Architectural Coatings Market Size 2024-2028

What will be the Market Size During the Forecast Period?

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Market Dynamics

The market encompasses Decorative coatings, Varnishes, Paints, Primers, Sealers, Inks, and Ceramics. The market is significantly influenced by the Construction boom and Consumer preferences. VOC emissions are a concern, leading to the popularity of Water borne coatings over Solvent borne coatings. The market is segmented by Resin type including Acrylic, Alkyd, Epoxy, Polyurethane, Polyester, Urethane, PTFE, and PVDF. The Technology used in architectural coatings includes Water borne and Solvent borne. The Residential sector and commercial buildings sector is a major consumer of architectural coatings. The market is currently experiencing a surge in demand due to the ongoing construction sector growth. Green coatings are gaining importance due to their eco-friendly nature. Supply chain disruptions can impact the market's growth. Nanocoating is an emerging trend in the architectural coatings industry.

Key Marke Driver

Growth in the global construction industry is notably driving market growth. The construction sector's expansion is a key market driver, fueling the demand for architectural coatings across the globe. This growth can be attributed to a multitude of factors, including rising levels of urbanization, population growth, and increasing investments in infrastructure development. One of the main reasons for the growth of the market in focus is the increase in construction activity. As countries globally become more urbanized, there is a greater demand for residential, commercial, and industrial spaces and facilities. The increase in the number of construction projects in all these sectors has resulted in a significant increase in the use of architectural coatings as they are used for protection, decoration, and maintenance purposes in buildings.

Many emerging economies, including China and India, are witnessing strong growth in construction activities. For example, rising urbanization in India and the country's smart city initiatives have led to an increase in the number of construction projects, which, in turn, increases the need for architectural coatings. Research and development by major companies operating in the market, such as The Sherwin-Williams Co., PPG Industries Inc., and Akzo Nobel NV, has led to the development of new architectural coatings with improved performance and sustainable characteristics for use in the construction industry. These factors will fuel the growth of the market during the forecast period.

Significant  Market Trends  

The shift toward water-based coatings is an emerging trend shaping market growth. In recent years, one of the most significant trends within the market has been the notable shift toward water-based coatings. This transition is driven by several factors, ranging from environmental concerns and regulatory pressures to the growing awareness of sustainable practices among consumers and industries. Moreover, major players in the market are investing in research and development to improve the performance of their water-based architectural coatings to match or exceed solvent-based products in terms of durability and adhesion, as well as color retention.

In addition, Akzo Nobel NV, The Sherwin Williams Co., and Kansai Paint Co. Ltd. are some industry leaders who have led the way in the shift to water-based. These companies have strategically diversified their portfolios to offer a broad selection of water-based paint products that meet the diverse needs of their customers while simultaneously meeting their global sustainability goals. For example, Akzo Nobel's Dulux Easycare water-based paint offers stain-resistant properties and is one of the innovations that have resulted from this trend. These factors will drive the growth of the market during the forecast period. 

Major Market Challenge

Volatility in prices of raw materials used in architectural coatings is a significant challenge hindering market growth. Fluctuations in global oil prices, geopolitical events like the ongoing Russia-Ukraine conflict, and supply chain issues can lead to unpredictability in the global oil and gas industry and affect the cost of key raw materials used in architectural coatings. Titanium Dioxide (TiO2) is a key ingredient, comprising 20%-30% of raw material costs used in architectural coatings, which experiences frequent price fluctuations due to the limited number of suppliers and the absence of substitutes.

As a result, the volatility in the supply and prices of major raw materials is a major concern for market vendors because it makes it difficult to control pricing and margins. Furthermore, it may be difficult for companies to pass on the higher costs they incur to consumers, potentially resulting in margin-related pressures. Thus, the above-mentioned factors will hinder the growth of the market during the forecast period.

Market Segmentation  

Technology Analysis 

The market share growth by the water borne segment will be significant during the forecast years. Water-borne architectural coatings eliminate the harmful chemical solvents present in traditional coatings by using water as a solvent. Not only does this reduce the emissions of volatile organic chemicals (VOCs), but it also solves health and safety issues for consumers and applicators alike.

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The water borne segment was the largest and was valued at USD 36.00 billion in 2018. The market has grown significantly in recent years due to increased awareness of environmental pollution and stringent regulations governing the emissions of toxic gases like sulfur dioxide, carbon dioxide, etc., in different regions. For instance, The Sherwin Williams Co. is one of the world's leading manufacturers of architectural coatings. PPG Industries Inc. is another major player in the water-borne segment of the market. PPG Industries Inc.'s products, such as the PPG paints Pure Performance range, integrate cutting-edge technology that delivers high-performance coatings with a minimal environmental impact. PPG's paints are well-known for their low VOC content, which allows them to meet stringent environmental regulations while still meeting the performance requirements of architectural and construction projects. All these factors in the segment will drive the growth of the market during the forecast period.

Type Analysis 

Based on the type, the market has been segmented into interior and exteriors. The interior?segment will account for the largest share of this segment.?The interior market segment comprises a variety of coatings that are specially formulated for interior applications, such as paint, primer, varnish, and specialty coatings. Each one of these coating types is designed to fulfill specific performance needs. In this market segment, architectural paints are often categorized according to their composition, for example, water-based (latex) or oil-based, to cater to different consumer preferences and needs. The demand for interior architectural coatings is driven by a variety of factors, including new construction and renovation activities, architectural trends, and consumer demand. In the commercial sector, interior architectural is often a reflection of a company's brand image and corporate style. High-performance interior architectural that is durable, easy to maintain, and wear and tear-resistant are popular in commercial settings like offices, retail stores, and restaurants. These factors in the interior segment will fuel the growth of the market during the forecast period.

Region Analysis

APAC is estimated to contribute 38% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.

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Further, the APAC region has emerged as a pivotal geographical region within the market, reflecting the region's robust economic growth, rapid urbanization, and increasing construction activities. These are the encompassing paints and coatings that are used for residential, commercial, and institutional buildings, play a crucial role in enhancing aesthetics, protecting surfaces, and ensuring the longevity of building structures. When it comes to types, the market in APAC is quite broad, with a variety of products available for a range of uses and to cater to the different preferences of end-users. One of the market segments that has gained considerable traction in APAC is water-based architectural coatings. In addition, this segment still holds a significant market share in APAC. These coatings provide high-performance characteristics and are often preferred due to their durability, which makes them suitable for the harsh weather conditions that are common in some parts of APAC.

Additionally, with the growth of the construction industry, especially in Southeast Asian countries such as Vietnam and Indonesia, the use of solvent-based architectural coatings is becoming increasingly common in residential and commercial projects. Nippon Paint India Pvt. Ltd., Kansai Paint Co. Ltd. and Berger Paints India Ltd are some of the major players in the market in APAC. These companies are investing in new and innovative product development, entering into strategic alliances, and expanding their distribution channels to meet the growing demand for the market in APAC. These factors will drive the growth of the regional market during the forecast period.

Key Companies

Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

Akzo Nobel NV - The company offers architectural coatings under its brands Dulux, International, Sikkens and Interpon.

The report also includes detailed analyses of the competitive landscape of the market and 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, Dow Chemical Co., Dunn Edwards Corp., Hempel AS, Jotun AS, Kansai Paint Co. Ltd., Munzing Chemie GmbH, Nippon Paint India Pvt. Ltd., PPG Industries Inc., RPM International Inc., Sika AG, Sto SE and Co. KGaA, The Chemours Co., and The Sherwin Williams Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research and growth report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Technology Outlook 
  • Water borne
  • Solvent borne
  • Powder coatings

• Type Outlook
  • Interior
  • Exterior

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview 

The market is pivotal for the construction sector, where specialized coatings play a crucial role in preserving architectural infrastructure. These things provide essential function such as corrosion resistance and protection against harmful UV rays, ensuring the longevity and durability of structures. With a focus on sustainability, coatings like Vinyl Acetate contribute to low VOC formulations, addressing concerns related to global warming. The market's significance is further emphasized in the Asia-Pacific region, where rapid urbanization fuels demand, especially in the residential sector. Market studies, including data from entities like the United States Census Board and the United States Department of Housing and Urban Development, provide insights into industry trends and growth. The market stands at the intersection of technological advancements, environmental considerations, and the evolving needs of the construction and architecture infrastructure sectors. 

In addition, the market is experiencing growth driven by various factors. The demand for non-residential applications is increasing, as businesses seek high-performance coatings for commercial spaces. Key players like Nippon Paints, The Valspar Corporation, and Sumter Coatings are leading innovation in the sector. Lacquers and stains are popular choices for their aesthetic and protective qualities. However, the market faces challenges such as air pollution and regulatory changes, which impact formulation and compliance. These factors collectively shape the landscape of the market, influencing product development and market strategies as companies adapt to evolving environmental standards and consumer needs.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth  between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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