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Global Demand for Paint and Coatings Forecast to Rise at 5.2% per Year

Reportbuyer.com has added a new market research report: World Paint & Coatings Market

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Global demand to rise 5.2% annually through 2017

Global demand for paint and coatings is forecast to rise 5.2 percent per year to 51.6 million metric tons in 2017, valued at $186 billion. Advances will be driven by a strong rebound in global building construction spending, particularly in North America, Europe, and Japan, fueling increased demand for architectural paint. Manufacturing and specialty coatings demand will also grow at a more rapid pace compared to recent historical trends, benefiting from an improved outlook for motor vehicle production and overall industrial output. However, gains will be limited by the increased use of higher quality coatings in both the developed and developing worlds, reducing the volume necessary to complete a given paint job. Water-based coatings and other high-solids formulations will gain share over solventborne products in virtually all world markets, as paintmakers continue to reduce emissions of volatile organic compounds (VOCs) in coatings to comply with government regulations and consumer preferences.

Asia/Pacific to remain largest, fastest growing

The Asia/Pacific region will continue to be the largest and fastest growing coatings market through 2017, rising to account for half of global demand. Gains will be led by robust growth in China, the world's largest coatings market, although demand will slow somewhat from the double-digit pace of the 2002-2012 period. Even faster growth is forecast for the large Indian market, while other countries in Asia such as Indonesia, Thailand, and Vietnam will experience strong gains as well. In North America, a marked turnaround in building construction activity will fuel healthy growth in coatings demand, while Western Europe and Japan will see similar (though slower) rebounds in coatings markets. Among the other areas of the world, best opportunities are expected in the Africa/ Mideast region, where paint demand per capita is the lowest in the world.

Architectural markets to continue majority status

Architectural markets will continue to account for the majority of paint and coatings demand in 2017. Demand for architectural paint will be fueled by an improved outlook for residential building activity in high income countries, as well as rising urbanization and housing construction spending in the developing world. Coatings demand in manufacturing applications will benefit from a pickup in world motor vehicle production, while the improvement in building construction activity will boost demand for furniture coatings. Maintenance and specialty markets will be driven by rising demand for protective coatings in industrial and oil and gas applications, while increasing rates of motor vehicle ownership will benefit demand for auto refinish paints and road and bridge coatings.

Water-based paints, powder coatings to gain market share

As paintmakers increasingly seek to reduce the VOC content of their products to comply with environmental regulations, water-based paints and powder coatings will gain market share at the expense of solvent-based coatings. However, developing countries with little or no VOC regulations will see a slower trend toward water-based coatings than elsewhere in the world. Additionally, many markets will continue to be dominated by solvent-based formulations for the foreseeable future, including marine coatings, automotive refinishes, and corrosion protection coatings.

Study coverage

This upcoming industry study, World Paint & Coatings, presents historical demand data (2002, 2007, 2012) with forecasts for 2017 and 2022 by formulation, market, world region and for 23 countries. The study also considers market environment factors, evaluates company market share and profiles global industry participants.

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