The Global "Architectural Coatings Market" is expected to grow at a CAGR of XX% during the forecasting period (2022-2029).
Architectural coatings are coatings in the form of paints, primers, sealers, inks, and other related goods, are used as roof coatings, wall paints, or deck finishes for coating of commercial, industrial and residential buildings to secure these buildings from ultraviolet radiations, microbes, and moisture. It also enhances their appearances.
Architectural coatings are applied in the form of paints, primers, sealers, inks, and others. The majority of the coatings are applied to surfaces using sprayers, rollers, brushes, and other applicators. Powder particles or liquid film coatings are converted into solid film coatings by several processes such as cross-linking, evaporation, coalescence, or fusion bonding.
The market growth is driven by increasing the use of architectural coatings for coating the interior and exterior walls, roofs, ceiling, and floors surfaces of the buildings. The coating is applied onto the exterior surface of the buildings to increase their aesthetic appeal, and to protect it from effects of weather, UV radiation, fading and peeling due to pollution, and cracking. Consumers prefer the architectural coatings for interiors of the building to add colors, increase the calmness, and protect the interior surfaces.
The demand for Sustainable and innovative products
The sustainability of the architectural coatings is advancing one or more of the seventeen United Nations Sustainable Development Goals. Architectural coatings formulations need to be changed regularly driven by a strengthening drive toward sustainability include the continued lowering and ultimate elimination of volatile organic compounds (VOC), reducing the risk of human exposure to hazardous chemicals, and enabling a circular economy based on renewable resources. Waterborne coatings now dominate the global architectural coatings market moving the world closer to eliminating coatings as an air pollution source. Regulatory and consumer demand will increase the drive toward zero VOC eventually eliminating solvent-based coatings.
Product innovation and the launch of emerging novel products shall have a positive impact on the market. For instance, in April 2019, AkzoNobel had developed a scratch-resistant powder coating for the architectural market in both matte and satin finishes. The company had added the pioneering dual functionality i.e. Interpon D X-Pro, to its Interpon D range. Interpon D X-Pro is effective in making the products less susceptible to abrasions during handling and transportation.
The introduction of the digitally-enabled service platform along with the architectural coating products by the companies would play a vital in increasing the reach of customers to be and their sales over the forecasted period. For instance, in October 2019, PPG Industries, Inc., had launched PPG Services, a digitally-enabled service platform to make it easy for businesses with multiple commercial facilities across the U.S. to identify and connect with established professional painters then manage and schedule general painting maintenance projects.
However, the availability of substitutes for architectural coatings, government, and environmental regulation is hindering market growth. External and internal environment problems such as rain, snow, and ice on the outside and moisture build-up from the inside could lead to pealing of the coating. These factors could hurt architectural coatings.
Covid-19 Impact Analysis
The architectural coatings market had taken a hit during the pandemic as nationwide lockdowns imposed on many countries caused a drop in construction activity. However, in comparison to other industries, the market is not affected as such. It highly depends on the construction market. The IMF has categorized the construction market in High Contact, Less Affected sectors. According to ICRA, (Investment Information and Credits Rating Agency), the second wave in India, might disrupt constructional activities but the performance of most mid and large-sized construction companies is not expected to be affected.
The global architectural coatings market is segmented based on type acrylic product, alkyd product, vinyl product, epoxy, polyurethane product, and others. Acrylic product dominates the market due to their properties such as environmental resistance, fast setting times, excellent durability, and high gloss retention. According to National Coatings Association, USA, every acrylic coating product manufactured in the country is made out of the finest raw materials available. For instance, Elastomeric roof coatings provide waterproof roofing. It prevents water from penetrating the roof during expansion and contraction in thermal expansion. The durability and reflectivity of the acrylic coating make it a worthy, cost-effective investment, prolonging the life of the roof and lowering the temperature in the building; which in turn reduces energy consumption. There is an increase in demand for aqueous acrylic lacquers which comprises the properties of both lacquers and enamels. These coatings are more sensitive to humidity and temperature and efficient in eliminating the environmentally dangerous chemicals associated with the existing lacquers.
By region, the global architectural coatings market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Asia Pacific region accounts for the highest market share due to the growing construction of residential and non-residential sectors especially in developing countries such as China and India. Moreover, there is an increase in government spending for the construction of buildings and FDI in the region.
According to WTO,2021, Members commended India on its strong economic growth during the review period, particularly in the services sector, allowing India to become one of the world's largest economies. Members believed that the continuous economic reforms focussed on increasing efficiency and inclusiveness contributed to these positive developments and led to an improvement in socio-economic indicators, such as per-capita income and life expectancy.
In June 2021, the World Bank forecasted that India is projected to grow at 8.3% in 2021. It also added that GDP will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than-expected recovery in services and manufacturing.
According to the India Brand Equity Foundation, India is expected to become World’s third-largest construction market by 2022. The government is supporting the market by making growth-based policies. For instance, in Union Budget,2021 allocated USD 1.89 billion to support initiatives like Housing for All and Smart Cities Mission. Also in March 2021, the Indian parliament passed a bill to set up the National Bank for Financing Infrastructure and Development.
The global architectural coatings market is highly consolidated with the presence of several domestic and local players. PPG Industries, Inc., Akzo Nobel N.V, Kansai Paints Co., Ltd., Asian Paints Limited, The Sherwin-Williams Company, and Nippon Paint Holdings Co., Ltd. are the leading market players with the significant market share.
Companies are using product innovation, enhancing distribution facilities, production innovation, new product launches, new facility development, facility expansion, and market expansion to increase their reach and market penetration.
For instance, in May 2021, Clariant launched a complete range of Hostatint AU aqueous pigment dispersions which are low VOCs pigment dispersions for architectural coatings. They expand the color choice for exterior and interior architectural coatings allowing North American and Latin American manufacturers to offer the most expansive color palette possible. They provide the flexibility to produce traditional and unique shades with excellent light and weather protection.
Another instance, in August 2021, O3, a technology company focused on architectural protective materials, launched a new architectural coatings line TRIOPRO which is designed for long-term protection of intensely used spaces with high operating loads which require coatings with higher wear and water-resistance performance.
In December 2019, Axalta had acquired Capital Paints to gain market share in the Middle East and North Africa. Under the terms of the agreement, Capital Paints would operate as one of three Axalta powder manufacturing facilities in the emerging markets region and other countries such as Malaysia and Indonesia. It would create a significant opportunity for bringing the powder coating technologies to customers in the oil and gas and architectural segments.
Why Purchase the Report?
Get your free sample proposal with a single click!