Asia-Pacific Protective Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia-Pacific protective coatings market is estimated to witness a significant growth, at an estimated CAGR of over 5%, over the forecast period. Expansion in oil and gas activities and increasing infrastructure activities across the region are expected to drive the market during the forecast period.

• Regulations related to the VOCs and rise in prices of raw materials are likely to hinder the market’s growth.
• China is expected to dominate the market and is also expected to witness the fastest CAGR during the forecast period.

Key Market Trends

Rising Demand from Infrastructure Segment

• Infrastructure accounts for the largest share of the market and is also estimated to be the fastest growing. Rails, bridges, and roads constitute major segments of the infrastructure. With the increase in population, expansions in infrastructure have become an inevitable part of socio-economic development.
• Protective coatings are used in overhead structures, like flyovers and bridges, particularly in refurbishment situations, in order to improve the durability and to delay the replacement in structures. They are used to reduce the damage on the concrete surfaces and to stop or significantly reduce the rate of steel reinforcement corrosion.
• Asia-Pacific is the fastest growing region in infrastructure sector across the world. In countries such as China, and India, the government investments and initiatives are boosting the growth of the sector in the region.
• The Indian government has announced its plans to construct and upgrade six freight corridors throughout the country, by 2020. The Indonesian government has set a target of adding 3,258 km to the existing railway network (2,159 km intercity and 1,099 km urban), requiring an investment of USD 23.9 billion between 2015 and 2019. The Pakistan Ministry of Railways has been preparing a railway strategic plan (RSP), to operationalize its targets, which would provide a long-term framework for the development of the country’s railway sector. This plan aims to increase the railway’s share in transportation, from 4% to 20%, by 2025.
• The aforementioned factors have been boosting the demand for protective coatings, in the recent times.

China to Dominate the Market

• China continues to progress along a positive economic trajectory, with private consumption driving a higher share of growth than government spending and investment. Despite bureaucratic complexities and insufficient protections for intellectual property, most business condition indicators in China have improved and key end markets important to the Group remain attractive.
• The infrastructure segment is estimated to hold the largest share of the market in the country. China is the world leader in infrastructure investments and has an array of railroad expansions planned during the forecast period.
• China’s 13th Five Year Plan started in 2016 as it was an important year for the country’s engineering, procurement, and construction (EPC) industry. In addition to this, the country ventured into new business models domestically and internationally, during the year.
• The program is expected to involve over USD 1 trillion in investments up to 2049, largely in infrastructure development for ports, roads, railways, and airports, and power plants and telecommunications networks.
• The overland ‘Belt’ links China to Central and South Asia and onward to Europe. The maritime ‘Road’ links China to the nations of South East Asia, the Gulf countries, East and North Africa, and on to Europe. Six overland economic corridors have been identified, including the China–Mongolia–Russia Economic Corridor, the New Eurasian Land Bridge, the China–Central Asia–West Asia Economic Corridor, the China–Indochina Peninsula Economic Corridor, the China–Pakistan Economic Corridor, and the Bangladesh–China–India–Myanmar Economic Corridor.
• Thus, all the aforementioned factors are expected to drive the demand for protective coatings in the region during the forecast period.

Competitive Landscape

The Asia-Pacific protective coatings market is partially fragmented. Key players in the market include Akzo Nobel N.V., NIPSEA GROUP, The Sherwin Williams Company, PPG Industries, Inc., and Hempel A/S, among others.

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