New research is offering a robust forecast for the global paint and coatings market and a "thought-provoking" look at the industry's biggest players.
Global Paint and Coating Market 2011-2015, by Infiniti Research, projects a compound annual growth rate of 5.46 percent through 2015, driven mainly by civil and construction activities worldwide.
Meanwhile, Innovative Paint and Coatings Technologies and Emerging Markets, by New York City-based Venture Planning Group (VPG), offers a competitive analysis of today’s top paint and coating makers.
Growth Drivers, Markets
According to Infiniti, key factors contributing to paint and coatings growth include the continuing recovery of global economies; rapid industrialization; increasing demand from the automotive, construction and other end-use sectors; increasing stringency in regulations; rising competition; growth in unique formulations; and technological and product developments.
The U.S. and Europe will see sustained demand, but the new growth will come from Asia, the study says.
The report notes that the global coatings market “witnessed a substantial decline in volume and value sales” during the recent recession, although the impact varied among segments in the industry.
Recovery, too, will be somewhat uneven, with a major shift away from Europe, the United States and other developed regions to developing economies in Asia and elsewhere.
“Sustained demand from the developed countries and the burgeoning demand from the developing economies are contributing to the overall expansion of the coatings market worldwide,” Infiniti reports.
The report also notes that the industry mergers-and-acquisitions activity of the past decade “has made the big players even bigger and [has] made it more difficult for the smaller players.”
Moreover, that activity is somewhat self-perpetuating, the report adds.
“Mature markets tend to form an anti-inflationary environment, which compels companies to reduce costs and ...enhance productivity,” it says. “As a result, larger companies are left with no alternative but to integrate operations into a single entity in order to maintain synergies, cut down on costs, and to jointly initiate R&D and marketing efforts.”
Meanwhile, the rapid growth of eco-friendly paints and products has made it difficult for true innovations to stand out. And “the lack of effective product differentiation could pose a challenge to the growth of this market,” Infiniti reports.
The report also takes a look at the key vendors in the market, including Akzo Nobel NV, PPG Industries Inc., Sherwin-Williams Co., and Nippon Paint Co. Ltd., and others.
Handicapping the Players
VPG's competitive analysis, meanwhile, examines the performance, capabilities, goals and strategies of the leading competitors in the worldwide paints and coatings universe.
|Venture Planning Group|
Industrial and automotive coatings are currently driving global demand, the report says.
The 500-page report looks at business organization, senior managements, facilities and employees, technological knowhow, product portfolio, marketing tactics, R&D expenditures and major programs, collaborative arrangements and strategic direction.
Potential competitors and untapped market niches are also examined.
Companies studied include Akzo Nobel NV, PPG Industries, The Sherwin-Williams Company, DuPont, BASF, RPM International Inc., Diamond Vogel Paints, SACAL, Valspar Corporation, and Nippon Paint.
That report also acknowledges that the global paints and coating coatings market performed well in 2011, despite the global economic uncertainty. For that, the analysis credits a surge in demand for industrial building and the enhanced development of the automotive business.