Green Coatings Market is driven by Growing Construction Activities
The global green coatings market is witnessing substantial growth on account of rising environmental concerns and related sustainability initiatives undertaken by public and private organizations globally. Green coatings refer to environment-friendly paints, sealants and powders that contain low or no volatile organic compounds (VOCs) which emit gases that can damage air quality, health and contribute to climate change. As green varieties offer superior durability and performance, while ensuring low toxicity and emissions, their demand is growing across various end-use sectors especially construction where they help qualify for green building certifications. These coatings also find wide application in wood works, packaging, automotive and industrial machinery owing to properties like long-lasting shine, moisture resistance and enhanced lifespan of substrates.
The Global green coatings Market is estimated to be valued at US$ 70.06 Bn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the green coatings are The Sherwin Williams Company, PPG industries, Akzonobel N.V., Axalta Coating System, BASF, Valspar Corporation, Kansai Paint Company Limited, Tikkurila OYJ, and Masco Corporation among others. The major players are actively involved in R&D activities to introduce innovative and sustainable coating solutions in order to gain competitive edge in the market. For instance, in 2022, PPG Industries launched INVELON coating, claimed to be scrubbable and stain-resistant commercial paint with very low VOC content.
There is growing demand for green coatings due to stringent regulations imposed by governments globally in order reduction in emission levels. Various administrations have defined limit on VOC emissions from architectural coatings to curb air pollution. This is fueling consumption of eco-friendly products in construction and industrial sectors.
The green coatings market players are also expanding globally by enhancing production capabilities and distribution networks across developing and developed nations. For example, AkzoNobel has green coating manufacturing plants spread across North America, Europe, Middle East and Asia Pacific to cater rising demand from local construction and automotive industries.
Market Drivers
Growing construction activities due to rapid urbanization is one of the key drivers for green coatings market. According to estimates, around 70% of green building coatings are consumed in residential and commercial construction globally. Further, stringent government policies promoting eco-friendly infrastructure development are also propelling market growth. Various nations provide incentives like tax benefits to real estate projects incorporating green coating solutions.
The current geopolitical situation is impacting the growth of the green coatings market. With rising tensions between major nations and volatile economic conditions globally due to the pandemic and war, construction activities have slowed down in many parts of the world. This has reduced the demand for green coatings from key end-use industries like building & construction and automotive. However, stringent environmental regulations around the world are likely to drive future growth.
Focus more on eco-friendly, sustainable products to attract environmentally conscious consumers. Governments may also provide subsidies and tax benefits to promote the use of green coatings. Manufacturers need to invest in R&D to develop innovative, low toxic product formulations using renewable raw materials. Strategic partnerships and expanding into emerging markets can help boost sales volumes.
North America accounts for a major share of the global green coatings market, supported by strict environmental regulations and policies promoting sustainability. Europe is another key regional market with countries like Germany, UK, France adopting green building codes and emission norms. Asia Pacific is expected to grow at the fastest pace due to rapid urbanization and industrialization in China, India. Central & South American countries are also emerging as lucrative opportunities.
The green coatings market is expected to witness strong growth in the Asia Pacific region from 2023 to 2030. Factors such as improving standards of living, rapid economic growth, and supportive government policies are driving the market in the region. Countries like China, India, and Indonesia have implemented environmental protection laws to curb emission levels. Additionally, increasing urbanization and infrastructure development projects are resulting in high demand for green building materials like sustainable paints and coatings. Manufacturers are expanding their production capacities in Asia Pacific to leverage market opportunities.
