The market for plastic coatings is expected to grow at a CAGR of more than 5.2% during the forecast period. Major factors driving the market studied is increasing demand from the construction sector.
- On the flip side, decline in automotive industry is likely to hinder the market.
- Asia-Pacific dominated the market across the globe with the largest consumption in country such as India, China, etc.
Key Market Trends
Building and Construction Segment to Dominate the Market
- Plastic coatings find major applications in the construction industry. For example, plastisol, a coating made from PVC (Poly Vinyl Chloride) is used as a coating on roofs.
- The global construction industry is projected to have a significant growth in the coming years, which is likely to drive the demand for plastic coatings.
- The global construction industry’s growth is expected to be majorly driven by the construction activities in the Asia-Pacific region.
- For instance, in Japan, the construction activity is witnessing a major growth, owing to the country’s preparation for the 2020 Olympics.
- India is expected to be the third-largest construction market across the world by 2030, with its contribution to the GDP expected to increase to around 15% by 2030. Also, the size of the construction market in India is likely to reach USD 1 trillion by 2025.
- All the aforementioned factors are likely to increase the demand for plastic coatings over the forecast period.
China to Dominate the Asia-Pacific Region
- Though China continues to progress along a positive economic trajectory, its GDP growth has slowed down significantly, owing to the maturation of the economy
- The majority of the demand for plastic coatings in the country comes from the automotive and construction industry.
- China is the largest manufacturer of automobiles, in the world. The country’s automotive sector has been shaping up for product evolution, with the country focusing on manufacturing products, in order to ensure fuel economy and to minimize emissions (owing to growing environmental concerns due to mounting pollution in the country).
- However, the market witnessed a shrink in 2018, as the production decreased by 4.2%. It was also the first time that the market witnessed a drop in sales, after nearly 20 years of growth. The trade war between China and the United States is most likely the major contributor to the drop in the sales.
- China is the largest construction market in the world. According to the National Bureau of Statistics of China, the value-added in the Chinese construction industry increased from RMB 1,874.3 billion in 2008 to RMB 6,180.8 billion in 2018.
- Such factors are expected to increase the demand for the market over the forecast period.
The plastic coatings market is partially consolidated. Some of the major players include 3M, AkzoNobel NV, Axalta Coating Systems, PPG Industries Inc., The Sherwin-Williams Company, among others.
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