furthermore, the climatic changes and greenhouse emissions are leading to global warming which is altering the temperatures in each part of the world. The composition of paints and coatings and drying time of the same largely depends on the temperature. This shift in temperatures is making it imperative for vendors to alter the modus operandi and come up with a new range of products compatible with changing temperatures. However, this challenge doesn’t seem to bother the sales of paints and coatings, but the future will certainly warrant an increased investment in R&D in order to produce better paints and coating materials.
Paints and Coatings Market Key Players Perspective –
The major players striving to capitalize on the demand for paints and coatings are Sherwin Williams Company, PPG Industries Inc., Akzo Nobel NV, RPM International Inc., Nippon Paints Holdings Co., Ltd., Axalta Coatings Systems, BASF Coatings GmbH, Asian Paints Limited, Kansai Paints Co., Ltd., The Jotun Group, Hempel Group, and Others.
Paints and Coatings Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the paints and coatings market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The paints and coatings market research report also analyses the application of paints and coatings in decorative/architectural, automotive OEM, and other segments.
Paints and Coatings Market Report: Industry Coverage
This report also documents the paints and coatings market based on formulation that can be high solids water borne, and others) and by component that include one component and two component.
Paints and coatings contain resins that include alkyd, epoxy, and the report provides insights for each segment of resins.
The paints and coatings market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
Key Questions Addressed in the Paints and Coatings Market Report
Is the market demand for paints and coatings growing? How long will it continue to grow and at what rate?
Which type of home security system presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the paints and coatings market?
A Few Focus Points Of This Research Are Given Below:
Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
Provide an overview of the product portfolio, including product planning, development, and positioning
Discuss the role of technology companies in partnerships
Explore the regional sales activities
Analyze the market size and giving the forecast for current and future global paints and coatings market during the forecast 2019–2025Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures