The market for architectural coatings is expected to grow at a CAGR of 5.5% during the forecast period of 2023 to 2030. Architectural coatings producers are increasingly concentrating their efforts on developing ecologically friendly materials that generate fewer emissions and lessen the carbon footprint they leave behind. In addition, there has been an increased interest in refurbishment, most notably within the residential sector, which has been increasing demand for architectural coatings. The global market for architectural coatings is seeing rapid expansion as a result of a rise in the number of applications for these coatings, developments in related technologies, and an increase in demand in the Asia Pacific. A number of factors are contributing to the expansion of the market, including the expanding purchasing power of consumers, stricter environmental regulations, increasing investment in infrastructure, and growing economic activity in developing nations. In addition, there is an increasing demand for coatings that are environmentally responsible and green.
MARKET DYNAMICS
The growing awareness of the environment has led to advances in the coating business, which have resulted in the production of quality goods that are available at competitive prices, have characteristics that add value, and are in line with current global trends. In a similar vein, rising safety regulations will lead to an increase in the need for coatings on structures that are both fireproof and waterproof in the future. This is moving the focus of attention all across the world toward architectural coatings. The National Volatile Organic Compound Emission Standards for Architectural Coatings are one example of the strict laws and standards that have emerged as a direct response to the rise in the number of environmental and health risks. REACH and the regulatory authorities of Canada, China, and Japan all carry out laws on low Volatile Organic Compounds (VOC) that are very similar to one another. The expansion of the market for environmentally friendly architectural coatings will be favorably impacted as a result of this. However, strict government laws against the hazardous VOCs released by certain architectural coatings may impede the market's expansion in the coming years. Performance concerns provide one of the most significant obstacles for manufacturers using coatings based on water in a variety of different industries. UV deterioration, resistance to corrosion, and adherence to diverse surfaces with steel, plastic, aluminum, and other materials are just some of the problems that can arise.
Massive Growth in the Construction Industry
The construction sector is responding to the increasing number of people moving to metropolitan areas by building more infrastructure and housing that is accessible to lower-income families. This is one of the primary factors driving demand for the numerous pieces of construction equipment and architectural coatings materials that are utilized in the building of both residential and commercial complexes.
According to the report titled Global Construction 2030, which was compiled by an expert team from Global Construction Perspectives and Oxford Economics, the United States of America, China, and India are all likely to experience a significant increase in construction activity during the forecast period. It is anticipated that India would experience growth by the year 2030 which is twice as fast as that China. In the meanwhile, it is anticipated that the majority of the growth in development across the United States will be concentrated in the southern states. The need for exterior architectural coatings that can shield a structure from the damaging effects of microorganisms, ultraviolet light, and moisture is growing. In addition, because there is a growing demand for architectural coatings that come in a wider range of colours, are more consistent, and last longer, manufacturers are responding to this demand by developing a wide selection of eco-friendly coatings of a higher quality. In addition, there has been a growing trend toward renovating already-built structures, which is another factor that is driving demand for architectural coatings on the inside and outside of buildings.
Huge Demand for Low and Zero VOC Architectural Coatings Products Due to Global Emission Regulations
In the past several years, governments in a variety of nations have enacted rigorous rules on emissions from products containing volatile organic compounds (VOC), such as paints and architectural coatings. These regulations are intended to reduce the amount of air pollution caused by VOCs. As a result, growing consumer awareness of the harmful effects of volatile organic compounds (VOCs) is driving demand for coatings and paints with low or zero VOC levels. A growing number of businesses are currently engaged in the process of obtaining LEED (Leadership in Energy and Environmental Design) certification for the projects they are working on. As a result, the LEED certification process allows for a wide range of acceptable VOC levels, which drives up demand for paints and coatings with low or no VOC content.
Manufacturers in the market for architectural coatings are placing a strong emphasis on the maintenance of a balance between low levels of volatile organic compounds (VOC) and high-quality products in order to meet the demand of consumers and close the performance gap that exists between low-VOC and traditional coating products. In addition, green building standards in some countries relating to indoor air quality and a growing desire for low-odour interiors have also resulted in an increase in production and demand for ultra-low and zero VOC paints and architectural coatings. This is because both of these factors have contributed to the growth of the green building movement.
Recent Regulatory Changes Presenting Manufacturers of Coatings with Challenges
Coatings that are based on solvents are quite popular because they are relatively inexpensive, have good film-forming qualities, and are simple to apply. However, the implementation of rigorous VOC and other laws across the globe is driving a move away from solvent-based architectural coatings and toward water-based coatings. Manufacturers in the market for architectural coatings are consistently working toward the goal of improving the performance of water-based coatings while simultaneously lowering their prices. Additionally, producers are searching for methods to keep the Minimum Film Formation Temperature (MFFT) at a low level while also ensuring that the dried film will have a high level of hardness in water-based coatings.
Regulations on volatile organic compound (VOC) emission are also developing as an issue for manufacturers of architectural coatings. The absence of VOC in a water-based coating causes rapid evaporation of water, which in turn causes the paint to become sticky. As a result, makers of architectural coatings are concentrating their efforts on the development of a raw material that provides a longer open time for paint users. Additionally, a longer drying time for water-based coatings necessitates the inclusion of additional heat and air circulation. The use of water-based coatings presents a number of obstacles, one of the most significant of which is related to performance in a variety of different industries. UV degradation, corrosion resistance, and adherence to diverse surfaces such as plastic, steel, aluminium, and other materials are some of the concerns that need to be addressed.
Manufacturers have also begun providing co-solvents, which include a low concentration of solvents in water-based architectural coatings, in order to improve the performance of water-based architectural coatings. This was done in an effort to improve the performance of water-based architectural coatings. Water-based architectural coatings have a higher cost per volume than solvent-based coatings as a result of advancements in raw materials that have improved the capability of water-based coatings. This is in comparison to advancements in raw materials that have improved the capability of solvent-based coatings.
Environment Concerns Driving the Market for UV Curable Resins
Over the course of the past few years, there has been an increase in the utilisation of radiation-curing technologies for the interior and exterior coatings of structures. Because of this, there has been an increase in demand for UV-curable polymers to be used in architectural coatings. In addition, there is a growing demand for UV-curable fluorine-containing resins as a result of rising worries about the environment and ongoing legislative efforts to reduce emissions of volatile organic compounds. In addition, factories all over the world that produce architectural coatings are modernising their production processes in order to create a water-based UV-curable coating. Manufacturers are providing great performance and strong chemical resistance by combining the eco-friendly qualities of water-based formulae with the fast-drying time of UV systems. This enables the formulas to cure more quickly. As a result, it is anticipated that UV curable resins would secure more than 40% of the market share for architectural coatings.
Acrylic Resin Market Held the Largest Share
As a result of its widespread application in major architectural coatings, the acrylic subsegment had the lion's share of the market in 2021. Acrylics have superior resistance to oxidation and weathering in comparison to oil-based paints, alkyds, and epoxies. This is due to the fact that the primary components of acrylic polymers form a polymer structure that has a low propensity to absorb ultraviolet light. In addition, acrylics have excellent colour and gloss retention properties. Because they shield the underlying substrate from the deterioration that can be caused by the sun's ultraviolet rays, snow, wind, and rain, they have earned a strong reputation for their longevity.
Other Key Findings of the Market Analysis include:
APAC Leads the Revenues and Growth Trends Through the Forecast Period
During the period covered by the forecast, it is anticipated that APAC will be the market with the highest rate of growth in terms of both volume and value. In 2021, it is anticipated that the Architectural Coatings Market in APAC will account for the highest share, both in terms of volume and value. The expanding middle class and rising birth rates in the Asia Pacific are the primary forces propelling the Architectural Coatings industry. The Asia-Pacific area is the most important market, with China and India taking the lead; this is because the region is home to a number of the world's most successful enterprises. It is anticipated that China, the world's second-largest economy, will expand at a CAGR of 6% during the forecast period of 2023 to 2030. Japan and Canada are two other important geographic markets; during the time covered by the report, each of these countries is anticipated to expand at a rate of 4% and 5%, respectively. It is anticipated that there will be a robust expansion in the market because the majority of manufacturers have relocated their manufacturing to Asia because of the considerably lower cost of labour there. Because of an increase in the number of building reconstructions and renovations, North America is another significant market for architectural coatings.
However, environmentally friendly coatings have exhibited higher growth in recent years due to the introduction of VOC emission regulations by governments across APEJ. Architectural coatings that are non-toxic and safe for the environment are the product of increased investment in the research and development of novel raw materials and technology by green coating producers as well as research organisations. Decorative coatings that are utilised in the construction and repair of properties have also demonstrated a consistent increase in the Asia Pacific area, particularly in the countries of India, China, and Indonesia. The most important market players in the region are concentrating their efforts on developing a better understanding of the relationship between different application techniques, local raw materials, and substrates in order to meet the demand for decorative architectural coatings and environmentally friendly coatings.
Within the architectural coatings market in Asia and the Pacific, there has been an increase in the manufacturing of environmentally friendly coatings as well as smart coatings that improve resistance to dirt and mould. In order to address the growing demand for environmentally friendly architectural coatings in the region, there has been an increase in the production of coatings that do not contain formaldehyde, have reduced levels of volatile organic compounds, and are based on water. As a consequence of this, it is anticipated that the Asia Pacific would hold more than 45% of the market share in the market for architectural coatings.
Market Remains Highly Competitive and Fragmented: Market Expansion Across Geographies to Enhance Market Position
The architectural coatings market is highly competitive and fragmented. The Sherwin-Williams Company, PPG Industries, Inc., 3 Trees, and Nippon Paint Holdings Co., Ltd. are some of the main players in the industry. Other major players are Akzo Nobel N.V., The Sherwin-Williams Company, and Nippon Paint Holdings Co., Ltd. The top six companies in the architectural coatings industry are responsible for about a third of the market's revenue. This is made possible due to the global reach of their operations and the robustness of their sales infrastructure. Additionally, there is a trend toward refurbishment, which is having a positive impact on the sales of architectural coatings. The top competitors in the market are placing a significant emphasis on expanding their operations around the globe through product launches, acquisitions, and the establishment of new facilities across nations.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Architectural Coatings market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Resin
| |
Function
| |
Formulation
| |
Application
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
