Global & India Paints & Coatings Market: Overview of End-User Industries

Global & India Paints & Coatings Market: Overview of End-User Industries

Color not only beautifies the surrounding environment but also could protect the environment. According to AKI Research data, the Global Paints & Coatings Market is estimated to value USD 150,232.72 million in 2021. The market had a declined rate of 7.09% in 2020 from 2019 due to pandemic effects across the global market. However, the market is poised to grow at a CAGR of 5.06% over the forecast period 2021-2026.

The market growth for paints & coatings is attributed to the increased middle-class population, rising disposable income, increasing application of paints & coatings in automotive, construction, new house buildings, DIYs, packaging, marine, etc. In addition, the rapid urbanization and increasing demand for paints & coatings among consumers for decorating their homes is another driving factor for the market.

The market has been seeing a very good recovery since the second quarter of 2020 after the lockdown restrictions were removed in different countries. Trade and transport of goods’ supply resumed inside and outside the country, including limited restrictions and preventive measures against covid-19. The year 2020 & 2021 also supported the R&Ds, and new products were launched in antibacterial and antimicrobial coatings. The coating manufacturers also supported their employees, social communities, etc., to support people in the pandemic.

In 2021, Asia Pacific accounted for the highest market share, i.e., 46.43% by region in the global paints & coatings market. It is expected to grow with the highest CAGR of 6.70% over the forecast period. The European region accounted for 21.12%, followed by North America with 20.85% of the market share by region in 2021. Middle-East & African region is expected to have the second-fastest CAGR of 4.29% after Asia-pacific.

Indian paints and coatings market is estimated to value about USD 7,972.41 million in 2021 and is poised to grow at a CAGR of over 7.5% over the forecast period 2021-26. The paints & coatings industry has seen significant challenges in the raw materials supply chain, affecting major end-user industries like automotive, construction, manufacturing, etc. The construction industry is one of the largest industries in India, with a GDP contribution of about 8%, and has shown promising growth in 2021. Over the forecast period, the Indian construction industry is expected to cross USD 1 trillion mark. Government initiatives such as the Bharatmala scheme, UDAN (Ude Desh ka Aam Naagarik), AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and other construction projects serve as major growth drivers to fuel the demand for architectural coatings in India over the forecast period.

Global Vs Indian Paints & Coatings Market Growth Rate Forecast, By End-User Industry, 2021-2026

The Indian wood coatings market accounted for about USD 295.9 million in 2021 and is expected to reach USD 409.81 million by 2026. The growing demand for coatings in the furniture industry in India is due to factors like sectors that are potential customers of the furniture industry (like hospitality and tourism, hospitals, and the real estate sector) are forecast to grow rapidly. Furthermore, India’s unprecedented growth in programs like ‘Housing for All by 2022’ and 100 smart cities inevitably gives an impetus to the domestic furniture sector. With the ‘Made in India’ campaign, the Indian Government supports all indigenous and traditional furniture and other woodwork products for sale in India and abroad. Some of the policies which positively impact the furniture manufacturing industry are specialized agencies for Micro, Small & Medium Enterprises (MSME) loans, Credit Guarantee Fund Schemes, and FDI-friendly investment policies and schemes.

The oil and gas industry is growing rapidly, and the players are undertaking investments to cater to the burgeoning demand. The oil refining capacity of India is the second largest in the Asia-Pacific region and was valued at about 249 million tons in 2021. The industry is expected to attract USD 25 billion in investments in exploration and production in the forecast period. Some of the major initiatives taken by the Government of India to promote the oil and gas sector are as follows :

• The Government of India plans to set up about 5,000 compressed bio-gas (CBG) plants by 2023.
• The Oil Ministry plans to set up bio-CNG (compressed natural gas) plants and allied infrastructure at the cost of INR 70 billion (USD 1.10 billion) to promote clean fuel. This scenario is expected to eventually lead to the growing demand for protective coatings in the oil and gas industry.
• India is also reforming its power generation sector, including upgrades to energy infrastructure and plans to introduce new technology to make its electricity supply more reliable and resilient. These new investments could cost almost INR 2.5 trillion (USD 35 billion) over the forecast period.
• Solar energy is estimated to contribute 114 GW, followed by wind power (67 GW) and biomass and hydropower (15 GW) by 2022. The manufacturing and investment of new facilities in the power generation sector are expected to contribute to the country’s demand for the protective coatings market.

According to IATA (International Air Transport Association) report, India is poised to become the third-largest aviation market in the world by the end of the forecast period. The country is projected to demand 2,100 aircraft over the next two decades, amounting to over USD 290 billion in sales. Low

production cost facilities and a strong focus from the Government on building the manufacturing sector under the “Make In India” initiative will support the growth in the aerospace coatings market over the forecast period.

In 2020, by end-user industry, the top 5 key players were: