The global exterior architectural coating market size was USD22.54 billion in 2015. The market is projected to grow at a significant rate owing to increasing number of construction projects in emerging economies including China, Singapore, India, and Brazil. Architectural coatings protect building surfaces from harsh weather conditions, UV radiations, extreme temperature, foreign particles and storms, which is expected to augment industry expansion. Rising government spending, foreign direct investments and public-private partnerships in emerging economies including Malaysia, Indonesia, Thailand, China, and India on account of the rapid development and growing infrastructure requirement are expected to be a key factor driving the industry growth.
Development of new waterborne technology having different formulations to impart antibacterial and anti-odor properties is expected to propel industry growth. Shifting consumer preference towards waterborne architectural coating owing to its eco-friendly nature will spur product demand. Exterior architectural coatings’ manufacturers distribute their products through wholesale stores, hardware stores, and e-retailers. Easy availability and a wide variety of paints formulations are expected to increase the popularity of these commodities. Increasing R&D investments by key industry players to develop eco-friendly products that offer high-quality finishes will open new market avenues.
However, fluctuation in the prices of raw materials such as titanium dioxide, pigments and resins are expected to restrain growth over the forecast period. Acrylic was the largest resin type used and accounted for 58.9 percent of the overall revenue in 2015. The significant share was attributed owing to its excellent properties including high UV resistance, improved flow, stain resistance, superior aesthetics, durability, weather ability, performance and low cost. Increasing demand for acrylic resins in waterborne coatings on account of superior gloss retention, excellent durability along with high performance will stimulate industry growth. Emulsions were valued at USD9.04 billion in 2015 and is expected to show high growth due to its water-based formulations and low emissions.
“MEA and Latin America […] are expected to witness significant growth”
Moreover, properties including quick drying, reduced toxicity, low cost, and an easier application will drive the demand. Waterborne technology accounted for 78.4 percent of the overall volume in 2015. The presence of strict regulations for the reduction of volatile organic compounds (VOCs) content in paints will fuel the demand. Furthermore, properties including accurate mixing, easier blending, superior metallic control, higher opacity, easier application, and cleaning will drive market growth over the next eight years. Demand for the product in residential applications is expected to witness significant growth at a 5.5 percent CAGR from 2016 to 2024. Strong economic growth, rising disposable income, high living standards coupled with rapid urbanizations is expected to drive the product demand over the next eight years. Asia Pacific was the largest consumer and accounted for 34.3 percent of the global volume in 2015. Europe was another prominent market accounting for 27 percent of the global share in 2015. However, the region is expected to witness sluggish growth on account of the slow growth of the construction sector in the region. MEA and Latin America together accounted for less 20 percent of the overall market in 2015, however, these regions are expected to witness significant growth over the next few years on account of the substantial development of infrastructural facilities. Increasing construction of residential and commercial spaces to cater to the increasing demand for houses and offices is expected to play a vital role in driving the growth of industry in these regions.
Grand View Research, Inc.