Originally published on Technavio:Architectural Coatings Market Analysis for APAC, North America, Europe, Middle East, and Africa, South America - US, China, India, Germany, France -
The Architectural Coatings Market is projected to grow by USD 18.54 billion at a CAGR of 4.03% between 2023 and 2028. The market's growth rate is influenced by factors such as the expansion of the global construction industry, increased building renovation and remodeling activities, and rising disposable income and urbanization in developing economies. The report provides an in-depth analysis of drivers, trends, and challenges, examining historical data from 2018-2022 while analyzing the current market scenario.
Market Definition:
Architectural coatings, also known as decorative or protective coatings, encompass paints and finishes designed for surfaces of buildings. These coatings enhance and protect architectural features, including walls, ceilings, trims, and other interior or exterior surfaces in homes, commercial buildings, and industrial settings.
Key Market Growth Analysis Driver:
The growth in the global construction industry significantly propels market expansion. The construction sector's growth is a primary market driver, driving demand for architectural coatings worldwide. Factors contributing to this growth include increasing urbanization, population expansion, and higher investments in infrastructure development. The surge in construction activity, driven by demands for residential, commercial, and industrial spaces, results in a substantial uptick in architectural coatings' usage for protection, decoration, and maintenance in buildings.
Significant Market Trends and Analysis:
A notable trend influencing market growth is the shift towards water-based coatings. In recent years, a key trend in the market has been the substantial move towards water-based coatings. This shift results from environmental concerns, regulatory pressures, and growing awareness of sustainable practices among consumers and industries. Market leaders like Akzo Nobel NV, The Sherwin Williams Co., and Kansai Paint Co. Ltd. are investing in research and development to enhance the performance of their water-based architectural coatings, matching or surpassing solvent-based products in durability, adhesion, and color retention.
Major Challenge:
Volatility in raw material prices poses a significant challenge to market growth. Fluctuations in global oil prices, geopolitical events like the ongoing Russia-Ukraine conflict, and supply chain issues contribute to unpredictability in the global oil and gas industry, affecting the costs of key raw materials used in architectural coatings. Titanium Dioxide (TiO2), a crucial ingredient constituting 20%-30% of raw material costs in architectural coatings, undergoes frequent price fluctuations due to a limited number of suppliers and the absence of substitutes.
Technology Analysis:
The market share growth by the water-borne segment is expected to be significant during the forecast years. Water-borne architectural coatings, using water as a solvent, eliminate harmful chemical solvents present in traditional coatings. This not only reduces volatile organic chemical (VOC) emissions but also addresses health and safety concerns for consumers and applicators alike.
Architectural Coatings Market Size
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The water-borne segment, valued at USD 36.00 billion in 2018, was the largest. The market for architectural applications has expanded due to increased awareness of environmental pollution and strict regulations governing emissions of toxic gases. For instance, market leaders like The Sherwin Williams Co. and PPG Industries Inc. offer water-based paint products with low VOC content, meeting environmental regulations while meeting performance requirements. These factors are expected to drive market growth during the forecast period.
Type Analysis:
Based on type, the market has been segmented into interior and exterior. The interior segment is expected to account for the largest share. This segment comprises coatings formulated for interior applications, such as paint, primer, varnish, and specialty coatings. Coatings in this segment cater to specific performance needs and are often categorized as water-based (latex) or oil-based to align with different consumer preferences.
Region Analysis:
APAC is estimated to contribute 39% to the global market's growth during the projection period. Technavio's analysts offer extensive insights into market forecasting, detailing regional trends and drivers influencing the market trajectory throughout the projection period.
Architectural Coatings Market Share by Geography
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APAC has emerged as a pivotal region in the market, driven by robust economic growth, rapid urbanization, and increased construction activities. Architectural coatings play a crucial role in enhancing aesthetics, protecting surfaces, and ensuring the longevity of building structures. Water-based architectural coatings have gained considerable traction in APAC, offering high-performance characteristics suitable for the region's diverse weather conditions.
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Companies are implementing various strategies, including strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their market presence.
Akzo Nobel NV - The company offers architectural coatings under its brands Dulux, International, Sikkens, and Interpon.
The report includes detailed analyses of the competitive landscape, providing information about 20 market companies, including Akzo Nobel NV, Asian Paints Ltd., Axalta Coating Systems Ltd., BASF SE, Benjamin Moore and Co., Berger Paints India Ltd., Diamond Vogel.
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