Burgeoning need for Green coatings is estimated, to drive the global decorative paints and coatings market to $97 Billion by 2023
In the current scenario of the decorative paints and coatings market, the shift towards water-borne coatings has proven to be a successful approach aimed at the reduction of Volatile organic compound (VOC) emissions. Stringent environmental regulations over the use of toxic chemicals in coating formulations are intensifying competition in the decorative coatings market and leading to continuous innovation in the formulation, technology, and product development; which are collectively promoting market growth.
According to IndustryARC, the Decorative Coatings market is expected to reach $97 billion by 2023, growing at a CAGR of 4%. The decorative coatings industry is being largely driven by growth in the construction industry. In particular, the Asia-Pacific and the Middle East regions are expected to witness rapid growth owing to high investments in construction projects, fueled by strong government support for residential and commercial development.
There is a growing trend to implement the use of smart decorative coatings for buildings to increase energy efficiency. Smart decorative coatings provide enhanced benefits such as self-healing, high thermal efficiency, self-repair, enhanced anti-corrosion, and other properties. On a similar note, Axalta Coating Systems launched a novel product line of smart decorative coatings formulated to safeguard and improve the aesthetics of glass and ceramic surfaces. A major trend in the industry is heavy R&D investment by companies into developing ultra-low monomer coatings, which are intrinsically monomer free, and involve dispersions. Furthermore, digitization in the coatings industry is a critical factor influencing growth of the decorative coatings market, and is expected to meet the growing demand for “on-demand,” “online,” and DIY (Do It Yourself) paints especially from developed regions such as North America and Europe.
Key Insights on Decorative Paints and Coatings Market
· UV-Curable coating technologies are considered the future of the decorative coatings industry. Since UV-cured coatings are in line with several environmental regulations, the technology is rapidly gaining a foothold over water or solvent-borne coating technologies. Few of the application related advantages include the absence of pot life issues, lower energy costs, and faster-curing speed. One-component UV-Curable coating positions itself as the fastest-growing coating chemistries available in the present industry.
· Cost and performance continue to be the key drivers for purchasing decisions, and green coating products are only considered if they provide added value commensurate with any cost premium. There has been a significant shift from a focus only on air quality to an approach that encompasses all aspects of processes and products that contribute to sustainability. Low VOC decorative coating regulations are increasing, especially in Europe and the U.S., where numerous coating companies are adopting the “green” label. Further, the rise in adoption of bio-based decorative coatings is estimated to fuel the market growth during the forecast period.
· There is also a growing demand for polyaspartic technology in the industry, owing to its weather-resistant capabilities, Polyaspartic coatings are a logical supplement to fast-setting polyurethane technology.
· Growth in the decorative paints and coatings market is majorly contributed by the residential segment, followed by the commercial segment, under the architectural segment. Adding on, the residential application segment is the fastest growing with a CAGR of 5.11%. The architectural application held the major segment share of 84% of the global decorative coatings market.
· Asia Pacific accounted for the largest market share, with revenue of $33 billion, in 2018. Moreover, the North American market held a regional share of 16% in the global market. The region has not witnessed any major uptrends for the past few years due to sluggish growth in building construction. Moving ahead, the outlook for both residential and non-residential constructions have improved. In particular, this region has a high demand for DIY coatings. In terms of appearance, the North American region has a soaring demand for multicolored and textured paints.
· Globally, there is increasing traction for the implementation of nanotechnology in the sector of the decorative coatings. Currently, nanotechnology for coatings is used in applications that require dirt repulsion and self-cleaning.
There are many products in the market involving this technology. Further, capacity expansions by leading vendors, including Berger Paints, Axalta Coatings Systems, The Sherwin Williams Company, Kansai Nerolac, PPG Industries, and others will fuel the market growth during the forecast period. Decorative Coating manufacturers have utilized mergers and acquisitions (Valspar: acquired by Sherwin Williams) as well as “green” label product launches to augment entry into related markets and enhance core competencies through additions to product portfolio and leveraging capabilities of acquired companies to gain a foothold in the markets.
Decorative paints and coatings industrial growth were supported by a high rate of construction activity globally. The construction market is anticipated to show slow growth globally in 2019. Construction expenditure in the U.S. increased by 3.5% in the first quarter of 2019 as compared to 4.5% during the same period in 2018. Similar trends would be followed in the EU, where the rate of construction activity will slow slightly from a 3.5% growth rate in 2018 to a 2.5% growth rate during 2019. The construction market in China and other Asian countries is estimated to continue growing at high rates; although not equal to the growth seen in 2018. On a global basis, the construction market will continue to grow in 2019, but it will not be quite as strong as that in 2018.