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Hull Coatings Market Forecast to Reach Around $10 Billion by 2025 Growing at a CAGR of 6.5% During 2020-2025

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Palli Prapul
Hull Coatings Market Forecast to Reach Around $10 Billion by 2025 Growing at a CAGR of 6.5% During 2020-2025

The Hull Coatings Market size is forecast to reach around $10 billion by 2025, after growing at a CAGR of 6.5% during 2020-2025. The use of coating helps to reduce the resistance of the ship hull through water and acting as a barrier against corrosion on metal hulls. Furthermore, the growth of marine transportation and infrastructural activities in developed and developing economies are also driving the growth of the Hull Coatings market size over the forecast period. Whereas, due to outbreak of COVID-19 globally, the global hull coating market industry is expected to witness an exponential decline in its growth rate from 2020-2021 globally, due to slow down across various industry verticals and disruption of supply chain and international trade network worldwide.

By Type - Segment Analysis

The Self-Polishing Coatings (SPCs) segment held the largest share of more than 80% in the global Hull coating market in 2019 due to widely used in the marine ship coating. The use of SPCs provide various benefits such as to control polishing rate, optimal biocide release, and inherent self-smoothing to control the hull roughness and deliver extreme fuel efficiency. These benefits of SPCs make tit suitable for the hull coating applications. Whereas, the stringent environmental regulations across the United States and Europe and the presence of volatile organic compounds (VOCs) in coating drives the demand for biocidal SPC anti fouling release coating further propels the growth of this segment in the global Hull coatings market during the forecast period.

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By Application - Segment Analysis

Among the application types, vessels segment was the largest segment in 2019 contributing more than 45% share in the global market. Marine vessels and rigs are the largest users of hull coatings. Additionally, the growing offshore crude oil production activities in the South America, Western Europe, and North America region further drives the growth of coating, which in turn boosts the growth of global Hull coating industry during the study period.

Geography - Segment Analysis

In 2019, APAC dominated the Hull Coatings market with a share of more than 35%, followed by North America and Europe. The presence of emerging countries with large customer base like Chin and India, availability of low cost labors, flourishing manufacturing sector, and growing Hull construction projects in China, Japan, and India are contributing to the growth of Hull coating market share in APAC region during the study period. The decline in crude oil and natural gas prices has risen the import of crude oil and LNG from China and India is also contributing for the growth of this market in APAC region during the forecast period.

Drivers – Hull Coatings Market

Implementation of Stringent Environment Regulations

The growing environmental awareness and stringent environment norms from developed and developing regions drive the demand for green solution coatings. Whereas, the regulations are helping to increase the value add associated with higher levels of performance. Governments globally are focusing on green practices for reducing the impacts of chemicals on marine life, human health, and the environment. For instance, in 2018, the US state of Washington ban the use of copper in hull coating. Whereas, the key players operating in the global market are more inclined towards providing coatings that meets industry standards and environment regulations. For instance, in March 2020, Jotun has launched a Hull Skating Solutions (HSS) within the maritime industry with a focus on VOC reduction in the marine industry.

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Challenges – Hull Coatings Market

Unstable economic conditions and volatile prices of raw material
The growing trade war between the two largest economies includes the US and China, along with geopolitical tensions, global trade tensions, and global macroeconomic performance as a whole are the factors responsible for the current unstable economic conditions. The unstable economy is considered as a challenge for the growth of this market. Additionally, in 2020, the ongoing outbreak of COVID-19 affecting lives, businesses, individuals and industries. The rapid spread of this pandemic disease, has had a major impact on global shipping markets due to the lockdown and slum demand of products from developed and developing nations. Furthermore, in 2020, due to the geopolitical issues between the US, Iraq, Iran, and Saudi Arabia, there is a decline in crude oil prices. As most of the coating is produced from crude oil products, so this fluctuation in crude oil prices globally, act as a challenging factor for the growth of this market during the forecast period.

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Hull Coatings market report. Major players in the Hull Coatings industry outlook are Akzo Nobel N.V, BASF SE, Boero Bartolomeo SpA, GLS Coatings Ltd, The Sherwin-Williams Company, Henkel, Hemple A/S, PPG Industries, Inc., The Valspar Corporation, Axalta Coating Systems, LLC, Nippon Paint Holdings Co., Ltd., and Chugoku Marine Paints, Ltd.

Acquisitions/Technology Launches

In May 2019, Nippon Paint Holdings Co., Ltd., applied Aquaterras hull coating to AIDA Cruises’ 38,531gt cruise vessel AIDAcara. The use of Aquaterras hull coating can potentially reduce the fuel consumption by more than 10% as compared to the standard self-polishing (SPC) that result in reduced operational expenditure, reduced emissions, and reduced hull maintenance owing to the coating’s ultra-smooth surface and low friction attributes.

In September 2019, Hempel A/S launched a new coating system incorporating with advanced anti-bio fouling properties called as “Hempelguard MaX”. The new coating system helps to reduce owner annual bunker bill by a US$500M and over 10M tones in CO2 emissions.

Key Takeaways

Among the regions, in 2019, the Asia-Pacific dominates the Hull Coatings market owing to growing transportation, increasing urbanizations, and developing marine infrastructure across the region.

The high investment cost required for Hulls coatings and presence of volatile materials in coatings are restraining the growth of this market during the forecast period.

Emerging interest in green solutions to reducing the carbon emission and improve characteristics such as anticorrosion, durability, anti-fouling paint, and reduced friction drives the growth of this market over the study period.

Related Reports:

A.Feve Coatings Market

https://www.industryarc.com/Report/18106/feve-coatings-market.html

B.High Performance Pigments Market

https://www.industryarc.com/Report/11658/high-performance-pigments-market.html

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