The global market for coatings is forecast to reach almost $100 billion by 2015, according to research by Global Industry Analysts, Inc. (GIA).
The new GIA report, Coatings: A Global Strategic Business Report, predicts that the market will expand to $98.69 billion in the next five years, led by rapid industrialization, economic activity and vibrant demand from automotive and construction sectors in developing countries.
In addition, the report says, technological and product developments, the regulatory environment and unique formulations will rekindle growth in the mature and developed markets of US and Europe.
The coatings industry can be termed as mature in most regions of the world and its growth is dependent on a number of factors such as the level of economic activity and the state of the construction industry (a major consumer of paints 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 has led companies to set up production facilities in Asia-Pacific and Latin America in particular.
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. Certain types of coatings, specifically solvent-based, are considered volatile organic compounds (VOCs), a major environmental hazard because of their tendency to deplete the ozone layer, after reaction with nitrogen oxides present in the atmosphere.
Coatings makers constantly strive to achieve emissions targets by employing innovative R&D methods to improve the quality of coatings and minimize levels of VOCs.
The revival of the global economy post 2011-2012 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.
By product group, architectural coatings account for the single largest share of the coatings market in value terms. On the other hand, the segment likely to display the highest growth potential, special purpose coatings, is projected to record a CAGR of 2.8 percent over the analysis period.
The research report provides a comprehensive industry overview of market trends, technology, raw materials, recent industry activity, and profiles of market players worldwide. Analysis and overview is also presented for major geographic markets and for every imaginable product group/segment.
