The decorative coatings market is projected to grow from USD 71.3 billion in 2021 to USD 91.6 billion by 2026, at a CAGR of 5.1% between 2021 and 2026. Environment-friendly characteristics, durability, and better aesthetic appearance drive consumption of decorative coatings in various applications.
Regulatory policies have a significant impact on the paints & coatings industry. Potential changes in regulations can create uncertainty throughout the value chain. This uncertainty refers to the time taken by the manufacturers at each node to accept the new regulation and adopt new technology. Different time-consuming regulatory changes in different regions can affect the raw material producers, formulators, channel partners, and end-users. With the increasing number of governments implementing stringent regulatory policies, decorative coatings producers must constantly evolve their processes to comply with the new policies and reduce VOC emissions.
Residential is projected to be the largest application of the decorative coatings market.
Residential is the largest application segment, in terms of both volume and value, between 2021 and 2026. Economic growth and higher incomes in the last few years have resulted in the construction of several new houses and the remodeling of old ones. Decorative coatings for residential construction applications include new paint and repainting. These coatings mainly include architectural and functional products, such as paints, stains, lacquers, primers, and cleaners. Decorative coatings are used in both interior and exterior applications in the residential sector. Repainting is associated with giving a new look to an old or worn-out interior and exterior of constructions.
Polyurethane is the fastest-growing resin segment of the decorative coatings market.
Polyurethane is the fastest-growing resin segment, in terms of volume, between 2021 and 2026. Polyurethanes are versatile materials, which can be tailored to achieve the required hardness, cure speeds, viscosities, and mechanical and thermal properties for many different applications. There are different types of urethane coatings in the market. Polyurethane resin imparts toughness and abrasion resistance to wood coatings, floor finishes, and coatings for other demanding applications. Other applications where polyurethane coatings can be used are heavy-duty exterior and interior structures, paper mills, power plants, offshore structures, oil field machinery, exterior surfaces of steel tanks, handrails, conveyors, and chemical processing equipment.
APAC is the fastest market for decorative coatings during the forecast period.
APAC is projected to be the largest and the fastest-growing market for decorative coatings during the forecast period. The region has witnessed significant economic growth over the last decade. APAC encompasses a diverse range of economies with different levels of economic development and multiple industries. The development is mainly attributed to the high economic growth rate followed by heavy investment across industries, such as building & construction and furniture. Key players are expanding their decorative coatings production in APAC, especially in China and India. The advantages of shifting production to the region are the low cost of production and the ability to better cater to the emerging local markets.