US demand to grow 3.9% per annum through 2019
The US paint and coatings industry is forecast to grow 3.9 percent annually to $1.4 billion gallons in 2019, valued at $31 billion. Gains will be driven by a strong rebound in construction activity which will stimulate demand in architectural paint, the largest market group. Environmentally-friendly low VOC paint and coating products will continue to register particularly strong growth as producers develop new products to meet stricter government regulations and consumer tastes. In addition, new tech-nological advances, such as nanostructured coatings, will expand future growth as they open new applications by pro-viding antimicrobial, self-cleaning, sound dampening, anticorrosive, and light emitting functions.
Architectural markets to remain key outlet
US architectural markets for paint and coatings will continue to be the main outlet for the industry, growing at an above average rate in 2019 as demand is driven by an improved outlook for both residential and nonresidential construction. The fastest growth is expected in the new construction segment as housing completions rise at a double-digit pace, but demand for paint in improvement and repair applications will improve as well. Overall, demand for interior paint, which accounts for about two-thirds of the market, will outpace demand for exterior paint demand due to increased use of siding materials which do not require painting. Additionally, water-based paint formulations will continue to grow faster than solvent-based formulations due to environmental concerns, although most architectural paint has already made the switch to waterborne.
Metal building components to pace manufacturing coatings segment
Demand for manufacturing coatings is forecast to advance at a below average rate through 2019 although favorable by historical standards. The metal building components market will exhibit the fastest growth in this group of markets benefiting from to industrial and commercial expansion. The furniture and fixtures market will continue to have the largest share of manufacturing coatings and will also grow at an above average pace. Overall, transportation markets such as motor vehicle and aerospace will see the slowest gains due to weak growth in the production of transportation equipment. Powder coating usage will increase more quickly than other coatings formulations in the manufacturing market, while solvent-based coatings will continue to lose share.
Marine coatings to be fastest growing maintenance & specialty type
Maintenance and specialty coatings demand will remain the smallest proportion of total paint and coatings and also will exhibit the slowest growth. Marine coatings will grow at the quickest rate, bolstered by increased commercial shipping activity and new antifouling technology. As the largest market in this category, industrial maintenance coatings will advance at a healthy pace based on increased economic growth stimulating nonresidential building improvements. Below average gains are forecast for automotive refinish coatings, hampered by declining accident rates and improved durability of OEM automotive paint.