ID: MRFR/CnM/1088-CR | August 2019 | Region: Global | 292 pages
As per the analysis conducted by Market Research Future (MRFR), the global market for wood coatings is projected to expand at a CAGR of 5.81% by 2025. Wood coatings are used to enhance the aesthetic appeal and protect the wooden surfaces of cabinets, furniture, sidings, and decking & floorings, among others. The global wood coatings industry is projected to be majorly driven by the increasing new construction activities, growing demand for renovations and remodeling, and expanding urbanized population.
COVID-19 is expected to have a negative impact on the market, owing to the imposition of lockdown in various countries. The lockdown disrupted the supply and manufacturing process, which brought an adverse effect on the wood coating market.
The rising purchasing power of consumers is expected to be a major cause for the growth of the wood coating market. As the purchasing power of people rises, they are expected to make long-term investments. Long-term investments vary from buying real estate, preventive maintenance activities such as painting and coating for long-lasting durability to increased spending on furnishing. These factors are likely to stimulate the wood coatings market during the forecast period.
Emergence of New Technologies in Wood Coating to Boost the Market
The emergence of new technologies in the wood coating is anticipated to support market expansion during the projection timeframe. The surging necessity for eco-friendly wood coating and rising remodeling are also likely to play a salient role in augmenting wood coatings market size.
However, the unstable prices of raw materials are considered to be the major challenge faced by manufacturers in the wood coatings market.
Growing Dependence of Furniture Industry on Coatings
The furniture industry is dependent on wood coating paints. The industry also relies on wood coatings for protection. These coatings offer protection while shipping, which increases their demand in the furniture industry, thereby providing opportunities for the global wood coatings market expansion.
Availability of low-cost Substitutes to Hinder Market
The availability of low-cost substitutes and imposition of stringent environmental regulations for solvent-based wood coatings may restrain the growth of the market during the assessment tenure.
Growing Concern towards the Environment can Pose Challenge to the Market Expansion
Wood coatings involve the usage of volatile organic compounds (VOCs), which are harmful to the environment. The imposition of stringent VOC regulations is predicted to obstruct the market expansion in the assessment timeframe.
Cumulative Growth Analysis
Wood Coatings to Gain Prominence during the Forecast Period
The market is predicted to grow substantially during the review timeframe due to the growing adoption of environmentally safe products and rapid urbanization.
Based on type, the global market for wood coatings is segmented into stains & varnishes, water repellents, wood preservatives, shellac coatings, and others. The stains & varnishes segment is expected to lead the market during the assessment timeframe. The fuelling of the segment can be accredited to its rising consumption in interior and exterior applications.
Based on technology, the global market for wood coatings is segmented into U.V. curing, solvent-based, high solid solvent-based, and water-based. It has been anticipated that by the year 2023, nearly 1670.2 thousand tons of solvent-based wood coatings can be shipped globally. Solvents offer the best gloss finish, which makes them a sought-after coating technology.
By Resin Type
Based on resin type, the global market for wood coatings is segmented into polyester, nitrocellulose, polyurethane, acrylic, and others. The polyurethane segment is expected to expand at a CAGR of 5.83% during the forecast period. The segment is expected to gain prominence due to its longer life, excellent wear and tear attributes, and no need for extra cost for repairing.
Based on application, the global market for wood coatings is segmented into sidings, flooring & decking, furniture, cabinets, and others. Among them, the furniture segment is expected to acquire the largest market share. The segment is likely to expand at a CAGR of 5.97% while amassing the market value of 6900 million by 2023. The growth of this market segment can be attributed to the propelling market for furniture, increasing consumer purchasing power, growing consumer interest in home decoration, and surging residential and commercial properties.
Based on end-use, the global market for wood coatings is segmented into residential and non-residential. The increase in the residential construction activity owing to the growing urbanization trend, increasing disposable income, a surging population is contributing to the growth of this segment, which is likely to fuel the demand for wood coatings.
APAC to be the Most Lucrative Market for Wood Coatings
APAC is expected to be the most lucrative market for wood coatings owing to the growing demand for portable and compact furniture. Furthermore, the rising construction activities in the region is projected to augment the regional market during the forecast period. In APAC, China procured the largest market share by country in 2018 and is likely to register the highest CAGR of over 5% during the forecast period. India was the second-largest market in 2018 and is expected to grow at a significant CAGR during the forecast period.
Europe is projected to acquire the second –largest market share during the forecast period. The region is expected to expand at a CAGR of 5.4% during the review period. In Europe, Germany is likely to make the most promising contribution in strengthening the regional market while expanding at the highest CAGR during the assessment tenure.
North America is anticipated to acquire a significant market value in the assessment period. The rapid development of the construction sector is predicted to underpin market expansion during the review period. The US, Canada, and Mexico are likely to make a substantial contribution during the assessment tenure.
Growing Focus on Expansion Strategies to Enhance the Competition
The established players of the global wood coatings market are majorly focusing on expansion strategies such as supply/distribution agreements, capacity expansions, mergers & acquisitions, investments, product launches, technology transfers, and joint ventures to maintain their market dominance and increase their global presence.
Affix Labs, a Finland-based chemical tech start-up, has launched its surface cleaning product, Clean N Coat. It can be applied to furniture, woods, which gives an anti-microbial coating and provides protection. It is also eco-friendly.
Wood Coating Market is expected to show significant growth during the assessment period owing to the rising construction activities and increasing demand for natural wood coating solutions, thereby augmenting the wood coatings market share.
Frequently Asked Questions (FAQ) :
The global wood coatings market was valued at more than USD 9.5 billion in 2018.
The global wood coatings market is expected to exhibit a strong 5.81% CAGR over the forecast period from 2019 to 2025.
The growing residential construction industry has driven the demand for furniture and other wooden fittings. This is likely to remain the major driver for the wood coatings market over the forecast period.
Solvent-based wood coatings are the dominant type of wood coatings. Water-based wood coatings are also likely to rise in demand over the forecast period.
Polyurethane is the leading resin type in the wood coatings market.