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Architectural Functional
Coatings Have High
Potential in China’s Rapidly
Urbanizing Market
Carole Jacques
Lux Research, Inc.

Architectural Functional Coatings Have High Potential in China’s Rapidly
Urbanizing Market
Architectural functional coatings made up 8% of the 4.64-million-ton Chinese
architectural coating market in 2013, Lux Research says

BOSTON, MA – May 13, 2014 – 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 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 titled, “Exploring Chinese Architectural
Functional Coating Market: Identifying High-Growth Provinces.”
“Insulating coatings present a better opportunity in regions with harsh winters such as
Heilongjiang, while solar reflective coatings should target regions with high cooling
energy demand, such as Guangdong. Photocatalytic coatings should focus on regions
with serious air pollution and high air-quality improvement targets,” he added.
Lux Research analysts evaluated China’s architectural coating market, identifying overall
growth drivers and specific opportunities in high-growth provinces. Among their
 Patents indicate 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.
 Zhishengweihua, Haitai are standout companies. Of the 18 companies and research
institutes evaluated on the Lux Innovation Grid, Zhishengweihua and Haitai emerged as
the top candidates for partnerships. Both have technical advantages – low thermal
conductivity of Zhishengweihua’s insulation coating and the fine particle size of
Haitai’s photocatalytic coating powder.
 Climate plays key role. Insulating coatings are highly valued in China’s Northern
region because of its harsh winters and high electricity tariffs. Similarly, solar reflective
coatings have a ready market in the Pearl River Delta, and the middle and lower
branches of the Yangtze River because of high cooling demand.
The report, titled “Exploring Chinese Architectural Functional Coating Market:
Identifying High-Growth Provinces,” is part of the Lux Research China Innovation
Intelligence service.
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