U.S. Paints and Coatings Market Size, Share & COVID-19 Impact Analysis, By Resin (Epoxy, Acrylic, Polyester, Alkyd, Polyurethane, and Others), By Technology (Water-Based, Solvent-Based, Powder Coating, and Others), By Application (Architectural, Automotive OEM, Marine, Coil, General Industries, Protective Coatings, Automotive Refinish, Industrial Wood, and Others), Forecast, 2023-2030

The U.S. paints and coatings market size was worth USD 19.01 billion in 2022 and is projected to record a CAGR of 5.1% during the forecast period.

The U.S. paints and coatings market is projected to be driven by rising commercial construction activities and increasing demand for these products from the automotive industry. Paints and coatings are extensively used in the construction, automotive, and transport industries, as well as the wood industry. They have a significant application in the construction sector as they protect buildings from exterior damage.

Paints & coatings are also used in several applications to decorate residential and non-residential buildings and building infrastructure, industrial equipment, automobiles, industrial wood, marine vessels, and more. Paint and coating materials with structural properties, such as waterproofing, corrosion resistance, and adhesion, are applied to the surface to prevent rust, erosion, and corrosion, further accelerating the U.S. market growth.

The outbreak of COVID-19 served as a major challenge to this market in 2020 as the supply chain was disrupted due to trade restrictions, and its consumption declined due to government-imposed lockdowns worldwide. Various measures implemented by the national government have led to a downturn in economic activity as countries enter the 'lockdown’ phase, and the outbreak impacted businesses from 2020 to 2021 negatively. It was, however, expected that the U.S. market would recover from the shock throughout the forecast period as it was a ‘black swan’ event and not related to ongoing or fundamental weaknesses in the global market or economy.

LATEST TRENDS

Use of Sustainable Technologies in the Coatings Industry May Favor Market Growth

Strict environmental regulations have created a massive demand for sustainable development of paints & coating products, increasing consumer inclination toward using and purchasing environment-friendly products and boosting the popularity of green building standards. Initiatives by the U.S. Green Building Council (USGBC) and Leadership in Energy and Environmental Design (LEED) have augmented the adoption of zero and low VOC paints.

Hence, paint manufacturers are introducing and innovating their sustainable paint technologies to meet consumer demand. These companies are also following guidelines implemented by REACH to reduce VOCs and carbon footprint, thereby accelerating the development of bio-based technologies and attaining recyclability.

In June 2021, PPG Industries launched the AUE 20 OEM 2.1 Volatile Organic Compound (VOC) clear coat. The product claimed to offer protection from ultraviolet (UV) rays for heavy-duty automobiles and equipment and increase their durability in harsh conditions. The new low-VOC clear coat was formulated over one of PPG's accepted AUE polyurethane topcoats from the Commercial Performance Coatings line.

DRIVING FACTORS

Demand for Low-VOC Coatings Shall Augment Paints and Coatings Market Growth

Rising regulatory pressure and increasing awareness regarding the harmful effects of conventional paints and safe disposal of excess paints and waste products are the key attributes driving the demand for low VOC paints. Additionally, government regulation limits VOC levels for paint at 380 g/l (grams per liter) for most finishes (e.g., satin, eggshell, semi-gloss) and 250 g/l for flat finishes. But many localities have further regulations that require VOC levels far below the federal limits. High levels of VOCs in paints and coatings affect mostly sinusitis and asthma patients. VOCs can also cause severe eye & throat irritation and a burning sensation in the nasal membranes.

Moreover, several manufacturers are frequently improving their processes to comply with the increasing regulatory policies imposed by various governments. For instance, PPG Industries Paints offers a range of zero- or low-VOC products, assisting building owners, architects, home builders, and professional painters. PPG Industries' architectural coatings business launched Speedhide zero interior paint, which contains no ethylene glycol and zero VOCs, thus meeting stringent regulation guidelines. The increasing construction of green buildings with LEED ratings, shift toward eco-friendly chemicals, and recycling of low-VOC paints will likely drive the U.S. market expansion.

RESTRAINING FACTORS

Need for More Drying Time for Water-based Coatings May Hinder Market Growth

More time is required to treat and dry water-based coatings than solvent-based ones. In addition, water-based coating has advanced flow properties that change with moisture/humidity, which affects the coating system. Water does not evaporate easily in high humidity conditions, leading to improper treatment and reduced efficiency. Water-based coating varnishes are also sensitive to cold temperatures. Many aqueous paints are no longer usable after freezing. In addition, temperature has a severe impact on the drying time of the paint. The thicker the coating, the longer it takes to dry. So, an excessively long time taken for drying may result in heavier coatings and uneven surfaces, resulting in the paints' wrinkling.

SEGMENTATION

By Resin Analysis

Based on resin, the market is segmented into epoxy, acrylic, polyester, alkyd, polyurethane (PU), and others.

The epoxy segment is anticipated to hold a dominant U.S. paints and coatings market share. Increasing demand for epoxy resins in paints and coatings due to their binding properties and durability will likely drive their adoption. These resins are used in various industrial and consumer applications due to their strong adhesion, chemical resistance, and toughness. Additionally, the increase in per-capita disposable income and building & construction activities shall augment the demand for epoxy resins during the forecast period.

The acrylic paints segment is gaining momentum in the country due to the high consumption of acrylic paints in the construction and automotive industries.

Growing electronics, coatings, paints, construction, automotive, and other industries will help the polyurethane segment grow. The increasing use of durable plastics in the construction industry will drive the segment growth.

By Technology Analysis

Based on technology, the market is segmented into water-based, solvent-based, powder coating, and others.

The water-based segment is anticipated to dominate the market during the forecast period due to their growing use in protecting structures against moisture. In addition, strict environmental regulations for reducing VOC content in paints and coatings are expected to drive the water-based segment.

The solvent-based segment is expected to witness a significant growth rate during the forecast period due to the stringent regulations regarding products with high VOC content. However, due to their lesser drying time and better functionality in humid and open conditions, the growing application of solvent-based products for architectural and industrial purposes is anticipated to contribute to the segment growth during the forecast period.

By Application Analysis

Based on application, the market is fragmented into architectural, marine, automotive refinish, automotive OEM, coil, general industries, industrial wood, protective coatings, and others.

The architectural segment is anticipated to dominate the market in terms of revenue and volume during the forecast period. The U.S. is the second-largest producer of paints and coatings in the world after China. The increasing infrastructure construction in the U.S., which is one of the largest consumers of architectural coatings, is boosting the segment growth. In addition, growing government spending on construction projects and increasing residential projects in the U.S. shall drive the segment expansion. Paints and coatings are used in buildings and construction activities to protect and decorate various surfaces of the buildings. In addition, paints and coatings increase the resistance of various surfaces, and thus prevent them from weathering and rusting. Increasing civil construction activities in the U.S. has augmented the demand for efficient paints.

Due to the high demand for commercial automobiles, the automotive segment accounted for a significant market share in 2022. This shift mostly benefitted the e-commerce and logistics businesses, thus fueling the U.S. market growth. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, the U.S. accounted for the sales of 1,926,795 cars and 6,895,604 commercial vehicles. Furthermore, the growing focus on reducing vehicular carbon emissions has shifted several manufacturers' focus toward electric vehicles, thus boosting the market growth in the country.

KEY INDUSTRY PLAYERS

In terms of the competitive landscape, the market depicts the presence of established and emerging paints and coatings companies. The key players include PPG, Axalta Coating Systems, The Sherwin-Williams Company, RPM International Inc., and Dunn-Edwards Corporation. These players are competing primarily on the price and application areas of the product. They are emphasizing on product innovation, social marketing, acquisitions, and collaborations.

LIST OF KEY COMPANIES PROFILED:

• PPG Industries, Inc. (U.S.)


• Axalta Coating Systems (U.S.)


• The Sherwin-Williams Company (U.S.)


• RPM International Inc. (U.S.)


• Dunn-Edwards Corporation (U.S.)


• Kansai Paint Co. Ltd. (India)


• BASF SE (Germany)


• 3M (U.S.)


• Sika AG (Switzerland)


• Masco Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022- The Sherwin-Williams Company acquired AquaSurTech, solidifying Sherwin-Williams' position as a major producer of coating solutions in the building materials sector. AquaSurTech has concentrated on researching, manufacturing, and distributing long-lasting, eco-friendly paints and coatings for the vinyl/PVC building products business.


• October 2021- PPG's COMEX brand introduced the Comex VINIMEX TOTAL Antiviral and Antibacterial paint. The new treatment kills up to 99.9% of the bacteria and viruses that cause the most prevalent gastrointestinal and respiratory infections.


• June 2021- PPG acquired Tikkurila, a Nordic paints and coatings company. This acquisition would help PPG expand its paint and coatings options, including Tikkurila’s environment-friendly decorative products and high-quality industrial coatings.

REPORT COVERAGE

The report thoroughly examines key factors such as leading companies, applications, and products. It also provides information on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market's growth in recent years, apart from the factors listed above. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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Report Scope and Segmentation