Growing Homeownership Rate Driving Consumption of Paints and Coatings

People not only care for their own appearance but also that of the things they own, such as houses and automobiles. Thus, with the booming population pushing up the requirement for houses, vehicles, and a host of other practical and materialistic things, the paints and coatings market has a bright future ahead. As per P&S Intelligence, the sale of such materials valued $156,086.2 million in 2019, and this revenue is set to witness a 4.2% CAGR during 2020–2030, to reach $227,834.0 million by 2030.

To accommodate the growing population, especially in Sweden, China, the U.S., India, Australia, Canada, and the U.K., residential, civil, commercial, and industrial infrastructure development projects are increasing in number. For instance, the Indian government allocated $24.27 billion (INR 1,69,637 crore) in the 2020–21 Union Budget for transport infrastructure development, which would boost the demand for paints and coatings. Similarly, smart cities are under construction around the world for conserving resources and making the world more sustainable, which is again creating a huge requirement for paints and coatings.

The other major sector that consumes these materials in vast volumes is automotive. The look of the car is one of the most-vital aspects that encourage someone to buy it; therefore, automakers continue to go overboard with their paint job. Any vehicle requires at least four layers of coating: primer, basecoat, electrocoat, and clearcoat, for aesthetic value and protection from the elements. Thus, with auto sales and production booming in emerging economies, the demand for paints and coatings is rising.

Thus, owing to the burgeoning automobile sales and homeownership rate, Asia-Pacific (APAC) generates the highest revenue in the paints and coatings market. China, Japan, India, and South Korea account for the highest sales and production figures of automobiles globally due to their booming population and rising urbanization rate. Moreover, regional governments are implementing several policies to make housing affordable, which is another reason behind the rising consumption of such materials.

Hence, with the booming homeownership rate and automobile sales, the demand for paints and coatings, especially the technologically advanced ones, will keep shooting up.

Booming Construction Activities Driving Paints and Coatings Demand in Asia-Pacific

 With the mushrooming usage of paints and coatings in automobiles for aesthetic and protection purposes, their demand is skyrocketing in the Asia-Pacific (APAC) region. Moreover, paints and coatings are also being extensively used by automakers for improving the durability and efficiency of vehicles. In addition to this, paints and coatings also improve the resistance of automobiles to various environmental conditions. According to the China Association of Automobile Manufacturers (CAAM), China registered 28.88 million new vehicle sales in 2017. 

Thus, the booming automobile industry, especially in China and India, is driving the demand for paints and coatings in APAC. Apart from this, the rising industrialization rate and the increasing construction activities are also fueling the demand for paints and coatings in APAC. This is subsequently propelling the growth of the Asia-Pacific paints and coatings market. As a result, the market value is expected to surge from $92.5 billion in 2017 to $148.4 billion by 2023.

Furthermore, the market will record a CAGR of 8.3% between 2018 and 2023, as per the forecast of P&S Intelligence, a market research company based in India. The paints and coatings sold in this region are classified into polyester, acrylic, epoxy, nylon, polycarbonates, lacquer, and polyurethane, depending on the resin type. Out of these, the demand for the polyurethane-based paints and coatings is predicted to rise at the fastest pace in the coming years.

For example, the Airport Authority of India aims to build city-side infrastructure at as many as 13 regional airports across the country. Marine, industrial, and architectural and decorative are the major applications of paints and coatings in APAC. Out of these, the usage of these products is expected to be the highest in industrial applications in the forthcoming years, primarily because of the burgeoning requirement for paints and coatings solutions in industries such as automotive, machinery manufacturing, and consumer goods. 

Hence, it is safe to say that the demand for paints and coatings will shoot up in APAC in the upcoming years, primarily because of their growing usage in the automobile industry and the increasing construction activities in the region.

Source: www.psmarketresearch.com