A number of factors such as the growing construction industry, increasing demand for paints and coatings in the oil and gas sector, rising consumer spending, and surging need for automobiles are projected to propel the growth of the paints and coatings market at a CAGR of 5.8% during the forecast period (2020–2030). According to P&S Intelligence, the market generated $151,399.4 million revenue in 2020, which is expected to reach $266,243.2 million by 2030. Moreover, the market is witnessing a trend of surging adoption of smart coatings across the world.
One of the prime factors propelling demand for paints and coatings is the rising need for automobiles. The demand for automobiles is increasing globally, due to the rapid urbanization, surging disposable income, and changing lifestyles. The paints and coatings are widely used in automobile applications to provide attractive looks, as people are tending toward purchasing good-looking vehicles. For example, around 91.3 million automobiles were sold in 2019 worldwide, as compared to 88.3 million units in 2014. This not only increases the demand for paints and coatings during the production of automobiles, but also during their lifetime, including painting over scratches.
The formulation segment of the paints and coatings market is categorized into acrylic, polyurethane, polyester, epoxy, and others. Among these, the acrylic category held the largest market share in 2020. This is attributed to its highly soluble, versatile, elastic, non-toxic, and water resistance nature. Moreover, the need for acrylic coatings is rising on account of their surging use on exterior and interior walls, door panels, and windows. Whereas, the polyester category is expected to witness the fastest growth in the coming years, due to the growing automotive industry, surging defense budget, and increasing urbanization and industrialization rate in developing countries.
Additionally, based on the technology segment, the paints and coatings market is classified into solvent-borne, water-borne, high solids, ultraviolet (UV), and powder coating. Among these, the water-borne category accounted for the largest market share in 2020. This is ascribed to the rising need for these coatings in automobile, printing ink, plastic, and furniture applications, due to their superior adhesion and cost-effective nature. Further, water-borne coatings dry quickly, contain no volatile organic compound (VOC), and are easier to apply.
Geographically, the Asia-Pacific paints and coatings market accounted for the largest share in 2020, and it is also projected to record the highest CAGR during the forecast period. This can be attributed to the surging consumption of these materials in several end-use industries. Moreover, the mounting government and private investments in the automotive and construction industries, increasing disposable income, growing population in regional countries, rising spending on industrial infrastructure development, and renovation and repair of commercial and residential buildings are projected to boost the demand for paints and coatings in the region.
Thus, the rising need for automobiles and the growing construction industry are expected to propel the market growth in the forecast period.
