International. Growth in the European paints and coatings market continues to accelerate. End-user preferences and regulatory requirements are shifting the market towards disruptive technologies such as Big Data and multifunctional/smart coatings, forcing coating companies to go beyond product manufacturing to become total solution providers.
"The development of smart, multifunctional coating systems and technologies, such as self-healing and anti-corrosion coatings, are presenting tremendous growth and high-value opportunities for coating companies in specific industrial and infrastructure sectors such as manufacturing and oil and gas," said Dr. Brian Balmer, Industrial Director of Visionary Science.
Frost & Sullivan's new analysis indicates that from a regional perspective, end users in Western Europe demand high-performance and sustainable solutions, while customers in Eastern European countries are price sensitive and prefer relatively standard and cheaper solutions.
Other trends and developments driving growth in the European paints and coatings market include:
- Architectural coatings continue to be the largest industrial segment, with powder coatings as the fastest growing sub-segment due to the benefits it provides to companies in terms of application costs, productivity and reduced rejection rates.
- Partnerships between OEMs and insurance companies will increase opportunities in the European automotive coatings segment.
- Increased durability and versatility of polyurethane dispersions (PUDs) drive demand for interior paints, hardwood floors, exterior cladding, and ceiling coverings.
- "The European market for paints and coatings is still fragmented with a large number of strong regional manufacturers," said Dr Balmer. "This provides an opportunity for larger participants to merge with, or acquire, regionally stronger players to expand their customer base, build scales of operations, or acquire new technology solutions."
