DECORATIVE COATING INDUSTRY INSIGHTS
The global decorative coatings market size was valued at USD 58 billion in 2020 and expected to reach USD 78 billion by 2026, growing at a CAGR of 5% during the forecast period. The decorative coatings market is the largest segment of the coatings industry and accounts for 42% of the global market. The APAC region is expected to contribute the highest revenue to the market due to the increased focus on environment-friendly solutions. The APAC region accounts for a 34% share of the overall market by value. The construction industry is the major driver of the decorative coatings market. They are used in the interior and exterior surfaces of residential, commercial, institutional, and industrial buildings. Growing construction in Asia will drive the demand for decorative coatings.
The introduction of anti-microbial coatings is expected to boost the global decorative paints market growth. Due to the outbreak of the COVID-19 pandemic and the growth of healthcare-associated infections (HAIs), the importance of anti-microbial decorative coating has grown significantly. Hospitals, schools, and food production facilities are experiencing the high application of anti-microbial paints as these places are susceptible to bacterial and microbial growth. However, the global market suffered a downfall during the COVID-19 crisis as major revenue-contributing end-users such as construction, commercial renovation, infrastructure development, and home improvement activities witnessed a halt, especially during Q1 Q2 2020.
- Acrylic-based decorative coatings are expected to reach a revenue share of approx. USD 49 billion by 2026 as they offer high weather resistance, retain color and gloss and have excellent durability.
- Interior decorative coatings are likely to observe an incremental growth of USD 14 billion by 2026 due to increased disposable incomes and lifestyle changes.
- Water-borne decorative coatings are projected to over USD 51 billion by 2026 because of the increasing preference for environment-friendly solutions.
- Emulsion-based solutions are expected to grow at the fastest CAGR during 2020–2026 due to the rise in sustainability and the demand for low VOC emissions.
- Residential decorative coatings are projected to reach over USD 50 billion by 2026 because of the rise in disposable income, improved living standards, and nuclear families' growth.
- APAC is expected to contribute the highest revenue to the market due to the increased focus on environment-friendly solutions and the increase in infrastructure and construction activities.
GLOBAL DECORATIVE COATINGS MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Resin Type
- Surface Type
INSIGHTS BY RESIN TYPE
In decorative coatings, acrylic-based resins are the most widely used, contributing a 58% share by value, followed by alkyd, contributing 12% of all resins by value in the market. The segment is likely to witness an incremental growth of USD approx. 14 billion during the forecast period. Acrylic is used in residential and non-residential sectors. Increasing government initiatives to construct commercial and industrial infrastructure in emerging countries will offer acrylic coatings manufacturers opportunities. Also, the demand for eco-friendly water-based acrylic coatings is expected to boost the growth during the forecast period. Europe and North America are the major end-users of these solutions due to the high preference for environment-friendly solutions. Acrylic water-borne have replaced solvent-borne coatings in North America and Western Europe and several developing economies.
Alkyd-based paints protect surfaces from weathering, aging, and erosion. They are used for high gloss, versatility, and increased durability and witness high application in the construction industry. They are the most preferred material for both interior and exterior coatings. High-quality alkyds are used in wood and metal industries, where high gloss and adhesion are required. However, alkyds' consumption has declined in North America, Europe, and Japan as they have been replaced by water-borne emulsions that have low odor, low solvent content, fast drying properties, and can be easily cleaned. The demand for alkyds has further decreased due to strict regulations in the US and the UK.
INSIGHTS BY FORMATION
The water-borne decorative coatings market is expected to reach over USD 51 billion by 2026. In the decorative coatings market, water-borne accounts for a 64% share, followed by solvent-borne, which accounts for a 22% market share by value. Stringency on VOC and emission standards regulations have contributed to the market growth. These regulations have increased the demand for water-borne coatings in the APAC region. APAC dominates the water-borne solutions due to increased direct foreign investments and the booming manufacturing sector. The growing middle-class population, rising per capita income, and increasing living standards are further expected to drive the market.
Solvent-based decorative coatings are the most widely used in Europe and North America. They are considered less environment-friendly due to high VOC content. Advances in water-borne technology are further making solvent-based products less attractive options for decorating surfaces. The demand for solvent-based has decreased over time due to government regulations imposed by the US and Europe. Solvent-based coatings are losing their market share due to VOC emission regulations.
INSIGHTS BY PRODUCT
Emulsion-based paint is dominating the decorative coatings industry, contributing 35% to the overall global decorative coatings market share. Emulsion-based paints are becoming increasingly popular among consumers as they are less toxic with no odor and release a small quantity of VOCs. These paints have witnessed enormous growth over the past few years with rapid urbanization, the revival of the economy, and increased disposable incomes. The emulsion-based paint market is the fastest-growing segment and has been on a growth trajectory in the last few years.
Enamel-based paints generally observe an application in household products as they endure a high degree of erosion and temperatures. The enamel-based segment is expected to cross USD 19 billion in 2026, growing at a CAGR of 3.5% during the forecast period. However, their use is limited as they contain high lead content. Therefore, strictness in regulations over the application of lead content is likely to influence the market for enamel-based paints negatively.
INSIGHTS BY END-USER
Industries such as construction, infrastructure, residential, and non-residential are the major end-users of decorative coatings. Residential end-users dominated the decorative coating market with 64% shares in 2020. The rise in disposable income, growing living standards, rising nuclear families, rising concern for sustainability and eco-friendliness are expected to drive the market for the next five years in the residential sector. The increased emphasis on rapid urbanization is likely to push construction across the globe. The rise in the construction of buildings and civic infrastructure will drive market growth. APAC is expected to be the largest market in the commercial decorative coating industry due to foreign investments. Another major trend that has led to the significant demand for the decorative coatings industry is DIY product usage. The use of decorative coatings in the DIY process is prevalent in developed countries such as the US, the UK, and Germany. However, the trend the rapidly expanding to developing countries.
INSIGHTS BY SURFACE TYPE
The global interior decorative coatings market is expected to reach approx. USD 52 billion by 2026, growing at a CAGR of over 5% during the forecast period. Interior decorative coating products have minimal impact on the environment and have a low odor and offer many performance properties. The interior decorative coatings market share is growing due to increasing commercial construction and the high focus on commercial and residential maintenance. An increase in disposable incomes is another important factor boosting the market. Changing lifestyles and rising standards of living have encouraged customers to use premium quality decorative products.
The growth in exterior decorative coating products is expected to increase due to the rise in residential construction and renovation activities, growth in foreign investments, and public-private partnerships in emerging economies, including India, Malaysia, Indonesia, Thailand, China. The increasing infrastructure industry and growing construction activities in emerging countries are further expected to significantly boost the global exterior decorative coatings market. The growing government spending in the APAC region on construction and infrastructure development also boosts its market. Prominent industry players shift their production facilities from North America and Europe to the APAC region due to the abundance of inexpensive raw materials and the low production cost.
INSIGHTS BY GEOGRAPHY
By value, APAC is the largest region in the decorative paints & coatings market. India and China are major contributors to the market, with China accounting for over $6 billion. Low labor costs, inexpensive raw materials, growing population, increased infrastructure investments, rising construction activities, and rapid urbanization are expected to boost the market during the forecast period. India is expected to dominate the market due to expanding the construction sector with increasing government and private spending on commercial and residential constructions. The Indian government plans to develop 100 new airports by 2035. Therefore, the rise in the construction industry is likely to drive market growth.
In terms of revenue, Europe was the second-largest market for decorative coatings globally, accounting for a 27% share in 2020. The market in Europe is expected to witness traction and high demand post-2021, as construction activities are expected to revive after the impact of COVID-19. Germany, Russia, and the UK are the major revenue contributors in the European region. Environment-friendly decorative coatings have been one of the most important trends witnessed in recent years, influenced by stringent EU regulations related to factors such as VOC emissions. Hence, solvent-borne solutions are being replaced by water-borne solutions in the European region.
INSIGHTS BY VENDORS
Akzo Nobel N.V., PPG Industries, Sherwin- Williams Company, Axalta, RPM International, and Nippon Paint are the major players in the market. Vendors are expanding their businesses via a profitable partnership or acquiring small or medium-sized active vendors, whereas domestic vendors are capitalizing with product portfolios based on the requirement. Large-scale manufacturers have shifted toward environment-friendly coatings with low or no VOC. The introduction of innovative and proprietary products that cater to customer demands requires companies to devote significant effort and resources. The research and development team needs to continuously analyze market trends to design, develop, and manufacture new product categories and new products with distinctive features and added advantages.
The decorative coatings market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- UV Cured
- New Construction
- Renovating & Remodeling Activities
- South Korea
Middle East & Africa
- Saudi Arabia
- South Africa