Market Dynamics and Competitive Landscape of the Marine Coatings Industry

Market Dynamics and Competitive Landscape of the Marine Coatings Industry

Marine coatings, also known as naval coatings, are protective paints or coatings applied to ships and boats to protect hulls and components from seawater corrosion damage and fouling by marine organisms such as barnacles, molluscs, and algae. Marine coatings provide a protective barrier between the sea and vessel hull and components, thereby preventing corrosion, improving fuel efficiency and prolonging the life of vessels.

The global marine coatings market is estimated to be valued at US$ 7.1 billion in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period of 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Preventing corrosion is one of the major opportunities in the marine coatings market. Corrosion leads to loss of integrity of vessel hulls and increases maintenance cost of marine vessels. About 40% of total maintenance budget of commercial ships is spent on corrosion prevention and repair activities. It is estimated that corrosion costs the global marine industry around US$ 30-50 billion annually. Application of effective marine coatings is a highly cost-effective method of preventing corrosion damage to hulls of all types of vessels including commercial ships, oil & gas rigs, yachts, and naval ships. This has significantly boosted demand for high-performance marine coatings and is expected to continue driving the market growth over the forecast period.

Porter's Analysis

Threat of new entrants: The marine coatings market requires large capital investments and established supply chains, distribution channels and brand reputation, creating barriers for new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products and the differentiated needs of end-use industries.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of raw material alternatives and the competitive nature of the market.

Threat of new substitutes: New substitute materials such as hybrid coatings pose a moderate threat as they provide improved properties.

Competitive rivalry: The market is highly competitive due to the presence of numerous global and regional players.

SWOT Analysis

Strengths: Demand from shipbuilding and maintenance activities. Wide range of product offerings to suit diverse end-use requirements.

Weaknesses: Volatility in raw material prices impacts costs. Stringent environmental regulations increase compliance costs.

Opportunities: Growth of the offshore oil & gas industry in Asia Pacific and Middle East & Africa. Development of bio-based and environment-friendly coating solutions.

Threats: Shift towards use of substitutes due to environmental concerns. Economic slowdowns hindering infrastructure and new vessel construction.

Key Takeaways

The global marine coatings market is expected to witness high growth over the forecast period supported by increasing maritime trade and a recovery in shipbuilding activities. The The global marine coatings market is estimated to be valued at US$ 7.1 billion in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period of 2023-2030.

Regional analysis - The Asia Pacific region accounts for the largest share of the global marine coatings market led by strong growth in China, South Korea and Japan. These countries are major shipbuilding hubs as well as have large shipping fleets. Government initiatives to promote maritime trade and infrastructure development of ports and harbors will continue driving demand.

Key players - Key players operating in the marine coatings market are AkzoNobel, PPG Industries, Jotun, Chugoku Marine Paints Ltd., Hempel A/S, BASF SE. AkzoNobel and PPG Industries dominate the market and continue investments in new product development and capacity expansions across regions. Strategic partnerships with shipbuilders and regional coating manufacturers are pursued for market penetration.