MARKET OVERVIEW- EUROPE PAINTS AND COATINGS MARKET
Paints and coatings are used for the decoration and protection of buildings, automobiles, appliances, and equipment. Paints and coatings make products more durable, more attractive, safer, and more saleable. Paints and coatings are used to provide aesthetic appeal or decorative value to surfaces and products. Paints are classified into Decorative paints, Industrial coatings. Paints are formulated according to use such as primer, undercoat, and special finishes (matt, gloss, heat resistance, anti-corrosion, abrasion resistance). The coating is defined as paint with a purpose that is used for protection from corrosion, heat, and other external factors. The European market for paints and coatings has experienced different growth patterns and drivers over the past few years. After overcoming the negative impact of geopolitical tensions in 2014 and 2015, especially in Eastern Europe, the market resumed its stability in 2016. The demand is booming because of consumer spending, investments in infrastructure and housing development, and the healthy growth of the automotive sector in many European countries. On-going technological advancements in automotive, marine, aerospace, wood, and general industrial end-user sectors drive the market growth over the forecast period.
MARKET DRIVERS
In Western Europe, consumer interest in home decoration is high. Consumers will buy premium products when it comes to architectural paints. In Russia, economic products have traditionally been popular also in regions such as Central Eastern Europe. The change in consumer preference regarding the paint quality and premium products will anticipate the demand for the paints and coatings market in the Europe region. In addition, owing to the usage of protective coatings across the offshore wind turbine industry will boost the paints and coating market in coming years.
MARKET OPPORTUNITIES
The paints and coatings market continues to pick up pace owing to the factors such as end-user preferences and regulatory requirements. These two factors are shifting the market towards disruptive technologies such as Big Data and multifunctional/smart coatings making many coating companies move beyond product manufacturing. The specific industrial and infrastructural sectors like manufacturing and oil and gas present tremendous growth and high-value opportunities for coating companies that are attributed to the development of smart/multifunctional coating systems and technologies, such as self-healing and anti-corrosion coatings. These are some factors that provide the market opportunities over the forecast period
MARKET RESTRAINTS
The major restraining factor is COVID 19. The shutdown of manufacturing sectors across the Europe region has resulted in a decline in the GDP of Russia, Italy, Spain, the UK, France, and Germany. According to the OECD, the European Union (EU) GDP reduced by 3.3% in the first quarter of 2020. In 2020 the European passenger car market has shown a halt in sales. These are some after-mentioned factors that hinder market growth.
MARKET GROWTH CHALLENGES
The European paint, printing inks, and artists' colours industry are under increased pressure due to rising raw material prices. The market has been facing issues such complex combination of demand, capacity issues and a shortage of transportation resources, and uncertainty in the supply chain. The rise in raw materials is caused by the anticipated economic recovery after COVID-19, a shortage of raw materials as a result of bad weather conditions, and the closure of several plants as well as the sharp increase in oil prices that results in transportation costs.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the Europe Paints and Coatings market, market size, and compound annual growth rate (CAGR) for the forecast period of 2022-2028, considering 2021 as the base year. With the increasing demand for various Paints and Coatings in various applications has led to the increasing demand for the market and is expected to witness growth at a CAGR at specific CAGR from 2022-2028.
EUROPE PAINTS AND COATINGS MARKET SEGMENTAL OVERVIEW
The Europe Paints and Coatings market comprises different market segments like type, technology, end users and country.
EUROPE PAINTS AND COATINGS MARKET BY TYPE
By type, Paints and Coatings include key segments of
- Alkyd Paints
- Vinyl Coatings
- Chlorinated Rubber Coatings
- Epoxy Coatings
- Polyurethanes
- Epoxy Mastic Coatings
- Others
The alkyd paints segment accounted for the major share in market, and is expected to grow further during the forecast period owing to its properties such as drying rate, adhesion, flexibility, and relative resistance making it suitable for usage in paints and coatings. The increasing use of alkyd paints for architectural coatings of interior walls, windows, and panels. Thus, this is a major factor driving the growth of the segment over the forecast period. Moreover, Epoxy coatings are also leading with an exponential growth rate over the forecast period owing to their major use in floor coatings driving the segment growth in the coming period.
EUROPE PAINTS AND COATINGS MARKET BY TECHNOLOGY
The Paints and Coatings market is segmented into technology such as
- Water-Based Technology
- Solvent-Based Technology
- Powder Coating
- Others
Based on technology, for the Paints and Coatings market, water-based technology holds the major market share over the forecast period due to increased usage in automobiles, furniture, plastics, wood, and printing ink industries. Water-based technology is because of benefits associated with it, such as no VOC emissions, quick drying, and easier application are some of the factors that drive the segment’s growth over the forecast span.
EUROPE PAINTS AND COATINGS MARKET BY END-USERS
The Paints and Coatings market has major end users like
- Pharmaceutical
- Chemical
- Electronics
- Automotive
- Architectural
- Food & Beverages
- Packaging
- Others
The architectural segment holds significant share in the market and is expected to maintain its growth at a considerable growth rate. The increased use of paints and coatings in the architectural sector for building and construction of other warehouses such as office and the residential building. In architectural applications, paints and coatings are mainly used for the decorative purpose for residential and non-residential to protect them from UV rays and other environmental concerns. The increased use of these materials in the construction industry will drive the growth of the architectural segment in the coming time. On the other hand, automotive segment is also growing at an exponential rate due to the demand for coatings and paints in the automotive sector to prevent automobile cars and bikes from corrosion and other factors such as scratch resistance, flexibility, abrasion, and durability will boost the automotive industry to grow over mentioned time.
EUROPE PAINTS AND COATINGS MARKET BY COUNTRY
Europe Paints and Coatings market is studied for the following country
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe (Belgium, Austria, Sweden, Switzerland, Poland, Netherlands, etc.)
Germany is projected to be dominant in the paints and coatings market. Germany is one of the most industrialized and populous countries and an automotive hub for Europe. Germany is the most technologically advanced industrial coatings market both in Europe and globally. Demand from the country is increasing owing to the strong domestic demand, growing demand from the developed automotive industry, increasing uses of corrosion coatings, and growing environmental awareness. In addition, the presence of some of the strong industry players such as BASF, Henkel AG & Co. KGaAS will lead the market growth over the forecast time.
COVID-19 IMPACT ANALYSIS ON THE EUROPE PAINTS AND COATINGS MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global Paints and Coatings market subjected to COVID-19. In addition, complete analysis of changes in the global Paints and Coatings market expenditure, and economic and international policies on the supply and demand side. The report also studies the impact of pandemics on global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market. In late March, Europe’s coatings sector was facing the prospect of a deep recession caused by the effects of lockdowns throughout most of the region. As a result of the pandemic, demand for coatings virtually collapsed for a period in many areas and seemed unlikely to be revived until governments lifted their restrictive stay-at-home policies. Amidst the gloom, there is evidence of pent-up demand for decorative paints among consumers for whom stay-at-home restrictions are an opportunity to do some DIY. For example, a UK-based DIY retailer company Kingfisher accounted for the 38 percent jump in UK sales of the DIY product during the lockdown. On the other side, professional painters have faced a tough time with householders reluctant during a pandemic to have decorators in their homes. In addition, except for the hospitals and essential outlets, other businesses such as construction sites have been shut down which has led to lowering paint and coating demand in building sectors and have made a negative impact on professional painters.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of the Paints and Coatings market is majorly focused on expanding the growth of Europe Paints and Coatings with new product innovation, business expansion, and the increasing presence of manufacturers operating in Paints and Coatings has led to the growing demand for the paints and coatings market. Besides, the market offers a range of products in different applications to fulfil the required demand of consumers which is further contributing to healthy growth in the market.
The key players studied in the market are
- Sherwin- Williams Co
- Akzo Nobel N.V.
- PPG Industries Inc.
- Axalta Coating Systems
- BASF SE
- Becker Group
- E.I. du Pont de Nemours and Company
- Axalta Coating Systems Ltd
- Kansai Paint Co. Ltd
- Datacor, Inc.
- Jotun Group
- Henkel AG & Co. KGaAS
- KCC Corporation
- Koninklijke DSM N.V.
RECENT DEVELOPMENT:
March 2021: AkzoNobel one of the leading companies in the paint and coating market has announced that it has completed the acquisition of 100% of the shares of Titan S.A. U. (Titan Paints, the best-known brand in Spain). This acquisition would help the company to strengthening its paint business and footprint in Spain. This decision has added three production facilities and seven logistics and service centers for decorative paints to AkzoNobel.
April 2021: Covestro AG has announced that it has successfully completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. This acquisition will increase the Group’s revenues by around EUR 1 billion and will add more than 20 production sites to its global network.
May 2022: Sika AG, a Swiss multinational company, has acquired United Gilsonite Laboratories (UGL) in the United States, a well-known manufacturer of products for consumer and DIY waterproofing applications. Their products are sold through a distribution channel and can be found in major retailers in the USA. This acquired business is well emphasized with Sika’s high-value-added systems for concrete and masonry waterproofing and refurbishment. For Sika, this acquisition will increase its presence with major retailers and other building material stores in the United States and open up cross-selling opportunities for the company.
