Pigments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Pigments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The global pigments market is projected to register a CAGR of over 6% during the forecast period.

COVID-19 had a negative impact on the market in 2020. The disruption in the worldwide supply chain, combined with lower demand from numerous end-user industries such as paints and coatings, plastics, textiles, and others, hampered pigment demand. However, the market recovered as consumers spent more time at home and focused on home remodeling projects, and the residential construction sector recovered. Protective and sanitizing coatings are in high demand due to growing concerns about cleanliness and hygiene.

• In the medium term, the significant factors driving the market studied are rising demand from the paints and coatings industry in Asia-Pacific and consistent industrial developments in the Middle East and Asia-Pacific regions.
• On the flip side, factors such as stringent government regulations and the negative impact of the COVID-19 pandemic are expected to hinder the growth of the market studied.
• Rising demand for reliable commercial products, like 3d printing material, will likely act as an opportunity in the future.
• Asia-Pacific dominated the market worldwide, with the most significant consumption from countries such as China, India, and Japan.

• Pigments are majorly used in paints and coatings production. These are engineered, enabling them to withstand challenging demands without compromising the coating performance.
• In the construction industry, architectural and decorative coatings account for the enormous consumption of pigments in their production. Thus, rising construction and infrastructure activities in Asia-Pacific are significant drivers for the pigment market.
• Furthermore, in the automotive sector, paints and coatings are used in the interior and exterior parts of the vehicle, as they impart protection and appeal to the cars. They are used on metallic pieces and plastic vehicle components of automobiles.
• The primary reason for using automotive coatings is to protect the vehicle parts against various aggressive environmental agents, such as sunlight, corrosive materials, and environmental effects, such as acid rain, hot-cold shocks, stone chips, UV radiation can washing, and blowing sand. These coatings are used in automotive body shops and repair centers for vehicle refinishing.
• The electric car sector is driving the development of new paints and coatings explicitly intended for electric vehicles. These paints and coatings must endure the high temperatures electric motors produce while providing corrosion and other environmental protection. They must also be able to deliver a high level of aesthetic appeal. According to the International Energy Agency, battery electric vehicle sales will reach 4.7 million units in 2021, representing a 135% increase over the previous year.
• However, with growing concerns about environmental pollution from petrol and diesel-based vehicles, the production of electric cars is expected to pick up over the next five years, likely driving the demand for the market studied over the forecast period.
• All the above factors are expected to impact market growth in the coming years significantly.

• Asia-Pacific dominated the market, primarily due to the increasing demand for construction activities in China and India.
• In China, government spending is increasing on constructing affordable housing facilities to cater to the housing demand. In India, the infrastructure sector is one of the major focus areas for the government.
• China is investing USD 1.43 trillion in significant construction projects in the next five years till 2025. According to National Development and Reform Commission (NDRC), the Shanghai plan includes an investment of USD 38.7 billion in the next three years. In contrast, Guangzhou signed 16 new infrastructure projects with an investment of USD 8.09 billion.
• In China, demographics in the country are expected to continue to spur the growth in residential construction. Rising household income levels and the population migrating from rural to urban areas are expected to continue to drive demand for the residential construction sector in the country.
• India is still a developing economy; the construction sector is one of the booming industries in the country. The infrastructure sector is an essential pillar for the growth of the Indian economy. The government is taking various initiatives to ensure the country's time-bound creation of excellent infrastructure.
• In India, the government is pushing numerous projects in the next few years in the residential segment. The government's 'Housing for All' initiative aims to build more than 20 million affordable homes for the urban poor by 2022, which will significantly boost residential construction. The smart cities mission is another major project undertaken by the government, which will construct more than 100 smart cities all over the country to achieve rapid urbanization in the country. In the 2021-22 budget, the smart cities mission includes USD 778.4 million (INR 6,450 crore) against USD 410.3 million (INR 3,400 crore) in the 2020-21 revised estimates.
• In March 2021, the Indian Parliament passed legislation to establish the National Bank for Financing Infrastructure and Development (NaBFID), a USD 2.5 billion development finance institution to fund infrastructure projects in India.
• Thus, all such construction activities and suitable government measures are expected to boost the construction activities in the region, which is further projected to grow the demand for paint and coating, thereby increasing the demand for pigments.

The pigment market is consolidated with the top five players accounting for significant market share. The major companies include DIC Corporation, The Chemours Company, Venator Materials PLC, KRONOS Worldwide Inc., and Clariant.

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