the largest group of products in the industrial market but that
is changing driven by increasing environmental concerns, especially in heavily populated countries like China and India.
There are numerous drivers in place that will support the
growth expectations for Asia Pacific. Perhaps the largest of
which is infrastructure investment. Approximately 40 percent
of future global infrastructure investment is slated for the Asia
Pacific region. That investment strategy will provide the basis
for an enormous amount of high value coatings.
Coating Trends For Asia Pacific
Historically, Asia Pacific has been a low cost, low performance
expectation market, mostly served by solvent-based systems
(Japan, Australia and New Zealand being the exception).
However, with the emergence of the region’s primary countries
(i.e., China, India, etc.) as a major participant in the global
marketplace major changes have occurred. An area of potential
growth that cuts across all coating segments in Asia Pacific involves “green coatings” (i.e. environment friendly systems). The
green coatings manufacturing companies and research institutions are infusing high investment for the future advancements
and technology of environment friendly and nonhazardous
coatings. These investments are to create coatings with similar performance as compared to conventional VOC contained
coatings. Asia Pacific is the largest region followed by North
America and Europe. Countries such as China, India, Japan,
Malaysia, Thailand, Indonesia, Vietnam and others are growing
markets for green coatings. Major players in the green coatings
industry include the same players that participate in conventional systems (i.e. AkzoNobel, PPG Industries, Henkel, Sherwin-Williams, Axalta, Valspar, BASF, Kansai and others).
Decorative Coatings In Asia Pacific
History shows that the decorative coating market owes its
growth and sustainability to the construction and/or renovation
of commercial/residential properties. Over the past few years we
have seen a significant increase in such activities in China, India,
Indonesia, etc. That activity has resulted in an increased demand
for decorative coatings. Along with this increased demand has
been the need to produce coatings that are more environmen-
tally friendly (i.e. reduction of VOC, removal of lead based pig-
ments, etc.) and provide improved performance characteristics
(i.e. resistance to mold growth, dirt and loss of adhesion from
various substrates, long term durability, etc.). To meet these de-
mands companies such as Nippon and AkzoNobel established
regionally based facilities to better understand the relationship
between local raw materials, application techniques, substrate
differences, etc. Over the past years most coating companies in
Asia Pacific have been able to formulate environmental friendly
paints. Water-based coatings dominate this particular segment.
The critical drivers for future growth include a growing
‘middle class’ in key Asia Pacific counties, which has fueled
commercial and residential construction. In addition, as various countries in the region incorporate more green and sustainable construction this will be a positive driver for more
decorative coatings.
Major coating producers in Asia Pacific are working on sustainable coatings (coatings that provide energy savings); functional or so called “smart coatings,” which will enhance mold
and dirt resistance; more environmentally friendly coatings that
are water borne, offer reduced VOC and are formaldehyde free.
The major threats to the future growth of this segment include: increased cost of essential raw materials; continued stagnation or decline in the global market which would negatively
impact the growth of the regions ‘middle class.’
Marine Coatings In Asia Pacific
The Asia Pacific marine coatings market is expected to witness
steady growth owing to the robust development of the shipbuilding and offshore engineering industries that are located in
the region. It is estimated that marine coatings represent about
6 percent of the total coatings market in Asia Pacific. Generally
speaking, ocean going ships are subject to harsh environments
and the constant need for their maintenance and repair will be a
significant driver to sustain market demand in the years to come.
An analysis of the Asia Pacific marine coating market finds that
the market earned revenues of$4.84 billion in 2012 and industry experts estimates this will reach $6.69 billion in 2016.
However, the rising costs of the raw materials used in these coatings – mostly due to fluctuating crude oil prices as a result of
political tensions in the Middle East – have heightened production expenditure and reduced manufacturers’ margins. Titanium
dioxide, in particular, is a key raw material, and any increase
in its price will directly affect consumer demand. Epoxy-based
anticorrosive marine coatings are slated for high growth in Asia
