Digitalization, Sustainability, and Regulatory Compliance are Driving Transformational Growth
In this study, Frost & Sullivan analyzes the architectural coatings market from different perspectives. The primary segmentation is by region because construction sector trends/growth, customer preferences, and distribution trends vary significantly across regions, influencing the dynamics.
We dive deeper into trends between DIYers and professional contractors and highlight customer differences in various regions. Other key subsegments covered in the analysis include new construction versus repainting, residential versus non-residential, and interior and exterior paint applications. The study aims to capture how these trends impact the development of various coating products, formulations, and technological advancements in the architectural coatings market. Frost & Sullivan also highlights the types of paints used in multiple building substrates, such as wood, metal, and masonry.
Chemistries and technologies predominantly used and poised for growth during the forecast period are discussed with relevance to substrate types, such as wood, metal, and masonry. Competitive landscape, divestments, mergers and acquisitions, new market entrants, and product introductions/enhancements are analyzed. The analysis concludes by discussing three growth opportunities for stakeholders in the architectural coatings market.
Key questions the study aims to answer:
How does the value chain in the architectural coatings market work?
What are the drivers and restraints for architectural coatings?
How big is the architectural coatings market in terms of volume and revenue, and what applications present growth opportunities?
How are the construction industry dynamics (new construction and renovation) impacting the adoption and demand for various coatings?
How are the companies placed in the architectural coatings market, and what are the competitive aspects?
Scope of Analysis
In this study, Frost & Sullivan assesses the current status and prospects of the global architectural coatings market. We consider volume shipments and revenue from architectural coatings from 2021 to 2031, with revenues recorded at the manufacturer level. The study includes both decorative architectural coatings and protective exterior construction coatings.
The study scope includes interior and exterior coatings in the construction of structures such as residential buildings, as well as commercial and industrial complexes such as power plants, warehouses, factories, and skyscrapers. We excluded coatings used in infrastructure applications.
The study explores 3 significant segments: masonry, metal, and wood. Analyses cover region, chemistry, technology, customer type, end-use application, environment type, and construction type.
The Impact of the Top 3 Strategic Imperatives on the Architectural Coatings Market
Disruptive Technologies
WHY
Due to tight construction timelines, builders, painters, and customers need to complete painting on time. This has led to significant product developments that speed the painting process.
Repainting is another major market where ease of application, choice of color, and type of paint continue to be crucial.
FROST PERSPECTIVE
Paint formulators are making significant progress in helping customers with the paint selection and application process. Peelable paints, single-layer paints, and wet-on-wet paints are gaining more market penetration as they simplify the painting process.
It is also becoming critical to help customers speed up their color selection process. Simulation tools, real-time color matching tools, and software solutions to offer highly customizable color shades, finishes, tones, and textures will assist customers in their selection processes, thereby speeding up the decision-making process.
Transformative Megatrends
WHY
Safety is key in the architectural coatings market, especially for indoor applications. Enhancing indoor air quality is a vital focus area for coating formulators.
The transition from solvent to low-volatile organic compound (VOC) coatings, such as waterborne, high solids, and radiation-curable formulations, has progressed over the past few decades. Recent focus has been on safety regarding the use of hazardous chemicals in paints.
FROST PERSPECTIVE
Regulations worldwide are compelling the elimination of per- and polyfluoroalkyl substances (PFAS), chromates, and dimethylformamide, among others, in coating formulations. This opens opportunities to develop new/alternative chemistries for resins, additives, and pigments in coatings.
The development of bio-based/renewable coating formulations is gaining interest as formulators work to eliminate harmful environmental impurities in the process, reduce carbon emissions in the environment, or improve the energy efficiency of buildings as they are garnering interest.
Industry Convergence
WHY
Initiatives to improve paint and coating recycling have been gaining popularity in several market segments, and it has become a focus area as sparingly used architectural paints are often wasted and end up in landfills or being incinerated.
Stakeholders are working to establish a circular economy for paints, where the collection, recycling, and production of valuable paints or other products can happen seamlessly.
FROST PERSPECTIVE
Establishing a circular economy will involve collaborations between paint formulators and industry groups/companies that reclaim, sort, and refine used paints.
Paint formulators such as AkzoNobel are developing paints with up to 35% recycled content.
Groups and entities involved in testing and certifying recycled paints will also play a crucial role in the future.
Growth Drivers
The increasing share of premium products boosts revenues.
The construction industry growth across regions accelerates the demand for coatings.
Refurbishment activities spur coatings demand.
Growth Restraints
The surge in demand for factory-applied coatings deters demand for traditional coatings.
The trend toward prefabricated or modular construction deters demand for traditional coatings.
The rising popularity of single-layer coatings and primer-less paints deters volume growth.
Alternatives to paint are recording growth in popularity among consumers.
Forecast Analysis
The global architectural paints and coatings market has been recovering from the impact of the pandemic. It is likely to experience robust growth during the medium and long term of the forecast period.
There has been a surge in demand for paints with dirt-repelling properties, self-healing, self-cleaning, antimicrobial properties, and superior weather resistance. Environmentally sustainable products such as VOC-free paints, coatings that improve indoor air quality, and bio-based and renewable paint formulations are gaining traction.
A growing focus is developing paints that improve sustainability beyond VOC emissions and bio-based raw materials. Companies are developing paints that help buildings reduce energy consumption, such as cool/white/heat reflecting coatings.
Integrating high-end digital services using user-friendly tools and platforms is becoming a key competitive aspect to match consumer expectations with product formulation and color matching capabilities of coating companies. VR, AR, and AI will be crucial in the coating formulation landscape during the forecast period.
Customers increasingly look to reduce time spent on painting activities, and formulators are trying to achieve this by developing quick-drying paints, wet-on-wet-on-wet coatings, single-layer paints, and primer-less paints. These developments will likely result in a higher mix of premium coating solutions. However, these products eventually reduce the number of coatings required per building, bringing down the volumes.
Frost & Sullivan expects the rising share of powder and coil coatings (excluded in the scope of this report) within architectural applications during the forecast period to deter the volumes of coatings.
Key Competitors
Sherwin-Williams
Akzo Nobel
Dunn-Edwards (Nippon)
Benjamin Moore
Behr Paint Company (Masco)
Tnemec Company Inc.
Cloverdale Paint
RPM International Inc
Pittsburg Paint Company (American Industrial Partners)
PPG Industries (Latin America)
Sherwin-Williams
Akzo Nobel
Hempel
Nippon Paint Holdings
Jotun
PPG
Teknos Oy
DAW SE
Brillux GmbH & Co. KG
Kansai Helios Coatings GmbH
Colortek (Kassaa Group)
Berger Paints
Akzo Nobel
Asian Paints
Hempel
Jotun
Nippon Paint Holdings
PPG
3Trees (SKSHU)
KCC Corporation
Guangdong Maydos Building Materials Limited Company
Kansai Paint Co Ltd
SK Kaken Co. Ltd
TOA Paint
Noroa Paints & Coatings (Noroo Holdings)
Akzo Nobel
Asian Paints
Hempel
Jotun
PPG
Berger Paints
Kansai Nerolac Paints Ltd
JSW Paints
Indigo Paints
Shalimar Paints
Birla Opus Paint (Grasim Industries)
Colortek (Kassaa Group)
Nippon Paint Holdings
Guangdong Maydos Building Materials Ltd Co.
Noroa Paints & Coatings (Noroo Holdings)
Table of Contents
Growth Environment: Transformation in the Architectural Coatings Market
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8
The Impact of the Top 3 Strategic Imperatives on the Architectural Coatings Market
Ecosystem in the Architectural Coatings Market
Scope of Analysis
Geographic Scope: Primary Segmentation
Segmentation by Substrate Type
Architectural Coatings Segmentation
Scope and Segmentation
Potential Overlaps in Product Segments and Evolving Market Dynamics
Value Chain
Raw Material Suppliers
Distribution Channel
Distribution Channel Analysis
Distribution Channel Analysis: Online Purchasing
Distribution Channel Analysis: Offline Purchasing
Color Dynamics in the Architectural Coatings Market
Key Developments in AI-powered Color Matching
Regulations
Paint Recycling
Case Study for Paint Recycling Initiatives: AKZONOBEL N.V.
Companies to Action in the Architectural Coatings Market
Global Competitive Environment
Key Competitors
Growth Generator in the Global Architectural Coatings Market
Growth Metrics
Growth Drivers
Growth Driver Analysis
Growth Restraints
Growth Restraint Analysis
Summary of Drivers and Restraints: Forecast Considerations
Revenue and Volume Forecast
Forecast Analysis
Revenue Forecast by Substrate Type
Volume Forecast by Substrate Type
Wood as a Substrate in Architectural Coatings and Trends Around Wood Coatings
Wood: Volume Shipment Share Forecast by Technology
Wood: Volume Shipment Share Forecast by Chemistry
Metal as a Substrate in Architectural Coatings and Trends Around Metal Coatings
Metal: Volume Shipment Share Forecast by Technology
Metal: Volume Shipment Share Forecast by Chemistry
Masonry: Volume Shipment Share Forecast by Technology
Masonry: Volume Shipment Share Forecast by Chemistry
Revenue Forecast by Region
Volume Forecast by Region
Volume Forecast by Customer Type
Analysis by Customer Type
Volume Forecast by End-use Application
Analysis by End-use Application
Volume Forecast by Construction Type
Analysis by Construction Type
Volume Forecast by Environment Type
Analysis by Environment Type
Pricing Trends and Forecast Analysis
Revenue Share
Revenue Share Analysis
Notable Mergers, Acquisitions, and Divestments
Growth Generator: Americas
Segment Characteristics and Overview
Growth Metrics
Revenue and Volume Forecast
Volume Forecast by Environment Type
Forecast Analysis
Volume Forecast by Customer Type
Analysis by Customer Type
Volume Forecast by End-use Application
Analysis by End-use Application
Volume Forecast by Construction Type
Analysis by Construction Type
Volume Shipment Share Forecast by Substrate
Competitive Environment
Growth Generator: Europe
Segment Characteristics and Overview
Growth Metrics
Revenue and Volume Forecast
Volume Forecast by Environment Type
Forecast Analysis
Volume Forecast by Customer Type
Analysis by Customer Type
Volume Forecast by End-use Application
Analysis by End-use Application
Volume Forecast by Construction Type
Analysis by Construction Type
Volume Shipment Share Forecast by Substrate
Competitive Environment
Growth Generator: APAC
Segment Characteristics and Overview
Growth Metrics
Revenue and Volume Forecast
Volume Forecast by Environment Type
Forecast Analysis
Volume Forecast by Customer Type
Analysis by Customer Type
Volume Forecast by End-use Application
Analysis by End-use Application
Volume Forecast by Construction Type
Analysis by Construction Type
Volume Shipment Share Forecast by Substrate
Competitive Environment
Growth Generator: MEASA
Segment Characteristics and Overview
Growth Metrics
Revenue and Volume Forecast
Volume Forecast by Environment Type
Forecast Analysis
Volume Forecast by Customer Type
Analysis by Customer Type
Volume Forecast by End-use Application
Analysis by End-use Application
Volume Forecast by Construction Type
Analysis by Construction Type
Volume Shipment Share Forecast by Substrate
Competitive Environment
Growth Opportunity Universe in the Architectural Coatings Market
Growth Opportunity 1: Adopt a Wider View of Sustainability
Growth Opportunity 2: Pursue Digitization and eCommerce