Paint is any liquid mixture that converts into solid film after it is applied to a surface in a thin layer. A coating is a covering that is applied to a surface for decorative and protective purposes. It includes all organic and inorganic coatings such as enamels, varnishes, emulsions, and bituminous coatings. The word “coating” may be used broadly to refer to any colored or clear product, and the word “paint” is used to describe a pigmented product with an organic or inorganic binder.
Lakshmi Narayanan – Associate Vice President : Chemicals & Materials Research, at MarketsandMarkets™, shares his Point of View as mentioned below :
Some of the important recent developments observed in the paints & coatings market are discussed in the following.
- Kansai Nerolac Paints Ltd. has agreed to acquire a 100% stake in the construction chemicals company, Perma Construction Aids Pvt. Ltd. for INR 29.1 crore (about $4.16 million). According to Kansai Nerolac, the acquisition will increase its product offerings in the construction chemicals business. With this acquisition, Kansai Nerolac will be strengthening its existing coatings product portfolio.
- Kansai Plascon Africa Limited, a subsidiary of Japan-based Kansai Paint Company, has acquired the operations of Sadolin Paints in Uganda, Tanzania, and Kenya for a cost of over Ksh 10.3 billion (US$100 million). Through this acquisition, the company will be able to tap into Kansai’s strong brand heritage, global technical capability, and trusted performance, thereby, providing the company with new capabilities, access to technology and a know-how, which is a key growth driver for this brand.
- PPG Industries has announced an agreement to acquire fellow Pennsylvania Company Whitford Worldwide. Whitford produces low-friction, wear-resistant coatings used in the automotive, aerospace, and construction industries, as well as nonstick coatings for cookware, bakeware, and small appliances.
- Axalta Coating Systems, in collaboration with Allure Industries, a leading façade, fenestration, and architectural product specialist in Indonesia, has co-launched Colorista color collection for the architectural powder coatings market.
- Tenaris has announced that it has reached an agreement with Prime Investment & Corporate Services Ltd. to acquire a 40% stake in Pipe Coaters Nigeria Ltd., a Nigerian company located in the Onne Oil & Gas Free Zone. Pipe Coaters Nigeria Ltd. is the leading company in the Nigerian pipe coatings industry, offering a wide range of products such as internal, anticorrosion, concrete, and thermal insulation coatings for deep water applications. It also offers other tubular value-added services, including double jointing.
Paints & coatings have a wide range of applications in the industries such as automobiles, general industrial, appliances, and furniture. In addition, they are also used in the oil & gas and pipeline industries. Although paints & coatings are used in all types of buildings, the performance of the architectural paints & coatings market is largely dependent on the construction of new residential and commercial buildings.
The industrial coatings market is projected to register a CAGR of 4.6% during the forecast period, in terms of volume. The increasing demand for paints & coatings in the automotive, marine, and aerospace industries is projected to drive the global industrial coatings market during the forecast period.
The architectural coatings market is projected to register a CAGR of 3.9% during the forecast period, in terms of volume. The construction industry in Asia Pacific is witnessing strong growth owing to rising urbanization, rising disposable income, and improved lifestyle standard in the region. This is expected to trigger the demand for architectural coatings during the forecast period.
The emerging regions such as Asia Pacific and the Middle East offer potential high growth prospects for the paints & coatings market. The growing purchasing power along with the residential and industrial growth is a key factor propelling the demand for paints & coatings in these regions.
According to MarketsandMarkets™ Analysis, the paints & coatings market size was USD 160.54 billion in 2017 and is projected to reach more than USD 210.00 billion by 2023, at a CAGR of 5.5% between 2018 and 2023.
Acrylic resin-based coatings is expected to be the largest segment of the market, in terms of volume, with epoxy resin-based coatings projected to be the fastest-growing segment. Epoxy-based powder coatings are used in applications requiring high corrosion resistance, excellent chemical and mechanical properties, and exceptional adhesion. Typical applications include industrial equipment, automotive underbody components, metal furniture, and appliances. For auto and auto component industry applications, countries such as China and India are looked upon as high growth potential markets in the next five years, which will eventually drive the demand for automotive coatings.
According to MarketsandMarkets™ Analysis, the paints & coatings market in India accounts for a relatively small share of the global paints & coatings market, but it is expected to register the highest CAGR of 6.0% in terms of volume, by 2023.
According to MarketsandMarkets™ Analysis, the automotive OEM & refinish coating industry is the largest end user accounting for around 17% of the global paints & coatings demand.
Automotive paint is used on automobiles for both protection and decoration purposes. Water-based acrylic polyurethane enamel coating is the most commonly used paint in the automotive industry as it reduces environmental impact. In an automobile, the coating is applied in multiple layers, with a total thickness of around 100 µm (0.1mm). Coating application requires preparation and primer steps to ensure proper application. A layer of basecoat is applied after the primer is applied. Following the basecoat, a clear coat is applied that forms a glossy and transparent coating.
Many automotive manufacturers have begun working toward a smarter, greener, and more innovative auto manufacturing. Major car manufacturers such as Volkswagen, VW, Toyota, and Great Wall Motors are making investments in Northern China’s Tianjin Economic-Technological Development Area (TEDA) and aim at producing 1.5 million cars per year. TEDA’s automotive plans have provided a boost to the automotive coatings manufacturer, PPG that has announced to set up its first overseas paints & coatings R&D center in TEDA, which is due to be completed by 2021.
The coating technology relies on covering a substrate material with an organic film that possesses the desired protective, mechanical, optical, aging, and adhesion properties. A conventional organic coating technology uses dilute solutions of alkyd, polyester, epoxy, polyurethane, acrylic, vinyl, and other resins in a volatile organic solvent. In conventional coating formulations, organic solvent performs the function of promoting desired flow characteristics, thereby, facilitating the coating application. Once applied, the solvent evaporates, leaving the resins and pigments to polymerize and form the dry coating.
Cleaner technologies for the coatings industry are based on reformulations of conventional organic coatings to reduce the VOC content of coatings, or modifications to application or curing techniques that contribute to reduced, or in some cases, zero VOC content. Many cleaner technologies also reduce paint wastes by improving the efficiency of coating transfer to the substrate.
The shift from solvent borne to waterborne coatings has been a trend in the coatings industry. Recent developments in the EU environmental and health legislation have encouraged wider application of waterborne coatings in the industrial segment. The increasing demand for green products has also created a need for supplies of green raw materials for coatings, most notably waterborne coatings.
The leading producers of paints & coatings profiled in the report are: PPG Industries (US), AkzoNobel N.V. (Netherlands), The Sherwin-Williams Company (US), BASF SE (Germany), Jotun A/S (Norway), Nippon Paint (Japan), and Axalta Coating Systems (US).