LONDON - According to a new report published by Infiniti Research, the global coatings market is forecast to increase at a compound annual growth rate of 5.46 percent through to 2015, with the industry set to hit 8.7 billion gallons and $107 billion by the year 2017.
Key factors contributing to growth within the coatings market include the recovery of global economies from the recent economic turmoil, rapid industrialization, increasing demand from end-use sectors such as automotive and construction, the increasing stringency in regulations, rising competition, growth in unique formulations, and technological and product developments.
The recent downturn in the global economy has had a negative impact on the coatings industry, as was the case with several other sectors. The global coatings market witnessed a substantial decline in volume and value sales during the downturn. However, the impact of the recession varied among segments within the industry.
Production within the global coatings market is witnessing a major shift away from the developed regions of Europe and the United States to the developing economies such as Asia. Sustained demand from the developed countries and the burgeoning demand from the developing economies are contributing to the overall expansion of the coatings market worldwide.
The mergers and acquisitions activity within the industry in the past decade has made the big players even bigger and made it more difficult for the smaller players. Mature markets tend to form an anti-inflationary environment, which compels companies to reduce costs and at the same time enhance productivity. As a result, larger companies are left with no alternative but to integrate operations into a single entity in order to maintain synergies, cut down on costs, and to jointly initiate R&D and marketing efforts.
For more information about the report, Global Paint and Coating Market 2011-2015, click here.