New Residential Projects
Rapid economic development and rising disposable income of the people are thriving the growth of the residential projects which is expected to boost the market shares in the developing regions. Additionally, increasing residential reconstruction and new developments of various projects by real estates is expected to increase the demand for architectural coatings. Further, the rising urbanization of the population is driving the market significantly at present and is expected to impact the market strongly during the forecast period.
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Rising Construction Activities
The growing GDP of the developing and developed economies are expected to propel the growth of both commercial and various residential constructions which is expected to drive the demand for architectural coatings during the forecast period. Additionally, the government initiatives for various constructions in urban and rural areas is generating huge demand for these coatings in the market. Moreover, the growing population and rising demand for housing is estimated the boost the market growth over the forecast period.
The global architectural coatings market is observing pulsating growth on account of increasing number of residential and commercial constructional developments. Additionally, growing explorations and advances in coating industry in the past few years along with growing population and rise in per capita income of the people are likely to drive the market for its various applications and protection purposes. The architectural coatings market is anticipated to record a CAGR of 6.2% over the forecast period i.e. 2018-2027. Further, the market is expected to reach a value of USD 70 billion at the end of the forecast period.
According to U.S. Census Bureau, the U.S. residential permits have been recorded as 13,28,000 in 2018 where the number of housing started were 12,56,000 and the housings completed were 10,99,000 in 2018. This rise in construction projects in U.S. have increased the demand for these coatings which is further expected to drive the global market of architectural coatings in upcoming years.
The VOC emissions caused by these coatings are not just harmful for the environment but also pose threat to human health leading to various health issues such as nausea, eye, nose and throat irritation among other serious health issues. These factors are anticipated to dampen the growth of the architectural coatings market during the forecast period.
Our-in depth analysis of the global architectural coatings market includes the following segments:
By Resin Type
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Smruti Ranjan, Rajrani Baghel