Asia-Pacific Paints & Coatings Market - Segmented by End-User Industry, Technology, Resin Type and Geography - Growth, Trends and Forecast (2018 - 2023)
The Asia-Pacific paints & coatings market is estimated to register a growth rate of 5.41% during the forecast period (2018 - 2023). China is estimated to lead the market due to the ongoing growth in the industrial and architectural sectors in the country. Architectural coatings are expected to be the fastest-growing type, by end-user industry.
Increasing Demand from the Construction Industry
The construction industry in Asia-Pacific is expanding at a rapid rate, primarily from major economies, such as China, India, and ASEAN countries. Both the commercial and residential sectors are on a verge of rapid growth due to the rise in business opportunities in this region. Increasing government and private spending on construction is another factor boosting the construction industry. The entry of major construction players from the European Union into the lucrative markets, such as China and India, in the recent years has fueled the market growth. The Airports Authority of India is planning to develop city-side infrastructure at 13 regional airports in India, with the aid from some private firms for construction of car parks, hotels, and other facilities, in turn, propelling their non-aeronautical revenues. In China, the airport development (New Beijing Airport), roads (30,000 km of highways with bridges build or upgrade), 30,000 km of high-speed rail covering, which is expected to cover more than 80 cities, and 60% of urbanization ratio with permanent residents. Government of India has announced about INR 50,000 crore (USD 7.34 billion) for the construction of smart cities across the country. The Indian government has also announced highway projects worth USD 93 billion, including government flagship project, National Highways Building Project (NHDP), with a total investment of USD 45 billion over the coming years. These factors are expected to increase the construction activity, which, in turn, is likely to increase the usage of paints & coatings.
Architectural Coatings - The Fastest Growing Type by End-user Industry
Paints and coatings are extensively used in the architectural sector for both exterior and interior applications. Architectural coatings are applied on the exterior of the house to not only to give them a new look but also to protect it from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation, without fading, peeling away, and cracking. China is the largest market for architectural coatings, accounting for around 60% of the regional market. In China, the housing authorities of Hong Kong launched a number of measures to push-start the construction of low-cost housing. The authorities have projected the capital expenditure on construction at HKD 23,923 million in their proposed budget for 2018-19, i.e., 7% higher than the budget allotted for FY2017, in order to construct more affordable flats. The Indian government's ‘Housing for All by 2022’ is a major driver for the boom of the construction industry. The Indian government’s initiative to develop smart cities and to build almost 30 million homes by 2022, is likely propel the demand for architectural coatings. The 2020 Olympics, which is set to take place in Japan, is expected to boost the new commercial construction as well.
China to Lead the Market in the Asia-Pacific Region
China is globally recognized for its architectural boom. The demand for low-cost housing and commercial housing is the reason for its growth in recent years. China’s real estate sector has been growing rapidly with increased investment by the government. In 2016, property prices in China rose by about 30% due to increased activity in the real estate space. China’s transport ministry and National Development and Reform Commission (NDRC) planned to invest USD 724 billion between 2016-2018 for constructing 303 key transportation projects, which include railways, highways, waterways, airports, and urban rail. The investment plan would enhance the country’s connectivity between the major cities, which enables wider economic and social development of the region. China accounts for almost 40% of the global furniture production. The wood production is further increasing at a rapid rate, owing to the rising domestic demand, coupled with increasing export to European countries. All these factors would rapidly drive the market for paints & coatings in China during the forecast period.
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