The American Coatings Association (ACA) is predicting the US paint and coatings industry will reach an annual value of US$25-billion by 2019. The ninth edition of the ACA Industry Market Analysis, (2014-2019), prepared by The ChemQuest Group Inc., profiles the performance of the coatings industry’s 19 market sectors, and provides projections for sector performance for the five-year period. This value-added feature is intended to address the 2010 discontinuation of the detailed industry figures previously provided by the US Census Bureau’s Current Industrial Reports. Major trends and drivers the report says will create challenges in multiple market segments through 2019 include: an increased demand for high-solids coatings, downward pressure on the average selling prices per gallon of coatings as the result of persistently low energy prices, the negative impact of a persistently strong US dollar on domestic exports, and an anticipated increase in the benchmark short-term interest rate by the Federal Reserve System if the economy continues to improve (after an unprecedented seven-year rate of near zero percent at the start of the 2008-09 recession), affecting both volume and value in the domestic paint and coatings market. At 60 percent of the volume, and 49 percent of the value in 2014, the architectural coatings segment continues to account for the largest segment of US paints and coatings demand. ChemQuest is forecasting a 2014-2019 Compound Annual Growth Rate (CAGR) of 3.5 percent for value, and 3.3 percent for volume in the architectural segment, versus 1.6 percent and 0.7 percent for value and volume, respectively, in the original equipment manufacturer sector and 2.9 percent for value and 2.8 percent for volume in the special purpose finishes sector. The architectural coatings segment will face both opportunities and challenges heading toward 2019, with the growing demand for waterborne coatings technology — particularly in the primerless and zero-VOC segments — at the expense of solventborne coatings. Consolidation, especially among small and medium-sized formulating companies, is expected to continue, combined with significant competition in channel growth with paint stores vying for increases in market share over home centers. www.paint.org/market