Resins in Paints and Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Resins in Paints and Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The resins in the paints and coatings market was valued at USD 32,331.26 million in 2021, and it is expected to witness a CAGR of more than 4.5% during the forecast period (2022-2027).

The outbreak of COVID-19 brought several short-term and long-term consequences in the construction industry, which may affect the paints and coatings market across the world. The consequences are due to the temporary shutdown of construction activities during the lockdown. Moreover, the construction sector's performance is projected to be affected because of the negative impact on the liquidity of money due to the affected income of a relatively larger section of society. Besides, the disrupted supply of raw materials and labor is one of the major factors likely to affect the construction activities in the forecast period.

Key Highlights

• Over the short term, the major factor driving the market studied is the increasing construction activities in Asia-Pacific.
• On the flipside, fluctuation in demand due to competition from other industries using resin is likely to hinder the market.
• The advent of eco-friendly resins is projected to offer numerous opportunities for the manufacturers through the forecast period.
• Asia-Pacific dominated the market worldwide, with the largest consumption from countries like China and India.

Key Market TrendsArchitectural Industry to Dominate the Market

• The architectural segment holds the largest share in the market studied, with more than 35%. The growing construction sector worldwide is boosting the demand for various resins in the paints and coatings market.
• Increasing paints and coatings production and consumption, owing to robust demand in new construction activities and refurbishments of various commercial and residential buildings in many nations, is driving the demand for resins in the architectural sector.
• The commonly used resins for architectural coatings include vinyl acrylate, styrene acrylics, and pure acrylics, and these account for a significant share in the architectural coatings market.
• The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby driving the consumption of resins in coatings in residential construction worldwide.
• The construction sector in the Asia-Pacific region is the largest globally. It is growing at a healthy rate, owing to the rising population, increase in middle-class income, and urbanization.​ In Asia-Pacific, China is one of the leading countries in shopping-center construction. China has almost 4,000 shopping centers, while 7,000 more are estimated to be open by 2025.​
• The recovery of the European construction industry is quite rapid. The losses from the pandemic are expected to be recovered by 2022. EUROCUNSTRUCT’s analysis suggests that the industry grew by 3.8% in 2021, following a slump of 5.1% in 2020. The growth rates of the construction industry in 2022 and 2023 are expected to be 3.0% and 2.1%, respectively, and the economies of the EC-19 are likely to expand by 4.4% and 2.0%, respectively.​
• The United Arab Emirates has an exceptionally well-connected residential plaza under construction in the heart of Dubai’s new growth corridor, Al Furjan. Azizi Developments includes 16 luxurious penthouses, 46 one-bedroom units, 86 two-bedroom residences, and 286 studios.
• While all such planned investments and projects were delayed due to the adverse effects of COVID-19, the market is expected to recover with the resumed construction activities, which is anticipated to drive the demand for paint and coating resins during the forecast period.

Asia-Pacific Region to Dominate the Market

• The construction sector of the Asia-Pacific region has been witnessing steady growth over the recent past, owing to the presence of fast-growing economies, rapid urbanization, and rising infrastructural spending. The increasing presence of foreign companies in the Asia-Pacific region has also created a demand for the construction of new offices, buildings, production houses, etc., thereby driving the growth of the construction sector.
• China continues to dominate the demand for the market studied, powered by its huge production base for paints and coatings, with more than 1/3 of the global production share.
• The Chinese government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next 10 years. Thus, this may create a major scope for resins in paints and coatings used in various applications during building construction, enhancing the building properties.
• As India is still a developing economy, the construction sector is one of the booming industries. The infrastructure sector is an important pillar for the growth of the Indian economy. The government is taking various initiatives to ensure the country's time-bound creation of excellent infrastructure.
• Japan also hosts various high-rise buildings (nearly 290), Tokyo being a major hub for such buildings. The planning and construction of such buildings are witnessing growth in Japan in the short term. The construction sector in Japan is expected to expand at a moderate pace over the next five years, owing to increasing investments in public and private infrastructure and commercial projects. Japan is a major area in the field of skyscrapers and high-rise buildings.
• Southeast Asia is currently one of the most dynamic regions globally, with construction and building projects flourishing, owing to its healthy political environment and robust economic growth.
• Hence, from the rapidly growing construction activities in the above countries, the demand for paints and coatings is projected to increase substantially during the forecast period, which may increase the consumption of resins used in the production of paints and coatings in the region.

Competitive Landscape

The global resins in paints and coatings market is fragmented in nature, with the presence of numerous players, each accounting for an insignificant market share. The major companies in the market include Arkema Group, BASF SE, Dow, Evonik Industries AG, and Covestro.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Arkema
Allnex GmBh
BASF SE
Covestro AG
Dow
Evonik Industries AG
Hexion
Huntsman International LLC
Kangnam Chemical
KANSAI HELIOS
Mitsui Chemicals, Inc.
Mitsubishi Shoji Chemical Corporation
Reichhold LLC 2
Uniform Synthetics
Vil Resins
Wanhua