The rails and rail parts are exposed to several factors including water, salt, moisture, and stray currents. These factors lead to damage of rails due to corrosion, which can weaken the foot of the rails, creating a high risk of rail breakage. Railway coatings provide sustainable protection to the rails against corrosion. The coatings are insulated and waterproof in nature, and can be applied to all types of flat bottom rails.
The global railway coatings market is estimated to surpass US$ 2,915.9 Mn by the end of 2027 in terms of revenue, exhibiting a CAGR of 5.0% during the forecast period (2020 to 2027).
Introduction of new railways and the repair and refurbishment of existing railways is driving the market growth of the railway coatings. Railway coatings consist of protective coatings for interior or exterior of rail cars such as tank cars, boxcars, open hoppers, and covered hoppers among others. Building of new railcars as well as maintenance of existing rail cars is driving growth of the global railway coatings market. For instance, Alstom S A, a company operating in the field of rail transport, received a contract to supply 252 electric multiple-unit cars from the government of West Australia in August 2019. For instance, in March 2020, the National Development and Reform Commission of the People's Republic of China approved investment of US$ 11.25 Bn for development of railway projects in Hefei, Anhui, China.
The increasing demand for mass transportation and rail freight is expected to foster the market growth of railway coatings. For instance, according to the American Public Transportation Association (APTA), commuter rail ridership in 2018 increased by 0.4% in 2018 compared to 2017 in the U.S. With increasing population and urbanization across the globe, demand for mass transportation is also increasing. For instance, according to the International Association of Public Transport, metros were used by 168 Mn passengers in 182 cities within 56 countries per day in 2018.
Among regions, Asia Pacific held dominant position in the global railway coatings market in 2019, accounting for 35.60% market share in terms of revenue, followed by Europe and North America.
Figure 1. Global Railway Coatings Market Revenue Share (%), By Region, 2019
Government regulations on raw materials used in railway coatings is expected to hamper the product demand. Regulations limiting or eliminating the use of raw material that affects the environment and health of the people is a major factor hindering growth of the railway coatings market during the forecast period. This factor is expected to hinder the market growth.
Use of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) in coatings is mentioned in the regulations by governments and environmental agencies such as the U.S. Environment Protection Agency, European Commission, and Environment and Climate Change Canada, etc., these regulations are updated from time to time.
Railway Coatings Market Report Coverage
||Market Size in 2019:
||US$ 2,040.8 Mn
|Historical Data for:
||2017 and 2018
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 2,915.9 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, South Korea, ASEAN, Australia, Rest of Asia Pacific
- Middle East & Africa: Middle East and Africa
- By Product Type: Primer, Base Coat, and Topcoat
- By Coating Type: Electrocoat, Liquid Coating (Solvent-borne and Waterborne), and Powder Coating
- By Application Area: Interior and Exterior
- By Application: OEM and Refurbishment
- By End Use: Light Rail Vehicles, High Speed Railways, Locomotives, Metros, Regional Trains, Freight Wagons, and Others
Akzo Nobel N.V., The Sherwin-Williams Co., Axalta Coating Systems, Weilburger Coatings GmbH, Hempel A/S, HSH Railway Finishes, PPG Industries, Inc., HELIOS, Teknos Group, and Nipsea Group
- Introduction of new railways and the repair and refurbishment of existing railways
- The increasing demand for mass transportation and rail freight
|Restraints & Challenges:
- Government regulations on raw materials used in railway coatings
Development of new coatings to improve corrosion resistance and provide long-term protection are some of the current target trends in the railway coatings market. For instance, in September 2019, Hempel A/S introduced Hempatop Direct 460, which protects against corrosion. The new coating has a single-coat direct-to-metal (DTM) application, which helps to resist railcar color-fading & gloss-fading challenges, reduce maintenance costs, and increase productivity rates.
Figure 2. Global Railway Coatings Market – Opportunity Analysis
On the basis of product type, in 2019, the topcoat segment accounted for 46.1% of the revenue share. Topcoat offers mechanical resistance, chemical resistance, color shade stability, high gloss, high resistance, and facilitate easy removal of graffiti, provide scratch resistance, among others. This is expected to drive demand of railway coatings in the topcoat segment during the forecast period.
Figure 3. Global Railway Coatings Market Revenue Share (%), By Product Type, 2019
Global Railway Coatings Market - Impact of Coronavirus (COVID-19) Pandemic
Railway coatings are used for coating the interior and exterior of railcars, locomotives, tank cars, hoppers, etc. The spread of COVID-19 globally resulted in lockdowns, and cease in economic activities, which severely impacted the coatings sector. Demand for coatings virtually collapsed for a period until governments lifted their restrictive policies in different regions. Despite the pandemic situation, many countries have decided to continue rail construction activities. For instance, in April 2020, the U.K. government approved continuation of construction of High-Speed 2 (HS2) rail project. This in turn is expected to create demand for railway coatings in the near future. However, the delay in many railway construction projects is expected due to the pandemic. For instance, the completion of US$ 1.5 Bn railway construction project in Nigeria is delayed due to COVID-19 outbreak as the workers from China were unable to return to Nigeria.
Key players operating in the global railway coatings market include Akzo Nobel N.V., The Sherwin-Williams Co., Axalta Coating Systems, Weilburger Coatings GmbH, Hempel A/S, HSH Railway Finishes, PPG Industries, Inc., HELIOS, Teknos Group, and Nipsea Group