Market Trends of Plastic Coatings Industry
Building and Construction Segment to Dominate the Market
- Plastic coatings find major applications in the construction industry. For example, plastisol, a coating made from Poly Vinyl Chloride (PVC) is used as a coating on roofs.
- The global construction industry is projected to have significant growth in the coming years, which is likely to drive the demand for plastic coatings.
- According to a study by the Institution of Civil Engineers (ICE), the global construction industry is expected to value USD 8 trillion by 2030, primarily driven by China, India, and the United States region.
- According to the United Nations (UN), around 50% of the global population resides in urban cities, which is projected to touch 60%, by 2030. The pace of economic and demographic growth must be in harmony with the demand for residential activities. By 2030, around 40% of the global population is likely to need housing at the rate of over 96,150 houses per day.
- Globally, Asia-Pacific has the largest construction market, followed by India, China, and various Southeast Asian countries. In India, the government has initiated projects, such as 100 smart cities and 'Housing for All by 2022', which are expected to immensely drive the residential construction market in India through the forecast period.
- German Social Democrat government is focusing heavily on the housing crisis in the country and has created a new ministry to supervise its housing plans. In November 2021, the government pledged more than 400,000 new housing units every year from 2022, 100,000 of which will be publicly subsidized.
- All the aforementioned factors are likely to increase the demand for plastic coatings over the forecast period.
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China to Dominate the Asia-Pacific Region
- China is one of the largest economies, in terms of GDP and is among the fastest emerging economies in the world. Moreover, China is among the top manufacturers of automobiles, electronic devices, and electric vehicles globally.
- The majority of the demand for plastic coatings in the country comes from the automotive and construction industry.
- China is one of the world's largest vehicle markets and will continue to be the world's largest vehicle market by both annual sales and manufacturing output, By 2025 domestic production is expected to reach 35 million vehicles.
- China is one of the largest countries in the world, where the construction sector dominates almost all other sectors in growth. In 2021, the revenue of construction enterprises in China was CNY 8,013.8 billion, an increase of 2.1% over the previous year.
- As per U.S. International Trade Administration, China is the world's largest construction market and is forecasted to grow at an annual average of 8.6% between 2022 and 2030.
- Such factors are expected to increase the demand for plastic coatings in the Asia Pacific region, mainly in the Chinese market over the forecast period.
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