Paints and Coatings Market: Infrastructure Projects, Decorative Trends & Industry Growth

According to IMARC Group's latest research publication, global paints and coatings market size was valued at USD 185.6 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 274.8 Billion by 2034, exhibiting a growth rate (CAGR) of 4.5% from 2026-2034.

How AI is Reshaping the Future of Paints and Coatings Market

• Accelerated Formulation Development: AI reduces development timelines from months to days, analyzing historical data on raw materials and blend performances to create optimized formulations. Companies achieve faster market responses while experimenting with new pigments and additives for high-performance products.
• Real-Time Quality Control Systems: AI-powered computer vision systems monitor production lines continuously using high-resolution cameras and machine learning algorithms. These systems detect microscopic defects, viscosity inconsistencies, and color deviations instantly, reducing subpar batches by catching issues before they escalate.
• Precision Color Matching Technology: AI algorithms analyze vast datasets to predict color matching with exceptional accuracy, eliminating the traditional two-to-five-day manual process. Digital systems optimize batch iterations, reducing production time to under two hours while ensuring consistent results across formulations.
• Predictive Maintenance and Equipment Optimization: Machine learning analyzes sensor data from manufacturing equipment to predict maintenance needs before breakdowns occur. AI systems optimize mixing, pumping, and pipe flow processes, extending equipment lifespan while minimizing downtime and operational costs significantly.
• Sustainable Raw Material Optimization: AI identifies optimal combinations of bio-based polymers, pigments, and emulsifiers for eco-friendly formulations. Deep learning models ensure biodegradable ingredients maintain performance standards, reducing waste by optimizing raw material usage in production processes.

Paints and Coatings Industry Overview:

Asia Pacific dominates the global paints and coatings sector with 34.8% market share, driven by rapid urbanization and manufacturing expansion across China, India, and Southeast Asia. The U.S. construction industry contributed 4.3% to GDP in 2023, while China plans construction activities equivalent to 10 New York-sized cities by 2025, fueling massive architectural coatings demand. India's Make in India initiative attracted substantial foreign investments, with motor vehicle production in Brazil reaching 2,324,838 units in December 2023. The MENA construction sector demonstrated impressive resilience, awarding USD 101 billion worth of projects in the first half of 2023, while Germany saw 60% of its population engaged in video gaming, showcasing diversified industrial applications and demographic engagement across regions.

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Paints and Coatings Market Trends & Drivers

Construction sector expansion and infrastructure development are creating unprecedented demand for architectural and decorative coatings worldwide. China's urbanization rate leads globally, with the American Institute of Architects Shanghai projecting construction activities equivalent to 10 New York-sized cities by 2025. The U.S. construction industry accounted for 4.3% of GDP in 2023, driving substantial requirements for both residential and commercial coating applications. Brazil's motor vehicle production reached 2,324,838 units in December 2023, reflecting automotive sector strength that requires premium coating solutions for durability and aesthetics. MENA's construction sector awarded USD 101 billion in projects during the first half of 2023, demonstrating robust growth in commercial, residential, and infrastructure segments. Approximately 30% of automobile production expenses comprise paints and coatings, highlighting their critical role in manufacturing.

Strategic mergers and acquisitions are reshaping the competitive landscape as industry giants pursue scale advantages and market consolidation. BASF reached a binding agreement with Carlyle and Qatar Investment Authority in October 2025 to divest its Coatings division at EUR 8.7 billion enterprise value, representing approximately 13x EBITDA multiple. Sherwin-Williams completed acquisition of BASF's Brazilian architectural paints business (Suvinil brand) in October 2025, adding approximately USD 525 million in annual sales and two strategically located production facilities. JSW Group acquired AkzoNobel India Limited in June 2025 for EUR 1.4 billion enterprise value at 22x EBITDA multiple, establishing a strong position in India's liquid paints market. American Industrial Partners acquired PPG's U.S. and Canadian architectural coatings business in December 2024 for USD 550 million, rebranding the division as Pittsburgh Paints Company with approximately USD 2 billion in annual sales.

Environmental regulations and sustainability initiatives are accelerating innovation in eco-friendly coating formulations across all market segments. The European Union's REACH agency approved biodegradable, plant-based binders for paints and coatings in April 2025, enabling commercialization of sustainable products meeting strict performance standards. Arkema Coating Resins developed Synaqua® 4804 in 2022, an ammonia-free and APEO-free resin system delivering high gloss with low VOC content comparable to traditional solvent-based alkyds. Nippon Paint Marine introduced state-of-the-art antifouling paint utilizing NANO-Technologies that fuse hydrophilic and hydrophobic qualities in nanostructures for accurate, long-lasting performance. South Korean chemical giant KCC implemented its K-Smart AI-driven smart factory system, achieving significant production efficiency increases and dramatic waste reduction. Sherwin-Williams launched Repacor SW-1000 in March 2024, a breakthrough 100% solids VOC-free coating system for offshore wind turbines, delivering full anti-corrosion protection in single 500-micron coats. Axalta and Dürr Systems announced strategic partnership in January 2025 to commercialize digital paint solutions integrating NextJet™ precision application technology with advanced robotics for maskless, overspray-free automotive painting.

Leading Companies Operating in the Global Paints and Coatings Industry:

• Akzo Nobel N.V.
• Asian Paints Ltd
• Axalta Coating Systems, LLC
• Berger Paints India Ltd
• Indigo Paints Limited
• Jotun
• Kansai Paint Co., Ltd
• National Paints Factories Co. Ltd.
• Nippon Paint Holdings Co., Ltd
• PPG Industries, Inc.
• RPM International Inc.
• The Sherwin-Williams Company

Paints and Coatings Market Report Segmentation:

By Product:

• Waterborne Coatings
• Solvent-borne Coatings
• Powder Coatings
• High Solids/Radiation Curing
• Others

Waterborne coatings represent the largest segment with 40.6% market share, driven by eco-friendly characteristics, low-VOC properties, excellent durability, and compliance with stringent environmental regulations.

By Material:

• Acrylic
• Alkyd
• Polyurethane
• Epoxy
• Polyester
• Others

Acrylic dominates the material segment with 46.98% market share, owing to versatile performance, quick-drying properties, UV resistance, color retention, and compatibility with diverse substrates and formulations.

By Application:

• Architectural and Decorative
• Non-Architectural (Automotive and Transportation, Wood, General Industrial, Marine, Protective, Others)

Architectural and decorative coatings hold 65.0% market share, driven by robust residential, commercial, and infrastructure construction demand worldwide alongside renovation and remodeling activities.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific exhibits clear dominance with 34.8% market share, driven by rapid urbanization, industrialization, thriving construction industry, automotive sector growth, and cost-effective manufacturing capabilities.

Recent News and Developments in Paints and Coatings Market

• December 2025: AkzoNobel and Axalta Coating Systems announced a definitive merger agreement creating a combined entity with approximately USD 16.9 billion in revenue. AkzoNobel shareholders will own 55% and Axalta shareholders 45% of the new company, headquartered in the Netherlands but listed on the New York Stock Exchange.
• October 2025: BASF reached binding transaction agreement with Carlyle and Qatar Investment Authority to divest its Coatings division (automotive OEM, refinish, and surface treatment) at EUR 8.7 billion enterprise value. BASF will retain 40% equity stake and receive pre-tax proceeds of approximately EUR 5.8 billion at closing.
• August 2025: AkzoNobel introduced its Interpon D2525 Structura collection featuring sought-after colors and sophisticated textures with exceptional durability. The powder coatings provide smooth texture for aluminum and steel surfaces with notably enhanced gloss retention and robust color alteration resistance.
• June 2025: Kamdhenu Paints unveiled an extensive premium wood coating collection suitable for interior and exterior applications. The range includes Kamwood 2K PU for luxurious finishes, Kamwood 1K PU for transparency and stain resistance, and Kamwood Melamyne for sleek, long-lasting results.

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