trends and delivering affordable, high-quality products with value-added func-tionalities are crucial. Forming strategic
partnerships with local companies and
suppliers will help coating vendors access new technology, enhance equity value, establish local presence, and widen
their reach.
“Aggressive marketing and brand-
ing campaigns at industry exhibitions
and seminars as well as advertising in
trade magazines will add to market
scope in Asia-Pacific,” noted Frost &
Sullivan Chemicals, Materials and Food
Consultant Lim Jin Han.“Investments in
distribution channels, especially in high-
growth markets such as China, India and
Vietnam, will decrease costs and enable
suppliers to respond rapidly to the di-
verse needs of customers.”
Japan is expected to witness a signifi-
cant increase in the demand for water-
based decorative coatings as earthquake
reconstruction efforts gain momentum.
In mature markets such as Australia and
Singapore, manufacturers are focusing on
product differentiation to gain an edge
over the competition.
Asia-Pacific Marine Coatings
Market to Witness Steady
Growth, Predicts Frost &
Sullivan
The Asia-Pacific marine coatings market is expected to witness steady growth
owing to the robust development of the
shipbuilding and offshore engineering
industries in the region. Moreover, ships
are subject to harsh environments and the
constant need for their maintenance and
repair will sustain market demand.
New analysis from Frost & Sullivan,
finds that the market earned revenues of
$4.84 billion in 2012 and estimates this
to reach US$6.69 billion in 2016.
The expansion of global trade through
sea routes has increased the number of
bulk carriers, container ships and general
cargo ships manufactured, in turn widening the scope of the marine coatings market in Asia-Pacific. South Korea, Japan
and China are chief shipbuilding countries and will remain the top investment
choice for coating manufacturers.
“The emergence of new coating
July 2013
technologies has further aided market
development,” said Frost & Sullivan
Chemicals, Materials and Food
Consultant Lim Jin Han. “Foul-release
and anti-fouling coatings, which prevent
the buildup of organic matter on ship
hulls, improve fuel efficiency, and decrease emissions, are becoming popular.”
However, the rising costs of the raw
materials used in these coatings – mainly due to fluctuating crude oil prices –
have heightened production expenditure
and reduced manufacturers’ margins.
Titanium dioxide, in particular, is a key
raw material, and an increase in its price
will affect consumer demand.
Besides, the economic slowdown in
Europe and North America has led to a
decline in sea trade and curbed marine
coating sales. Conversely, the downturn
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 in the region.
“Meanwhile, increasingly stringent
regulations governing marine coatings
have compelled manufacturers in the re-
gion to develop products with low vola-
tile organic compounds (VOC), high solid
content, and less harmful biocides,” ob-
served Jin Han. “Low-VOC water-based
coatings are likely to be the most sustain-
able option for manufacturers.”
Epoxy-based anticorrosive marine
coatings are slated for high growth in the
Asia-Pacific due to its favorable cost and
enhanced performance. In the case of an-
tifouling coatings, acrylates are preferred.
However, foul release technologies are
also expected to show gradual growth.
World Demand for Silicones
to Approach $19 Billion in
2017
World demand for silicones is expected to
rise 5. 9 percent per year to $18.9 billion
in 2017. Gains will represent an acceleration from recent historical trends, fueled by an improved outlook for global
manufacturing and construction activity
from the recession-plagued 2007-2012
period, particularly in North America
and Western Europe. Increases in silicone
www.coatingsworld.com
demand will also benefit from the
rising use of high value materials
in emerging applications, particularly in the newly industrialized nations of the world where the use
of silicones is not yet mature. Advances
will be limited, however, by the high cost
of silicones relative to competitive materials in many applications. Elastomers and
fluids were the two leading silicone product types in 2012, combining to account
for nearly 85 percent of total demand.
These and other trends are presented in
“World Silicones,” a new study from The
Freedonia Group, Inc.
The Asia/Pacific region has risen to
become the leading market for silicones,
accounting for nearly 40 percent of
global demand in 2012. Demand in the
region grew nearly 10 percent annually
from 2002 to 2012, fueled primarily by
the rapid advancement of China as a silicone consumer. While slowing to some
extent through 2017, silicone demand
growth in the Asia/Pacific region will
remain the world’s fastest. Gains will
be driven by continued strong growth
in China, the emergence of India as a
significant silicone market, and a favorable economic outlook for the higher
income countries in the region. Above
average growth is also forecast for South
America, Eastern Europe, and the Africa/
Mideast region, areas in which silicone
demand per capita is currently among
the lowest in the world.
While silicone demand in the more
mature markets of North America and
Western Europe will rise at a pace below the global average through 2017,
advances will be a marked improvement
over the performance of the 2007-2012
period. In North America, demand for
silicone will benefit from a strong rebound in construction spending as the
large U.S. market continues to recover
from a housing slump.
Demand in Western Europe will be fueled by a turnaround in manufacturing
and construction activity. As silicones
become increasingly well established in
these regions, technological advancements and product innovation will become essential to expand the application
base for long term market growth. CW
