Product Code: 60539
The market for chemical resistant coatings is expected to grow to reach USD XX million at a CAGR of more than 5% during the forecast period.
Due to COVID-19, the chemical resistant coatings market has been negatively impacted. Due to the imposed lockdowns in the first half of 2020, and travel restrictions, the industries were shut for the most part of the first half of the year. The Oil and gas demand has fallen drastically due to the restrictions imposed by the governments across the globe. However, in the second half of the year most of the industries were working at a minimum capacity, and the lifting of travel restrictions and relaxation of the lockdowns are a positive sign for the market studied.
- Over the Short term, The major factor driving the growth of the market studied include growing infrastructure and industrialization activities in Asia-Pacific region and expansion in oil and gas activities in Asia-pacific and North America region.
- On the flipside, complex production process and high investment cost, and unfavorable conditions arising due to COVID-19 impact on the overall market are expected to hinder the growth of the market studied.
Key Market Trends
Oil and Gas Segment to Dominate the Market
- Chemical resistance coatings have been a necessity in a variety of applications in construction and infrastructure. These coatings are often used for layering, varnishing, or flooring applications in wastewater treatment plants, sewer, containment zones, and power plants, among others.
- The global water consumption rate has been increasing by 100%, every twenty years. The rising scarcity for potable water, coupled with the growing population and increasing water demand, is the major concern that has been driving the demand for the water treatment industry. The growing number of construction of water treatment plants has been mainly driving the demand for the market studied.
- The Council on Energy, Environment & Water (CEEW), in association with the 2030 Water Resources Group, has been planning to improve wastewater management in India, along with increasing private investments to build wastewater treatment plants.
- Additionally, the increasing investments and establishment of new manufacturing plants in the food processing industry are expected to drive the market studied, during the forecast period.
- Construction of new power plants have also been boosting the chemical resistant coatings for flooring in the recent times.
- Therefore, the growing construction of water treatment plants, power plants, and food and beverage units in various countries is expected to boost the demand for the market studied, during the forecast period. However, the COVID-19 breakdown has resulted in the stalling of construction activities in many countries all over the world. This scenario is likely to have an impact on the demand for market studied in a short-term. The situation is expected to recover gradually in the coming years.
China to Dominate the Asia-Pacific Market
- In Asia-Pacific, China is the largest economy, in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with United States.
- Although China was the first country affected by the COVID-19 and its related lockdown, it is the first country that has come out of the lockdowns and is starting its long journey towards normalcy. However, as a major chunk of the Chinese economy is linked to foreign exports where demand is still low will negatively affect the Chinese industry in the near future.
- In China, the construction industry grew at a strong pace in 2020, even though the growth slowed down during the first half of the year. The construction sector has supported the economic growth in the country, while the US-China trade war affected the performance in other industries, such as automotive, electronics, etc.
- Such increase in the number of infrastructure project approvals during 2020 is likely to stimulate infrastructure spending over the following two years. The government more than doubled the investment on large-scale infrastructure projects approved during 2020 with total expected investment around CNY 849.3 billion (USD 131 billion) in order to ensure the steady growth of the economy.
- In 2021, the country still planned to rely on state infrastructure spending to avert the anticipated scenario of sharper slowdown. In this regards, the country strategized to boost infrastructure investment and offer more special bonds.
- The non-residential infrastructure is also expected to grow considerably in the country. The spread of COVID-19 in the country is currently driving the construction of healthcare facilities and new hospitals in 2020, while aging population has also been adding to the need to increase domestic healthcare infrastructure.
- In the recent years, the entry of major construction players (from the European Union) in China has further fueled the growth of this industry. Moreover, China is expected to spend nearly USD 13 trillion on building.
- There are around 1,944 municipal wastewater treatment plants across China's city/urban regions and 1,599 municipal wastewater treatment plants across China's counties, accounting for daily processing capacities of 140 and 29 million cubic meters, respectively. In the 13th FYP, China aims to spend around RMB 559 billion or 0.75% of its GDP on its water treatment industry, driving chemical resistant coatings demand from the sector.
- COVID-19 has negatively affected the Chinese economy in the first quarter of 2020. The communist party of China used the investment in the construction sector as a tool to fuel economy when it faces slowdown and we are expecting a similar fiscal push by government in real estate to manage the crisis which will revive the demand for chemical resistant coatings for construction applications in the country during the forecast period.
The chemical resistant coatings market is fragmented, with the presence of majorly multi-national players. Some of the major players include PPG Industries Inc., Sika AG, The Sherwin-Williams Company, BASF SE, and Jotun, among others.
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TABLE OF CONTENTS
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Drivers
- 4.1.1 Expansion of Oil and Gas Activities in APAC and North America
- 4.1.2 Growing Infrastructure and Industrialization in the Asia-Pacific Region
- 4.2 Restraints
- 4.2.1 Complex Production Process and High Investment Cost
- 4.2.2 Unfavorable Conditions Arising due to COVID-19 Impact
- 4.3 Industry Value-Chain Analysis
- 4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Consumers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5 MARKET SEGMENTATION
- 5.1 Resin
- 5.1.1 Epoxy
- 5.1.2 Polyester
- 5.1.3 Fluoropolymers
- 5.1.4 Polyurethane
- 5.1.5 Other Resins
- 5.2 Technology
- 5.2.1 100% Solids
- 5.2.2 Solvent Borne
- 5.2.3 Powder
- 5.2.4 Water-borne
- 5.3 End-user Industry
- 5.3.1 Chemical
- 5.3.2 Oil and Gas
- 5.3.3 Marine
- 5.3.4 Construction and Infrastructural
- 5.4 Geography
- 5.4.1 Asia-Pacific
- 184.108.40.206 China
- 220.127.116.11 India
- 18.104.22.168 Japan
- 22.214.171.124 South Korea
- 126.96.36.199 Rest of Asia-Pacific
- 5.4.2 North America
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Mexico
- 5.4.3 Europe
- 18.104.22.168 Germany
- 22.214.171.124 United Kingdom
- 126.96.36.199 Italy
- 188.8.131.52 France
- 184.108.40.206 Spain
- 220.127.116.11 Rest of Europe
- 5.4.4 South America
- 18.104.22.168 Brazil
- 22.214.171.124 Argentina
- 126.96.36.199 Rest of South America
- 5.4.5 Middle-East and Africa
- 188.8.131.52 Saudi Arabia
- 184.108.40.206 South Africa
- 220.127.116.11 Qatar
- 18.104.22.168 Rest of Middle-East and Africa
6 COMPETITIVE LANDSCAPE
- 6.1 Mergers & Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
- 6.4 Company Profiles
- 6.4.1 BASF SE
- 6.4.2 Akzonobel NV
- 6.4.3 Daikin Industries Ltd
- 6.4.4 Hempel AS
- 6.4.5 Jotun
- 6.4.6 Kansai Paint Co. Ltd
- 6.4.7 PPG Industries Inc.
- 6.4.8 RPM International Inc.
- 6.4.9 Sika AG
- 6.4.10 The Sherwin-Williams Company
- 6.4.11 VersaFlex Incorporated
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Development of Lignin-based Polyurethanes
- 7.2 Increasing Demand due to the Growing Applications in Various Industries