China's architectural coatings market nearly doubled to 4.64 million tons between 2008 and 2013 and will sustain its growth as the rising Asian giant maintains its rapid pace of urbanization. However, the fastest growth and the highest profits are found in the functional coatings segment, which accounts for about 8 % of the architectural coatings market, according to a report by Lux Research.

 

Three major types of architectural functional coatings--insulating, solar reflective and photocatalytic coatings--form the most lucrative segments due to their wide feasibility in all building types and early commercialization status. "More important, these three types of architectural functional coatings have high growth potential because their adoption is aligned with the policies of the Chinese government to improve building sustainability and efficiency," said Jerrold Wang, Lux Research Associate and the lead author of the report.

 

The analysts evaluated China's architectural coating market, identifying overall growth drivers and specific opportunities in high-growth provinces. Their findings indicate that patents provide high growth for functional coatings. Patent activity in all these three types of architectural functional coatings has risen since 2010, and 472 patents have been awarded in the four years up to January 2014. The vast majority have been secured by commercial enterprises, indicating market-readiness as well as responsiveness to government policy.