The market for paints and coatings has been a highly profitable one for several decades, gaining traction from its expanding application scope. Additionally, the vendors of the paints and coatings market have always been evolving their offerings, devising ideal products that meet the requirements of the end product. As per the projections of a business intelligence report by Transparency Market Research (TMR), the demand in the global paints and coatings market will increment at a notable CAGR of 5.4% during the forecast period of 2013 to 2019. In terms of revenue, the global paints and coatings market is estimated to reach a value of US$143.9 billion by the end of 2019.
The analyst of the report has detected an intensely competitive vendor landscape. A large pool of players are connected to the value chain and are staking a strong claim by formulating contracts with end use industry players. That being said, the TMR report has identified AkzoNobel N.V., Axalta Coatings System, Sherwin-Williams Company, PPG Industries, and The Valspar Corporation as a few companies who are ahead of the curve. The prominence of these players can be attributed to their strong supply chain, constant bid to innovate, and frequent indulgence into mergers and acquisition activities. For instance, AkzoNobel had gained strong ground over its competitors a couple of years ago by acquiring BASF’s industrial coats.
Going forward, technological expertise are expected to pave a new way of greater shares over the competitors. For example, production via nano technology and usage of fluro-additives have proven their worth in cutting manufacturing costs and enhancing products. Additionally, the vendors are expected to indulge into rigorous research and development activities to develop a product portfolio that is richer than their counter-parts. Formulating ecofriendly products is a recent trend, particularly since increased emphasis of several governments to preserve the environment.
Product-wise, the TMR report has segmented the paints and coatings market into solvent-borne technologies, waterborne coating, powder coating, high solids and radiation cure, and others such as specialty coatings. Among these, a strikingly soaring demand for waterborne coatings has been witnessed, generating more than one third of the total demand as of 2017. The report also bifurcates and highlights the potential of demand that is coming from the end-use industries of commercial, residential, medical and healthcare, automotive and aviation, and others. Geographically, APAC has been identified as the region with maximum growth opportunities.
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The proven ability of paints and coatings to increase the durability, presentation, and performance of end-products is the primary driver of the market for the same. Additionally, growing popularity of elastomeric coating in tilt-up concrete in building construction is expected to reflect positively over the market in the near future. On the other hand, difficulties pertaining to obtaining thin films in powder coatings and transportation, requirement of greater drying time, and stringent regulations for environmental challenges are obstructing the market from attaining greater profitability.