Hull Coatings Market Forecast and CAGR
As per the most recent study by Fact.MR, hull coatings sales are set to witness rapid development during 2021-2031. The growing demand from the shipbuilding sector is one of the primary reasons driving the expansion of the market examined.
Vessel category dominated the market during the historical period and is anticipated to exert its dominance due to the growing shipbuilding sector in the Asia-Pacific region, projects Fact.MR. It is anticipated that innovations and developments in eco-friendly hull coatings would open up newer avenues of revenue generation and keep the market growing at a CAGR of 6.5% during the forecast period 2021-31.
What is Driving the Demand for Hull Coatings?
Since the dawn of civilization, shipping commodities by sea have been the most extensively employed mode of transportation for delivering goods. It may not be as fast as air shipment, but it is still the best option for sending large, heavy items such as automotive. It’s also less expensive and there are mainly no restrictions on where you can go.
In addition to reducing the ship’s water resistance, these coatings also act as a barrier against corrosion on metal hulls. Hull coatings demand is also anticipated to grow due to the increase in maritime transportation and infrastructural & renovation activities being undertaken in established as well as in emerging nations.
Additionally, eco-awareness and environmental regulations in developed and developing countries are driving demand for green coatings. Around the world, governing bodies have been concentrating on adopting greener alternatives, for lowering chemical’s influence on marine life as well as humans and the environment. Additionally, coating producers are working on product improvements that help to reduce the ship’s fuel consumption.
Vital market leaders are more inclined to offer coatings that meet industry standards and environmental requirements. Jotun, for example, had released Hull Skating Solutions (HSS) in the maritime industry in March 2020, with an emphasis on VOC reduction. Hempel, for example, offers Hempaguard X7 hull marine coating, which provides improved water resistance while still providing a smooth surface below the waterline.
Such activities will have a favourable impact on the sales of hull coatings and in turn, keep the market ready for newer challenges.
Asia Pacific Hull Coatings Market Outlook
The Asia Pacific is the largest shipbuilding region in the world that manufactures ferries, fishing vessels, and tow and tugboats in addition to cargo vessels, passenger ships, warships, aircraft carriers, and bulk carriers.
Countries such as China, Japan, and South Korea are the dominant shipbuilders in the Asia-Pacific region, although large shipyards can also be found in other countries in the region.
There has been a rise in the overall shipbuilding orders being received by Asia-Pacific shipbuilders owing to one of the highest quality standards and shorter delivery timeframes offered by them. For instance, South Korean Shipbuilder Hyundai Heavy Industries have recently confirmed to have picked up three separate orders to deliver seven newly built LNG carriers valued around US$ 887.6 Bn, by the end of 2024.
Furthermore, Cochin Shipyard in India recently built the IAC Vikrant, which has gone into sea trials as of 2021. This made India one of the only six countries in the world which can manufacture its aircraft carrier. Such advancements in the field of vessel manufacturing and overall shipping industry growth in recent years are poised to make India one of the most attractive emerging markets for hull coating manufacturers.
Owing to the aforementioned factors, the Asia Pacific region is poised to remain one of the vital reasons, accounting for the highest demand of hull coatings, being used by shipbuilders situated in the region.
What are the Key Challenges faced by Hull Coatings Manufacturers?
The current unstable economic conditions are caused by a rising trade war between the world’s two largest economies, the United States and China. This in addition to the escalating geopolitical tensions, trade conflicts, and overall macroeconomic performance of the overall shipping industry is a reason to worry for hull coatings manufacturers.
The unpredictability of the global economy is seen as a barrier to the market’s expansion. This trickles down to the reduced demand of goods from rich and developed countries, in turn impacting sales of hull coatings which is majorly dependent on the ship construction and repair works being undertaken by countries.
Furthermore, crude oil prices fell to a record low in 2020, as a result of geopolitical tensions between the United States, Iraq, Iran, and Saudi Arabia. As the majority of the coating is made from crude oil products, fluctuations in crude oil prices around the world will pose a challenge to the hull coating’s market growth during the forecast period.
Who are the Key Manufacturers of Hull Coatings?
- Axalta Coating Systems
- Akzo Nobel N.V.
- Boero Bartolomeo SpA
- Chugoku Marine Paints Ltd.
- GLS Coatings Ltd
- BASF SE
- Nippon Paint Holdings Co.Ltd.
- Hempel A/S
- PPG Industries
- Sherwin-Williams Company
- Valspar Corporation
are the major players operating in the hull coatings market.
The desire of a huge portion of the end-users to use sustainable products is pressuring vital players to develop coatings that are less harmful to the environment. Manufacturers in the hull coatings market are attempting to develop newer coatings that are eco-friendly, through extensive research and development.
For example, in September 2019, Hempel A/S introduced “Hempelguard MaX,” a novel coating system with superior anti-biofouling capabilities. The new coating method reduces the owner’s yearly bunker bill by $500 million and CO2 emissions by over 10 million tons.
Strategic alliances and expansion efforts are critical for the overall coatings industry to grow at a faster rate. These efforts are being prioritized by vital players to increase their revenue flow, which will eventually lead to overall sales growth.
By Product Type
- Foul Release
- Crude & Product Tankers
- Misc. Carrier
- Bulk Carrier
- LPG Carrier
- LNG Carrier
- Container ships
- New Ships
- Repair Works
- North America
- US & Canada
- Latin America
- Brazil, Mexico, Argentina & Rest of Latin America
- Germany, France, Italy, Spain, U.K., Benelux, Russia, and Rest of Europe
- East Asia
- China, Japan, South Korea
- South Asia & Oceania
- India, Thailand, Malaysia, Indonesia, Australia & New Zealand and Rest of South Asia
- Middle East and Africa
- GCC Countries, Turkey, South Africa, and Rest of Middle East & Africa
- North America
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