The market for organic coatings is expected to grow at a CAGR of more than 5% during the forecast period. Major factors driving the market studied are increasing application in the protective sector.
- Growing architectural activities are expected to grow during the forecast period.
- Asia-Pacific dominated the market across the globe with the largest consumption from a country such as China and India.
Key Market Trends
Protective Segment to Dominate the Market
- The primary application of organic coatings is to prevent corrosion and provide long-lasting protection to the metal surfaces.
- The protective sector includes oil and gas along with infrastructure as the major segments.
- Both the above-mentioned segments use metal in many of their components. Moreover, the infrastructure industry in the United States is estimated to have grown more than 5% over this forecast period.
- Apart from these regions, European countries, such as Germany and the United Kingdom are also expected to have significant expansions in the road sector, residential, commercial, etc. during the forecast period.
- For instance, Germany has been continuously investing in quality infrastructure and has one of the best infrastructures in the world. According to the World Economic Forum’s Global Competitiveness, the country was ranked 10th, in terms of infrastructure index.
- Such positive factors are likely to increase the demand for organic coatings over the forecast period.
China to Dominate the Asia-Pacific Region
- Asia-Pacific is expected to hold a share of revenue, with China dominating the market.
- The major reasons for China’s stronghold being the increasing number of oil and gas activities and infrastructure which are in constant need of protection from corrosion.
- China’s 13th five-year plan, pertaining to the oil and gas sector, is setting targets for self-sufficiency and infrastructure construction. Moreover, related reforms in recent years and the near future may create new opportunities for private and foreign companies.
- Supporting China’s goal to reduce oil and gas reliance on imports, China’s NOCs are investing in oil and gas exploration, with CNPC planning to increase its budget fivefold.
- The increasing consumption of oil in China in combination targets to reduce reliance on imports may result in the production of oil, which, in turn, may fuel the demand for welan gum for drilling applications.
- Furthermore, China has the world’s largest construction industry. However, the growth rate of the industry has become increasingly modest, as the Chinese government is looking to shift toward a services-led economy.
- All the aforementioned factors are likely to augment the market over the forecast period.
The organic coatings market is partially consolidated. Some of the major players include Akzo Nobel NV, PPG Industries Inc., Organic Coatings Ltd, The Sherwin-Williams Company, Anochrome Group, among others.
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