Abstract
"Pillar" Industries Mainstay of Coatings Market
Rapidly developing construction and automotive industries are propelling the
growth of the Chinese paints and coatings market. Increasing government
investment in these "pillar" industries is stimulating great demand
for architectural, building material, powder, and original equipment
manufacturer (OEM) liquid coatings. Environment protection regulations aimed at
reducing air pollution caused by solvent coatings are promoting the development
of eco-friendly products such as water-based, high solid content, and powder
coatings that discharge less volatile organic compounds (VOCs). Powder coatings
are widely used in the automotive industry as environment-friendly alternatives
to solvent coatings.
This Frost & Sullivan research offers a detailed overview of the Chinese
paints and coatings market, divided into the following segments: architectural
and building material, powder, OEM liquid, and special purpose coatings. This
report provides competitive analysis, discusses market drivers, restraints, and
challenges, and offers suitable strategies. It also profiles selected key
companies and discusses major technology trends.
Prosperous Domestic Building Market Stimulates Demand for Coatings
"As hosts to the 2008 Olympic Games and the 2010 World Exhibition
Beijing and Shanghai, respectively, are expected to attract huge investment
toward the construction of city infrastructure, thereby promoting the building
materials market," say the analysts of this study. Heavy-duty
anti-corrosive OEM liquid coatings will be used to protect steel structures
widely used in stadiums and halls, as well as in numerous petrochemical, gas
transmission, and railway infrastructure construction projects.
Rising investment in city construction will, in turn, promote rapid
development of the housing industry. The cancellation of the free housing system
and rising family incomes are prompting more Chinese to buy their own houses.
Combined, these trends will positively impact the demand for architectural
coatings, especially those used on interior surfaces. The decorative and
corrosion-resistant properties of powder coatings are also boosting their use
for the finishing of steel doors, window frames, aluminum sections, and so on.
Market Reforms Benefit Coatings Suppliers
Economic reforms in China have accelerated technological innovation and
international cooperation in the Chinese coatings industry. The production of
coatings, especially low-grade ones, is a profitable venture. Simple processes
yielding immediate profits make this a highly attractive market for
multinational companies. Currently, more than 8,000 participants contend with
each other in this fiercely competitive market. "With high-, medium- and
low-grade coatings all commanding significant demand, companies in search of
success must place strong emphasis on exceptional product quality and
service," conclude the analysts.
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