The ASEAN paints and coatings market is expected to develop at a CAGR of over 5% during the forecast period. A major factor driving the market studied is the accelerating growth of the construction industry. Moreover, the increasing demand for protective coatings in Malaysia is expected to bolster the market further. On the flip side, the impact of COVID-19 pandemic on the growth of various end-user industries and supply chain disruptions may hinder the growth of the market studied.
- Acrylic resins are one of the widely used polymers in the paints and coatings industry. Application of acrylic coatings is primarily found in the construction industry, for high-end finishing in roofs, decks, bridges, floors, and other applications.
- Indonesia is expected to be the largest market for paints and coatings in the ASEAN region.
Key Market Trends
Acrylic Segment Accounted for the Largest Market Share
- Acrylic resins are one of the widely used polymers in the paints and coatings industry. The two principal forms of acrylics used are thermoplastic and thermoset. Thermoplastic acrylic resins are synthetic resins achieved by the polymerization of different acrylic monomers. Thermoset acrylic resins are cured at elevated temperatures by reacting them with other polymers.
- Thermoset acrylic resins are used in product finishes for metal furniture coatings, automotive topcoats, maintenance coatings, appliance, and other original equipment manufacture finishes.
- Application of acrylic coatings is primarily found in the construction industry, for high-end finishing in roofs, decks, bridges, floors, and other applications.
- Water-based acrylic coatings are high in demand, owing to environmental concerns, as the negative impact of VOCs affecting the air quality in the environment.
- All the aforementioned factors are expected to drive the paints and coatings market in the region during the forecast period.
Indonesia to Dominate the ASEAN Region
- Indonesia was among the fastest-growing paints and coatings markets in recent years, on account of huge population, high urbanization, and a rapidly rising middle class. The paints and coatings industry has been catered by four domestic, six multinational paint producers, and a large number of small-scale domestic producers.
- Indonesia is planning to spend about USD 40 billion to extend Jakarta’s metro network, which is poised to boost the country’s construction industry.
- In the second half of 2019, the government of Indonesia revealed that the new capital city will be built on the island of Borneo with an investment of IDR 466 trillion, and construction will take 10 years.
- Indonesia is also drafting ambitious plans for more than USD 400 billion in building projects, from constructing 25 airports to new power plants during the forecast period.
- In the first half of 2019, the number of electronic plants in Indonesia increased by 21. The burgeoning electronics production in the country is expected to increase the market size for electronic coatings, over the forecast period.
- Thus, rising demand from various industries is expected to drive the market studied in the region during the forecast period.
The ASEAN paints & coatings market is fragmented. Some of the players in the market include AkzoNobel NV, Jotun, TOA Paint Public Company Limited, Nippon Paint Holdings Co. Ltd, and PT. PROPAN RAYA ICC.
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