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Chile Architectural Coatings Market - Forecast(2023 - 2028)
Chile Architectural Coatings Market Overview
The Chile Architectural Coatings market size
is forecasted to reach US$1.7 billion by 2027, after growing at a CAGR of
around 6.1% from 2022 to 2027. The architectural coatings are paints or coatings
that are applied on the interior as well as exterior surfaces of industrial,
residential and commercial spaces. The resins such as acrylic, alkyd,
polyurethane, epoxy, urethane and others are utilized in the architectural
coatings for application across various industries to offer protection and
resistance from weather, chemical, heat and moisture. The high demand of
Chile architectural coatings for application across major industries such as
construction, marine and other is offering a major drive in the Chile
architectural coatings market. Moreover, the inclination towards residential
and commercial spaces renovation will offer major growth opportunities and
contribute to the growing Chile architectural coatings market size during the
forecast period.
COVID-19 Impact
The Chile Architectural Coating industry faced
major disruption and slowdown during the outbreak. The architectural
coatings have major application in the residential, commercial and industrial
construction sector. The closure of construction sites and building
projects, raw material price rise, logistics restrictions and other lockdown
norms led to a major fall in the growth for Chile construction sector. The slow
down and major growth hamper in the building permits, workforce shortages and
other disruptions limited the functioning of construction in Chile. According
to the Chilean Chamber of Construction, the new construction projects fell by
around 75% between March and July in 2020, with only 86 construction projects
compared to 346 projects in 2019. The fall in growth in construction industry
in Chile led to decline in the application of Chile architectural coatings,
thereby faced slowdown and hamper in the pandemic. However, with recovery in
residential as well as commercial sector, the Chile architectural coatings
industry will grow rapidly in the coming years.
Report Coverage
The “Chile
Architectural Coatings Market Report– Forecast (2022-2027)” by
IndustryARC covers an in-depth analysis of the following segments in the Chile Architectural
Coatings industry.
Key Takeaways
- The Chile Architectural Coatings market size will increase owing to its rising application in commercial, residential and industrial construction sectors during the forecast period.
- The Chile region is moving towards high infrastructural development, renovation in building projects and others, thereby has growing application of architectural coatings during the forecast period.
- The demand of acrylic resin in Chile Architectural Coatings is high due to flourishing usage in buildings, roofing, ceiling, pavements and others.
Figure: Chile Architectural Coatings Market Revenue Share by End-Use Industry, 2021 (%)
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Chile Architectural Coatings Market Segment Analysis – by Resin
By resin, the acrylic held the largest Chile Architectural Coatings market share in 2021 and is expected to grow with a CAGR of around 7.5% during the forecast period. The acrylic based architectural coatings offer superior features such as good adhesion, ultimate barrier, moisture resistance, corrosion resistance and fast drying, thereby has flourishing application in the residential and commercial construction sector. The high demand of acrylic resin based architectural coatings for roofing, floor, building walls, facades and others is offering major growth in the Chile architectural coatings market. According to the World Bank data and OECD national accounts data, the value added by construction sector in Chile was around USD 79.49 billion in 2020. Moreover, the increasing usage of acrylic resin for water based coatings for interior and exterior construction application will create high demand in the market, as a result of which, the Chile architectural coatings market share will flourish rapidly over the forecast period.
Chile Architectural Coatings Market Segment Analysis – by End-Use Industry
By end-use industry, the residential segment held the largest Chile Architectural Coatings market share in 2021, with a share of over 42%. The Chile architectural coatings have growing application in residential construction industry such as roofing, ceilings, walls and others. These architectural coatings are composed of resins such as alkyd, acrylic, epoxy, urethane and others and coat the building from moisture, heat and other harsh environmental conditions. The rise in residential building and construction activities in Chile is propelling the growth for the Chile architectural coatings industry. According to the International Trade Administration, the construction sector in Chile is expected to grow by 3%-4% in the year 2022. Thus, with flourishing application in the construction sector and growth in decoration and renovation activities in residential buildings, the Chile architectural coatings industry will grow rapidly during the forecast period.
Chile Architectural Coatings Market Drivers
Rise in application for environment-friendly water-based coatings:
The stringent
regulations by the government on the emission generated from volatile organic
compounds (VOC) products in architectural coatings is influencing the demand
for low or zero VOC coatings. The water based architectural coatings have low
VOC and provide reduction in the environment emission. For instance, as
per CCAC, the revised nationally determined contribution commits to reduce the
carbon emission by 25% by the year 2030 in Chile. Thus, with major demand for
low VOC water based architectural coatings for application across various
industries; the Chile architectural coatings industry is experiencing major
drive and growth opportunities.
Rise in buildings and construction projects:
The construction
sector in Chile is flourishing rapidly. The construction of hospitals,
residential buildings, commercial spaces and other projects are growing. The
Chile architectural coatings has growing application in the residential as well
as commercial infrastructure and building such as coatings in wall, roofing,
facades, bridges, pavements and others. The renovation and infrastructure
development, along with construction of heritage sites in Chile is propelling
the growth of Chile architectural coatings. According to the World Bank,
the construction sector added a value of 31.4% in the GDP of Chile in 2020.
Thus, with rise in construction activities for residential buildings, home and
other commercial spaces, the Chile architectural coatings industry is growing
rapidly.
Chile Architectural Coatings Market Challenges
Strict regulations on VOC emission and raw material price rise:
The Chile Architectural
Coatings industry faces major challenge due to stringent regulations by
government on the emission by volatile organic compounds product in the
coatings. Moreover, various coating resins are derived from crude oil such as
polyurethane, alkyd, polyester powder and others. The rise in crude oil prices
and volatility in this sector creates a major hamper in the production and
overall costs of architectural coating resins. Thus, the instability in crude
prices and emission concerns from various architectural coatings, the Chile
architectural coatings industry faces challenge and slowdown.
Chile Architectural Coatings Industry Outlook
Technology
launches, acquisitions and R&D activities are key strategies adopted by players
in the Chile Architectural
Coatings market. The top 10 companies in the Chile Architectural Coatings Market
include:
Recent Developments
- In May 2022, the PPG Industries Inc. announced the opening of architectural paint and coatings color automation laboratory in Italy, aiming to strengthen the coatings business.
- In February 2022, the PPG Industries expands the coating business by acquiring the powder coating business of Arsonsisi, a leading provider of both architectural and industrial coatings business, thereby boosting sales and growth in the market.
- In February 2021, the Sherwin Williams Company announced the signing of agreement with the global coatings firm Hempel to divest the Wattyl, a producer of architectural paints and coatings.
Relevant Reports
Report Code: CMR 1101
Report Code: CMR 12468
Report Code: CMR 1364
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