Paints and Coatings Market - Forecast(2021 - 2026)
According to the International Trade Center (ITC), the trade of iron and steel across the globe was valued to be $428.6 billion worth in 2018.[1] This is attributable to the prevalent application of iron and steel in a broad spectrum of industries. However, iron and steel that are used in industries undergo the process of painting and coating, which protects the metal and alloy from corrosion, thereby reducing the maintenance and replacement costs. Evidently, the increasing trade of iron and steel worldwide is significantly supporting the paints and coatings market that had a market size of $127,855 million as of 2018. Furthermore, the demand for paints and coatings in various industries is projected to escalate with a healthy compound annual growth rate (CAGR) of 4.69% during the forecast period of 2019 to 2025.
APAC has been observing a tectonic shift in the economy owing to the growth in the industrial sector and construction, which is leading to growth prospects in the APAC paints and coatings market. Furthermore, according to the Indian Brand Equity Foundation (IBEF), India is the third largest crude steel producer in 2017.[2] The tons of steel production in India and other parts of APAC leads to an augmented demand for paints and coatings. China, Indonesia, and the Philippines are major industrial regions that contribute to the soaring sales in the paints and coatings market. Moreover, the growing automotive industry in the region has incremented the demand for paints and coatings. In 2018, APAC had the maximum paints and coatings market share of 44%.
Paints and Coatings Market Outlook:
Paints and coatings are materials with properties such as adhesion, wettability, and corrosion resistance that are applied to a surface in order to protect it from corrosion, rusting, and erosion that can lead to surface spoilage. Previously, cave paintings were drawn by using hematite and manganese oxide that were the earliest invention of paints. Paints and coatings are used in a gamut of industries that include construction, automotive, real estate, and others. The paints can be decorative and protective based on the application and the impact of external factors on the surface.
According to the United Nations, the real estate industry will be playing a vital role in the sustainable development goals (SDGs) envisioned by the organization. This is attributed to the population outflow that is anticipated in the future. Subsequently, the new building and construction projects will be leading to an augmented application of decorative or architectural paints and coatings. The key application of paints and coatings is found to be the decorative ones, and the application of the same for architectural purpose is estimated to grow with a steady CAGR of 5.10% through to 2025.
Paints and Coatings Market Growth Drivers:
· The Growth of the Automotive Industry –
According to the International Organization of Motor Vehicle Manufacturers (OICA), the total number of vehicles produced in 2018 was 95,634,593.[3] Evidently, motor vehicles are painted or coated with resins that protect the metal from corrosion and rusting. With the advent of electric vehicles, autonomous trucks, and self-driven vehicles and trucks, the automotive industry is poised to observe a seismic shift with an incremented production rate in the future which will further flourish the paints and coatings market, and the industry will observe a definite demand influx which will raise the revenues.
· The Application in Aerospace and Marine Industry –
According to the General Aviation Manufacturers Association (GAMA), in 2018, total 2,443 number of aircraft were shipped to various regions in the world. Additionally, the aviation industry witnessed a 4.37% growth in terms of shipment year on year in 2018.[4] Evidently, these aircraft are painted or coated with paints for protection from corrosion, and these paints are expensive, which shoots up the valuation of paints and coatings market. Similarly, the increasing trade across the globe is leading to an amplified application of paints and coatings on the surface of ships. Due to the enhanced trade, ships travel more than before which instills corrosion of the surface at a faster rate. This creates a need for the sporadic application of paints and coatings for maintenance purpose which again drives the paints and coatings market.
· The Semiconductor Industry Supporting the Market –
The semiconductor market was valued to be $426.4 billion in 2018, and the demand for semiconductors is estimated to grow with a substantial CAGR of 5.88% during the forecast period of 2019 to 2025. These semiconductors are nowadays coated with a particular kind of spray paint, which imbues properties such as magnetic response and electrical conductivity. Given that the semiconductor market is poised to observe growth, the vendors in the paints and coatings market will subsequently witness opportunities.
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