According to a new technical market research report, Paints and Coatings: Global Markets & Advanced Technologies (CHM049A) from BCC Research, the global market for paints and coating is expected to be worth $91.2 billion in 2007. This is expected to increase to over $102.8 billion by 2012, a compound average annual growth rate (CAGR) of 2.4%.

The market is broken down into applications of architectural and decorative, industrial, and special purpose coatings. Of these, architectural and decorative coatings accounts for the largest share of the market. Valued at nearly $41.0 billion in 2007, this segment is expected to be worth $44.4 billion by 2012, a CAGR of 1.5%.

Industrial coating has the second largest share of the market. Worth nearly $34 billion in 2007, it is expected to reach nearly $40.0 billion by 2012 at a CAGR of 3.2%. Special purpose coating, valued at nearly $16.0 billion in 2007, will experience growth to $18.7 billion over the next 5 years, a CAGR of 3.0%.

Much of the growth over the past five years has been driven by increasing demand in developing markets, especially China, Thailand, Indonesia, India and Taiwan, as well as in Eastern Europe comprising Russia, Hungary and the Baltic States. Increased disposable income has catalyzed higher levels of spending on house construction, both directly on paint and on items that use industrial coatings, such as cars and electrical appliances.

These regions also have reaped the benefits of industrial relocation, as automotive construction, industrial wood manufacture and shipbuilding, the main coating users, have shifted from the traditional manufacturing centers of Western Europe and North America to the cheaper markets of Asia and Eastern Europe.