Thursday, 6 February 2020
The increased activities in residential construction and renovation sectors are driving the architectural coatings market.
Architectural coatings market: Asia-Pacific is the fastest growing region. Image source: picnote - stock.adobe.com
By Vikash Kumar and Annirban Bhattacharya, Markets and Markets Research.
The market for architectural coatings is projected to grow from EUR 58.4 billion in 2018 to EUR 74 billion by 2023, at a CAGR of 4.9 %, during the forecast period.
The growth in the construction industry, presence of eco-friendly properties, and the rising need for improving performance, durability, and aesthetics of products are the key factors contributing to the growth of the market. The growing investment in the emerging economies is expected to create growth opportunities for the market globally. However, stringent regulatory policies and time-consuming approval processes act as a challenge for architectural coatings manufacturers.
Acrylic resin largest binder category
Acrylic resins are a group of related thermoplastic or thermosetting plastic substances derived from acrylic acid, methacrylic acid, and other related compounds. Thermosetting acrylic resins are typically copolymers of acrylic or methacrylate esters and a hydroxyl-functionalised acrylic ester. The hydroxyl-functionalised monomer provides a site for crosslinking. In thermoplastic resins, the polymers composing the resin do not contain any reactive group as polymer chains are not cross-linked.
The acrylic segment captured the largest share in 2018 due to its usage in major architectural coatings. The weathering and oxidation resistance of acrylics is better than oil-based paints, alkyds, or epoxies as the chief components of acrylic polymers offer a polymer structure that has little tendency to absorb UV light. Acrylics possess good colour and gloss retention. They are durable and protect the underlying substrate from degradation caused by exposure to rain, snow, wind, and UV light.
Asia-Pacific driven by increased construction and renovation
Asia-Pacific (APAC) is projected to be the fastest-growing market in terms of both volume and value during the forecast period. The architectural coatings market in APAC is estimated to account for the largest share, in terms of both volume and value, in 2018. The APAC market is driven by the growing population and economic growth. Both the residential and non-residential sectors in China and India are expected to develop during the forecast period, which, in turn, is likely to drive the demand for architectural coatings in this region.
China has been the driving force behind the rapid expansion of the architectural coatings market, not only in the APAC region, but also across the globe. The demand for architectural coatings has increased in APAC countries such as South Korea, Singapore, India, Indonesia, as the residential construction activities in these countries have risen. Increasing income levels and nuclear families, affordable interest rates, and modern attitudes toward home ownership in several countries are responsible for a rapid increase in residential construction activities across the region. These factors are positively influencing the architectural coatings market.
Air quality and water-borne technology driving the market
The environment-friendly characteristic has been one of the most important trends observed in the coatings industry since the last 10 years, largely influenced by stringent EU regulations regarding factors, such as the reduction of volatile organic compounds (VOC) emission in the coating life cycle. This has shifted the demand from solvent-borne coatings to environment-friendly products, such as waterborne and powder coatings.
New regulations, including the Eco-product Certification Scheme (ECS) are managed and delivered by Green Council (GC) and set by the European Commission and Federal government agencies. These regulations enable to ensure a green and sustainable environment with minimum or zero harmful VOC emissions. The regulations on lead control in household and decorative paints were implemented in 2016, following the strong recommendation made by the Quality Council of India (QCI), Pollution Control Board Authorities, and the National Referral Centre for Lead Projects in India (NRCLPI) to the Gazette of India (GOI) for fixing lead content below 90 ppm for all decorative and household paints. These regulations encourage architectural coatings manufacturers to invest in bio-based raw materials and waterborne technologies for paints and coatings. In addition, the government regulations in the US and Western Europe, especially concerning air pollution, will continue to drive the adoption of new, low-polluting coating technologies.
In the past few years, architectural coatings have gained popularity as a VOC-free and lead-free technology benefiting from stringent environmental regulations. Moreover, in the mature economies, such as Western Europe and, the need for manufacturing eco-friendly architectural paints is increasing from industrial, residential, as well as non-residential construction sectors because of the rise in awareness about the benefits of these paints. The decorative paint companies are playing an important role in making the environment greener by launching premium products. Such initiatives will help architectural coating companies achieve sustainable growth in the near future. Thus, the awareness about eco-friendly paints and regulations is leading to the development of new materials, new formulations, and the advancement of equipment and application processes, thereby driving the demand for architectural coatings.