Coherent Market Insights

Marine Coatings Market is estimated to be valued at USD 4.03 Bn in 2024

Marine Coatings Market is estimated to be valued at USD 4.03 Bn in 2024 - Coherent Market Insights

Publish In: Mar 15, 2024

The marine coatings market is estimated to be valued at USD 4.03 billion in 2024, growing at a CAGR of 6.1% over the forecast period (2024-2031). The market is driven by the increasing demand from the shipbuilding and repair industries. Furthermore, rising offshore exploration activities are also expected to boost the market growth during this period.

Market Dynamics:

The global marine coatings market is primarily driven by two key factors. Firstly, with the rising offshore exploration and production activities across the oil and gas industry, the demand for rigs, drill ships, and offshore support vessels are increasing significantly. This is augmenting the demand for marine coatings to protect these assets from harsh offshore and marine environmental conditions. Secondly, the shipbuilding and ship repair industry is growing steadily worldwide owing to expanding marine trade activities. Various types of marine coatings such as anticorrosion, antifouling, and other functional coatings are widely used during new ship construction as well as repair and maintenance of existing ships and vessels. This is positively impacting the sale volume of marine coatings globally.

Increasing International Marine Trade is Driving the Demand for Marine Coatings

The amount of goods being transported via international shipping routes has seen significant growth in recent years. As world trade increases each year and more goods are shipped between countries by sea, the number of cargo and commercial vessels plying international waters continues to rise. This growing marine trade requires more ships to be built and maintained, driving up the demand for high-performance marine coatings to protect hulls and other vessel components from corrosion caused by saltwater exposure. Marine coatings protect the steel structures of ships and extend their operational lifetimes, making ongoing maintenance and re-coating essential as vessels are used for years of global seaborne trade. The increasing number of cargo ships, tankers, cruise ships, and other commercial vessels engaged in international marine trade is a key driver propelling growth in the global marine coatings market.

Stringent Environmental Regulations are Leading Shipowners to Adopt Advanced Low-VOC Coatings

Regulatory agencies worldwide have implemented stricter environmental standards in recent years governing the emission of volatile organic compounds (VOCs) from marine coatings. VOCs are known to contribute to increased ground-level ozone and smog formation. Ship owners and operators are now mandated to use advanced low- or no-VOC coating technologies validated by testing organizations to meet tightened emission limits. This is driving a shift away from conventional high-VOC antifouling paints and primer coatings towards more eco-friendly and sustainable solutions. Water-based, 100% solid and high solids coating variants certified for low or zero VOC emissions are gaining widespread adoption to ensure regulatory compliance. The implementation of stringent environmental regulations around the world restricting the use of traditional VOC-heavy marine coatings is a key market driver pushing innovation and adoption of advanced low-VOC technologies.

Fluctuating Raw Material Prices Pose a Challenge for Coating Suppliers

The marine coatings industry is highly dependent on petroleum-derived raw materials like epoxy, acrylic, and polyurethane resins that are vulnerable to price volatility in oil and gas markets. Fluctuations in global crude oil prices directly impact production costs for marine coating manufacturers. Rising oil prices drive up expenses, squeezing profit margins. Suppliers face the difficult task of balancing the need to increase product prices to offset higher input costs versus maintaining competitive offerings. Significant price swings in key crude-based feedstock introduce uncertainty over the cost of producing marine coatings. This dependence on unpredictable petrochemical commodity markets poses a major restraint over business planning and pricing strategies for marine coating companies.

Outbreak of the COVID-19 Pandemic Disrupted Global Supply Chains

The unforeseen outbreak and widespread spread of the novel coronavirus globally in early 2020 created major economic disruptions across multiple industries worldwide. Factories were shut down, shipbuilding activity declined sharply, and international trade routes were impeded due to lockdowns, travel restrictions, and safe distancing measures imposed to control the pandemic. Supply chains for marine coatings were severely impacted as the availability of raw materials from different countries decreased. International transportation of coatings and other goods also became challenging. The pandemic significantly reduced consumer demand for marine coatings used in shipbuilding and maintenance in 2020. The temporary but sharp decline in global maritime trade and shipbuilding output during the initial COVID-19 outbreak period harmed the market for marine coatings.

Installation of Ballast Water Treatment Systems Present New Opportunities

To prevent the spread of invasive aquatic microorganisms between bodies of water internationally via vessel ballast tanks, stricter ballast water management standards are being enforced globally according to the International Maritime Organization's Ballast Water Management Convention. All ships engaged in international voyages must have an approved ballast water treatment system installed and operated effectively onboard. This is driving the demand for marine coatings capable of protecting and sealing the internal tanks and pipes of ballast water management equipment from corrosion over long operational lives at sea. Suppliers are developing specialized coating systems optimized for this application opening up a lucrative new market segment.

Rising Shipbuilding Activities in Asia Pacific is Expanding the Addressable Market

Major emerging economies in Asia Pacific like China, South Korea, and India have seen tremendous growth in their domestic shipbuilding industries in recent decades. These countries now account for over half the global shipbuilding output as infrastructure development and expanding intra-Asian trade have driven the building of more ships locally. The rising shipbuilding capacity and orders coming from Asia are helping enlarge the potential customer base for international and local marine coatings manufacturers. Shipowners are constructing more vessels that will require protection through multiple re-coating cycles during operational lifetimes.

Link https://www.coherentmarketinsights.com/market-insight/marine-coatings-market-480

Key Developments

  • Hempel's decision to join the International Maritime Organization's (IMO) Global Industry Alliance (GIA) for Marine Biosafety in March 2023 signifies a proactive step towards addressing key environmental challenges in the maritime sector. By collaborating with the industry through the GIA, Hempel aims to contribute to efforts aimed at reducing shipping emissions and combating the spread of invasive species.
  • PPG's launch of PPG SIGMAGLIDE 2390 marine coating in March 2023 marked a significant advancement in the maritime industry. This innovative coating is designed to assist shipowners in reducing power consumption and carbon emissions while meeting the increasing requirements for enhanced performance without compromising the marine environment. By utilizing PPG SIGMAGLIDE 2390, ship operators can achieve improved fuel efficiency, lower operational costs, and contribute to a more sustainable shipping industry.
  • In September 2021, the Eastern Coatings show, organized by Eastern Coatings Federation was postponed to November (17-19 likely) 2021 so as to allot time for complete vaccination of its members, sponsors, and partners to ensure a safe environment for the conference
  • In December 2021, AkzoNobel N.V. finalized its complete acquisition of New Nautical Coatings as a strategic move to sustain a strong position in Yacht coating business in New York, U.S.

Key Players

AkzoNobel N.V., Chugoku Marine Paints Ltd., Hempel A/S, Jotun A/S, Kansai Paint Co. Ltd., KCC Corporation, Nippon Paint, PPG Industries Inc, RPM International Inc, The Sherwin-Williams Company., Permagard Marine, Jyoti Innovision Private Limited, Protexion, Excel India Protective Paints Pvt. Ltd., Goa Paints, Axalta Coating Systems, BOERO BARTOLOMEO S.p.A., Vizag chemical, and Nippon Paint

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