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U.S. Protective Coatings Markets
Frost & Sullivan, Feb 2005
Meeting Environmental Regulations Remains a Key Challenge for Protective Coating Suppliers
In a bid to increase workplace safety and ensure healthier environmental conditions, international environmental regulations are becoming more stringent. Complex specifications determined by several federal and local regulations, restrict the usage of certain coating materials. As a result, protective coatings suppliers are introducing new low-solvent, solvent-free, high-solids and waterborne products that meet low volatile organic compound standards. While this poses a challenge for small and medium-sized suppliers, larger manufacturers seem to be in an advantageous position. The larger manufacturers benefit through their continuous investments in research and development that are aimed at producing much advanced coating systems to meet anticipated future standards.
This Frost & Sullivan research service covers the U.S. protective coatings market. The study identifies the various industrial segments that use protective coatings and examines the prevailing trends. The study also discusses the key market drivers and restraints, provides in-depth market and competitive analysis, and elaborates on the strategies employed by participants.
Demand for High Performance and Environment Friendly Coatings Drives Product Development
The need for environmental compliance is leading coating suppliers to continuously develop new water-based and high-solids coatings such as waterborne acrylics that are more acceptable in the market. However, these coatings are more difficult to formulate in comparison to traditional solvent-based coatings and this could restrict their growth.
On the other hand, the wide range of applications also means that customers are looking for coatings that can withstand the harshest of environmental conditions. Inorganic coatings offer superior resistance to chemicals and abrasion, as well as give high level of color and gloss retention and have displayed a successful track record in replacing organic coatings. Either way, strong customer demand for coatings with greater performance in terms of durability and efficiency is a key driver for new product development in this market, notes the analyst of this research.
Broadening the Product Portfolio will Help Cater to Multiple Segments
The demand for protective coatings is dependent on the investment levels in application markets. Coating suppliers need to broaden their product portfolio and cater to a variety of end-user segments, says the analyst. In this way, they can reduce their dependence on the performance of one particular application segment and capture growth opportunities in fast growing application segments.
The scheduled increase in funding of programs to facilitate repair and refurbishment of public infrastructure - bridges and highways - is a positive development for the U.S. protective coatings market. Maintenance projects account for 70 to 75 percent of the total protective coatings consumption in the United States and show greater growth potential when compared to the new construction market. Further, strong investment outlook in the pharmaceutical, water and wastewater, and bridges and highways market is expected to boost the overall demand for protective coatings. In order to make the best use of these opportunities, suppliers need to reduce their internal cost by better utilization of economies of scale in sourcing raw materials, reducing overheads and cost of distribution and increasing efficiency in manufacturing process.
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