Improving Industry Performance in the Face of Rising Costs

Strategic Analysis of the Protective and Marine Coatings Market and Resins Market

Improving Industry Performance in the Face of Rising Costs


360° Research Overview and TOC

Protective and marine coatings reduce the detrimental effects of corrosion on property, plant, and equipment, thus improving operational efficiency and increasing the performance characteristics of various metal alloys and steels. The objective of this market engineering study is to provide a detailed description of the North American and European protective and marine coatings markets and resins markets in 2013. This includes a brief summary of top-level economic and regulatory trends, as well as those related to functionality and performance, which are important for key industry participants trying to succeed in this market.

This analysis is available through Frost & Sullivan's Chemicals, Materials and Food Growth Partnership Services program. With continuous access to intelligence and resources from all seven perspectives of the Complex Business Universe, the Growth Partnership Services program ensures that you and your Growth Team™ are able to maintain a 360 Degree Perspective of the market. This comprehensive, objective information allows your company to mitigate risk, identify new opportunities, and drive effective strategies for growth.

Market Overview

Formulators have used acquisitions to remain technologically competitive, strengthen key product lines, and expand global market reach.

Although market rankings have been static for quite some time, the high level of competition between all industry participants may allow for leadership positions to change. Techniques used for marketing, promoting service, and optimizing distribution networks will be important in determining market share.
 
Companies with complete offerings are expected to gain from increased penetration across all protective and marine coating applications. As technology continues to converge across the scope of products, these companies should benefit from economies of scale in production and economies of scope in branding.
 
Coating formulators have also started to vertically integrate their manufacturing processes. By producing their own resins, they are able to reduce costs and improve sales margins to a point where it is possible to justify new capital investments that reduce dependence on raw material suppliers and promote long-term growth.


Table of Contents

1. Executive Summary
2. Protective and Marine Coatings: Market Overview
3. Drivers and Restraints
4. Forecasts and Trends
5. Market Share and Competitive Analysis
6. Oil and Gas
7. Water Treatment
8. Power Generation
9. Marine
10. Manufacturing
11. Infrastructure
12. Commercial Architecture
13. Resins for Protective and Marine Coatings: Market Overview
14. Forecasts and Trends
15. Epoxy
16. Polyurethane
17. Polysiloxane
18. Acrylic and Alkyd
19. The Last Word

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Frost & Sullivan: Resin Suppliers and Coating Formulators Partner to Overcome Performance and Environmental Challenges

Developing patented technologies for harsh environments will be key in determining future market success in North America and Europe

MOUNTAIN VIEW, Calif. - Jul. 5, 2013 - Coating formulators are reducing solvent content to comply with more stringent environmental regulations on volatile organic compound emissions, constraining the performance of new protective and marine coatings. Leading participants believe novel coating solutions are required to overcome these challenges as scientists are beginning to encounter limitations with modifying the existing set of raw materials.

Frost & Sullivan's Chemicals, Materials & Food practice (www.frost.materials.com) finds that the protective and marine coatings market earned revenue of $2.03 billion in North America and $2.40 billion in Europe in 2013, and estimates this to reach $2.40 billion and $2.72 billion in 2017, respectively. Additionally, the resins for protective and marine coatings market earned $684 million in North America and $756 million in Europe in 2013, and this revenue is expected to respectfully reach $781.5 million and $826.5 million during the same forecast period.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia@frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

Although growth in oil and gas is expected to have a positive feedback effect on the rest of the economy, the general economic downturn continues to produce a lag in the growth of coating maintenance and repair projects relative to gross domestic product (GDP) growth. Public debt in both regions also creates uncertainty for growth in all protective and marine coatings applications, given that governments have made investments in a number of different markets, including oil and gas, water treatment, power generation, and infrastructure.

Although technology has not made significant jumps, industry participants still maintain moderate growth expectations, which can roughly coincide with regional GDP growth. Both regions will experience a shift in the distribution of coatings across key applications, such as water treatment and power generation, because of the considerable expected growth of the oil and gas industry over the next few years.
 

"Overall, Europe is expected to experience lower growth than North America because of continued political and economic distress, lower infrastructure investment, and the impact of regulations such as the registration, authorization, and restriction of chemicals (REACH), which has completely changed the way US companies export into the European market," said Frost & Sullivan Industry Analyst Roland Heinze. "Revenue growth in both markets has been relatively stable over the last three years, with prices rising to compensate for higher raw material costs and unit shipments decreasing because of a reduction in the amount of coating projects."

Opportunities for innovation exist in crude overheads, offshore facilities, oilfields, and other extreme-temperature applications. Asset owners in these segments are more likely to try out new solutions as they are dealing with cutting-edge problems in the most aggressive environments for corrosion.
 
In fact, by offering high-quality products with greater return on investment for demanding applications, coatings formulators can not only increase their own margins but also those of companies further down the value chain. This will inevitably lead to greater demand for a company’s products and services. To strengthen their value propositions, formulators often partner with universities and associations to conduct joint R&D projects and look to third parties for validation of product quality.


"Because hybrid coatings have considerable promise and are becoming a major area of interest for researchers, formulators prefer to work with multiple raw material suppliers to develop a wide range of coating systems," said Heinze. "However, it is important to note that asset owners in the marine, natural gas, and infrastructure markets suggest that they are more risk averse and less willing to experiment with new solutions. They are satisfied with their traditional coating selections and require companies with new products to provide strong value propositions that are backed by data and statistical evidence before attempting to use them in the field."

Strategic Analysis of the Protective and Marine Coatings Market and the Resins Market is part of the Chemicals, Materials & Food Growth Partnership Services program, which provides global Mega Trends, information on emerging markets and the latest technology innovations, market, economic, customer, competitive, and best practices research. This CEO 360 degree perspective will enable your company to effectively plan your strategies for growth. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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  Strategic Analysis of the Protective and Marine Coatings Market and the Resins Market

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Contact:
Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: jeannette.garcia@frost.com
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