Architectural Coatings Market has experienced significant transformation in recent years and is expected to witness an upward growth trend over the forecast period 2021-2027. Current developments in the industry are being influenced by the demand for eco-friendly paints and coatings in the construction sector.
Architectural coatings play an essential role in providing air barriers which are important for energy efficient building enclosures. These barriers restrict air flow through the building, enhancing the efficiency of HVAC systems inside and protecting the structure. Air barriers formed by architectural coatings help meet the energy efficiency performance requirements found in all modern green building standards.
Different types of architectural coatings are used on building exteriors not only to improve its aesthetic appeal, but also to protect it from freezing winters, blistering summers, soaking rain, and everyday UV radiation, without cracking, peeling, or fading away. The different types of resins used in the coatings include alkyd, acrylic, vinyl, polyurethane and others.
With regard to technology, waterborne architectural coatings segment is expanding due to key benefits over other coating materials. Waterborne paints and coatings offer a safe and low odor product for infrastructure applications. These coatings are also easier to apply, since water is used as the solvent medium for dispersing the resins. Apart from water-based coatings, the solvent based coating segment is also gaining traction.
In terms of the regional performance, Asia Pacific is expected to be a major revenue terrain for the architectural coatings industry due to rapid urbanization and the subsequent rise in residential and commercial construction. China and India are expected to lead the regional market trends in the coming years, on account of growing government efforts to provide affordable housing solutions to people.
The rise in household income levels and increasing attraction towards aesthetic solutions will fuel architectural coatings demand for interior designing in both residential and commercial sectors. The green construction trend is garnering momentum in Asia Pacific and worldwide. Consequently, the adoption of biobased formulations and specialized functional coatings is increasing. The need for sustainable and environmentally friendly solutions will certainly bolster overall architectural coatings market forecast up to 2027.
Akzo Nobel NV, The Sherwin-Williams Company, PPG Industries, Valspar, RPM International, Kansai Paint, and Nippon Paint are some of the prominent names in the architectural coatings industry. In anticipation of a substantial infrastructure boom in the next several years, these companies are adopting numerous growth and expansion strategies to consolidate their position in the global market. These include mergers, acquisitions, partnerships and product innovations to offer coating formulations.
For example, in May 2021, PPG Industries had introduced the PPG CORAFLON Platinum line of fluoroethylene vinyl ether (FEVE) fluoropolymer powder coatings designed for architectural applications. Many of the leading architectural coatings manufacturers are investing in expansion of the production units or setting up new facilities to boost their capacity and keep up with the increasing market demand.
In March 2019, for instance, PPG had set up a new 450,000 square foot facility in Flower Mound, Texas, making it the largest distribution hub for architectural paints and coatings in PPG’s U.S. and Canadian network. The expansion was part of the company’s commitment to make strategic investments in its architectural coatings business.
COVID-19 crisis and its impact on architectural coatings market forecast
The COVID-19 pandemic has had a negative impact on the global architectural coatings industry trends throughout 2020, with all major infrastructure projects put on hold temporarily, resulting in a reduced demand for construction materials. The pandemic also caused major disruption in logistics and supply chains, causing raw material shortages in many regions.
Besides new construction, renovation and refurbishment activities also witnessed significant decline due to lockdown measures introduced by respective governments. However, as restrictions are lifted, developments in the construction business are expected to gather pace, creating a lucrative growth outlook for the architectural coatings market in 2021 and beyond.