Water-Borne Inks and Paints Market Expected to Expand at a Steady CAGR through 2020
Increasing use of aliphatic hydrocarbons, ketones and aromatic hydrocarbons as solventsisthe major cause of environmental and health concerns. Water-borne solvents areconsidered the best alternative source for paint industries. With almost nil environmental effect, it is seen to streamline the business operations of the paint and coatings industry in the near future.
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It is expected that the marketsoperating in the paint and coatings domain will see a moderateCAGR in between 2014 and 2020. The key driving factor behind this vertical surge can be attributed to the fact that end-user applications such as industrial, architecture, wood coatings, packaging, coil coatings, marine protective coatings and aerospace coatings aregrowing at an exponential rate. Of all these, architecture is the focused area for paint industries. It will determine the growth trajectory of the water-borne paint industry by 2020.
China and India are potential markets for the water-borne paint industry in the Asia-Pacific region. By 2050, it is expected that population in the Asia-Pacific region will increase by 64%. Urbanization will be driven by infrastructure investment to meet the people’s aspirations which in turn will scale the market size of the paint industry in this region. The Indian government is framing new policies to boost infrastructure across various cities. It has allocated US $ 1.2 billion for the same. It opens a new gate for paint companies for gaining high revenues. It is because of end-user applications in infrastructure that the Indian paint companiesexpect in between 10 to 15% growth in business volume by 2015. Another largemarket in Asia-Pacific is China. With GDP of China projected to grow over 8%, Chinese government is heavily focused on urbanization.The country has planned to invest US $ 6.8 trillion to develop new cities in its current five years plan. Other potential markets for the water-borne paint industry are Vietnam, Malaysia, Philippines, Taiwan and Japan.
In Latin America, Brazil is set to witness a high growth in infrastructure primarily due to its high GDP growth and considerable investment in infrastructure. It is expected to further accelerate its growth because of its destined venue for the Olympics in 2016. Other potential markets in this region are Argentina and Mexico. Growth in infrastructure is set to scale the paint market vertically upwards in Latin America.
The water-borne paint industry has a bright future in North America. With the US infrastructure reaching itsmaturity, it needs constant renovation to maintain its durability. Though the paint and coatings market was not flourishing, the industry is expected to review its growth to gain high momentum owing to huge investment in infrastructure maintenance in the future.
In Europe, stringent regulations imposed by REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) are driving the market from solvent-borne paints to water-borne paints. With its historical cities, it fascinates tourists from every corner of the world to have a glance at its monumental buildings. Europe, like the US, too is witnessing a maturity. In the coming years, it will need support from end-user segments, including the paint and coatings industry, to support its monumental heritage. However, in Europe, a big role will be played by healthcare and automotive sectors. Europe accounts for in between 25 to 30% of the global market share in the paint and coatings segment. The market in Europe seems to be in the doldrums mainly because of its huge market debt and slow economic reforms.
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With government policies shifting their need towards water-borne paints and inks, the paint industry is set to be accelerated by water-borne paints in various geographical locations. The US and Europe have already imposed strict regulations and it is expected to be the same in other parts of global region. The water-borne paint industryisset to grow at a moderate CAGR from 2014 to 2019. It has already penetrated in between 12 to 15% of the global paint market and is set to capture the remaining market share of paints driven by solvent-borne technology, in the coming future. With water-borne paints, the paint and coatings industryis set to witness a high return on investment by 2019.
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