The Asia-Pacific paints and coatings market is estimated to witness a significant growth, at an estimated CAGR of over 5%, over the forecast period. Paints and coatings manufacturers are continuously developing innovating and sustainable solutions by advancing their formulations to cater to the growing market demand.
- Increasing construction activities from emerging countries and growing demand from the automotive sector are expected to drive the demand for the market during the forecast period.
- The rising environmental concerns and regulations in China relating to the growing VOC emissions in the country are likely to hinder the market’s growth.
- The accelerated demand for bio-based and eco-friendly coatings and growing interest in the usage of nanotechnology in paints and coatings industry are projected to act as opportunities for the market in the future.
Key Market Trends
Increasing Demand from the Architectural Industry
- Paints and coatings are extensively used in the architectural sector for both exterior and interior applications. Paints and coatings are applied on the exterior of the house, not only to give them a new look, but also to protect it from blistering summers, freezing winters, soaking rain, and the daily exposure of UV radiation (without fading, peeling away, and cracking the exteriors).
- Paints and coatings are also used in the interiors of houses to add color or for decorative purposes, along with a wide range of other functions. The functions vary depending upon the type of environment and room that they are used on. For example, paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate, and hence are used in bathroom walls. Most ceilings are painted flat white so that they could reflect the majority of the ambient light in the room to give the resident a spacious and relaxed.
- In Asia-Pacific, China is expected to witness the highest growth in the construction activities, followed by India. In China, government spending on constructing affordable housing facilities has been increasing so as to cater to the housing demand. In addition, the public-private partnership (PPP) projects have also been increasing in the domestic construction sector.
- In India, the real estate sector is expected to grow to over USD 1 trillion by 2030, while contributing to around 13% of the country’s GDP by 2025. Hence, all such construction activities and favorable government measures are likely to boost the construction activities in the region. This is expected to boost the demand for architectural paints and coatings.
- Japan is keen to invest in overseas infrastructure projects of countries, like India, rather than in its own country, as the country is more interested in reaping the profits of using its technology. Internally, Japan’s architectural and infrastructural industry has matured, thus making it a less prospective country for paints and coatings
- All the aforementioned factors are expected to drive the Asia-Pacific paints and coatings market in the architectural industry during the forecast period.
China to Dominate the Regional Market
- In the Asia-Pacific region, China is the largest economy, in terms of GDP. China is one of the fastest emerging economies and has become one of the biggest production houses in the world, today. The country’s manufacturing sector is one of the major contributors to the country’s economy.
- Despite the volatile growth in the real estate sector, the significant development of rail and road infrastructure by the Chinese government, to withstand the expanding industrial and service sectors, resulted in a significant growth of the Chinese construction industry, in the recent years. As the construction industry is dominated by state-owned enterprises, the increased government spending is boosting the industry in the country.
- China is one of the world’s largest automotive and auto component manufacturing bases. The government of China views its automotive industry, including the auto parts sector, as one of the country’s pillar industries that is running the nation.
- With the growth in industrial and FMCG products, the packaging demand has been increasing in the country, further driving the demand for paints and coatings from the packaging industry.
- Thus, owing to the growth in the various end-user industries in the country, the consumption of paints and coatings is expected to drive the demand during the forecast period.
The Asia-Pacific paints and coatings market is partially fragmented. With the presence of both regional and global players. Key players in the Asia-Pacific paints and coatings market include Akzo Nobel N.V., Asian Paints, Jotun, Kansai Paint Co., Ltd., Nippon Paint Holdings Co., Ltd., and RPM International Inc., among others.
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