EMEAI Architectural Coatings Market - Forecast(2023 - 2028)

Overview

EMEAI Architectural Coatings Market is forecast to reach $22.75 billion by 2025, after growing at a CAGR of 4.50% during 2020-2025. The EMEAI architectural coatings market is witnessing high growth on an account of technological advancements, increasing applications and the growing demand in Europe. The economic growth in developing countries, stringent environmental regulations, increasing investment in infrastructure, growing purchasing power, and the rising demand for environmentally friendly and green coatings are also leading to the growth of the EMEAI architectural coatings market during the forecast period.

Report Coverage

The report: “EMEAI Architectural Coatings Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the EMEAI Architectural Coatings Market.

Key Takeaways

• To reduce the VOC emission companies are focusing on better formulations and nurturing of architectural coating properties.
• Acrylics possess good gloss retention and color. They are well known for their durability as they protect the underlying substrate from degradation caused by exposure to snow, rain, UV light and wind
• Growing residential and commercial construction activities in the region are expected to drive the market for architectural coatings in EMEAI, over the forecast period.

By Coating Resins - Segment Analysis

Alkyd holds the largest share in EMEAI architectural coatings market in 2019, up to 29%. Low cost of alkyd resins, properties such as good adhesion, weathering and high, dry temperatures, quick-drying and many more, and familiar end-user utility drive the alkyd coatings market. Increasing investment in the industrial sector and preference for special-purpose coatings are important opportunities in the industry.

By Process - Segment Analysis

Architectural is the major end-user of the waterborne coatings, accounts for more than around 50% consumption of EMEAI waterborne coatings. The water-soluble paints market is majorly driven by its increasing use in the building and construction sector owing to its good corrosion protection and high gloss properties, over other types. The growing population coupled with the increasing demand for residential and commercial buildings is expected to drive the growth of the market. High disposable income and changing lifestyle are other factors driving the market growth.

By Additives - Segment Analysis

Rheology modifiers hold the largest share in EMEAI architectural coatings market in 2019, up to 30%. Rheology modifiers are high-performance products that can maximize cost-effectiveness, enhance storage and stability of paints. Moreover, they can affect processing, color performance and quality of the paint. Rheology modifiers reduce dripping and spattering of paint during roller or brush application. During transport and storage of the paint, the rheology modifiers prevent sedimentation of the pigments within a formulation. Due to the above-mentioned benefits the demand for rheology modifiers is high.

By Application - Segment Analysis

Residential segment held a significant share of the EMEAI architectural coatings market in 2019. Architectural coatings are used in interiors of houses for decorative purposes, along with a wide range of other functions. Their functions vary, depending upon the type of environment and the room that they are used on. For example, due to the moisture, bathroom walls need to have wipe-ability, in order to keep them clean. Paints with glossier sheens have a tighter molecular structure than flat paints, making it more difficult for moisture to penetrate. Thus, these types of paints are used in bathrooms. There are various types of coatings like performance coatings and fire retardant coatings. Fire retardant coatings are classified into intumescent coatings and non-intumescent. Non-intumescent coatings are basically architectural, decorative coatings that contain flame retardant additives designed to reduce the rate of flame spread and smoke development of combustible substrates. Fire retardant is to increase the fire resistance of the film, including organic and inorganic retardants containing halogen or phosphor, such as chlorinated paraffin. With the growing population and increasing global migration towards the developed nations, the construction industry is estimated to rise substantially which in turn drives the EMEAI architectural coatings market.

Geography - Segment Analysis

Europe dominated the EMEAI architectural coatings market with a share of more than 70% during the forecast period. In Europe, government spending has been increasing, in order to construct affordable housing facilities, to cater to the housing demand. European construction sector provides 18 million direct jobs and contributes to about 9% of the EU's GDP. Apart from Europe, India held a significant share of the EMEAI architectural coatings market. In India, the infrastructure sector has become one of the major focus areas for the government. The government aims to boost the construction of buildings in the country and has decided to come up with a single-window clearance facility, in order to provide speedy approvals of the construction projects.

Drivers – EMEA Architectural Coatings Market

• The shift towards greener initiatives in the coatings industry will drive market growth:

In architectural coatings, low VOC continues to be a huge driving factor because of consumer preferences, regulation and green certification programs such as LEEDv4, and EU-Ecolabel. Low-VOC coatings are considered as an alternative to architectural coating with VOC as they meet the regulations and needs of consumers for green coatings. The VOC released from solvent-borne coatings is the core reason for the switch of a consumer to waterborne architectural coatings. Waterborne architectural coatings have low odor, durability, and block resistance which makes it preferable for architectural use. For the past few decades innovation in architectural coating industry has been on the rise for addressing regulations and reformulation of paint for the development of alternative products. This will improve the performance and functionalization of architectural coatings.

Challenges – EMEA Architectural Coatings Market

• Susceptibility of architectural coating to defects on application:

Architectural coatings suffer many of the same defects on an application similar to other coatings. The common problems occur are Blistering, Flaking and chalking, Discoloration and staining and surface imperfection. Blistering in architectural coating is caused by a localized loss of adhesion and lifting of the paint film from the underlying surface. In some cases when solvent gas expands on sunny facades blistering tends to occur in fresh coats of paint. Further, the moisture can cause blistering when enclosure material is not dried up. The flaking and chalking are caused by decomposing paint and are different from efflorescence or mottling which display white, crusty mineral salt deposits that leached from mortar, concrete behind the paint. The discoloration result from a number of factors such as biological growth, environmental conditions, oxidation, surface leaching, and light exposure. The surface deformation occurs due to application on the cold surface, and coating layer applied too thickly.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the EMEAI architectural coatings market. In 2019, the market of EMEAI architectural coatings has been consolidated by the top five players accounting for xx% of the EMEAI architectural coatings market share. Major top 10 companies of EMEAI architectural coatings market are Akzo Nobel NV, PPG Industries, The Sherwin-Williams, RPM International, Valspar, Nippon Paint, and Kansai Paint among others.

Acquisition/ Joint Venture

• In June 2017, Sherwin-Williams Co. completed the acquisition of the Valspar Corp., a Minneapolis-based global paints & coatings company, for about USD 11.3 billion.
• In May 2014, Sherwin-Williams Co. entered into a joint venture with Red Sea Housing Services Company to launch its premium paints company in Saudi Arabia, which helped the company to grow faster and cater to the demand from the Middle East.