NewYork, NY -- (SBWIRE) -- 10/06/2021 -- Resins in paints and coatings market size is forecast to reach US$50.5 billion by 2026, after growing at a CAGR of 4.3% during 2021-2026, owing to the increasing demand for resins in paints and coatings across various end-use industries such as automotive, aerospace, construction, marine, industrial, and more. The demand for paint and coating resins such as saturated polyester, acrylic acid, vinyl acetate, and more are on an upsurge in these end-use industries because of the various benefits it provides, such as improved longevity, power, dirt resistance, abrasion resistance features, and more. The rapid growth of the automotive and aerospace industry has increased the demand for resins in paints and coatings; thereby, fueling the market growth. Furthermore, the flourishing architecture industry is also expected to drive the resins in the paints and coatings industry substantially during the forecast period.

COVID-19 Impact

Import policies play a very important role in the determination of paint prices, as around 30% of the raw materials such as saturated polyester, acrylic acid, vinyl acetate, and more have to be imported from foreign countries. Any change to the import tax regime will therefore have an impact on costs. The paint industry needs a lot of working capital because the manufacturer has to buy raw materials from different suppliers. As a result, a company with a very robust vendor and distribution network will benefit greatly from it. COVID-19 pandemic has severely impacted the paints and coatings industry. The paint and coating industry has seen demand dive in an unprecedented manner in the last few months. Although production at most of the paints and coatings units has resumed staggeringly, the continuing increase in the number of cases and the falling demand has caused anxiety among the leading resin producers.

Resins In Paints And Coatings Market Segment Analysis – By Resins

The acrylic segment held the largest share in the resins in paints and coatings market in 2020. Acrylic resins are based on acrylic acid, methacrylic acid, cyanoacrylic acid, and their esters as well as acrylonitrile and acrylamide Acrylic resins are based on acrylic acid and are used in various coatings market categories including architectural, protective, decorative, and more. The main benefits of acrylic acid-based industrial coatings are ease of use, physical properties, and low costs. They are resistant to fungi, have a longer pot life, and provide excellent moisture protection. World exports of acrylic resins were worth US$13,490,819 thousand in 2016 and US$15,291,934 thousand in 2017, according to the International Trade Centre (ITC), which increased further to US$17,152,076 thousand in 2018. Their longevity, combined with their ability to minimize the monthly energy bill, is two of the acrylic resin's key advantages. Thus, all these factors are boosting the demand for acrylic resin-based paints and coatings during the forecast period.

Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=503364
Report Price: $ 4500 (Single User License)

Resins In Paints And Coatings Market Segment Analysis – By Coating Technology

The waterborne coatings segment held the largest share in the resins in paints and coatings market in 2020. Water-based coatings disperse a resin using water as a solvent, making them environmentally friendly and simple to apply. The main benefits of using water-based paint and coatings are that they are excellent primers and have decent heat and abrasion resistance. Due to low VOC levels and HAP emissions, they also have excellent adhesion, low toxicity, and flammability, allowing coating manufacturers to comply with clean air regulations. Due to the presence of toxic volatile organic compounds (VOCs) and dangerous air contaminants (HAPs) such as toluene, xylene, ethylbenzene, and methyl ethyl ketone in solvent-based industrial coatings, water-based resins are the a preferred formulation for paints and coatings. Currently, due to the COVID-19 pandemic, various other manufacturers who have also planned to expand their production across Asian countries have postponed due to lockdown and other issues, due to this, the growth of water-based decorative coatings seems to be low, which tends to constrain the growth of the market.

Resins In Paints And Coatings Market Segment Analysis – By End-Use Industry

The industrial and protective coatings segment held the largest share in the resins in paints and coatings market in 2020 and is growing at a CAGR of 5.6%, owing to increasing usage of resins in paints and coatings in the industrial industries such as steel, ceramic, power generation, agriculture, and others. Resins are most commonly used to protect steel, which is then used in these industries. The drivers for the market in this segment are improved standard of living, infrastructural development, global GDP growth, and growth of the construction sector. The demand for motors, generators and transformers, agricultural equipment, and other industrial equipment is increasing globally, which is driving the demand for paint and coating resins in general industrial coatings applications.

Resins In Paints And Coatings Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the resins in paints and coatings market in 2020 up to 43%, owing to the increasing demand for resins in paints and coatings from the steel and power generation industry in the region. According to India Brand Equity Foundation (IBEF), India was the world's second-largest producer of steel with 111.2 million tonnes (MT) of production in 2019. Domestic availability of raw materials such as iron ore and cost-effective labor has powered growth in the Indian steel sector. India's consumption of finished steel rose to 100 MT at a CAGR of 5.2 percent during FY16-FY20. India's crude steel and finished steel production increased in FY20 to 108.5 MT and 101.03 MT, respectively. In addition, it is projected that solar energy will contribute 114 GW by 2022, followed by 67 GW from wind power and 15 GW from biomass and hydropower. The renewable energy goal has been raised to 227 GW by the year 2022. Thus, with the expanding steel and power generation industry in the region, the demand for resins in paints and coatings will also subsequently increase, which is anticipated to drive the market growth in the APAC region during the forecast period.

Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=503364

Resins In Paints And Coatings Market Drivers

Increasing Automotive Production

Resins in paints and coatings are used to coat automotive surfaces, and they represent cutting-edge technology capable of producing long-lasting surfaces, exceeding customers' standards in terms of appearance, optimizing quality, and complying with environmental regulations. According to the Korea Trade & Investment Promotion Agency (KOTRA), there is an upsurge in the demand for commercial vehicles in the country. And the Saudi Arabian commercial vehicle (CV) sales reached 82,027 units in 2018 and expected to amount to 97,188 by 2023. According to Organisation Internationale des Constructeurs d'Automobiles (OICA), the production of light commercial vehicles increased from 2002284 in 2019 to 2151347 in 2020, an increase of 7.4% in China. Thus, increasing automation production will require more resins in paints and coatings, which will act as a driver for the market during the forecast period.

Expanding Architecture Sector

The resins are extensively utilized in the formulation of paints and coatings to protect the architectural surfaces while enhancing their aesthetics. It protects masonry, stucco, concrete, drywall, and wood, from weathering, yellowing, moisture, efflorescence, staining, and more. The architecture sector is expanding in various regions owing to the increasing population, and per capita income of individuals. Total construction was at a seasonally adjusted annual rate of 1,366,697 in February 2020, according to the US Census Bureau, which is 6.0 percent higher than the rate of 1,288,951 in February 2019. According to the International Trade Administration, the Chinese construction industry is projected to develop at a real-terms annual pace of 5% between 2019 and 2023. The European Construction 2020 Action Plan also aims to improve investment conditions in Europe. Thus, the expanding architecture sector acts as a driver for the market growth during the forecast period.

Resins In Paints And Coatings Market Challenges

Fluctuation in Prices of Raw Materials

Paint prices are primarily based on the cost of raw materials. About 30% of the raw materials of paints and coatings are petroleum-based derivatives. As a result, any increase in crude oil prices would result in a change in the price of raw materials. The price of crude oil has risen dramatically in recent years, putting pressure on painting companies' profit margins. As a result of the recession and subsequent drop in demand, the pressure increased even further. Titanium dioxide, phthalic anhydride, and canarithrithol are the primary raw materials. They account for roughly half of the total expense. Titanium dioxide accounts for 30% of the total cost. The raw materials, such as linseed, castor, soya bean oils, etc., contribute up to 70% of the overall cost of the raw material. Thus, paint prices are very much dependent on raw materials, and any increases in the price of raw materials would eat up the company's profits.

Resins In Paints And Coatings Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the resins in paints and coatings market. Major players in the resins in paints and coatings market are Arkema, BASF, DSM, Allnex Netherlands B.V., Dow, The Sherwin-Williams Company, Evonik Industries AG, Polynt-Reichhold, and Covestro.

Acquisitions/Technology Launches

In November 2020, PRIMALTM RN 1000V is a Bio-based Acrylic Emulsion made with carbon from plants to partially replace petroleum-sourced material in Latin America, according to Dow and Tito Pabón.

In July 2020, PHENODUR® PR 787/50MP, a new, environmentally friendly phenolic resin recommended for interior and exterior can coatings, was introduced by Allnex.

Key Takeaways

Asia-Pacific dominates the resins in paints and coatings market, owing to the increasing aerospace industry in the region. According to Boeing's Commercial Market Outlook 2018-2037, China would need 7,690 new aircraft worth US$1.2 trillion over the next 20 years.

Saturated polyester resins provide resistance to hydrolysis, good weather resistance, excellent gloss, and color retention, particularly for exterior applications. They also have other characteristics, such as clarity, UV resistance, and the high capacity of color for coating solutions. All of which is projected to increase the market growth.

Vinyl resins is a copolymer of vinyl chloride and vinyl acetate, and are economical products that find extensive usage in interior architectural paints and caulks, adhesives and sealants, paper and textile binders, engineered fabrics, and pigment dispersions. Its wide application is anticipated to boost the market growth.

Due to the Covid-19 pandemic, most of the countries have gone under lockdown, due to which the projects and operations of various industries such as construction and automotive are disruptively stopped, which is hampering the resins in paints and coatings market growth.

Related Reports:

A. Resins Market
https://www.industryarc.com/Report/18233/resins-market-research-report-analysis.html

B. Paints and Coatings Market
https://www.industryarc.com/Report/15244/paints-and-coating-market.html

For more Chemicals and Materials Market reports, please click here

About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.