International. According to the MarketsandMarkets publication, the architectural segment in the Asia Pacific region expects a boom in the forecast period and will lead to an increase in demand for coating resins.
The report forecasts that the coating resins market will grow from USD 53.9 billion in 2022 to USD 70.9 billion in 2027, with a compound annual growth rate (CAGR) of 5.7% between 2022 and 2027.
According to market research, the growth of the construction industry and various future projects are the major factors supporting the paints and coatings market.
"Construction spending around the world has increased in recent years; was estimated at USD11.4 trillion in 2018, up from USD9.5 trillion in 2014. This figure is expected to increase further in the coming years due to population growth, urbanization and technological advances," the 434-page research states.
It forecasts that China, India and the United States will boost the construction industry in the coming years. "This can be attributed to the recovery of economic instability and rapid industrialization in developing countries," the report notes.
On the other hand, it highlights that economic challenges in Europe, Japan and the US are spreading to developing countries through lower demand for coating resins for their exports and greater volatility in capital flows and commodity prices.
The text points out that the reduction in export demand from European countries has especially affected the coatings market in the automotive, industrial furniture and white goods production industries.
"This scenario has led to rising commodity prices and fiercer competition from small back-end companies in Asia Pacific, which operate at lower costs," he says.
Finally, the report highlights the lack of regulation in Asia Pacific and other emerging economies, unlike North America and Europe, which opens up opportunities for manufacturers.
Water-based technology accounted for the largest segment of the coating resins market in 2021 with a 56.9% share, in terms of value, of the overall market in 2021.
The solvent-based technology segment has lost its dominant position due to the growing trend of using solvent-free coatings. In 2021, this accounted for a 25.9% share, in terms of value, of the coating resins market; however, it is expected to continue its downward trend.
In the coming years, water-based, powdered, and radiation-curable technologies are expected to gain a larger market share, in terms of value.
