There is a high demand for architectural paint and coatings in the emerging markets of Asia Pacific due to the significant growth in the construction industry. Environmentally friendly characteristics, durability, and better aesthetic appearance drive consumption in various applications. Increasing investments in emerging markets and less-regulated regions provide growth opportunities for market players. However, stringent and time-consuming regulatory policies pose significant challenges.

Acrylic Resin is Among the Largest Segment of Resins Used in Architectural Coatings

Acrylic resins are a group of associated thermoplastic or thermosetting plastic materials derived from acrylic acid, methacrylic acid, and other related compounds. Thermosetting acrylic resins are typically co-polymers of acrylic or methacrylate esters and a hydroxyl-functionalized acrylic ester. The hydroxyl-functionalized monomer provides a site for cross-linking. In thermoplastic resins, polymers containing the resin do not contain any reactive group, as polymer chains are not cross-linked.

Pure acrylic powder offers excellent appearance, high flexibility, and hardness to the film. Acrylics are frequently used because of their appearance, tough surface, exceptional weatherability, and excellent electrostatic application characteristics in products requiring high-quality standards. These resins are typically used as clear coats on materials in the automotive industry. Acrylic resin is the fastest-growing segment in the coatings industry. The demand for acrylic resin in coatings is constantly rising in emerging economies such as China and India due to the improving living standards and increasing demand for high-quality paints.

FIGURE 1 | The acrylic resin segment accounts for the largest market of the architectural coatings market globally.

Source: Secondary Research, interviews with experts, and MarketsandMarkets analysis.

China and India are Leading the Growth of Architectural Coatings Markets Globally

Asia Pacific encompasses a diverse range of economies with different levels of economic development and multiple industries. The development of the market is mainly attributed to the high economic growth rate followed by heavy investment across industries, such as automotive, consumer goods and appliances, building and construction, and furniture. 

Asia Pacific is a rapidly developing region experiencing significant growth in the coatings market. The presence of fast-developing economies in the Asia Pacific, which displays rapid urbanization and development in the construction industry, is expected to increase the demand for waterborne coatings. In order to keep updated with the changing regulations about safety and health, Asia Pacific tends to take a cue from its more advanced counterparts. Most trends in R&D and strategy in North America and Europe are also emerging in Asia Pacific. Furthermore, green coatings (low VOC) are expected to be one of the leading technology trends in this region.

FIGURE 2 | Asia Pacific, the most prominent architectural coatings market in 2023.

Source: Secondary Research, interviews with experts, and MarketsandMarkets analysis.

Environmental Regulations and the Shift Toward Waterborne Technology are Driving The Market

The PVDF (polyvinylidene fluoride) coatings are navigating a complex regulatory landscape with significant impacts from both environmental and safety regulations.

In the European Union, regulations like the Biocidal Product Regulation (BPR) and the CLP regulation under GHS have introduced new labeling requirements and restrictions on biocides used in coatings. These regulations demand that biocidal products, including those in coatings, meet specific criteria to be available in the EU market. Additionally, the use of certain biocides as preservatives in paint has been restricted, particularly those functioning via formaldehyde-based mechanisms. These changes drive the need for alternative biocidal protection systems and are likely to increase the overall cost of preserving coatings.

The EU’s REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) regulations also pose significant implications for PVDF, which is classified as a PFAS (Per- and Polyfluoroalkyl Substances) compound. REACH aims to control the use of chemicals within EU member states, and recent proposals suggest extending the chemicals covered by REACH to include all PFAS compounds. If adopted in full, this could mean a ban on manufacturing and using PFAS in Europe, which would impact the production and utilization of PVDF coatings. The EU is taking a precautionary approach, potentially classifying all PFAS compounds as ‘guilty until proven innocent,’ which contrasts with the more business-friendly approach of the US EPA.

Coating manufacturers also adapt to these regulatory changes by formulating their products to meet various compliance and safety standards, such as RoHS, REACH, and VOC restrictions. These adaptations aim to maintain performance while also ensuring environmental and health safety. Overall, the PVDF coatings industry is facing a dual challenge of adapting to stringent environmental and safety regulations while continuing to meet the performance demands of the market. This situation necessitates innovation and flexibility in product development and a proactive approach to regulatory compliance.

In addition, architectural coating companies play a crucial role in making the environment greener by launching premium products, which also adds to profitability. Such initiatives will help architectural coating companies to achieve sustainable growth in the near future. Thus, the awareness of eco-friendly paints and regulations leads to new materials, new formulations, and the advancement of equipment and application processes, driving the demand for architectural coatings.

Trends and Disruptions Impacting the Customer Business

The architectural coatings market is a highly competitive and dynamic industry that has experienced significant changes in recent years. The growing popularity of elastomeric coatings in tilt-up concrete in the building and construction industry is expected to drive the market for architectural coatings. 

FIGURE 3 | Trends and disruptions impacting the architectural coating market.

Source: MarketsandMarkets analysis.

The trends and disruptions mentioned in the Figure 3 are a few hot bets expected to impact the industry in the coming years. Companies that stay informed and proactive in responding to these changes are expected to be well positioned to succeed in the exciting and ever-evolving market.

Learn more here.