Architectual coatings market going upward
By Vikash Kumar and Shrikant Bhusare, Markets and Markets.
Asia-Pacific (APAC) was the dominant market for architectural coatings in 2017 with a market size of USD 27 billion. It is expected that the market will hit a size USD 37.3 billion in 2023, showing a CAGR of 6.6 %, which is almost 2 % higher than the average global CAGR. The market is largely driven by the water-borne coatings technology segment. The water-borne architectural coatings segment is expected to show growth in the next five years, especially in the developing countries, driven by huge investments in new infrastructure developments, new housing projects, and renovation/repaint of residential and commercial buildings.
The second largest region is Europe, with a market size of USD 15.2 billion in 2018. It will show the slowest CAGR, only 2.9 %, and reach a market size of USD 17.5 billion. North America is the third largest region, accounting for USD 12.05 billion. It is expected that this region will reach USD 14.1 billion, at a CAGR of 3.1 %, by 2023.
Driving factors for architectural coatings in APAC
APAC has been a bright spot in the global architectural coatings market in the backdrop of the overall slowdown in the global economic development. The growing middle-class population and the rising standard of living in the region will increase the demand for decorative coatings. Concerns for environmental, health, and safety issues due to VOC emissions from traditional coatings are driving the demand for environment-friendly architectural coatings in the region.
The World Bank population statistics state that the fastest-growing consumer markets of China, India, and other APAC countries had a combined population exceeding 4.2 billion (as of 2017). This is projected to become an increasingly important driver of the global construction industry over the next two decades. This will also be fuelled by the rapidly rising household income and the fast-growing middle-class population.
Water-borne Architectural Coatings
For water-borne coatings, APAC is the largest and the fastest-growing market. The share of water-borne coatings will increase from 40 % in 2018 to 44 % in 2023. The region is witnessing high growth in the construction industry, due to which, there is high demand for water-borne architectural coatings. The market of conventional solvent-borne has lost its dominance due to the growing demand of low VOC coatings.
This technology is expected to show slow growth over the next few years. The technologies such as water-borne and powder coatings that are compliant to the environmental rules, are expected to gain an increasing share over the next five years.
More about architectual coatings
This article is a shortened version of the market report on architectural coatings in the European Coatings Journal 5/2018. The complete article is available digitaly for subcribers of European Coatings 360°.