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October 12, 2020
By: Coatings World staff
The global paints and coatings market was estimated to be valued more than $140 billion in terms of revenue in 2019 and is predicted to grow at a CAGR of 5.4 percent during the forecast period – 2020 to 2027 as stated in a new market study published by Coherent Market Insights. Rising demand for waterborne paints and coatings due to growing environmental concerns is expected to foster the market growth. Strict environmental regulations coupled with the rising awareness regarding eco-friendly paints and better alternative to traditional paints are further expected to propel the market growth of the paints and coatings. Due to this manufacturer are switching to waterborne paints and coatings as they are eco-friendly and economical as compared to solvent-based paints and coatings. Growing demand for high-performance coatings that are high-temperature and corrosion-resistant is expected to serve major growth opportunities to the market of paints and coatings. Rising demand for industrial coatings for offshore platforms, piping, tank exterior, and container applications are expected to fuel the market growth of paints &coatings. Moreover, growth in the chemical industry is also expected to foster the market growth of paints and coatings. Market Restraints As per Coherent Market Insights’s research, strict environmental regulations associated with the paints &coatings is expected to restrict the market growth. Paints and coatings composed of a large number of toxic chemicals and VOC content which has various health hazards. This is encouraging government to introduce environmental regulations in order to reduce the amount of VOC content. Key Takeaways On the basis of application, residential dominated the global paints and coatings market in 2019 with around 28 percent of market share in terms of revenue, followed by commercial and automotive & aviation, respectively. Market Trends Decorative paints are a trendy concept in the paints &coating industry. For instance, in April 2018, HMG Paints has launched a specialist range of decorative coatings, including a new color collection. The new product offers easy application properties, high opacity, excellent color retention, and a high-quality finish. Thus, the growing popularity of decorative paints is expected to bolster the market growth of paints &coating industry. Increasing production capacities of the paints &coatings in order to meet the rising demand is a major trend in the market. For instance, in May 2020, ACTEGA, manufacturer of coatings, printing inks, adhesives, and sealants for the packaging and printing industry, has expanded its production capacities for water-based and UV overprint varnishes. As a result, global production output will increase to more than 150,000 tons per year. On the one hand, around 2 million euros were invested in a new integrated site in Brazil. Global Paints and Coatings Market – Impact of Coronavirus (Covid-19) Pandemic The spread of (Covid-19) Pandemic globally resulted in measures such as lockdown, and cease in economic activities which has severely impacted the coatings sector. Demand for coatings virtually collapsed for a period until governments lifted their restrictive policies. Sharp decline in oil prices due to (Covid-19) Pandemic outbreak is leading to decreased cost in the price of petrochemicals, which will led to reduction in prices for raw material for coatings which are based on crude oil and may benefit the coating manufacturers.
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