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