The Global Paints and Coatings Market is driven by High Demand from Construction Industry

The global paints and coatings market comprises liquid and powder coatings used for numerous applications including decorative, protective, automotive, industrial, and wood coatings. Paints offer properties such as corrosion protection, durability, and aesthetics. They provide an aesthetic appearance and protect surfaces from oxidation, corrosion, and erosion. The production of paints and coatings involves raw materials such as resins, pigments, solvents, thinners, and additives. They prevent surfaces from degradation caused by weathering, corrosion, and other environmental factors.

The Global Paints and Coatings Market is estimated to be valued at US$ 202.46 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period 2024 To 2031.

Key Takeaways

The major players operating in the paints and coatings market are Akzo Nobel N.V, Asian Paints, Axalta Coating Systems, BASF SE, Berger Paints India Limited, Deutsche Amphibolin-Werke Von Robert Murjahn Stiftung and Company, Diamond Vogel Paints, Helios Group, KCC Corporation, Masco Corporation, Nippon Paint, and PPG Industries Inc. The growing construction industry is driving the demand for paints and coatings globally. Rapid urbanization and increasing investment in infrastructure are fueling the growth of the construction sector. Paints and coatings find wide usage in residential and non-residential construction for interior and exterior applications. Moreover, increasing disposable income is encouraging homeowners to frequently refurbish and redecorate their homes which is propelling the demand.

The Paints and Coatings Market Demand are expanding their global footprint by focusing on mergers and acquisitions. For instance, in 2022, Akzo Nobel acquired the Brazilian industrial coatings company Industria Quimica Grande. This acquisition will help Akzo Nobel to strengthen its position in the industrial coatings market in Brazil. PPG industries acquired rental equipment company Advanced Coating Solutions to expand its service offerings in the North American protective and marine coatings market. Meanwhile, Asian Paints acquired Egypt based Apco Coatings to establish its presence in the Middle Eastern paint market.

Market Drivers

Rapid growth of the construction industry is the key driver propelling the global paints and coatings market. According to Paints And Coatings Market Size and Trends, the global construction output is anticipated to grow by 85% to reach $15.5 trillion by 2030. This massive growth of the construction industry will substantially drive paints and coatings demand. Residential and non-residential construction requires extensive usage of various types of decorative, protective, and industrial paints and coatings. Therefore, the growth of the construction sector significantly contributes to the increased consumption of paints and coatings.

How current geopolitical situation is impacting the growth of Paints and Coatings Market

The On-going geopolitical conflicts and economic sanctions have disrupted trade flows and supply chains globally. This has significantly impacted raw material availability and prices for the paints and coatings industry. Russia and Ukraine are among the top exporters of raw materials like titanium dioxide, resins, polymers and solvents which are critical inputs for paint formulations. With exports restricted from these regions due to the war, producers are facing severe shortages. This has pushed up procurement costs considerably. Manufacturers are struggling to pass on the increased costs to customers due to weak demand arising from economic uncertainties. Construction activities have slowed down in many parts of the world contributing to weaker demand. Furthermore, high inflation has reduced consumer spending power limiting the demand for decorative paints in some key markets. Going forward, manufacturers will need to look at strategic sourcing and developing alternative supplier networks to reduce dependence on vulnerable regions for critical raw materials. More investments in research and development of innovative formulations using alternative inputs can help the industry mitigate supply side risks in the long term.

Geographical regions where Paints and Coatings Market concentrated in terms of value

The Asia Pacific region currently accounts for the largest share of the global paints and coatings market in terms of value. Countries like China, India, Japan, Indonesia, South Korea and Vietnam have seen tremendous growth in infrastructure development, automobile production and manufacturing activities over the past decade. This has propelled the demand for various types of paints and coatings from the construction, automotive, industrial and other end-use sectors. Robust economic development, rising standards of living, growing population and urbanization are some of the key factors driving the growth of the paints and coatings industry in Asia Pacific. Besides Asia Pacific, North America and Europe are also among the major markets globally concentrated in terms of value for the paints and coatings industry.

Fastest growing region for Paints and Coatings Market:

The Middle East and Africa region is projected to be the fastest growing regional market for paints and coatings during the forecast period from 2024 to 2031. Government investments in building new infrastructure, power projects, transportation networks along with expanding manufacturing industries are supporting the growth of the construction and industrial sectors across many African countries and the Middle East. The increasing beautification and expansion of existing infrastructure is fuelling demand for architectural paints and coatings. Moreover, rising population, growing urbanization and rapid economic development in African nations are expected to drive significant growth in the building and construction activities thereby benefiting paints and coatings consumption over the coming years.

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About Author:

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

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