Exterior Architectural Coatings Market

Market Definition:

The Exterior Architectural Coatings Market size was valued at USD 30.40 billion in 2021 and is predicted to reach USD 48.60 billion by 2030 with a CAGR of 5.3% from 2022-2030.

Exterior architectural coatings are paint or a layer that is used on the surface of exteriors to strengthen the performance further increasing its artistic beauty. These coatings are mostly prepared from acrylic emulsions along with styrene acrylics. It protects the surface under uncertain conditions including extreme wild climate, fluctuating temperature, pollution, and corrosion. Exterior architectural coatings protect surface from the harmful effects of UV rays and microbes. These coatings enhance the appearance and improve the longevity of the wall surface. These paints keep out moisture, shield the walls from pollution and dust by preventing mold and maintain the aesthetic of the buildings. It covers prominent industries such as real estate and healthcare. The main properties of these coatings include good opacity, high blending ability, sheen uniformity and durability.

Market Dynamics and Trends:

The demand for exterior architectural coatings has been increasing due to the rapid modernization & urbanization along with various government initiatives such as development of smart cities, industrial corridors, infrastructure projects and reconstruction of existing cities in developing economies like China, India and Brazil. According to International Trade Administration, Brazil’s construction industry is undergoing a period of increased international competition in the domestic market, it increased at the rate 8.99% in the period from July 2020 to July 2021. This is estimated to have helped over 1.2 million jobs and the construction of over 530,000 new residential units.

Also, increasing demand for volatile organic compounds (VOC) free coating coupled with the rising eco-friendly coatings with better durability that provides esthetical designs with better performance is expected to boost the growth of the market. For instance, in September 2020, allnex launched a new eco-friendly phenolic resin ‘Phenodur’. This new coating is applicable for interior and exterior uses with a very low free formaldehyde value. phenodur provides an excellent balance of hardness and flexibility and offers a very smooth cured coating surface.

Furthermore, rapid development in the construction sector, development of water borne coating formulations, and production of durable powder coatings are the main factors that are expected to propel the growth of the market during the forecast period. Moreover, solvent-based coatings are extensively used due to their low cost, ease of application, and superior-film forming potential.

However, rising in the government’s stringent regulations against VOC emissions and other toxic chemicals used in the coatings along with unstable rates of raw materials such as pigments and solvents is expected to restrain the growth of market during the forecast period. On the other hand, rising technological advancement in decorative coatings such as nanostructured titanium dioxide that provides superior resistance against abrasive and erosive wear are expected to create lucrative growth opportunities for exterior architectural coating players in the coming future.

Market Segmentations and Scope of the Study:

The exterior architectural coatings market size has been segmented based on resin type, technology, user type, coating type, product, application, and geography. On the basis of resin type, the market is divided into acrylic, epoxy, polyester, alkyd, and polyurethane. On the basis of technology, the market is classified into solvent borne, powder, and waterborne. On the basis of user type, the market is grouped into DIY, and professional. On the basis of coating type, the market is divided into interior and exterior. On the basis of product, the market is divided into primer, emulsion, and enamel. On the basis of application, the market is segmented into residential and non-residential. Both the residential and non-residential segments are further segmented into new and repaint. The geography breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and ROW.

Geographical Analysis:

Asia-Pacific region holds the lion share of exterior architectural coatings market at present and is expected to continue dominating the market during the forecast period. This is attributed to factors such as rapidly increasing construction industry in the emerging economies such as China, India and Vietnam among others. For instance, in July 2022, CapitaLand Development (CLD) acquired a prime mixed-use site in Ho Chi Minh city with an estimated gross development value of USD 720 million. It is earmarked by the Vietnamese government to be an economic and technology hub. This project will be executed with an area of about 8 hectares comprising over 1,100 high-end residential units and shophouses to meet the residential demand of the city.

Also, the presence of major players in the region such as Nippon Paint Holdings Co., Ltd., Asian Paints Ltd, Dulux Group Ltd and among others boosts the market growth in this region. For instance, in October 2021, Nippon Paint Holdings Co., Ltd. announced the acquisition of Cromology Holding SAS, a decorative paint company involve in paint-related products in Europe. This acquisition will strengthen and expand the paint and coating-related portfolio including the exterior coatings.   

On the other hand, North America is expected to witness a rapid rise in the exterior architectural coatings market due to easy availability of raw material that are used to produce coatings such as pigments and solvents along with the increasing demand for organic composite solvents especially in the US. For instance, the United States was the second top exporter of organic composite solvents globally. The total export of US in organic composite solvents was recorded as USD 194 million in 2020.

Also, the presence of major players in paint suppliers such as Sherwin-William Company, PPG Industries Inc., RPM International Inc., and others further boosts the growth of the market in this region. For instance, in February 2022, Sherwin-Williams signed an agreement with the state of North Carolina to expand its architectural paint and coatings manufacturing capacity. This agreement will establish a larger distribution facility in Statesville, North Carolina further plans to invest USD 300 million in the project that will generate 180 full-time jobs to fulfill the growing consumer demand for architectural paints and coatings.

Competitive Landscape:

The market comprises of various players such as BASF Coatings GmbH, PPG Industries Inc., Akzo Nobel N.V, Kelly-Moore Paint Company, Inc., The Sherwin-William Company, The Valspar Corporation, Nippon Paint Co Ltd, RPM International Inc, Kansai Paint Co. Ltd, and Asian Paints Ltd. These manufacturers are actively indulging in R&D initiatives, product & technology innovations, and industrial collaborations to enhance their product, and increase their growth as well as geographical reach.

For instance, in March 2022, HGTV Home by Sherwin-Williams announced to enhance innovative products such as Everlast Exterior Paint and Primer, Infinity with added durability. These new product innovations contribute to the brand's solid foundation of setting the standard for high-quality paints and exceeding satisfaction. Moreover, in November 2021, Akzonobe launched a series of powder coating solutions such as Interpon W Core, Flex Pro, Fast and Fast Pro. These coating can help in transforming the heat sensitive substrates (HSS) on plastic and wood. It is designed in a way that can challenging shapes and substrates can be given a seamless, consistent finish and all-round protection. It will help in providing protection to building and construction materials.

Key Benefits:

• The exterior architectural coatings market report provides the quantitative analysis of the current market and estimations through 2022-2030 that assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises a deep dive analysis of the exterior architectural coatings market trend including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints and opportunities and their impact on the exterior architectural coatings market is provided in the report.

• The competitive analysis of the market players along with their market share in the exterior architectural coatings market.

• The SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

Key Market Segments:

By Resin Type 

• Acrylic

• Epoxy

• Polyester

• Alkyd

• Polyurethane

By Technology

• Solvent Borne

• Powder

• Waterborne

By User Type

• DIY

• Professional

By Coating Type

• Interior

• Exterior

By Product

• Primer

• Emulsion

• Enamel

By Application

• Residential

  • New

  • Repaint

• Non-Residential

  • New 

  • Repaint

By Geography

• North America

  • U.S

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

  • Rest of Asia-Pacific

• RoW

  • UAE

  • Saudi Arabia

  • South Africa

  • Brazil

  • Remaining countries

KEY PLAYERS     

• BASF Coatings GmbH 

• PPG Industries Inc.

• AkzoNobel N.V

• Kelly-Moore Paint Company, Inc.

• The Sherwin-William Company

• The Valspar Corporation

• Nippon Paint

• RPM International Inc.

• Kansai Paint Co., Ltd

• Asian Paints Ltd