Paints and Coatings Market - Forecasts from 2024 to 2029

Paints and Coatings Market - Forecasts from 2024 to 2029

The global paints and coatings market is valued at US$201.128 billion in 2024 and is projected to grow at a CAGR of 4.23% over the forecast period.

The global paint and coating industry worldwide has been growing due to several factors. The major drivers are the global development and growth of new housing projects, rising infrastructural projects, growth in the automotive industry, rising aerospace and shipping industry, and growing awareness around using environment-friendly and sustainable materials. The paints and coatings have multiple applications in diverse industries. Coatings are also applied to produce semiconductors and electrical and electronic equipment for better conductivity.

The industrial coatings market's growth was primarily driven by the increasing need for corrosion-resistant coatings in various industries. Additionally, the demand for powder coatings and high-performance coatings for industrial applications contributed to the growth.
According to the IEA (International Energy Agency), the sale of BEV (Battery Electric Vehicles) has risen from 4.7 million in 2021 to 7.3 million in 2022 and reached 9.5 million in 2023. The sale of PHEVs (Plug-In Hybrid Electric Vehicles) has increased by 1.9 million in 2021, to 2.9 million in 2022, and reached 4.3 million in 2023.
The United Arab Emirates' infrastructure investment comprises US$132 million for social projects, USD$80 million for energy projects, and USD$83 million for unspecified infrastructure projects in the country.
According to Eurostat, annual average construction production in 2023, compared with 2022, increased slightly in both the euro area and the EU. However, building construction increased by 1.1% in the European Union compared to 2022 to 2023, and civil engineering increased by 4.1%. Countries with significant increases are Romania, Poland, and Belgium, which are the top countries showing significant growth in the region. This increase in the construction industry indicates an overall increase in raw materials for inputs.
In December 2023, compared with December 2022, production in construction increased by 1.9% in the euro area and 2.4% in the EU (European Union).

GLOBAL PAINTS AND COATINGS MARKET DRIVERS:

Rise of the automotive industry

According to the OICA (International Organization of Motor Vehicle Manufacturers), the overall production of vehicles has expanded by 10% in 2023 compared to the previous year. This number of vehicles produced was 93,546,599, out of which 67,133,570 are cars and 26,413,029 are commercial vehicles. These increases are from major economies of India, China, Canada, Germany, France, Japan, the United States, the United Kingdom, etc. In the USA, the market has expanded by 6%; in the UK, the expansion was 17%; and in China, it has a 12% increase.

This major increase in vehicle production leads to the demand for paints and coatings in the automotive industry. The coatings are necessary for providing better looks and protecting the car's surface from heat and moisture. Vehicle production, especially electric vehicles, is projected to increase in the future, which would further contribute to the paint and coatings market growth.
Increase in construction activities

The construction and building industry all across the world is showing significant growth. One of the major reasons for this industry's expansion is the growing urbanization worldwide. Urbanization causes the rapid industrialization of the country and region. The rate of urbanization in the developing part of the world is rising significantly. This includes constructing a large urban population, that is, parks, hospitals, hotels, restaurants, houses, buildings, etc., for living. The improvement of lifestyle The major part of urbanization is taking place in the Asia Pacific, Middle East, and Africa regions.

Coatings and paints retain gloss and provide chemical, UV, and corrosion resistance. The growth of the architectural coatings segment is also contributing to its growth. This is due to increased demand for low VOC coatings and the introduction of innovative technologies such as nanotechnology in coating products.

Global Paints and Coatings Market Geographical Outlook
The Asia Pacific region will dominate the global paints and coatings market during the forecast period.

The major economies like China, Japan, India, and South Korea dominate the Asia-Pacific region. Some of the fastest-growing emerging economies are from this region, such as ASEAN countries. Several key players are based in Asia, such as Nippon Paints, which is headquartered in Japan. Nippon Paints has a presence in Asia, Europe, and the Americas, with more than 100 subsidiaries and affiliates worldwide.

Kansai Paint is a leading Japanese manufacturer of paints and coatings. The company implements various eco-friendly initiatives and uses environment-friendly materials in its products. Asian Paints is the largest paint company in India. Their products are widely used in various industries and fields, such as construction, automotive, furniture, home appliances, etc.

Global paints and coatings market key developments:

In July 2024, AkzoNobel launched a new type of innovative powder coating technology to provide improved electrical protection for electric vehicle (EV) battery systems. This launch was in line with the demand for higher dielectric strength to help increase the safety of battery systems. The company's product has the solution to this challenge by creating a solution that requires film thickness with a single spray to increase efficiency and productivity. The ability to make a film with a one-time application also means that the production process becomes cheaper by increasing speed, reducing man hours, and improving asset utilization.
In May 2024, PPG will build a new paint and coatings manufacturing facility in Tennessee. This would be a $300 million investment in advanced manufacturing in North America. The 250,000-square-foot facility could supply products for transportation, heavy-duty equipment, building and construction, and the consumer sectors.
In February 2024, BASF Coatings signed an agreement with INEOS Automotive for its global body and paint program. BASF would help INEOS Automotive to make a body and paint program.
In February 2024, Svenska Aerogel received an order for 3 tons of Quartzene from Novcoat, its French distributor. Customers would use the material in cool roof paint. The order had been planned for delivery in 2024, divided into four deliveries during the year. The value of the order was 96.8 KEUR. This order confirmed the large-scale application of Quartzene in cool roofs as an important application of our material.
In February 2023, Aditya Birla Group announced the 40% addition to Industry Capacity. They announced the launch of products and services under its decorative paints brand, “Birla Opus”. Birla Opus targets Rs 10,000 Cr revenue within 3 years. This is Aditya Birla Group’s entry into the rapidly expanding Rs. 80,000 Cr Indian decorative paints market.

The global paints and coatings market is segmented and analyzed as follows:

By Product

Coatings
Radiation-curable coatings
Solvent-borne coatings
Paints
High-solids paints
Waterborne paints

By Application

Architectural/decorative coatings
Industrial OEM coatings
Special purpose coatings

By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Europe
United Kingdom
Germany
France
Italy
Spain
Rest of Europe
Middle East and Africa
Saudi Arabia
UAE
Rest of the Middle East and Africa
Asia Pacific
China
India
Japan
South Korea
Taiwan
Thailand
Indonesia
Rest of Asia-Pacific