Market Trends of Iran Paints and Coatings Industry
Acrylic Resins to Dominate the Market
- Acrylic resins have properties, such as transparency, high color ability, and UV resistance, in coating solutions. They are used in water-borne systems very often, which results in low VOC emissions.
- The application of acrylic coatings leads to high surface hardness. In certain applications, such as walls, decks, and roofing, acrylic coatings provide elastomeric finishes to improve the UV resistance of the surface if employed with some fluids.
- The application of acrylic coatings is primarily found in the construction industry for high-end finishing in roofs, decks, bridges, floors, and other applications. Water-based acrylic coatings are in high demand owing to environmental concerns, like the negative impact of VOCs affecting the air quality in the environment.
- Some additional applications of acrylic paints and coatings are found in marine vessels and structures, automotive, electrical products, machinery, and various metal product, among others.
- In October 2022, six memorandums of understanding (MoU) were signed between Iran Khodro Industrial Group and Saipa Automobile Group. Through this agreement, the companies will supply and purchase raw materials and parts and establish joint engineering and research and development centers for manufacturing vehicles in the country.
- According to European Automobile Manufacturers' Association (French: L'Association des Constructeurs Européens d'Automobiles (ACEA)), in terms of car manufacturing growth in 2022, Iran ranked 11th in the world with a total production of 1.064 million vehicles in 2022, while in 2021, it was 894,000 units.
- Owing to the above-mentioned factors, demand for acrylic resin type is likely to dominate the market studied over the coming years.
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Architectural Coatings to Dominate the Market
- Paints and coatings are not only used in the interiors of houses to add colors or decorative purposes but also to perform a wide range of functions. Their functions vary depending on the type of environment and room that they are used in.
- Paints and coatings are applied on the exterior of the house not only to give them a new look but also to protect them from blistering summers, freezing winters, soaking rain, and the daily bombardment of UV radiation without fading, peeling away, and cracking.
- The construction activities in the country witnessed continuous growth in the past few years. National action plan for the production and supply of housing, the government aims to construct around 400,000 small and medium-sized apartments, with focusing areas being Shahr-e Jadid-e Parand and Pardis.
- In August 2022, the Transport and Urban Development Department of the country announced that 4,000 units of the National Housing Movement plan are under construction in West Azerbaijan province.
- Further, under the National Housing Movement plan, the construction of 209,212 residential units started in the month of February 2022.
- Hence, such trends and market scenarios will boost the demand for architectural paints and coatings in the country.
