Architectural Coatings Market

Architectural Coatings Market Insights

“The global architectural coatings market is estimated to grow at a decent CAGR of 2.6% during the forecast period to reach a value of US$ 95.0 billion by 2028.”

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Introduction

Architectural coatings are coating solutions that are applied to homes and structures. They are also known as decorative coatings. Architectural coatings refer to a broad range of coatings, including varnishes, paints, primers, sealants, inks, ceramics, and many more. Architectural coatings need to be resistant to a variety of substances because they are used on interior and exterior walls, floors, and ceilings of structures. These substances include moisture, heat, chemicals, changing weather, and others.

Architectural Coatings Market Dynamics

Architectural Coatings Market Drivers

Expanding Construction Industry

The global construction industry is growing with the rising population in emerging countries and their commercial and industrial growth. According to Oxford Economics, worldwide spending for infrastructure will exceed $9 trillion by 2025, consequently leading to the growth of the architectural coatings market. Governments worldwide are also framing fiscal policies, such as tax incentives, subsidies, and infrastructure spending to encourage construction activity. For instance, investments in public infrastructure like educational institutions, healthcare centres, and government offices create a huge demand for construction services which will ultimately drive the architectural coatings market globally.

Robust urbanization

Urbanization is growing rapidly as people migrate towards urban areas for better living standards and a better quality life. According to a report, 55% of the world’s total population resides in urban areas, which is expected to increase to 68% by 2050. The rapid urbanization is also increasing infrastructural developments like residential and non-residential developments including apartments, malls, roads, parks, and well-being centres, propelling the demand for architectural coatings at a huge scale.

Market Challenges

Environmental degradation and safety concerns

Certain chemicals like bisphenol A, N-methyl pyrrolidine solvent, and isothiazolinone, used in coatings especially paints are restricted because of their harmful effects on the environment. Volatile organic compounds used in architectural coatings can cause health issues like headaches, nausea, and breathing difficulties to many people. The growing popularity and regulations regarding eco-friendly and sustainable formulations are creating pressure on manufacturers, which becomes an obstruction for small and medium-sized companies as developing these formulations for global consumers.

High raw material cost

Titanium dioxide (TiO2) is a very important chemical raw material for architectural coatings. The surge in price of TiO2 is because of unexpectedly high demand in developing regions like Asia as well as uncertainty in North America and Western Europe. Moving forward to oil, there is a spike in the price of oil which is another raw material which directly affects the solvent-based coatings, due to geopolitical tensions in the Middle East causing supply chain disruptions. Price volatility of raw materials leads to increased production costs, resulting in higher prices for consumers, potentially reducing demand for architectural coatings.

Market Opportunities

Growing demand for sustainable coatings

The term ‘eco-friendly’ encompasses health, climate resilience, and circular economy principles in architectural coatings. Manufacturers already offer low/zero-VOC coatings with strong market penetration. Future innovations can prioritize resource conservation, waste reduction, and efficiency through powder coatings (near-zero VOCs), waterborne formulations (low toxicity), and UV-cured systems (energy-efficient). Utilizing plant-derived materials over synthetic chemicals can exceed regulations and meet consumer demand, creating significant market opportunities for the architectural coatings market.

Technological advancements

Incorporating technological advancements in architectural coatings will boost the productivity of the coating. For instance, demand for energy-efficient and thermal coatings in the market is promoting the usage of advanced technology to maintain the balance between the cost and functionality of the product. Innovations like thermal insulation coatings, self-cleaning coatings, anti-bacterial coatings, etc, are entering the market with increased popularity among people. Keeping up with these trends can help the widespread use of the architectural coatings market.

Booming architectural aesthetics

The growing focus on architectural aesthetics is escalating the demand for architectural coatings. Consumers are looking for personalised and customised products including colour, texture, and finishes. This trend is majorly strong in the residential and hospitality sectors where people readily invest in aesthetics and beautification. Manufacturers can tailor their coating offerings to meet global market trends. This can help in creating a separate consumer base for the company that will stand out in a fragmented market.

Segments' Analysis

Resin Insights

“Acrylics segment dominates the market.”

The market is bifurcated into Acrylics, Polyurethanes, Epoxy, Polyester, and Others. Acrylics remain the biggest demand generator for architectural coatings in the foreseeable future. The key factor driving the acrylic segment dominance is the greater need for safe, high-performance coatings, which has increased the demand for acrylic coatings overall. Furthermore, a paradigm shift from solvent-borne to water-borne assures a gargantuan demand for architectural coatings in the years to come.

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Technology Insights

“Water-borne segment dominates the market.”

The market is segmented as water-borne, solvent-borne, and powder. Water-Borne remains at the nucleus for all the leading market stakeholders serving the architectural coatings market as the demand for water-borne coatings has increased due to its low VOC emission and environmentally safe nature. It is also anticipated that water-borne will remain the most preferred technology type in the market in the foreseeable future.

End-User Insights

“Residential segment dominates the market.”

The market is segmented as Residential and Commercial. Residential remains the largest segment of the architectural coatings market. Recent technical developments like nanostructured coatings offer new applications by delivering antibacterial, self-cleaning, and anti-corrosive qualities that present significant market potential opportunities in the future. It is also anticipated that residential will remain the most preferred end user in the market in the foreseen future.

Regional Insights

“Asia-Pacific is the largest market.”

Asia-Pacific is the largest market for architectural coatings over the forecast period. In addition to that, the region is likely to witness healthy market growth in the coming years. The growing population and developing economy are the main drivers of the APAC Architectural Coatings industry. During the projection period, China and India's residential and commercial sectors are both anticipated to grow, which would in turn fuel this region's need for architectural coatings.

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Key Players

The market is highly fragmented with the presence of several local, regional, and global players. Most of the major players compete in price, product depth, geographical presence, etc. 

The following are some of the key players in the architectural coatings market (arranged alphabetically).

• AkzoNobel N.V.

• Asian Paints

• BASF SE

• Jotun

• Kansai Paint Co., Ltd.

• Masco Corporation

• Nippon Paint Holdings Co. Ltd.

• PPG Industries, Inc.

• The Sherwin-Williams Company

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s architectural coatings market realities and future market possibilities for the forecast period of 2023 to 2028. The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants and investors in identifying the low-hanging fruits available in the market and formulating the growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players).

• SWOT analysis of key players (up to three players).

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected].