Coatings World - October 2012

MarketsAndMarkets predicts global epoxy
resins market to reach $8.4 billion by 2017

The report “Global Epoxy Resin Market by Application & Geography - Market Estimates Up To 2017” defines and segments the global epoxy resins market with analysis and forecasting of the global volume and revenue for epoxy resins. It also identifies driving and restraining factors for the global epoxy resins market with analysis of trends, opportunities and issues. The market is segmented and revenues are forecasted on the basis of major regions such as North America, Europe, Asia-Pacific, and Rest of the World. The key countries are covered and forecasted for each region. Further, the market is segmented and revenues are forecasted on the basis of applications.

The global market for epoxy resins in
terms of revenue was estimated to be
worth around $5.5 billion in 2011 and is
expected to reach $8.4 billion by 2017,
growing at an estimated CAGR of 7. 3 per-
cent from 2012 to 2017. Asia-Pacific is the
largest market. The demand for epoxy
resins market is expected to rise in Asia-
Pacific due to robust growth in end-user
industries of China and India.

Ceresana analyzes global
growth in biocides market

Market research institute Ceresana forecasts global revenues of the biocides market to be almost US$7.3 billion in 2019. The prices of biocides vary considerably depending on the type of product, thus constituting a crucial influence on revenues generated in the various fields of application. The sectors paints, disinfectants, and smaller niche applications in particular utilize biocides that are substantially more expensive than products applied in, i.e., water treatment. In quantitative terms, as far as consumption of biocides is concerned, the dominating area on the market for biocides is industrial and public water treatment.

Large regional and application-related differences are the reasons why this report also analyzes how the market situation for

Automotive industry boom in Argentina boosts
the paints and coatings market

By Hernan Cavarra Frost & Sullivan

Industrial and construction growth in Argentina during the past five years fueled the paints and coatings market and is expected to continue its fast pace. In the paints and coatings industry, like most Latin American countries, the architecture segment is at the forefront and accounts for 75 percent of the market, while in the industrial segment, automotive paints and coatings is the sub-segment leader with almost eight percent of the market.

During the 2007-2011 period, automotive manufacturing in Argentina grew at a 12.1 percent CAGR, driving other sectors such as auto parts, adhesives and sealants, and the paints and coatings market, which accounted for an 8. 6 percent CAGR. Although the Argentine economy is expected to enter a cooling stage and for industrial growth to drop, according to IMF (International Monetary Fund) the Argentine GDP is expected to grow at a 3. 6 percent rate until 2017.

There is an intrinsic relationship between GDP growth and vehicles and coatings sales and, due to high inflation rates and Argentine Peso devaluation, Argentina's middle and high classes are buying cars to maintain their purchasing power. As a result, the automotive paints and coatings market is expected to grow at a faster rate than the GDP.

The total automotive paints and coatings market in Argentina is expected to grow to almost 30 million liters in volume by 2017 and more than triple in terms of revenues.

According to Frost & Sullivan, automotive manufacturing in Argentina is forecasted to grow steadily and reach more than 900,000 units of vehicles produced by 2017, while the domestic car fleet is expected to grow at a 3. 3 percent CAGR. The refinish segment in Argentina will grow at a higher rate than the OEM segment, mainly due to car fleet continuous growth, increasing used car sales, high car insurance penetration, and Argentine car owners who take care of their cars more than in other regional countries.

BASF, DuPont, PPG, Sherwin Williams and Akzo Nobel are the biggest market participants, and for the forecasted period, these companies will have to address big challenges. Increasing raw material prices, domestic import restrictions and governmental pressure toward a self-sustaining automotive and chemical industry are expected to be the top challenges in the market. In this sense, companies will be obliged to manufacture their products locally and export in order to level their trade balances. On the other hand, the national government, through the Ministry of Industry, designed the National Industrial Plan 2020 that will support the chemical and petrochemical industry and plans to increase automotive manufacturing up to 1.9 million units by 2020 and registrations up to 1.6 million units.