The Europe paints & coatings market is estimated to register a growth rate of 3.77% during the forecast period (2018-2023). Germany is estimated to lead the market due to the ongoing growth in the architectural and automotive sectors in the country. Water-based coatings are expected to be the fastest growing type by technology.
In the automotive sector, paints and coatings impart protection to both interior, as well as exterior surfaces against various aggressive environmental agents, such as sunlight, corrosive materials, and environmental effects, such as acid rain, hot-cold shocks, stone chips, UV radiation, car washing, and blowing sand, among others. The automotive industry is crucial for Europe’s economy. The European automotive industry has a multiplier effect ion the European economy as it provides employment to around 12 million people and accounts for 4% of the GDP. The European Automotive Commission has doubled the funds available for cooperative research and innovation in the automotive sector for the period 2014-2020 with the aim to preserve the technological leadership in the automotive sector. The funding is focused on green vehicles, decarburization of conventional engines, safety, and information technology infrastructure. According to the European Automobile Manufacturers Association, automotive production in whole of Europe grew by 2.5% YoY, in 2016 over 2015, reaching a total of 21,696,968 vehicles. These factors are expected to increase the automotive production, which, in turn, is likely to increase the usage of paints and coatings in Europe.
The VOCs released from solvent-borne coatings is the core reason for the switch of manufacturers to water-borne coatings. Also, other properties, like low odor, more durability, and more block resistance make water-borne coatings more preferable. There are many regulations from several governments, which support water-based coatings. These are usually used in several applications, which include transportation, building & construction, and industrial applications. In recent times, there has been a propensity to seek coatings with high usability, and water clean-up characteristics among the users. Water-borne coatings meet the requirements and facilitate low viscosity as well, without the addition of low-molecular weight monomers. REACH, a government initiative in Europe, was adopted to improve human health and the environment from the risks that can be constituted by chemicals, while enhancing the competition in the European chemical industry. This is increasing the demand for coatings with low-VOC content, such as water-borne coatings.
Germany is recognized globally for its leadership in the automotive industry and excellence in engineering. In recent years, the German automotive industry consistently expanded its global position; it built 6.06 million new cars in 2016. About 21 of the world’s top 100 automotive suppliers are German companies. The growth in the automobile industry will positively affect the paints & coatings market in the country. The transportation sector had increased in 2016. The approval of the EUR 10 billion project, German Unity Transport Project 8 (VDE 8), by the German Federal Government to improve the transport connection between East and West, and between North and South. Germany has the largest construction industry in Europe. According to industry experts, the demand for new houses is estimated to be around 350,000 per year until 2020, which is expected to boost the construction industry. All these factors would rapidly drive the market for paints & coatings in Germany during the forecast period.
Major Players: AkzoNobel, DAW SE, Nippon Paints, PPG, and Axalta, BASF SE, among others.
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