In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Architectural coatings are the coatings which are used to coat the buildings and houses with color, texture and other visual appeals. They also serve the purpose of protection from external elements and various exposures. The properties of these coatings contribute towards surface protection during the period of its surface exposure. They are applied with brushes, rollers and sprays on interior & exterior of the surfaces including walls, floor and ceilings of the buildings. These coatings provide protection from external factors such as heat, moisture, chemicals, varying weather conditions and others.
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.
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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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 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.