The market for façade coatings is expected to grow at a CAGR of more than 7% during the forecast period. Major factors driving the market studied is increasing demand from growing residential construction activities, increasing demand from repairing in construction sector.
- New coating systems and product development is likely to act as an opportunity.
- Asia-Pacific dominated the market across the globe with the largest consumption in a country such as India, China, etc.
Key Market Trends
Residential Segment to Witness Strong Growth
- The increasing middle-class population, coupled with their increasing disposable income, has facilitated the expansion in the middle-class housing segment, thereby increasing the use of roofing tiles during the forecast period.
- Despite the higher demand, there is still a significant undersupply to meet the demand for housing, globally, presenting a major opportunity for investors and developers to embrace alternative methods of construction and new partnerships, to bring forward development. Working in full compliance with all relevant building standards and regulations, the companies servicing roofing tiles are providing robust housing models to the consumers.
- The highest growth is expected to be registered in the Asia-Pacific, North America region, due to the expanding housing construction market in China, India, United States, etc.
- The United States dominated the North America region with a rapidly growing rate of residential construction. According to US Censor Bureau, in 2018, residential construction increased by about 2.5 % from the previous year.
- Asia-Pacific has the largest low-cost housing construction segment, which is led by China, India, and various Southeast Asian countries.
- In India, the government initiated the project ‘Housing for All by 2022’, which is expected to immensely drive the residential construction segment in the country.
- In South America, Brazil is suffering a volatile economy, which has reduced activities in the residential construction industry. However, the Brazilian housebuilder, MRV, has predicted a growth, despite the recession.
- All the above factors are likely to increase the demand for the market over the forecast period.
China to Dominate the Asia-Pacific Region
- Owing to the highest construction activity for residential, as well as commercials in the Asia-Pacific region, the façade construction and its coatings accounted for the highest market share among other regional markets.
- The number of commercial offices and buildings in the region has increased since the last decade, owing to the growth of major economic & business centers and the competition among the construction players for attractive looks and sustainable & economical construction has also increased the demand for façade coatings.
- China’s construction industry developed rapidly, due to the central government’s push for investment in the construction industry, as a means to sustain economic growth.
- “Made in China 2025” was introduced by the government, the initiative is aimed at improving industry efficiency, product quality, and brand reputation. This may spur the development of domestic manufacturers and may increase competitiveness.
- The Chinese government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities over the next ten years, despite efforts to rebalance its economy to a more service-oriented form.
- All the aforementioned factors are likely to increase the demand for the market over the forecast period.
The facade coatings are partially consolidated. major players include A&I Coatings, PPG Industries Inc., The Sherwin Williams Company, Axalta Coating Systems, and Sika AG, amongst others.
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