The world has become a more sophisticated place with rapid urbanization. The demand for comfort was never higher than it is now, forcing the construction industry to keep pace with the paradigm shift in consumer preference. This is a key factor driving the global paints and coatings market.
What is Paints and Coatings?
Paint is described as a material exhibiting a liquefiable, liquid, or mastic composition, which transforms into a solid film when applied in a thin layer on any object. Paints are most commonly used to color, protect, and give texture to an object. Coatings, on the other hand, are applied to an object to cover it either partially or completely to make it look more attractive. It has become a common trend among industries to use thin film coatings such as fabric, foil, paper, or sheet stock to cover the object and make it look good.
What Attracts Leading Players in the Paints and Coatings Market to Asia Pacific?
Rapid industrialization and economic development in Asia Pacific has given a tremendous boost to the construction industry in the region. Spurt in population in developing economies, coupled with increase in disposable income, has triggered the demand for comfortable living in the region. Hence, the demand for construction materials, including paints and coatings, has invariably increased. Moreover, as a consequence of rising per capita income, the demand for consumer goods and automotive has escalated considerably, which in turn has fuelled industrialization. The use of metals have also increased considerably since the last decade. Such factors directly correspond to the market expansion for paints and coatings, which are applied to protect equipment, machines, and automotive with metal bodies from corrosion and enhance the appearance of products.
Increasing population in Asia Pacific has triggered the demand for housing, automobiles, and consumer goods. Hence, the demand for paints and coatings in the region has inevitably increased. Asia Pacific led the global paints and coatings market in 2013. Earlier, in 2010, China surpassed the U.S. as the largest passenger car market. Housing and construction activities in China as well received an incredible thrust from the population growth. These factors together helped the paints and coatings market thrive in Asia Pacific.
Widespread industrialization and economic boost in India expanded the country’s real estate market significantly. India is one of the fastest growing economies in Asia Pacific. This along with the entry of global multinationals and increasing per capita income of individuals in the country propelled the paints and coatings market in Asia Pacific.
The paints and coatings industry in Asia Pacific is yet to capitalize on the untapped opportunities in the market despite demonstrating an impressive rate of expansion. However, the latest socio-economic developments in major economies, such as the change in the government of India in 2014, are expected to help commerce in the subcontinent. This is expected to give an incredible impetus to the paints and coatings market in Asia Pacific.
Prevailing Competition in Paints and Coatings Market
The global paints and coatings market demonstrates moderate level of competition. However, the market at present is witnessing a large number of mergers and acquisitions, which is leading it towards consolidation. Some of the leading companies in the global paints and coatings market are The Sherwin-Williams Company, PPG Industries, AkzoNobel N.V., Kansai Paint Company, Valspar Corporation, and RPM International.