Growth in this market is driven mainly by increasing demand for high-performance products in emerging and transitional economies; the market is forecast to grow 4.6% annually during the period 2016-21.
Smithers Apex’s new report The Future of High-Performance Paints and Coatings to 2021 states there are a variety of factors that affect regional and global demand for paints and coatings, with some differences in the drivers in the decorative coatings and industrial coatings segments. For example:
Decorative paint and coatings demand is affected by:
- Housing activity, new build and renovation
- Government and private investment in commercial and infrastructure construction projects
- Consumer confidence and spending power.
A growing young middle class coupled with increased consumer spending in China continues to drive the demand for high-performance coatings in the automotive, appliance and other consumer goods sectors.
Architectural or decorative coatings make up the largest single market segment for paints and coatings, comprising 53% of the overall market by value and 58% by volume. Industrial coatings are used in a wide range of industry sub-segments, each with its own requirements in terms of the coating system and performance requirements. Protective and marine are the largest industrial segments, together accounting for 27% of total industrial coatings demand.
Housing and construction activity in North America and Europe is forecast to increase slowly over the next five years. In China, while construction has slowed considerably over the last two or three years, it is still expected to grow at a faster rate than in Europe or North America up to 2021. Construction levels in countries such as India, those in South East Asia and in South America are growing to meet the rapid rates of urbanisation due to population movement from rural areas to cities, attracted by higher wages. Industrial coatings demand is dependent on:
- Economic trends
- Business confidence and industrial output
- Consumer confidence.
The Future of High-Performance Paints and Coatings to 2021 presents volume and value forecasts by end-use sector and geographic region. Following several stages of primary and secondary research, it examines key drivers and trends, which include economic, social and demographic, trends within decorative and the different industrial coatings segments and key new technologies for future innovative high-performance coatings.
Primary research included interviews with paint and coatings suppliers, and end users. Secondary research sources include international and national statistics bodies, annual reports and other company information, conference papers, specialist journals and other sources.
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