Asia/Pacific Coatings Market
August 2014 www.coatingsworld.com Coatings World | 35
Pacific due to its favorable cost and enhanced performance. In
the case of antifouling coatings, acrylates are preferred. Foul release technologies are expected to show gradual growth if the
industry can develop improved coatings in copper- and tin-free
antifouling systems. Oddly, the economic slowdown in Europe
and North America that has led to a decline in sea trade and
curbed marine coating sales has also led to the outsourcing of
shipbuilding activities to countries such as China that provide
cheap labor. Hence, Asia Pacific’s position as a hotspot for shipbuilding will remain intact, spurring the marine coatings market
continued growth in the region. Although China, South Korea
and Japan lead the ship building industry globally (i.e., 80 percnt share of the industry) new shipping hubs are appearing in
Vietnam, Philippines and India. It is clear that Asia Pacific will
retain a dominant position in ship building globally.
New innovations in the marine coating segment include glass
flake epoxies that improve abrasion resistance; coatings focused
on reducing drag which would result in increased fuel efficiency
and more environmentally friendly systems (i.e., less toxic antifouling systems).
Protective Coatings In Asia Pacific
Protective coatings account for 12-14 percent of the total
Asia Pacific coating market. China holds a resounding 78
percent market share in this particular segment. This trend is
expected to continue for many years to come as this segment
is tied closely with infrastructure investment and China is
expected to see 40 percent of future global infrastructure investment. The projected high growth of industrial segments
like energy and power, oil and gas and general manufacturing
industries will ensue the continued growth of this segment.
There are numerous companies involved with this segment
(i.e. AkzoNobel, PPG, Asian Paint, Jotun, Hempel, etc.).
Historically, the performance needs of this segment have
been met using solvent-based, two part epoxy systems (or simi-
lar systems). Coating manufacturers involved in this segment
are working on producing systems that are water-based, have
better functionality (i.e. performance) and are more environ-
mentally friendly (i.e., reduced VOC). The Holy Grail for this
segment would be environmentally friendly systems that can
withstand extreme industrial conditions (exhibit great corro-
sion and abrasion resistance), have zero percent flame-spread
fire retardant, provide waterproofing and abrasion protection
along with steam/high pressure wash-down protection and can
be applied in hot, cold, humid, dry environments.
Automotive Coating In Asia Pacific
Firmly on its mark with economic and environmental trends, the
global automotive coatings industry is set to grow. Industry experts have projected that the automotive OEM coating market
will grow from $8.7 billion in 2013 to $11.7 billion by 2018.
Of course, this projection assumes a gradual improvement in the
global economy. Should that not be the case then this projection
will not be met.
The highest demand this year should come from China, the
United States, Japan, Germany, India and South Korea. The
highest five-year growth rate is expected in South Korea, India,
the U.S., China, the UK and Mexico. Key players in the global
market include PPG Industries (U.S.), BASF (Germany), Axalta
Coating Systems/DuPont (U.S.), Kansai Paint (Japan) and
Nippon Paint (Japan).
Changing demands in automobile and coatings technology, auto markets and regional economies have forced the
auto paint industry to evolve. Today, it is aligned with environmental, technology, health and safety, and economic
trends that will drive solid growth through 2018. Global au-tomakers turned out 63 million passenger cars, 16. 9 million
light commercial vehicles and 4.1 million heavy commercial
vehicles in 2012.
The Asia Oceania (Central and South Pacific) region is now
the world’s largest automotive coatings market, with the highest
revenues and regional compound annual growth rate (CAGR)
estimated at 7.85 percent for the next five years. China leads
this segment but other Asia Pacific countries are expected to
show significant growth over the next few years.
Asia Oceania produces more vehicles than any other region
– more than 47.2 million this past year alone, making it the
most important market for the automotive coating industry. The
strong regional presence of Nippon, Kansai and KCC Paints will
definitely help to fuel the market growth for coatings in this
region. Global players PPG Industries, BASF, Axalta Coating
Systems (formerly DuPont) also have a presence in the region
and are likely to influence demand. Some of these companies
have chosen to set up joint ventures with local manufacturers.
