Forecast Period
|
2024-2028
|
Market Size (2022)
|
USD 84.12 billion
|
CAGR (2023-2028)
|
4.49%
|
Fastest Growing Segment
|
Powder Coatings
|
Largest Market
|
Asia Pacific
|
Market Overview
Decorative Coatings Market has valued at USD 84.12 billion in 2022 and is anticipated
to project robust growth in the forecast period with a CAGR of 4.49% through
2028. The rising demand for these products in buildings is driven by their
ability to enhance surface durability and appearance, while also providing
protection against harsh weather conditions such as UV radiation, extreme
temperatures, acid rain, and foreign particles. This increased demand is
expected to fuel industry growth over the forecast period. Additionally, the
superior properties of these coatings, including moisture resistance, corrosion
resistance, UV radiation resistance, bacteria resistance, and heat resistance,
further contribute to the growth of the industry.
The
increasing demand for eco-friendly waterborne coatings in emerging economies
like China and India is set to propel the development of the industry. The
establishment of joint ventures between key coating participants and local
manufacturers in the Asia Pacific region is expected to drive market growth.
Furthermore, the infrastructure development in these emerging economies,
coupled with rising government spending in fiscal budgets, particularly in
India and China, plays a significant role in driving the high demand for
waterborne coatings.
Stringent
environmental regulations on volatile organic compound (VOC) emissions in North
America and Europe are anticipated to drive the waterborne technology market
during the forecast period. However, the market growth may be hindered by the
fluctuating prices of raw materials such as alkyd, epoxy, acrylic, and titanium
dioxide. Moreover, the harmful environmental effects caused by solvent-borne
coatings present a key challenge for the market in the coming years.
Technological
advancements, including the use of Nano-TiO2 photocatalysts, green coatings,
and methods to reduce drying time, are expected to propel market growth over
the forecast period. Increasing investments in research and development, along
with ongoing product development efforts to improve the performance of these
coatings, will further stimulate market growth in the next seven years.
The
rapid infrastructural development in emerging economies like India, China,
Brazil, and South Korea, characterized by the construction of shopping malls,
housing complexes, and office buildings, is estimated to fuel the growth of the
decorative coatings industry in the near future. Furthermore, the increasing
demand for coatings from do-it-yourself (DIY) consumers is expected to
contribute to market share growth.
Moreover,
the introduction of new waterborne coatings with different formulations by
various companies, aimed at imparting antibacterial and anti-odor properties,
is anticipated to drive market growth over the next seven years. The market
will also be propelled by the introduction of nanocoatings and green coatings.
The
decorative coatings market in Brazil is expected to witness growth due to
increased investment by companies and the establishment of more coatings
production facilities. Additionally, the emerging economies of Malaysia,
Thailand, and Singapore in Southeast Asia are projected to experience surging
growth, driven by the establishment of commercial establishments such as
business parks and shopping malls. However, market growth may be restricted by
the volatility of raw material prices in the coming seven years.
Key Market Drivers
Urbanization and
Infrastructure Development
Urbanization
is a key factor contributing to the expansion of the decorative coatings
market. As cities grow and evolve, the demand for buildings and infrastructure
increases, leading to a surge in the need for decorative coatings. These
coatings are used extensively in residential, commercial, and industrial
settings to enhance aesthetic appeal and provide protection against weathering
and corrosion.
Furthermore,
infrastructure development, particularly in emerging economies, is playing a
pivotal role in driving the market growth. Governments worldwide are investing
heavily in infrastructure projects, including transportation, housing, and
public facilities, thereby increasing the demand for decorative coatings. For
instance, in developing countries, the construction of new roads, bridges, and
buildings is booming, creating a substantial market for decorative coatings.
The
Asia-Pacific region, in particular, is a hotbed for growth in the decorative
coatings market. Rapid urbanization, coupled with substantial investments in
infrastructure development, is fueling the market's expansion in this region.
China and India, with their fast-growing economies and burgeoning middle
classes, are leading the charge. The increasing disposable income of the
middle-class population in these countries is driving the demand for more
residential and commercial spaces, thereby boosting the need for decorative
coatings.
In
conclusion, the global decorative coatings market is on a promising growth
path, primarily driven by rapid urbanization and infrastructure development. As
cities continue to expand and infrastructure projects multiply, the demand for
decorative coatings is expected to rise correspondingly. With technological
advancements adding another layer of growth potential, such as the development
of eco-friendly and long-lasting coatings, the future of the decorative
coatings market appears bright.
Growth in Real Estate and
Construction
The
robust growth in the real estate sector is a key factor propelling the
decorative coatings market. As more residential and commercial buildings are
constructed, the demand for decorative coatings increases correspondingly.
These coatings are not only used to enhance aesthetic appeal but also provide
protection against weathering and corrosion, ensuring the longevity of the
structures.
A
similar trend can be observed in the construction industry, where
infrastructure projects such as the development of public facilities,
transportation networks, and housing complexes require decorative coatings for
both protective and aesthetic purposes. These coatings play a crucial role in
safeguarding the infrastructure from harsh environmental conditions while
adding visual appeal to the surroundings.
The
Asia-Pacific region is witnessing particularly strong growth in the decorative
coatings market, largely due to the rapid expansion of its real estate and
construction sector. Emerging economies such as China and India are leading
this growth, driven by increasing urbanization and rising middle-class
populations. The demand for new residential and commercial spaces in these
countries is soaring, further fueling the need for decorative coatings.
In
addition to the growth in the market, advancements in coating technologies are
expected to further propel the industry. The development of eco-friendly and
low-VOC coatings, for instance, not only benefits the environment but also
aligns with the increasing consumer demand for sustainable products. As
customers become more conscious of their environmental footprint, the demand
for environmentally friendly coatings is expected to rise.
In
conclusion, the global decorative coatings market is on a promising growth
path, with the expansion of the real estate and construction sector acting as a
primary driver. As these sectors continue to grow, particularly in emerging
economies, the demand for decorative coatings is expected to rise in tandem.
Moreover, technological advancements in the industry, such as the development
of eco-friendly coatings, offer additional avenues for market growth. With a
bright future ahead, the decorative coatings market is poised for further
success.
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Key Market Challenges
Fluctuations in Raw Material
Availability and Cost
Decorative
coatings play a vital role in enhancing the aesthetics and durability of
various surfaces. These coatings are meticulously formulated using a diverse
range of raw materials, such as resins, solvents, pigments, and additives. The
availability and cost of these materials are crucial factors that can
significantly influence the dynamic decorative coatings market.
Any
fluctuation in the availability or cost of raw materials can have a profound
impact on the industry. For example, a sudden shortage of key raw materials can
disrupt production schedules, leading to delays and negatively affecting the
entire supply chain. Moreover, such disruptions can also result in increased
costs, as manufacturers may need to source alternative materials or pay higher
prices to secure the necessary resources.
Conversely,
an unexpected surge in raw material costs can squeeze profit margins for
manufacturers. To maintain profitability, manufacturers may be compelled to
raise their prices, potentially leading to reduced demand from consumers. This
ripple effect can further impact the overall market dynamics.
These
fluctuations in raw material availability and cost can have both short-term and
long-term effects on the decorative coatings market. In the short term,
manufacturers may need to swiftly adjust their production schedules and pricing
strategies to adapt to the changing landscape. This adaptability ensures that
they can meet customer demands while effectively managing costs.
In
the long term, these fluctuations can shape the market's growth trajectory. If
raw material costs remain persistently high or their availability continues to
be unpredictable, it could deter potential new entrants from entering the
market. Moreover, existing players may hesitate to expand their operations due
to the uncertain raw material landscape. These factors can restrain the
market's overall growth potential and disrupt the equilibrium between supply and
demand.
Therefore,
the intricate relationship between raw material availability, cost
fluctuations, and the decorative coatings market necessitates a proactive
approach from industry players. Constant monitoring, strategic sourcing, and
agile decision-making are essential to navigate these challenges and ensure the
industry's sustained growth and success.
Key Market Trends
Growing Demand for
Eco-Friendly Coatings
Eco-friendly
coatings, also referred to as green or sustainable coatings, have gained significant
attention due to their ability to minimize environmental impact. These coatings
are designed with a focus on reducing volatile organic compounds (VOCs),
utilizing renewable resources, and adopting environmentally friendly production
processes.
The
rising popularity of eco-friendly coatings can be attributed to a combination
of factors. Firstly, there is a growing environmental awareness among consumers
who are now more informed and conscious about the ecological consequences of
their purchasing decisions. As a result, they actively seek out products that
align with their values, including eco-friendly decorative coatings.
Furthermore,
governments across the globe are implementing stricter regulations on VOC
emissions, promoting the adoption of eco-friendly coatings. These regulations
are not only encouraging manufacturers to invest in the development and
production of greener alternatives but also reshaping the competitive landscape
of the industry. Manufacturers that offer eco-friendly coatings gain a competitive
edge by attracting environmentally conscious consumers and complying with
regulatory standards.
The
increasing demand for eco-friendly coatings has had a profound impact on the
decorative coatings market. It has sparked innovation, leading manufacturers to
heavily invest in research and development to create high-quality and
sustainable coatings. This continuous pursuit of improvement ensures that
eco-friendly coatings not only meet but exceed customer expectations.
In
summary, the trend towards eco-friendly coatings is a result of various
factors, including the environmental consciousness of consumers, stricter
regulations, and advancements in coating technology. This growing demand has
not only driven innovation but also transformed the competitive dynamics of the
industry, with manufacturers focusing on creating sustainable and
high-performance coatings.
Segmental Insights
Resin Type Insights
Based
on the category of resin type, the acrylic resin segment emerged as the
dominant player in the global market for Decorative Coatings in 2022. Acrylic
resin, a versatile material composed of acrylic monomers, is often enriched by
incorporating various chemical classes. These resins primarily consist of
esters derived from acrylic, methacrylic, or a combination of both acids.
Renowned for their exceptional resistance to chemical and photochemical
attacks, acrylic resins find widespread application in industries. They are
extensively employed in the formulation of coatings, available in both
solvent-based and water-based variants. The remarkable properties of acrylic
resins, including excellent adhesion, flexibility, weather resistance, and
durability, render them an ideal choice for decorative coatings. These coatings
are suitable for a diverse range of surfaces, such as exterior and interior
walls, wood, concrete, and metal.
Notably,
water-based acrylic resin coatings have gained significant popularity due to
their low volatile organic compound (VOC) content, minimal odor, and ease of
application. As consumer awareness towards environmental safety and human
health grows, the demand for coatings that are eco-friendly and non-toxic is
expected to drive the growth of the decorative coatings market in the forecast
period.
Technology Insights
The
Powder Coatings segment is projected to experience rapid growth during the
forecast period. Powder coatings are widely recognized for their exceptional
durability and longevity, surpassing other types of coatings in these aspects.
Their remarkable resistance to scratches, fading, chipping, and corrosion makes
them the top choice for applications in high-traffic and harsh environments.
Moreover, powder coatings are highly regarded for their eco-friendliness
compared to traditional solvent-based coatings. With significantly lower or no
volatile organic compounds (VOCs), which can be detrimental to air quality and
human health, powder coatings contribute to a cleaner and safer environment. As
a result, the segment growth of the decorative coatings market is expected to
be strongly supported during the forecast period, driven by the increasing
demand for these sustainable and high-performance coatings.
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Regional Insights
Asia Pacific emerged as the dominant
player in the Global Decorative Coatings Market in 2022, holding the largest
market share in terms of value. The rapid urbanization and industrialization in
the region can be attributed to factors such as population growth and economic
development. This has led to an increase in demand for decorative coatings,
especially in countries like China, India, and Southeast Asia, where disposable
income is on the rise. The growing application sector, including industries
like construction and automotive, is also contributing to the growth of the
decorative coatings market in the region during the forecast period. As a
result, the market is expected to experience steady expansion in the coming
years.
Recent Developments
- In October 2020, AkzoNobel, a global
leader in coatings and specialty chemicals, made a significant announcement.
The company revealed its acquisition of Industrias Titan S.A.U.'s decorative
paints business, a move that demonstrates AkzoNobel's determination to expand
its presence in Europe. This strategic acquisition not only strengthens
AkzoNobel's market position but also highlights its commitment to sustainable
product innovation. By joining forces with Titan, AkzoNobel aims to better
serve its clients and gain further momentum in the European paints and coatings
industry, solidifying its reputation as the reference in the market.
- In June 2021, PPG, a leading global
paint, and coatings company, made headlines with its acquisition news. PPG
successfully completed its tender offer for all Tikkurila shares, as of the
offer's expiration date of June 4, 2021. The acquisition involved a cash
payment of €34.00 for each of the 38,711,646 million Tikkurila shares tendered.
With this transaction, PPG now owns an impressive 97.1% of Tikkurila's issued
and existing shares, in addition to the shares it had previously acquired. To
secure the remaining 2.9%, PPG will initiate a squeeze-out process that will
commence immediately. This acquisition further solidifies PPG's position in the
market and reinforces its commitment to growth and expansion.
Key Market Players
- PPG
Industries Inc.
- Axalta Coating Systems Ltd.
- Nippon Paint Holdings Co Ltd
- Kansai Paint Co Ltd
- Bayer AG
- Valspar Corporation
- Sherwin-Williams Company
- KCC Corporation
- Jotun A/S
- BASF SE
By Resin Type
|
By Technology
|
By End User
|
By Region
|
- Acrylic Resin
- Alkyd Resin
- Vinyl Resin
- Polyurethane Resin
- Others
|
·
Waterborne Coatings
·
Solvent-Borne Coatings
·
Powder Coatings
|
- Residential
- Non-Residential
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Decorative Coatings
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Decorative Coatings Market, By Resin Type:
o Acrylic Resin
o Alkyd Resin
o Vinyl Resin
o Polyurethane Resin
o Others
- Decorative Coatings Market, By Technology:
o Waterborne Coatings
o Solvent-Borne Coatings
o Powder Coatings
- Decorative Coatings Market, By End User:
o Residential
o Non-Residential
- Decorative Coatings Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
§ Egypt
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global
Decorative Coatings Market.
Available Customizations:
Global Decorative Coatings Market report with the
given market data, TechSci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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