Infrastructure boom drives growth opportunities
A rising population and an infrastructure boom drive growth opportunities and stokes the demand for anti-corrosion coatings in the regions of North America, Europe and Asia-Pacific, finds Frost+Sullivan’s visionary science team.
The infrastructure boom and rising urbanisation in Asia-Pacific have made it the largest and fastest-growing regional market for anti-corrosion coatings, with 54.7% of the revenue shares. It is likely to touch 57.9% in 2023, driven by the rapid growth of end-user industries such as water and wastewater, manufacturing and commercial architecture. Most of the demand for anti-corrosion coatings in the region is expected from the developing economies of China, India and Southeast Asian countries like Indonesia and Malaysia, which are witnessing frenzied developmental activities.
“The surge in the purchasing power of the citizens of Asia-Pacific accelerated the growth of its building and construction as well as infrastructure industries, stoking demand for anti-corrosion coatings,” says Frost+Sullivan Visionary Science Research Analyst Christeena Thomas. “Furthermore, Asia-Pacific’s economic growth has attracted significant capital investments by large companies, which has aided the establishment of additional production and distribution facilities.”
High-performance anti-corrosion coatings
“Global Anti-corrosion Coatings Market, Forecast to 2023” is part of Frost+Sullivan’s Future of Chemicals and Materials in Infrastructure and Mobility Growth Partnership Subscription. The research covers the end industries of oil and gas, manufacturing, water and wastewater, commercial architecture, infrastructure, marine and power generation. It provides the unit shipment and revenue forecasts for each segment from 2013 to 2023, and at the sub-segment level, focuses on the major technologies, substrate types and chemistries used in the products. It also presents the competitive structure and market share data at the primary and secondary tiers.
Meanwhile, there is a growing need for high-performance, anti-corrosion coatings in the water and wastewater segment, especially in the Middle East and Asia-Pacific. Epoxy is the dominant chemistry used in this industry, although acrylics and hybrid chemistries are gaining prominence due to the intensifying need for environmental sustainability as well as lower-priced and effective corrosion coatings that are easy to apply.
“The lucrative manufacturing end-user market also is offering substantial opportunities for coatings manufacturers that can provide direct-to-metal, hybrid and low-cost formulations based on alkyds, epoxies and latexes,” notes Mrs. Thomas. “The oil and gas sector is a particularly active segment, and coatings that can protect against harsh off-shore conditions and exposure to various chemicals will enjoy considerable success here.”
Trends in the three main regions
Here the major trends in the regions of North America, Europe and Asia-Pacific.
1. North America: The growth of anti-corrosion coatings in the infrastructure segment is expected to be slow due to underinvestment by the government. Nevertheless, upcoming investments in offshore projects in the oil and gas industry will buoy the market.
2. Europe: Manufacturing and commercial architecture are the major growth drivers for anti-corrosion coatings, propelled by demand from industry expansion projects in Eastern Europe.
3. Asia-Pacific and Rest of the World: Consumers are demanding coatings that are low priced and can be applied in lower volumes, as it will save them labour costs. However, the consumers in the Middle East are eager for high-performance coatings for the oil and gas and water and wastewater verticals, as well as for numerous infrastructure projects aimed at the upcoming FIFA World Cup 2020.
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