The Qatar Paints & Coatings market is expected to grow at a CAGR of over 3% during the forecast period. Major factor driving the market studied is increasing construction activities due to FIFA 2022 World Cup. On the flipside, slowdown in automobile sales coupled with the negitive impact of COVID - 19 are some of the major restraints, which is expected to hinder the growth of market.
- Upcoming infrastructure activities in the country is expected to offer various lucrative opportunities for the growth of market.
- By resin type, acrylic resin segment is expected to dominate the market owing to the increase in the usage in coating applications due to its properties such as transparency and UV resistance.
- By end-user industry, architectural segment is expected to dominate the market owing to increase in the construction activities in the region.
Key Market Trends
Acrylic Resin Type to Dominate the Market
- Acrylic resins have properties, such as transparency, high color ability, and UV resistance, in coating solutions. They are used in water-borne systems very often, which result in low VOC emission.
- The application of acrylic coatings leads to high surface hardness. In certain applications, such as walls, decks, and roofing, acrylic coatings provide elastomeric finishes to improve the UV resistance of the surface, if employed with some fluids.
- 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 the environmental concerns, like the negative impact of VOCs affecting the air quality in the environment.
- Apart from this, other applications of acrylic paints and coatings are found in marine vessels and structures, automotive, electrical products, machinery, and various metal product, among others.
- Owing to all the above-mentioned factors, the market for acrylic resins is expected to grow rapidly over the forecast period.
Increasing Demand from Architectural Segment
- Architectural coatings are applied on the exteriors of houses, not only to give them a new look, but also to protect them from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation, without fading, peeling away, and/or cracking.
- The Qatari construction market is likely to grow, majorly due to the Qatar National Vision 2030 and the FIFA 2022 World Cup. Qatar is one of the major countries in the GCC, where the demand for construction is growing swiftly. However, the construction sector in the country has been witnessing a downward trend as compared to 2016, and it witnessed a huge decline in 2017.
- According to Qatar Monthly Statistics, the total building permits in March 2020 declined by almost 11% as compared to March 2019.
- Despite this scenario, the residential and non-residential construction activities in the country alone account for almost two-third of the total construction projects, with major demand for offices, retail stores, sporting stadiums, etc.
- Sales of residential houses increased by 37.5% in March 2020, as compared to March 2019. Also, sales of shops, commercial buildings, and administrative offices increased by 100% for the same period.
- Furthermore, the projects in pipeline is a major factor driving the demand for architectural coatings in the country. The residential sector accounts for almost 9% of the total projects, while the healthcare and hospitality sectors account for around 5% and the buildings for mixed use account more than 70%.
- Decrease in tourism and delays in construction projects due to spread of COVID-19 is likely to hamper growth of architectural sector. However, in the long run market is expected to recover at a steady rate.
- Some of the major companies operating in the architectural sector in Qatar are - Akzo Nobel N.V., Caparol, and Jotun.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for architectural paints & coatings in the country during the forecast period.
The Qatar Paints & Coatings market is consolidated with top five players accounting for a major share of the market. Some of the key companies in the market include Akzo Nobel N.V., Axalta Coating Systems, Hempel A/S, Jotun, and Caparol.
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