This has led to the development of the paints and coatings market in the region. The CAGR for the entire region was expected to be 7.5 through 2015, according to a report by Mordor Intelligence. Cities like Dubai have a far growing commercial sector with a large investment being made of commercial structure, offices and residential complexes. On the other hand, Technavio's market research analyst predicts the global construction paints and coatings market to grow at a CAGR of almost 6 percent between 2016 and 2020. In terms of geography, the construction paints and coatings market in APAC is the largest and the fastest growing market. China, India, and Japan are the major revenue generating countries in this region. The growing investments in infrastructure development and construction sector are primary drivers for the market's growth in APAC. As per a report recently published by Market Research, paints and coatings are mainly used for decoration and protection of buildings, automotives, etc. The decorative paints and coatings subsector depends heavily on the performance of the building and construction sector, whereas protective paints and coatings are linked closely to the automotive, major appliance and industrial equipment sectors. Architectural coatings include interior and exterior house paints, primers, sealers, varnishes and stains. They are sold to contractors and the general public through retail and wholesale outlets as well as direct to large commercial accounts. Industrial coatings include automotive paints, can coatings, coil coatings, furniture finishing and road-marking paints. Most of these products are sold direct to the end user.
One of the main findings of Smithers Apex's new report indicates that architectural or decorative coatings make up the largest single market segment for paints and coatings, comprising 53 percent of the overall market by value and 58 percent by volume. Industrial coatings are used in a wide range of industry sub-segments, each with its own requirements in terms of the coating system and performance requirements. Protective and marine are the largest industrial segments, together accounting for 27 percent of total industrial coatings demand.
According to a Mordor Intelligence report, there is a lot of research and development going on in the paints and coatings industry. The emergence of green buildings and nano coatings is making the world become a healthier and safer place to live in. Research is being done to reduce the environmental impact of marine coatings during the ship life cycle. Moreover, there is a development of near-infrared (NIR) coatings and tiles to reduce heating of dark-colored surfaces on roofs and facades. The sun-reflective building materials help to achieve a reduction of cooling loads and improve thermal comfort. They are often seen in roofing but there are also tentative applications for facades. The report further states that ecofriendly paints are being preferred over normal paints as normal paints are toxic and cause health hazards like cancer, tuberculosis and respiratory illness. Thus, in the recent years, compounds like lead and chromium have been banned from household paints as they cause lot of health hazards to human beings.
As per Technavio's report, the global construction paints and coatings market is extremely competitive and fragmented owing to the presence of many international as well as regional players. Competition in the market is expected to intensify in the coming years due to lack of product differentiation. Local players are extending their foothold in the market by offering products at lower prices, which attracts end users. To extend their geographic reach and maximize their profit shares, the vendors are focusing on increasing their market share by M&A. The report also states that there are several leading vendors in the market including, AkzoNobel, Axalta Coating Systems, PPG Industries and others.