Coatings World - August 2015

Kerry Pianoforte, Editor

Asia-Pacific is the key market for marine coatings due to a high level of new shipbuilding activity, as well as dry- dockings in the region. Market research firm TechNavio’s analysts forecast the global marine coatings market to grow at a CAGR of 11. 29 percent over the period 2013-2018. One of the key factors contributing to this market growth is the expansion of the oil and gas market. The global marine coatings market has also been witnessing the growing consumer preference for eco-friendly products; however, strict environmental regulations could pose a challenge to the growth of this market, the report stated.

AkzoNobel reported that it has seen generally positive market developments, which is reflected in the performance of its marine and protective coatings reporting unit, which includes the oil and gas industry. The company reported that marine and protective coatings revenue was up 15 percent in the second quarter, to €418 million.

“This was due to favorable currencies and positive volume development within marine coatings, partially offset by weaker demand in protective coatings due to lower capital spending and delayed projects in the global oil and gas industries. In the first half of the year overall, revenues were up by 13 percent, to €771 million. Marine volumes have driven by strong demand from projects in Europe and Asia, tempered by continued weakness in the Chinese shipbuilding industry,” a spokesperson for AkzoNobel stated.

“2015 has so far been a reasonably good year when it comes
to demand for marine coatings,” said Geir Boe, vice president,
marine coatings, Jotun. “Deliveries of new buildings show a slight
increase, while low levels of new orders make the outlook less
promising. We have also seen an increased number of dockings as
quite some owners will dock their vessels before January 1, 2016
where the requirement for ballast water treatment will demand
investments in new equipment.”
Growth in the marine coatings market can be attributed
to a number of factors. “The basic factor is increase in world
GDP, which implies more trade and higher demand for trans-
port by sea and tonnage,” said Boe. “Still high growth in China
is fundamental. Demand for more tonnage will create cyclical
demands for new buildings and a steady increase in coatings for
repair and maintenance as the merchant fleet grows.”

Asia Pacific Region Drives Growth

The Asia-Pacific region by far represents the most important market for marine coatings due to new shipbuilding industry and dry-dockings.

According to AkzoNobel, demand for marine coatings is highest in areas of new construction of ships and offshore structures, notably Korea and China, although the market in China has softened recently.

“Asia has increasingly become more important for marine coatings,” said Boe. “Korea, China and Japan are dominating when it comes to new buildings. China is also by far the country where most dry dockings take place. The main reasons for the growth are lower cost and acceptable technology level and workmanship. We also see that Singapore is growing as a hub for ship owners. We believe that the importance of Asia for marine coatings will continue to increase where also new countries like India might enter the arena more strongly.”

Environmental Legislation

Environmental regulations are becoming increasingly stricter in
the coming years. “This is very evident in Europe,” said Boe.
“The regulations will set the agenda for the R&D for the coat-
ing manufacturers and limit the scope of development. Costs
related to testing and approval for new raw materials and prod-
ucts will increase dramatically. We also see that regulations in
China and Korea become stricter year by year – in China often
with short notice time for implementation.”
Both the EU Biocidal Products Regulation (BPR) and
REACH (Registration, Evaluation, Authorisation and
Restriction of Chemicals) will have a significant impact on the
marine coatings industry.