Construction coatings are defined as the coatings used on exterior surfaces in the construction of structures. This can apply to residential, commercial, and industrial buildings or complexes, such as skyscrapers, power plants, warehouses and factories. Interior decorative coatings are not included in this category.
Though this may appear to be a fairly inelastic industry, the global construction coatings market has actually had a rough go of it over the past decades — suffering, and then recovering, from the global economic collapse of 2008 and 2009. “The construction industry saw a downturn” during this period, explained a report from Grand View Research, which had negative impacts on the coatings used in the industry. However, the market quickly began to regain strength in the post-recession period due to a number of factors.
Notably, large-scale, world-class events like the FIFA World Cup in 2014 and the Olympics in 2016, which both required an onslaught of materials, had a major positive impact on the overall construction coatings market. Furthermore, the fostering of business-friendly environments in China and India, coupled with “a growing population and growing urbanization,” have increased foreign investment in the construction industry — as a result, upping the demand for coating — according to Grand View Research’s report.
The ResearchAndMarkets analysis, “Changing Construction Practices Transforming the Global Construction Coating Market, 2020,” takes a look at how the market has changed in more recent history, more specifically, since 2017 through 2027. With recovery from economic collapse under its belt, there’s more room for creativity and growth, which is exactly what appears to be happening.
Among other key trends, the Asia-Pacific region is still the largest market for construction coatings and is expected to remain that way “for all types of products” in the near future. “The global market is influenced by multiple factors, including international relationships, spread of the COVID-19 virus, changing consumer preferences and changing construction practices,” explains a news release published in tandem with the report. There has been a turn toward higher solids solvent-borne coatings, powder coatings, and waterborne coatings due to an uptick in environmentalism. These materials have lower volatile organic compound (VOC) emissions, a variety of chemicals admitted as gases from certain solids or liquids that can have short- and long-term adverse health effects.
“Manufacturers are increasingly investing in product development to enhance environmental sustainability and product efficiency,” explains the report, noting that the new trend goes both ways. “Customers are increasingly looking for products that are easier to apply, impart greater surface finish, and are regulation compliant.”
Though the market has become “highly competitive,” according to the analysis, due to advancements among large and global manufacturers, regulation has emerged as a key hurdle in the industry. There are new — and heightening — standards for products to avoid VOC emissions. The top manufacturers of paints and coatings, per the most recent available data, are Sherwin-Williams (worth $17.50 billion as of 2018), PPG Industries Inc. ($15.4 billion), and AkzoNobel Coating ($10.3 billion). Other major competitors include Nippon Paint Co. Ltd., RPM International, Axalta Coating Systems, Diamond Vogel, and BASF Coatings AG. These companies span across the world.
“Construction coatings face regulatory pressures from organizations such as American Architectural Manufacturers Association, US Environmental Protection Agency, and REACH that mandate the use of products with lower volatile organic compound emissions and eliminate the use of heavy metals,” outlines the news release.
Nonetheless, the global market is expected to continue to accelerate going forward. Though there aren’t numbers on the exact projections for this market, looking at the anticipated growth of the construction industry as a whole gives at least some insight as the two remain largely correlated. The multi-billion dollar global construction industry is anticipated to record a 9.2% compound annual growth rate to reach $11,093.7 billion by 2024, per projections. If the growth rate in construction coatings is anything like that, it will be a very good next few years.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.