Paints and Coatings Market Trends

Growth Drivers:

• Technological development: New technologies are transforming the paints and coatings market. In June 2022, PPG launched the PPG DIGIMATCH camera and PPG VisualizID software, which apply to faster and more accurate color matching in the global refinish industry. This is anticipated to enhance efficiency with the growing demand for high-quality finishes.
• Sustainability initiatives: The use of eco-friendly products is also promoting the demand for sustainable paints and coatings. In February 2022, AkzoNobel Powder Coatings introduced the Interpon Futura Collection, which emits no solvents or volatile organic compounds, contributing to AkzoNobel's overall sustainability program. Such initiatives are finding wider acceptance as people and industries become more ecologically responsible.
• Growth in the automotive sector: Growing sales of electric vehicles are driving demand for specialty coatings. As per a 2024 report by the International Energy Agency (IEA), electric car sales worldwide jumped over 140 percent in the first quarter of 2023 compared to the same three-month period in the previous year, as China and Europe contributed to this record-breaking increase. This growth in electric vehicle sales is likely to increase the demand for more high-tech coatings to deliver durability and good finish, promoting market growth.

Challenges:

• Stringent regulations: A major challenge faced by the industry is the stringent regulations issued by governmental bodies. For instance, governmental regulations have made it tough for solvent-based products to show revenue growth due to VOC emission legislation by the EU. In December 2020, the European Union imposed more stringent limits on VOC for manufacturers, forcing them to reformulate their products.
• Economic fluctuations: Economic instability also hampers market growth to a certain extent. The paints and coatings industry is highly susceptible to economic shrinkage, which highly influences production and consumption. In 2022, the IMF report stated that uncertainty continues to prevail in the recovery of the global economy, even post-pandemic. Such factors pose various limitations to the market growth.