Market Trends of Acrylic Surface Coating Industry
Growing Demand from the Building and Construction Sector
- Acrylic surface coatings are widely used in the building and construction sector because of their inertness and excellent color retention when exposed to outdoor conditions. Acrylics are available in various forms, such as emulsions (latex), lacquers, enamels, and powders.
- The chief component of acrylic polymers is acrylic and methacrylic acid which provide a polymer structure with a little tendency to absorb UV light. It increases its resistance to weathering and oxidation than oil-based paints, alkyds, or epoxies, so its application increased in the buildings & construction sector.
- The South African government devised a 'National Infrastructure Plan 2050' to deliver infrastructure development across energy, transport, digital communications, and water by 2050. USD 0.33 trillion will be invested through 2040 in infrastructure development.
- Further, as per further statistics generated by the US Census Bureau, the annual value for new construction in the United States accounted for USD 1,657,590 million in 2022, compared to USD 1,499,822 million in 2021. Moreover, the annual value of residential construction in the United States was valued at USD 849,164 million in 2022, compared to USD 740,645 million in 2021. The country's annual non-residential construction value was USD 808,427 million in 2022, compared to USD 759,177 million in 2021. It is thereby decreasing the consumption of the market studied in the short term.
- According to the Canadian Construction Association, the construction sector is one of Canada's largest employers and a major contributor to the country's economic success. The industry generates about USD 141 billion annually and contributes 7.5% of the country's Gross Domestic Product (GDP).
- The building & construction industry leads in using acrylic surface coatings, with China, Germany, the United States, India, and Japan playing a major role in the market.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for acrylic surface coatings during the forecast period. The demand for acrylic surface coatings is increasing in countries like China, India, and Japan because of the growing building and construction sector.
- The largest producers of acrylic surface coatings are located in the Asia-Pacific region. Some leading companies producing acrylic surface coatings are Asian Paints, Berger Paints India Limited, Akzo Nobel NV, Jotun, and Sika AG.
- China's 14th Five-Year Plan focuses on new infrastructure projects in energy, transportation, water systems, and urbanization. According to estimates, overall investment in new infrastructure during the 14th Five-Year Plan period (2021-2025) will reach roughly CNY 27 trillion (USD 4.2 trillion).
- China's urbanization rate is among the highest in the world. While China's urbanization rate reached 64.7% in 2022, this urban renewal policy aims to develop greener and more efficient cities as the government seeks to improve China's urban living conditions.
- India's huge construction sector is expected to become the world's third-largest construction market. Various policies implemented by the Indian government, such as the Smart Cities project, Housing for All, etc., are expected to bring impetus to the Indian construction industry.
- As per the Ministry of Statistics and Programme Implementation of India, the construction sector contributed a GDP share amounting to USD 37.26 billion in Q4 2022, higher than the GDP share of USD 32.95 billion in Q3 2022.
- Acrylic surface coatings are used as protective coatings in aerospace applications other than paints, fabric and leather finishes, floor polishes, and paper coatings.
- The above factors and government support contribute to the increasing demand for the acrylic surface coatings market during the forecast period.
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