Cool Roof Coatings Market - Forecast(2024 - 2030)

Cool Roof Coatings Market Overview

The cool roof coatings market size is estimated to reach US$5.7 billion by 2027, and will grow at a CAGR of around 6.2% from 2022 to 2027. The cool roof coatings are the reflective thick paints or pigments that help in reflecting the sunlight and protect the roof surface from the UV light, heat, and chemical damage. Various cool roof coating types such as spray polyurethane coating, modified bitumen, silicone, and others are used in the market. The elastomeric coating, and IR reflective coatings are used in various residential buildings, commercial sector, industrial buildings, and others. The growing construction activities and building projects is driving the cool roof coatings market. Furthermore, a rise in the development of green buildings owing to growing emission concerns will boost the growth of the cool roof coating market during the forecast period.

COVID-19 Impact

The cool roof coatings market was majorly impacted by the economic slowdown in the covid-19 pandemic. The pandemic led to halt in manufacturing activities, logistics disturbances, supply and demand gap, and other lockdown restrictions. The cool roof coatings have major application in the residential construction sector. The demand for construction projects and activities saw a major decline during the outbreak. The labor shortages, disrupted supply chain, and closure of construction sites led to fall in the growth for the market. Moreover, rise in construction costs, unavailability of raw materials, and poor transportation system disrupted the demand for various residential as well as commercial building projects. According to the World Bank, the annual growth of the construction industry saw a decline of 2.48% in 2020. The decline in demand for the construction industry led to fall in the applications of the cool roof coatings in residential sector such as low-sloped roofs, walls, roof slabs, and others also declined. Thus, the global cool roof coatings market saw a major fall in the growth during the pandemic.

Report Coverage

The reports: "Cool Roof Coatings Market Report – Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the cool roof coatings industry outlook.

Key Takeaways

Figure: Asia Pacific Cool Roof Coatings Market Revenue, 2021-2027 (US$ Billion)

For more details on this report - Request for Sample

Cool Roof Coatings Market Segment Analysis – By Product

By product, the elastomeric segment held the largest cool roof coatings market share and will grow at 5.7% during the forecast period. The high demand of the elastomeric coatings is influenced by its growing applications in the housing roofs, buildings, and other construction sector. The elastomeric coatings offer superior properties such as UV resistance, high transparency, and durability. Moreover, the demand of the elastomeric acrylic coatings in buildings and commercial spaces is growing owing to rise in energy-efficient cool roofing systems. According to the Office for National Statistics, the monthly output of construction in January 2022 increased by 1.1% in terms of volume, contributing highest level since September 2019 level. The growth in construction projects and buildings is offering growth for the elastomeric coatings in the cool roof coating industry. Thus, the global cool roof coatings market will grow due to high demand in construction sector during the forecast period.

Cool Roof Coatings Market Segment Analysis- By End Use Industry 

By end use industry, the industrial segment held the largest cool roof coatings market share and will grow at a CAGR of around 6.6% during the forecast period. The demand of the cool roof coatings in the industrial sector is growing due to rise in application in the industrial building such as mills, malls, powerplants, manufacturing plants, warehouses, and others. The cool roof coatings such as silicone, acrylic, polyurethane coating, and others are used in the industrial buildings to offer cool roofs, reduced energy bills, and low carbon emissions. Furthermore, the increasing demand of cool roof coating products in the industrial workplaces and buildings is boosting the growth of cool roof coatings industry. According to the World Bank, the value added by global construction sector accounted for 26% of the gross domestic product in 2020. Thus, with high demand of cool roof coatings in industrial construction sector such as mills, warehouses, factories, and others, the global cool roof coatings market will grow during the forecast period. 

Cool Roof Coatings Market Segment Analysis – By Geography

The Asia pacific held the largest market share and is expected to grow at a CAGR of 6.9% in the cool roof coatings market during the forecast period. The increasing demand of the cool roof coatings in residential, commercial, as well as industrial construction sector in this region is boosting the growth in the cool roof coatings industry. Furthermore, the rising building and construction activities in the APAC region is propelling the demand of cool roof coatings in the market. The increasing adoption of the green building codes in major countries such as China, India, Indonesia, and others is driving the market of cool roof coatings. Moreover, the rise in residential housing and building activities is boosting the demand of IR coatings. According to the India Brand Equity Foundation (IBEF), the residential sector will grow with government aiming to build 20 million houses under the Pradhan Mantri Awas Yojna (PMAY) by 2022 in India. Thus, with increasing demand of the cool roof coatings in APAC region in residential, industrial, and commercial sectors, the cool roof coatings market will grow during the forecast period.

Cool Roof Coatings Market Drivers

Increasing adoption of the green building codes

The cool roof coatings are energy efficient, environment friendly and economic options that keep the building cool. The increasing adoption of the green building codes by various countries is driving the cool roof coatings market. The rise in concerns towards the carbon emission and high energy consumption has encouraged the government to adopt the green building initiation. This is boosting the demand for the cool roof coatings market. For instance, the Irish Green Building Council (IGBC), along with LDA and EPA announced to launch online tool in order to assess and reduce the carbon emission in construction sector. The green building establishments eliminates the harmful impacts on environment, reduces carbon emissions, and saves energy as the cool roof coatings keep the buildings cooler and thereby lowers energy consumption. Thus, the increasing adoption of green building across the world is driving the global cool roof coatings industry.

Growing application in the buildings & construction sector

The demand of cool roof coatings in the building & construction sector is growing due to its increasing applications in roof slabs, walls, and other residential applications. The growing usage of silicone or acrylic coatings in buildings due to protection in extreme hot temperature, flexibility, and energy efficient features. The use of the cool roof coatings in green buildings for residential sector such as homes, apartments, and others, industrial sector such as mills, manufacturing plants, and others, and other construction establishments is driving the cool roof coating market. Furthermore, increased building projects and construction activities is influencing the demand of cool roof coatings in the market. According to the Central Sanctioning and Monitoring Committee (CSMC), construction of around 1,68,606 homes were approved in urban areas under the Pradhan Mantri Awas Yojna in India in 2021. Thus, the high building and construction activities are offering major growth prospects for the cool roof coatings industry.

Cool Roof Coatings Market Challenges

Volatility in the prices of raw materials

The cool roof coatings have growing applications across various construction sectors. However, the volatility in the prices of raw materials such as acrylic, polyurethane, and others, which are derived from the crude oil is creating a major challenge in the market. According to the Energy Information Association (EIA), the WTI crude oil prices was US$ 50.38 per barrel in quarter 4th in 2019, reduced to US$ 40.34 per barrel in 1st quarter 2020, and rose to US$ 63.91 per barrel in 4th quarter 2021. The fluctuations in the crude oil prices hamper the manufacturing of elastomeric coatings and other product types. Thus, the high volatility in the raw material prices used to make coatings materials, the cool roof coatings will face major challenge in the market.

Cool Roof Coatings Industry Outlook

The cool roof coatings top 10 companies include:

1. Sherwin Williams
2. Nippon Paints
3. GAF Materials
4. Valspar Corporation
5. Akzo Nobel
6. PPG Industries Inc.
7. Monarch Industries
8. BASF SE
9. Excel Coatings
10. Sika AG

Recent Developments

Relevant Reports