Globally, there is an increased demand for eco-friendly and nonhazardous paints and coatings. Rapid urbanization has made the world a more sophisticated place, where the demand for comfort is more than ever. These economic developments have significantly contributed to the growth and expansion of the paints and coatings market. Increasing global population, in conjunction with the growing number of nuclear families, has boosted demand for new homes, which in turns fuels the paints and coatings market. High demand for paints and coatings from the dynamically developing automobile industry also aids the global paints and coatings market.
According to a recent report published by Persistence Market Research, the global market for paints and coatings, which was worth US$121.9 billion in 2013, is likely to develop at a positive 5.5% CAGR between 2014 and 2020, to reach an estimated value of US$176.5 billion by the end of 2020.
Paints and Coatings – Definition
Paints can be described as any liquid or material of mastic composition, which when applied in a thin layer on any object converts to a solid film upon exposure to air. Paints are most commonly used to color, protect and provide a smooth texture to an object. Coatings, on the other hand, are applied to an object for the purpose of decorating it. It is not necessary to completely coat the object in the case of coatings, although paints are usually applied all over.
Growth of Paints and Coatings Market Dependent on Expansion of Construction Industry
Emerging economies, especially those in Asia Pacific and Latin America, are exhibiting high rates of population growth at present, which eventually spurs the demand for construction materials and in turn for paints and coatings. As a direct outcome of the economic development in these countries, the per capita income of individuals has increased considerably as well, fuelling the demand for automotives and consumer goods, hence boosting these industries. All these factors collectively make emerging economies lucrative markets for the paints and coatings industry to venture into.
Uses of Paints and Coatings
Some of the most significant uses of paints and coatings across varied end-use industries are:
In consumer goods, paints and coatings help keep corrosion at bay. It betters the appearance of the products as well as their longevity.
Decorative and architectural paints and coatings are generally applied on the exterior and interior walls of residential or corporate buildings.
Industrial paints and coatings are used in automotive and machine manufacturing industries to protect and decorate the end-product.
Growth Opportunities Identified for Global Paints and Coatings Market
When the Bureau of Economic Analysis conducted a survey to measure the market size of different end-use industries in the U.S., it noted the following statistics:
The industry for durable goods, which stood at US$958.7 billion in 2010, reached US$1096.4 billion in 2013.
The construction industry in the U.S. alone grew from US$539.1 billion in 2010 to US$611.4 billion in 2013.
The fabricated metal industry was valued at US$120.6 billion in 2010 and reached US$134.1 billion in 2012.
The paints and coatings market will directly benefit from the expansion of these industries in the U.S. and elsewhere.