SAN JOSE, CA – The global market for coatings is forecast to reach $98.69 billion by 2015, led by rapid industrialization, economic activity, and demand from the automotive and construction sectors in developing countries. In addition, technological and product developments, a regulatory environment, and unique formulations will rekindle growth in the mature and developed markets of the United States and Europe. This and other information is found in a new report by Global Industry Analysts Inc. (GIA).
The coatings industry can be considered mature in most regions of the world. Its growth is dependant on a number of factors such as the level of economic activity and the state of the construction industry, a major consumer of paint and coatings. Industrial growth in developing economies is a major growth driver for the coatings industry. Availability of cheap labor and an abundance of resources have companies focusing on Asia-Pacific and Latin America and setting up production establishments in these regions. However, sustained demand from developed countries also contributes to the overall expansion of the coatings market.
North America accounts for the majority of global coatings production, while China is considered the leading consumer of coating additives. In recent years, the global coatings industry has come under close scrutiny from environmental agencies around the world, with consumer and regulatory demand for reduced levels of VOCs in coatings. Coatings manufacturers are striving to achieve these targets by employing innovative research and development (R&D) methods to improve the quality of coatings and minimize levels of VOCs.
The global economic downturn decidedly affected the paint and coatings industry, particularly during the turbulent period of 2008 and 2009. As the demand for automotive OEM coatings is directly dependent on the automobile market, a huge decline in automobile production deeply impacted the coatings demand. The markets of North America and Europe were the worst hit, recording high double-digit declines during the period. In the Asian markets, India, Vietnam and Indonesia among other countries, weathered the recession and suffered only marginal losses. China recovered from the adverse effects of the downturn in 2009 when domestic demand for coatings rose, and coatings exports declined drastically, to post healthy growth rates.
The revival of the global economy is expected to bring the automotive sector gradually back on track, and with it the OEM coatings market is also expected to witness a turnaround. However it will be quite some time before the pre-crisis demand levels are attained in the industry.
Asia-Pacific, led by advances from high-growth markets including China, India, Indonesia and others, stands tall as the largest regional market. Europe and the United States trail closely behind other coatings markets worldwide. The Asian market is also forecast to surge ahead of other world regions at the overall fastest compounded annual growth rate (CAGR) of 4.2 percent through 2015. By product group, the architectural coatings group is the clear market leader, accounting for the single-largest share of the coatings market in value terms. On the other hand, the segment likely to display highest growth potential is the special purpose coatings segment, which is projected to record a CAGR of 2.8 percent over the analysis period.
The research report, titled “Coatings: A Global Strategic Business Report,” provides a comprehensive review of industry overview, market trends, technology, raw materials, recent industry activity and profiles of market players worldwide. For more details, visitwww.strategyr.com/Coatings_Market_Report.asp.