WELLESLEY, MA - The coatings market remains healthy, and growth appears sustainable over the long term. BCC Research reveals in its new report that legislation is forcing the market to evolve technologically, and products and formulations could change dramatically during the forecast period.
The global market for paints and coatings is forecast to reach nearly $132.2 billion and $164.1 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 4.4%. As a segment, waterborne technology is expected to grow from $37.2 billion in 2016 to nearly $48.7 billion in 2021, demonstrating a five-year CAGR of 5.5%. Powder/emerging coating technologies as a segment should total nearly $32.7 billion and $46.8 billion in 2016 and 2021, respectively, at a five-year CAGR of 7.5%.
There is a major shift in global paints and coatings production, which is moving away from developed regions such as Europe and the United States, to developing economies such as China and India. Continued increasing demand from developed countries and demand from the developing countries are contributing to the overall market expansion. Industrial growth in developing economies is driving movement as well.
Consumers are driving increased demand in diverse areas such as performance, ease of application, sustainability, quality, functionality and environmental properties. Continuous improvement in environmental performance suggests a future in which the functionality of coatings will be enhanced and transformed from conventional areas of protection and aesthetics to meet additional, more specific demands.
The North American and European markets are transitioning away from solventborne coatings, although developing countries are still using them because of cost factors.
"The increasing use of waterborne technologies is shrinking the market for solventborne technologies," says BCC Research analyst Srinivasa Rajaram. "High-solids and radiation-cured technologies are experiencing reasonably good growth as these technologies are considered to be less polluting than solventborne technology. Companies that can adapt technologically should remain competitive."
Global Markets and Advanced Technologies for Paints and Coatings (CHM049E) analyzes the various coating products, the technologies involved, innovations behind coatings development and production, and environmental developments. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 are also provided.
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