Multi-client Study
Global Industrial Coatings Markets 2010 – 2020
0. Scope and Samples
Multi-client Study
Global Industrial Coatings Markets 2010 – 2020
0. Scope and Samples
Global Surface Coatings Covered
Irfab Multi-client Studies are produced by The Paint Resaearch Association (PRA)
A member of the Pera Innovation Network
Scope and Samples
Contents
Contents
Scope of the Study
3
Structure of the Study
4
Sample Pages
5
Overview
1 Executive Summary
5
2 Economic Indicators
9
3 Regulations
9
Transport
4 Automotive OEM
14
5 Automotive Refinish
18
6 Motorcycles
22
7 Trucks, Buses and Other Vehicles
26
8 Rail
30
9 Aircraft
34
10 Marine Coatings
38
Construction & Infrastructure
11 Protective Coatings
42
12 Industrial Wood Coatings
46
13 Agriculture, Construction and Earthmoving
50
14 Pre-coated Metal Sheet
54
Packaging & General Industrial
15 Metal Packaging Coatings
58
16 General Industrial Coatings
62
17 Coatings for Plastics
66
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-2
Scope and Samples
Scope of the Study
Scope of the Study
The Global Industrial Coatings Markets 2006-2020 study provided a unique source of data and insights on this
broad and fragmented sector. However, at the time it was written the global economic downturn and its impact
on coatings demand was not expected. The 2010 update provides the latest outlook to 2020 and examines how
the markets for industrial coatings have been affected by the recession.
The study examines each of the main geographic regions and builds a picture of global market dynamics. Our
extensive programme of interviews has been extended to include not only paint manufacturers but many key
players in the end-user markets, allowing us to provide comment on the most important country markets. A
new report structure reflects this approach; each industry sub-sector includes a discussion of the underlying
market drivers and dynamics before presenting an overview of coatings demand. Value and volume estimates
are provided at the top level, with detailed segment and regional coatings demand presented in volume terms.
Geographic Regions
For the purposes of this study, unless otherwise
stated, we have adopted the following
geographic regions for reporting purposes:
►
Europe
EU 27 plus Norway and Switzerland
►
CIS & ROE
Former Soviet Union and Rest of Europe
►
MEA
Middle East & Africa including Turkey
►
North America
United States, Canada and Mexico (NAFTA)
►
South America
Including Central America
►
Asia Pacific
Including South Asia and Australasia
The reference year for this study is 2009. To allow readers to easily compare and contrast with the prerecession market, trend data is provided for the period 2005 to 2009. To ensure consistency across chapters
scheduled for later release, our forecast includes commentary on market developments for 2010 and beyond,
accompanied by the latest available data.
Following feedback from subscribers to the original study, we have further refined our market definitions and, for
the first time, we have introduced a new chapter relating to Plastics Coatings. The study also presents detailed
annual projections of coatings demand for the next five years to complement our 2020 outlook.
This makes the Global Industrial Coatings Markets 2010-2020 study our most ambitious and comprehensive
industry review to date. It is an invaluable tool to improve understanding of the end-user coatings markets and to
support strategic decision making.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-3
Scope and Samples
Structure of the Study
The chapters of the study:
Overview
1 Executive Summary
2 Economic Indicators
3 Regulations
Transport
4 Automotive OEM
5 Automotive Refinish
6 Motorcycles
7 Trucks, Buses and Other Vehicles
8 Rail
Structure of the Study
Where appropriate the content of a chapter of the study follows a standard pattern.
1
Executive Summary
2
Introduction
2.1
Market Definition
A detailed description of how we have defined the market and its segments.
2.2
Macro Drivers
The underlying factors that drive this coatings market.
2.3
Impact of Economic Downturn
Highlights the most significant impacts of the global recession on this coatings
market.
3
Technology
3.1
Current Technology
A review of the technologies used in this market.
3.2
Technology Systems
A description of the technology systems used, both established and novel.
3.3+ Technologies by segment
Construction & Infrastructure
A section on each market segment with details of its specific technologies.
4
Markets
4.1
Global Market Drivers and Trends
A detailed review of important influencing factors and how they affect enduser markets.
4.2
Global Market Size and Growth
An overview of resulting coatings demand by region and segment.
9 Aircraft
10 Marine Coatings
A succinct overview of the market's definition, size, value, technologies and
drivers. Forecasts to 2015 and the outlook to 2020 are included.
4.3+ Markets by segment
A detailed assessment of demand for coatings within each market segment.
5
Suppliers
5.1
Suppliers Global Position
6
Outlook
6.1
Forecast Commentary
Developments since 2009 and summaries of key trends expected to drive
future coatings demand
Packaging & General Industrial
6.2
Forecast Data
Comprehensive forecasts to 2020 by segment, technology and region.
15 Metal Packaging Coatings
7
Glossary
Definitions of terms used in the text.
8
Terms and Conditions
11 Protective Coatings
12 Industrial Wood Coatings
13 Agriculture, Construction and Earthmoving
14 Pre-coated Metal Sheet
16 General Industrial Coatings
17 Coatings for Plastics
Who are the key suppliers, globally and regionally?
The following pages are samples from the study.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-4
Scope and Samples
Executive Summary
Chapter Contents
1. Overview — Executive Summary
The Executive Summary is included with orders for the
complete study. It provides market values and sizes for
the Global Industrial Coatings Market segment by
segment as well as a Global Summary. It includes trend
analyses based on research from 2006 to 2009.
A Preliminary Executive Summary was published at the
start of this study. The final Executive Summary,
incorporating the results of the research for all chapters,
will be published at the conclusion of the study.
Introduction
Global Summary
Automotive OEM
Automotive Refinish
Motorcycles
Trucks, Buses and Other Vehicles
Rail
Aircraft
Marine Coatings
Protective Coatings
Industrial Wood Coatings
Agriculture, Construction and Earthmoving
Pre-coated Metal Sheet
Metal Packaging Coatings
General Industrial Coatings
Plastic Coatings
Terms and Conditions
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-5
Overview
Executive Summary
Summary Trend Data
Summary Trend Data
Global Industrial Coatings by Region (2005 – 2009)
Global Industrial Coatings by Market
million tonne
2005
2006
2007
2008
2009
Europe, Middle East, Africa
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
Americas
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
Asia Pacific
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
6.1
7.3
2.5
-8.1
2005
2006
2007
2008
2009
Solventborne
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
Waterborne
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
UV Coatings
••• •••
••• •••
••• •••
••• •••
••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
• •••
• •••
• •••
• •••
• •••
••• •••
••• •••
••• •••
••• •••
••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
6.1
7.3
2.5
-8.1
2005
2006
2007
2008
2009
Transport
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
Construction and Infrastructure
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
Packaging and General Industrial
• ••• •••
• ••• •••
• ••• •••
• ••• •••
• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
•• ••• •••
6.1
7.3
2.5
-8.1
(tonne)
Overall Coatings Demand
% Change
Global Industrial Coatings by Technology (2005 – 2009)
(tonne)
Powder
Electrocoat
Film
Others
Overall Coatings Demand
% Change
Global Industrial Coatings by Category (2005 – 2009)
(tonne)
Overall Coatings Demand
% Change
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 1-4
Overview
Executive Summary
Protective Coatings
Chapter 11. Protective Coatings
Leading Suppliers of Protective Coatings
►
AkzoNobel (Netherlands)
►
Jotun (Norway)
►
Hempel (Denmark)
►
PPG (United States)
►
Sherwin-Williams (United States)
►
Carboline (United States)
Part of RPM

Protective Coatings fall into three categories: Infrastructure; Oil, Gas and Chemicals; Industrial and Other
Process Industries.

The coatings covered by this chapter are applied to steel and concrete substrates to provide corrosion
resistance, fire protection and to protect structures exposed to hazardous operating conditions from
environmental damage (hazardous conditions are those classified as C3 and above by ISO 12944).

The global market for Protective Coatings in 2009 was worth approximately €•.• billion driven by coatings
consumption of around •.• million tonnes (•.• billion litres).

The market experienced 2.7% CAGR for the period 2006 to 2009.

As Protective Coatings covers a wide range of markets the drivers will vary for each segment. However, in
general terms the overall macro demand drivers are:

Government policies relating to investment in infrastructure and the economic stimulus packages
proposed and implemented in response to the economic crisis of 2008 and 2009.

The global prices for major commodities (i.e. oil, gas and metals). High prices drive investment in exploration
and production and revenue generated allows the commodity producing countries to invest in infrastructure.

Harmonisation of global regulatory requirements and regional legislation.

Service life performance and the requirement to ensure efficient compliance with quality and
environmental demands imposed on corrosion protection.

Solventborne technologies constitute the major part of the coatings used in the Protective Coatings market.
Whilst waterborne coatings have a 12% share of the total Protective Coatings market, they account for less
than 2% of the coatings used on steel but more than 30% of those used to protect concrete. There has
been little or no growth in the use of waterborne coatings for either substrate since 2006.

Pipe coatings are included in this chapter for the first time; fusion bonded epoxy powder coatings have the
main technology share. Overall, powder coatings account for around 3% technology share.

There is a growth in the use of high solids solventborne coatings in Europe and North America, but
medium solids coatings are still used to a significant amount in both these regions.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 1-20
Overview
Global Consumption of Protective Coatings (2009)
Executive Summary
Protective Coatings

Infrastructure accounts for approximately 40% of Protective Coatings consumption. The oil and gas industry
is the next largest segment, accounting for around 35% of demand.

Substantial levels of growth are expected in the Middle East and Asia Pacific as the countries modernise
their infrastructure. A high level of growth is expected in Brazil due to government policy of awarding
majority of contracts to domestic players.

Infrastructure in the United States is aging and is attracting considerable investment to update.

The five year economic development plans of countries such as China and India make infrastructure a major
focus. The Chinese 12th Five Year Plan 2011 to 2015 is based is on the assumption that GDP will grow at a
rate of approximately 8% per year. This level of growth will drive investment in all the key Protective
Coatings Sectors.

Brazil is expected to invest in infrastructure for the 2016 Olympics and the 2014 World Cup.
Region
2009 tonne
Share %
CAGR %
2015 tonne
Europe, Middle East, Africa
••• •••
••.•
•.• – •.•
••• •••
▲
Americas
••• •••
••.•
•.• – •.•
••• •••
▲
Asia Pacific
••• •••
••.•
•.• – •.•
••• •••
▲
•.• – •.•
• ••• •••
▲
Share %
CAGR %
2015 tonne
•••• Outlook
Total
• ••• •••
Technology
2009 tonne
•••• Outlook
Solventborne Medium Solids
••• •••
••.•
(•.•) – (•.•)
••• •••
▼
Solventborne High Solids
••• •••
••.•
•.• – •.•
••• •••
▲
Waterborne
••• •••
••.•
•.• – •.•
••• •••
▲
•• •••
•.•
•.• – •.•
•• •••
▲▲
•.• – •.•
• ••• •••
Powder
Total
• ••• •••
▲
Solventborne High Solids includes 100% solids
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 1-21
Scope and Samples
Economic Indicators / Regulations
Chapter Contents
2. Overview — Economic Indicators
3. Overview — Regulations
These chapters consolidate information taken from
the study chapters concerning the macroeconomic
and regulatory environments that affect each of the
markets.
Presented with the Executive Summary to
subscribers of the complete study, they combine
to provide valuable information on key economic
trends, underlying market drivers and regulatory
influences on the Global Industrial Coatings
Market.
Economic Indicators
Regulations
1
Introduction
1
Introduction
2
Key Economic Indicators
2
Regulation Categories
A
B
C
D
E
2.1 Chemicals Management
A Europe
B North America
Economic Trends
Consumer Activity
Industrial Activity
Agriculture Trends
Construction Trends
3
Glossary
4
Terms and Conditions
2.2 Volatile Organic Compounds (VOC) Emissions
A Europe
B Americas
C Asia Pacific
2.3 Classification and Labelling
A Globally Harmonized System of Classification and
Labelling of Chemicals (GHS)
B Classification, Labelling and Packaging (CLP) Regulation
2.4 Industry Related Regulations by Sector
Global Industrial Coatings Markets 2010 – 2020
3
Glossary
4
Terms and Conditions
© PRA 2011
Page 0-9
Overview
Consumer Confidence Index
Economic Indicators
B
Key Economic Indicators
Consumer Activity
The Global Consumer Confidence Index provides a comparative measure of global confidence. Economic
indicators relating to retail spending levels, employment, private consumption and investment all provide useful
indicators of consumer activity.
In line with economic performance, consumer confidence levels appear higher in the emerging economies than
for their advanced counterparts.
Consumer Confidence Index
Most major economies recovered from the recession in late 2009 and early 2010. France and Germany
emerged in Q2 2009, while America returned to growth in Q3 2009. However, consumers still appear to lack
confidence in full economic recovery and spending patterns have still not returned to pre-crisis levels in many
markets. This can be attributed to mixed messages from policy makers.
The Nielsen Global Consumer Confidence Index provides an indication of consumer confidence. The latest
survey found that consumer confidence had fallen in 25 of the 52 countries covered in Q4 2010 suggesting a
pessimistic end to a year that had shown signs of positive recovery in the first half.
Source: IMF
Retail Spending
annualised % change of 3-month moving average
The index finished 2010 at 90 points having peaked at 93 points in Q2 2010. Latin America was the world’s
most optimistic region at 100 points, followed by Asia Pacific at 97 points, reflecting strong growth prospects in
emerging economies. The highest index score was India at 131 points.
Conversely, Europe exhibited the lowest levels of consumer confidence at 78 index points and North America
at 83 points.
According to the IMF, private consumption recovered strongly in emerging economies but the advanced
economies have lagged. Investment excluding construction experienced a return to growth in advanced
economies, suggesting longer-term considerations are driving activity. This is encouraging for employment and
consumption levels in the medium to long-term.
Retail Spending
Data from the IMF suggests that retail sales, which declined considerably in response to the recession, have
recovered globally in 2010. Emerging economies exhibited stronger growth in retail spending than the advanced
economies, and contributed to growth in retail sales around the globe.
Source: IMF
However, the loss of consumer confidence in the latter part of the year resulted in downward trends for all
economies. Low consumer confidence, high unemployment, and reduced disposable incomes are constraining
spending in the advanced economies.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 2-6
Overview
Economic Indicators
Key Economic Indicators
Regional Shares of the European Construction Market
Construction in Europe
Total EU construction activity was worth €1,173 billion in 2009 with Germany, Spain and France leading the
region. The largest share of activity was attributed to non-residential construction (31%) followed by
maintenance (29%), infrastructure construction (22%) and residential construction (18%).
Germany is the largest construction market in Europe by market size. In 2009 construction output in Germany
was €245 billion accounting for 21% of the European market and nearly 11% of the country’s GDP. The
recession was only felt in Germany from the beginning of 2009 when industry turnover and construction orders
dropped sharply.
Source: FIEC
New House Starts in Key Markets: Europe
% Change
The volume of residential construction investment fell dramatically in the UK and Spain in 2009, 27% and 24.5%
respectively. The construction market in Spain and France totalled at €163 billion and €161 billion respectively in
2009. New house starts in each country’s market began to decline in 2007 reaching the bottom by 2009 with
Spain’s house starts declining by nearly 60% in 2008 and 2009. Non-residential construction declined sharply in
all European markets by an average 17% to18% year-on-year in 2009.
Changes in Investment for Residential Construction (2005 – 2012)
2005
2006
2007
2008
2009
2010
2011
2012
5.8
6.2
4.8
-2.3
-8.1
-2.5
1.3
2.4
-3.7
6.2
-1.7
-1.8
-1.0
3.5
1.6
2.0
Italy
5.3
4.1
0.5
-3.1
-9.3
-3.4
0.5
1.8
Spain
6.1
6.2
2.5
-10.7
-24.5
-16.6
-3.6
-0.3
-3.6
9.0
0.2
-23.4
-27.0
7.9
8.6
3.3
(% Change)
France
Germany
UK
Changes in Investment for Non Residential Construction (2005 – 2012)
2005
2006
2007
2008
2009
2010
2011
2012
France
3.2
5.6
6.9
2.6
-8.5
-1.8
4.1
6.3
Germany
4.3
10.3
8.5
3.0
-16.1
6.0
3.7
3.6
Italy
-0.3
3.3
2.0
-5.8
-17.6
6.0
3.2
3.6
Spain
7.7
7.8
3.9
-3.1
-18.5
-2.7
4.8
5.2
17.9
-7.1
12.5
-1.1
-18.8
2.3
6.1
7.0
(% Change)
Source: OECD
UK
Source: OECD
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 2-20
Overview
Regulations
Regulation Categories
VOC Content Limits: Europe
VOC Content Limits Fixed by Directive 2004/42/CE
Subcategory
Coatings
VOC g/l
Preparatory and Cleaning Products
Preparatory products
Pre-cleaners
850
200
Bodyfillers/Stoppers
All types
250
Primers
Surfacers/Fillers and general primers
Wash Primers
540
780
Topcoats (each layer)
Basecoats, direct gloss, clearcoats,
3-stage topcoats
420
Special Finishes
Aerosols, scratch-resistant clears, interior finishes
840
Reference Measurement Methods for VOC Content
Parameter
Unit
Test Method & Date of Publication
VOC content
g/l
ISO 11890-2 (2002 - revised 2006)
VOC content where reactive diluents are present
g/l
ASTM D 2369 - 2003
Where a refinish operation uses more than 500 kg solvent per year, it comes under the regulation of the Solvent
Emissions Directive (SED). The full definition of these terms as outlined in the Directive, are shown in the
glossary to this chapter.
All of the major refinish suppliers
have invested significantly in
training their customers to use
the new compliant products
The industry was given plenty of warning that the new limits were going to come into force so the coatings
manufacturers were able to develop compliant coatings in preparation for the implementation of the Directive.
Many of the European body shops were using the compliant coatings well before the 1 January 2007 deadline.
All of the major refinish suppliers have invested significantly in training their customers to use the new compliant
products, so the transition to the new coatings was very smooth. The application properties are very similar to
the older solventborne coatings, if not better, and the new application equipment gives better productivity.
The cost of the compliant coatings is 15% to 20% higher than the older products, but they require less volume
to achieve the required finish and so overall coating cost is the same. This need for lower volumes has negatively
affected the volume growth in this market over the last five years, but the value has remained static. Some
growth in refinish has occurred in the commercial transport sector and offsets lower volumes in passenger cars.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 3-29
Overview
Regulations
B
ISO 12944 Categories of Atmospheric and
Immersive Service Conditions
Corrosion risk
Atmospheric
Immersion
Regulation Categories
Construction and Infrastructure
Standards and Regulations Concerning Steel
The choice of technology to be used is influenced greatly by regulatory requirements and factors such as the
operating environment, the level of corrosion risk and the substrate to be painted. Environments, which can be
broadly categorised as general atmospheric exposure and immersion service conditions, are covered by ISO
12944.
C1
Very low
C2
Low
C3
Medium
C4
High
ISO 12944 Paints & Varnishes: Corrosion Protection of Steel Structures by Protective Paint Systems (parts
1-8) (1998) provides a more detailed break-down of service conditions; six categories of atmospheric corrosion
and three categories for immersion in water and soil.
C5-I
Very high
(Industrial environment)
Typical Atmospheric Service Conditions
C5-M
Very high
(Marine environment)
Im 1
Immersion in fresh water
i.e. freshwater lakes
Im 2
Immersion in sea or
brackish water
Im 3
Buried in soil
ISO 12944 Coating Lifetime Classifications
Classification
Lifetime
High
Over 15 years
Medium
5 to 15 years
Low
2 to 5 years
Classification
Typical Environment
Examples
C1
Rural areas. Heated buildings, neutral
atmosphere
Heated buildings: offices, schools, shops,
hotels
C2
As C1 but where there is a higher risk from
moisture in unheated buildings
Unheated buildings: warehouses, sports and
exhibition halls
C3
Urban and industrial atmospheres.
Moderate sulphur dioxide levels.
Production areas with high humidity and
some air pollution
Dairies and breweries.
Land based wind turbines interior. Some
exterior
C4
Industrial and coastal. Chemical processing
plants
Chemical plants, swimming pools, coastal
shipyards, bridges over water; Land based
wind turbines and exterior
C5-I
Industrial areas with high humidity and
aggressive atmosphere. Buildings or areas
with almost permanent condensation and
high pollution spheres
Oil refineries and chemical plants, pulp and
paper, water treatment plants, coastal
infrastructure
C5-M
Marine, offshore, estuaries, coastal areas
and high salinity
Offshore oil and gas rigs, wind turbines and
coastal infrastructure
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 3-40
Scope and Samples
Automotive OEM
Chapter Contents
4. Transport — Automotive OEM
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Automotive Vehicle Production
B Performance of the Global Economy
C Household Disposable Income
D Oil Prices and Costs of Raw Material Inputs
E Growing Environmental Awareness and Green
Mobility
F Availability of Finance
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Automotive Supply Chain and Material Substrates
Markets
5
4.2 Principal Automotive Producers
A Toyota
3.3 Current Technology
B General Motors (GM)
C Volkswagen AG (VW)
A Electrocoat Layer
D Renault-Nissan Group
B Primer Surfacer Layer
E Ford Motor Company
C Basecoat Layer
F Hyundai Motor Company
D Clearcoat Layer
G Fiat-Chrysler Group
E Single Finish Coat Layer
H Honda Motor Company
F Comparative Layer Costs and Economics of Supply
I PSA Peugeot-Citroën
3.4 New Developments and Standards
J Suzuki Motor Corporation
A New Developments in Coating Processes
4.3 Global Market Size and Growth
B Other Developments
A Automotive OEM Coatings Demand in Asia Pacific
C Standards
B Automotive OEM Coatings Demand in Europe,
Middle East and Africa
C Automotive OEM Coatings Demand in the
Americas
Suppliers
5.1 Suppliers Global Position
6
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
7
Glossary
8
Terms and Conditions
3.2 The Body Coating Process
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-14
Transport
Automotive OEM
Technology
Typical Automotive Body Coating Process
3.2 The Body Coating Process
The coating processes used by the automotive industry for metal bodies and plastic components differ. Coating
of bodies is carried out in-house by the OEM whereas plastic components (see Chapter 17: Coatings for
Plastics) are normally supplied to the manufacturer ready finished by the Tier 1 or 2 suppliers. All coatings used
by the Tier 1 and 2 suppliers must be fully approved by the OEM. Although there are some variations depending
on company manufacturing strategies and production line design, all of the mass-production vehicle
manufacturers typically adopt a similar coating process. The standard approach is a three or four coat process,
the coatings layers being:
1.
Electrocoat
2.
Primer surfacer
3.
Top coat.
Between coats, the body will normally undergo a manual sanding operation to provide a smooth base for the
application of subsequent coats. This is particularly important before the application of the top coat to ensure a
high quality finish. The top coat can be either one coat of a solid colour top coat; or one colour basecoat
followed by a clearcoat.
Before painting, the vehicle body passes through a rigorous inspection, known as the ‘body in white’ operation.
The vehicle shell passes through a brightly lit white room and is fully wiped down by visual inspectors using cloths
soaked in hi-light oil, which allows inspectors to identify defects in the body panels. The shell is then immersed
and cleaned of all residual oil, dirt and contaminants.
The top coat can be either one
coat of a solid colour top coat;
or one colour basecoat
followed by a clearcoat
Once the vehicle body has been cleaned, it moves through a drying booth before receiving the electrocoat. The
body again enters a drying booth before being prepared for the final coating operations. The body will normally
undergo manual sanding operations after the application and curing of the electrocoat and the primer surfacer to
provide a smooth base for the application of subsequent coats.
Automation of coating lines is growing and external body surfaces are increasingly spray-painted by robots.
Automotive OEMs are starting to use robots for the internal surfaces to further reduce operating costs, but still
with a manual touch-in facility to coat difficult areas that provides an additional on-line quality inspection stage.
Each of the separate coating layers are cured at temperatures exceeding 135ºC (275ºF) before the application of
the next layer, with the exception of the basecoat. The basecoat is only dried at ambient or elevated
temperature before application of the clearcoat, the two layers then being fully cured in one operation.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 4-8
Transport
Automotive OEM
Global Vehicle Manufacturing by Major Country
Producer in 2006 and 2009 (million units)
A
Markets
Automotive Vehicle Production
Worldwide automotive vehicle manufacturing output declined as a result of the recession by 4.6% in 2008 and
12% in 2009 to around 58.3 million vehicles produced.
The industry recovered strongly in 2010 and production output increased by over 25% to over 72 million
vehicles. This growth is driven mainly by the emerging markets in the Asia Pacific region, where China has
overtaken Japan and the US to become the largest single country producer of automotive vehicles in the world.
The Asia Pacific region accounts for over 45% of vehicles produced. Western Europe is the next largest regional
industry, accounting for around 25% of vehicle output in 2009 followed by North America, which produced just
under 15% of global vehicle output.
The industry is highly competitive with a number of well established manufacturers. Many suppliers offer their
products to the global market competing in a number of vehicle categories. Typically it takes between three and
five years to design and build a new vehicle.
There are two significant trends shaping the global automotive industry:

Increasing competition

Localisation of production
The level of competition in the automotive industry is intense and consolidation has resulted in an increase in
larger groups competing to supply the market. The competitive intensity increases as more manufacturers
become larger. In 1995 nine automaker groups produced 80% of global output, which did not change
significantly for the next ten years. However, between 2005 and 2010 the number of manufacturer groups
supplying 80% of world output reached twelve. Competitive pressures are expected to continue increasing as
industry dynamics change due to further consolidation and new entrants in the emerging economies; it is
expected that 15 manufacturer groups will supply 80% of global output by 2020.
The volume of locally produced vehicles is increasing as manufacturers seek to maximise the effectiveness of
their supply chains. Data produced by IHS Automotive suggests that the number of vehicles manufactured in the
areas where they were sold rose from about 50 million in 2005 to 60 million in 2010. The global volume of
locally produced vehicles is expected to reach 80 million by 2015 and 90 million by 2020 with most of the
increase being due to expanding production in China. In contrast, vehicle import levels have remained fairly
constant at between 12 million and 13 million units per year over the period 2005 to 2010. The regional redistribution of automotive production, primarily driven by the emerging markets, is a long-term trend that
accelerated during the economic downturn and is expected to intensify by 2020 due to regional demand
dynamics and political drivers.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 4-25
Transport
Automotive OEM
Outlook
Forecast World Coatings Demand by Segment
2010-2020
Forecast Coatings Demand by Product Segment 2010-2020 (million litres)
2010
2011
2012
2013
2014
2015
2020
Europe, Middle East & Africa
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
The Americas
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
Asia Pacific
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
Overall Coatings Demand
•••.•
•••.•
•••.•
••••.•
••••.•
••••.•
••••.•
(million tonne)
Forecast Coatings Demand by Product Segment 2010-2020 (million litres)
2010
2011
2012
2013
2014
2015
2020
Passenger Cars
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
••••.•
Light Commercial Vehicles
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
Overall Coatings Demand
•••.•
•••.•
•••.•
••••.•
••••.•
••••.•
••••.•
Forecast World Coatings Demand by Technology
2010-2020
(million tonne)
Forecast Coatings Demand by Technology 2010-2020 (million litres)
2010
2011
2012
2013
2014
2015
2020
Solventborne
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
Waterborne
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•.•
•.•
•.•
•.•
•.•
•.•
•.•
Electrocoat
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
•••.•
Overall Coatings Demand
•••.•
•••.•
•••.•
••••.•
••••
••••.•
••••.•
Powder coatings
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 4-71
Scope and Samples
Automotive Refinish
Chapter Contents
5. Transport — Automotive Refinish
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Road Safety Evolution
B Motor Insurance Industry
C Car Scrapping Schemes
D Company Fleet Market
E Passenger Car Market
F Refinish Product Marketing
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
4.2 Global Market Size and Growth
A Automotive Refinish Coatings in the Americas
B Automotive Refinish Coatings in EMEA
C Automotive Refinish Coatings in APAC
3.1 Current Technology
A Body Fillers and Putties
B Primers and Primer Surfacers
C One-Coat Topcoats
D Basecoats
E Clearcoats
4.3 Suppliers Global Position
3.2 Regional Coating Technology
A Coatings Technology in Europe, Middle East
and Africa
B Coatings Technology in the Americas
C Coatings Technology in Asia Pacific
3.3 Standards and New Developments
A Regulations
B UV Curable Refinish Products
C Colour Matching
Global Industrial Coatings Markets 2010 – 2020
Markets
5
Outlook
5.1 Forecast Commentary
5.2 Forecast Data
6
Glossary
7
Terms and Conditions
© PRA 2011
Page 0-18
Transport
Automotive Refinish
C
Regional Variations in Colour Preferences: World
Technology
Colour Matching
Accurate colour matching remains an important aspect of this market; even the same OEM colour applied on
different production lines can vary. The coating manufacturers are investing in improving their colour matching
systems and are adding new colours to their ranges to meet the demand from the purchasers of new cars for
new, more exotic colour effects obtained from, for example, speciality colour shift pigments. The choice of
vehicle colours for passenger cars varies across the world according to culture and taste but metallic finishes
(silver) and black are consistently popular along with white.
Automotive Refinish Products — Regional Variations in Colour Preferences for 2010
Global
%
Europe
%
US
%
Japan
%
South
America
%
China
%
South Korea
%
Silver
26
17
17
24
33
33
33
Black
24
24
18
22
23
31
26
Grey
16
19
15
5
13
18
14
Blue
5
9
9
10
3
2
3
Red
6
7
11
3
9
4
4
Light brown / Beige
3
5
5
3
3
1
1
White
16
14
21
28
13
9
18
Green
2
1
2
1
3
1
1
Others
2
4
2
4
0
1
0
Colour
Source: DuPont Automotive Systems – Global Colour Popularity Report
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 5-22
Transport
Automotive Refinish
Consumption of Coatings for Automotive Refinish
by Category: Asia Pacific
C
(million litre)
Markets
Automotive Refinish Coatings in APAC
The market for Automotive Refinish coatings in Asia Pacific is estimated to be over ••• million litres (•••,•••
tonnes) following continued growth during the recession with around 3% CAGR over the period 2006 to 2009.
This resulted in an estimated market value of around €1.6 billion.
Asia Pacific Consumption of Coatings for Automotive Refinish by Category 2005 – 2009 (000 litres)
2005
2006
2007
2008
2009
• •••
• •••
• •••
• •••
• •••
Primers
•• •••
•• •••
•• •••
•• •••
•• •••
Basecoat / colour coat
•• •••
•• •••
•• •••
•• •••
•• •••
Clearcoat
•• •••
•• •••
•• •••
•• •••
•• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Filler
Total
% change
•.•%
•.•%
•.•%
•.•%
The Asia Pacific region was the best performing market for Automotive Refinish coatings during the recession
and in 2010, the market has continued to grow, reaching almost ••• million litres (•••,••• tonnes) with an
approximate value of €1.8 billion.
Average Sales Price of Coatings by Category:
Asia Pacific
►
Filler
5.00 /kg
►
Primers
6.00 /litre
►
Colour coat
10.00 /litre
►
Clear coat
8.00 /litre
The region presents a mix of market dynamics, ranging from the mature, relatively static markets of Japan, Korea
and Australia to the high growth markets of China and India, with annual growth rates of 10% to15%. Other
developing markets, such as Thailand, also exhibit good growth rates at around 7% per year. The growing
spending power of populations in the developing countries of Asia Pacific, together with the increasing
importance of the region as a car manufacturing centre, will ensure continued growth at a comparatively faster
pace than the markets in Europe and North America for the next ten years.
The types of coating used in this market range from similar technologies as used in North America, Europe and
Japan. Traditionally nitrocellulose and air-dry alkyd paints have been used in China and India and are still available
in these countries. However, there is a growing environmental awareness and use of low-VOC compliant
technology, both high solids and waterborne basecoats in both these countries and across the Asia Pacific region.
The Chinese and Indian markets are both exhibiting rapid growth as car ownership per head of population
increases with higher levels of consumer spending power. An important distinction between the Chinese market
and the mature market of Japan is the large number of first-time buyers.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 5-42
Transport
Market Leaders for Automotive Refinish Coatings:
Korea
Automotive Refinish
Markets
AkzoNobel has significantly boosted its presence in the Chinese automotive market after acquiring Changzhou
Prime Automotive Paint Co. Based in Jiangsu province, Prime is one of China’s largest vehicle refinish suppliers
and a leader in the fast-growing mid-market segment. This sector is estimated to double in size within the next
five years. AkzoNobel is also the preferred global supplier of car refinishes to the Chinese automotive
manufacturer Great Wall Motors. AkzoNobel’s Refinishes business has focused mainly on China’s premium and
commercial vehicle refinish sector.
PPG is active in China and extended its distribution network with the acquisition of Bonny Paints in 2008.
DuPont, BASF and Nippon Paint are all present in the market. BASF has a customer service centre in Shanghai
and Shenyang to improve its capabilities for this market. There are also a large number of Chinese companies
supplying the domestic market. The top local supplier is Onwings from Donglai Coating Technology (Shanghai).
South Korea represents the third largest Automotive Refinish market in the Asia Pacific region and has been
growing, reaching a value of around $125 million in 2009. Further growth is forecast as the number of cars
increases. The market has a range of local as well as multi-national companies supplying products.
KCC Paints is the market leader in this country with an estimated 34% of the local market. NOROO Paint &
Coatings is the next largest player and has been actively developing its Automotive Refinish business, generating
$32 million sales in 2009 and securing 25% of the market. NOROO have joint ventures in China, Saudi Arabia
and Vietnam and introduced a waterborne basecoat technology called HiQ Water Color to the market in 2009.
Market Leaders for Automotive Refinish Coatings:
India
BASF has also established a technical centre for developing advanced eco-friendly coatings for the automotive
industry in South Korea. Their plans are to conduct research and development of waterborne coatings for use
by automotive OEMs as well as the technology for an integrated coating process, which yields more costefficient results. This in turn will help the transition to use globally accepted waterborne basecoat technology in
the Automotive Refinish market.
India presents a significant opportunity as the Automotive Refinish coatings segment is one of the country’s fastest
growing areas in the industrial paints market. The potential opportunity offered by this market results in intense
competition in the coatings supply industry.
Automotive Refinish coatings, which constitutes approximately 30% of overall automotive coatings demand in
India, is witnessing tremendous growth due to:

The fast growing second-hand used vehicle market

A preference for high value, high performance coating technologies, such as polyurethane paints,
substituting the traditional forms of refinishing paints such as nitrocellulose and synthetic alkyds.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 5-44
Scope and Samples
Motorcycles
Chapter Contents
6. Transport — Motorcycles
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Motorcycle Production
B Performance of the Global Economy
C Household Disposable Income
D Population and Urbanisation Growth
E Growing Environmental Awareness
F Availability of Finance
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Current Technology
A Liquid Coatings: Solventborne and
Waterborne
B Powder Coatings
C Electrocoat
D UV Coatings
3.2 Coatings Technology by Application
A Metal Components
B Plastic Components
C In-Mould Coating
Markets
5
4.2 Principal Motorcycle Producers
A BMW Motorrad
B Bajaj Auto
C Harley Davidson
D Honda
E Kawasaki
F Piaggio Group
G Suzuki
H Yamaha
Suppliers
5.1 Suppliers Global Position
6
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
7
Glossary
8
Terms and Conditions
4.3 Global Market Size and Growth
A Motorcycle Coatings Demand in Asia Pacific
B Motorcycle Coatings Demand in the Americas
C
Motorcycle Coatings Demand in Europe, Middle
East and Africa
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-22
Transport
Motorcycles
A
Motorcycle Colour Preferences: World
Technology
Liquid Coatings: Solventborne and Waterborne
The coating technologies used in the motorcycle industry is a combination of those used in the Automotive
OEM and Automotive Refinish markets. The choice will normally depend on the type of component being
coated and the volumes being produced for specific components. The colour scheme is also a consideration.
One-component Technologies
One-component coatings are used primarily for coating metal parts and are mainly oven-cured coatings based
on polyester or acrylic; the same types as those used in the Automotive OEM industry. Metallic base coats used
for both metal and plastic parts are also one-component types.
Primer surfacers are used direct to pretreated bare metal for corrosion resistance, or over an electrocoat
primer where higher performance and appearance is required. Solventborne coatings are normally based on
polyester, cross-linked with a melamine hardener. Medium or high solid types are used depending on VOC
regulations. Waterborne primer surfacers are also based on polyester melamine technology. The majority of
primers are solventborne.
Base coats and colour coats are increasingly important as OEMs use more complex pigments (such as
pearlescent natural and synthetic micas or other special effect pigments) and increase their range of colour bases
for new models. For solid colour finishes typically applied to smaller two wheeler models, a single finish coat of a
solventborne acrylic melamine top coat is used. Waterborne coatings are rarely used for these finishes.
For higher value machines, a two coat base and clear system is applied. Metallic or pearlescent colour schemes
are also common for larger machines. One-component base coats are used in both oven cured, onecomponent coating processes and when a two-component coating clearcoat is used.
Base coats and colour coats are
increasingly important as OEMs use
more complex pigments and
increase their range of colour bases
Solventborne, oven-cured base coats can be based on acrylic, polyester or acrylic/polyester combinations,
depending on the coating supplier, with CAB being incorporated into metallic colour formulations to provide
consistent colour development during spray application. These are cross-linked with melamine or blocked
isocyanate. Base coats used with two-component coating processes are based on thermoplastic acrylics.
Waterborne base coats are based on a combination of acrylic and polyurethane dispersions, cross-linked with
melamine or blocked isocyanate for oven cure processes or based on air dried binders when used with twocomponent clearcoats.
Clearcoats are exclusively solventborne in this market as waterborne types do not meet the performance and
appearance requirements. One-component clear coats are based on acrylic, normally cross-linked with
melamines.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 6-6
Transport
Motorcycles
Motorcycle Manufacturers: India
India is still the second largest producer with the output exceeding 11 million units, accounting for over 20% of
motorcycle production in the Asia Pacific region. Domestic sales of motorcycles and other PTWs have increased
in India since 2006, contributing to production growth of 7.3% CAGR over the period 2006 to 2009.
►
Bajaj Auto
►
Escorts Group
►
Hero Group
►
Honda Motorcycle & Scooter India (HMSI)
►
Ideal Jawa
►
Kinetic Engineering
►
Lohia Machinery
►
Mopeds India
►
Royal Enfield
►
TVS Motor
Motorcycle Manufacturing Output: India
million units
Markets
Motorbikes account for over 80% of the total market. A number of factors have influenced consumer
preferences: motorbikes have replaced scooters as the preferred means of individual transport due to their
higher load capacity; motorbikes are more fuel-efficient and aesthetically appealing. Two-wheeler exports have
grown at around 25% CAGR between 2005 and 2010, exceeding one million units in 2009.
The Indian industry landscape changed in late 2010 when market leader Hero Honda, the long-standing joint
venture between Hero Group and Honda Motor Company, was dissolved. Hero Group bought Honda’s 26%
stake and has plans for re-branding in order to target both the domestic and highly competitive international
markets. Honda Motor, which has a plant in the north of India, is building a second plant in Rajasthan, another
northern state, and has plans to build a third facility in 2013 with capacity for 1.2 million vehicles. A new facility is
expected to start manufacturing in 2011 with an annual production capacity of 600,000 units, which will double
in March 2012. These new facilities will supply the domestic market and export to Latin America.
Bajaj Auto was the second largest two-wheeler manufacturer in India before the dissolution of Hero Honda.
The market is likely to see increased competition over the next few years as a result, particularly in the luxury
motorbikes segment, including premium sports bikes. With over 285,000 estimated millionaire households at
the end of 2011, India is expected to have the largest growth in total millionaire wealth of the emerging
economies to 2020 and the luxury motorbike segment is expected to be the fastest growing domestic market.
Harley Davidson, Ducati, Hyosung and BMW have all announced intentions to compete on the Indian market
for premium motorcycles. Royal Enfield, Bajaj Auto, Suzuki, HMSI and Mahindra are also planning to introduce
new products. While Ducati plans to bring premium motorcycles into India, Harley Davidson and South Korea's
S&T Motors have already established plants to assemble their vehicles within the country as government tax
policies make domestically produced motorcycles far more attractive.
One feature of the Indian market is the large three-wheeler segment, where the vehicles are used for
passengers and freight to cope with urban congestion. Three-wheeler production has grown by over 9% CAGR
over the period 2005 to 2009 to reach around 620,000 units. Bajaj Auto is the largest domestic player in the
three-wheeler segment, accounting for 95% of exports in 2010. The company export markets include: Sri
Lanka, Egypt, Nepal and Bangladesh. Piaggio Vehicles, of Italy, leads in terms of volume sales and recently
launched its 1.3 tonne three-wheeler Ape in India. Mahindra & Mahindra also recently launched its threewheeler passenger vehicle Alpha Passenger. Force Motors, a joint venture between Bajaj Tempo and MAN, is a
leading player in the goods carrier segment.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 6-16
Transport
Motorcycle Production 2009: Americas
(000 units)
Motorcycles
Markets
Grupo Elektra is the largest domestic producer or motorcycles through its Italika brand, and has had sales
growth since 2005, claiming a share of 55% in 2009. The company produced 61,000 motorcycles in 2008,
rising to 123,000 in 2009. Export markets are: Honduras, Peru, Guatemala, and Brazil.
International players like Honda, Yamaha, Suzuki and Harley Davidson are all present. In 2010, Polaris
Industries announced the opening of a new plant in Mexico. Polaris is the parent company of Victory
Motorcycles in the US.
The United States suffered a collapse in production output of 40% during 2009. The production volume
contracted by 19.5% negative CAGR over the period 2006 to 2009, falling from 1.1 million units to 0.6 million.
Sales were also recorded at low levels, showing a declining trend for the past four years. The US is also the
largest market for All Terrain Vehicles (ATVs) in the world, where they are used for sport and hunting.
According to the Motorcycle Industry Council, domestic sales declined by over 14% in 2009 to less than half of
their 2006 level. Sales of highway motorcycles were 383,000 units in 2009 compared to 660,000 and 724,000
units sold in 2008 and 2007 respectively.
While the recession affected all geographical markets, the US market was worst affected as the motorcycle is
mainly used for sports and recreation. There are a number of motorcycle manufacturers producing low-volume
custom-made, unique and expensive models to this market. As consumers curtailed discretionary spending, the
industry suffered and in 2009, Texas-based American IronHorse filed for bankruptcy. Another US manufacturer
of high-style, custom vehicles, Big Dog Motorcycles, closed in April 2011.
Motorcycle Production Trends 2005–2010:
Americas
The most important domestic producer in the US is Harley Davidson, which experienced a significant fall in
revenues due to the recession. Production numbers for Harley Davidson also indicate the pressures in the
domestic market as the proportion of units destined for export has continued to increase from 21.8% in 2006 to
37.5% in 2010.
Argentina experienced a dramatic increase of 58% in 2006 but has slowed to an average annual growth rate of
between 7% and 8% since. After a 5.5% drop in production in 2008, the industry recovered with positive
growth of over 7% in 2009 and 8% in 2010 to pass pre-crisis production levels.
Peru is another market with potential for growth. Production increased by 15% in 2007 and 16% in 2008
before declining by 3.2% in 2009. The industry showed signs of recovery in 2010 when output increased by
3.2% to reach 5,000 units of annual production. According to the National Census of Manufacturing
Establishments, there are 78 motorcycle assembly facilities in Peru, one third of which is based in the capital Lima
and Callao, the most important port in Peru. The most popular brands are: Honda, RTM, Bajbaj and Wanxin.
In 2009, over 81% of imported motorcycles came from China, 14.8% from India, 2.4% from Brazil and less
than 1% from Japan.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 6-21
Scope and Samples
Trucks, Buses and Other Vehicles
Chapter Contents
7. Transport — Trucks, Buses and Other Vehicles
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Performance of the Global Economy
B Freight Trends
C Urbanisation
5.1 Suppliers Global Position
4.2 Production of Trucks, Buses and Other
Vehicles
A Truck Manufacturing
B Trailer Production
C Bus and Coach Production
D Other Vehicles Production
6.2 Forecast Data
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Current Technology
3.2 Technology Systems
A Solventborne and Waterborne Liquid
Coatings
B Electrocoat
C Powder Coatings
D Other Coating Systems
3.3 Truck Coatings
A Chassis
B Cabins
C Bodies and Trailers
3.4 Bus and Coach Coatings
A Chassis
B Bodies
Markets
5
6
Suppliers
Outlook
6.1 Forecast Commentary
7
Glossary
8
Terms and Conditions
4.3 Principal Truck and Buses Producers
A Isuzu Motors
B Daimler AG
C Tata Motors
D Volvo Group
4.4 Global Market Size and Growth
A Truck and Bus Coatings Demand in Asia
Pacific
B Truck and Bus Coatings Demand in the
Americas
C Truck and Bus Coatings Demand in
Europe, Middle East and Africa
3.5 Other Vehicles
3.6 New Developments and Standards
A New Developments in Vinyl and Decal
Technologies
B Standards
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-26
Transport
Trucks, Buses and Other Vehicles
Technology
Use of Plastics and Composites
Use of Plastics and Composites in a Typical Truck
Whilst the majority of truck and bus components are manufactured from metal, there is a rapidly developing
trend for greater use of composite and plastic parts, particularly in North America and Europe. These materials
offer the potential for vehicle weight reduction, reduced fuel consumption and a wider range of styling options.
Plastic body parts allow OEMs to offer differentiated products with operational advantages and strong visual
impact.
Composite and plastic materials generally have better resistance to climate and adverse environments, but have
relatively low resistance to impact and buckling when compared to metal substrates. Consequently, they tend to
be used for non-structural components and where impact absorption, rather than those where impact
resistance, is required.
Despite these material constraints, the coatings industry can expect a progressive change from metals towards
plastic and ‘smart’ materials over the next ten years. Currently, it is estimated that plastic parts account for up to
40% of the total coatings consumption for a typical cabin, depending on the design.
Adoption is expected to increase as plastics find wider adoption in the emerging industries. Many countries in the
developing world still manufacture truck bodies and cabs almost entirely in metal. In some parts of India, China
and Africa, large truck bodies are still produced using wooden components mounted onto a modern vehicle
chassis. The pace of adoption for modern materials is also likely to be faster in these markets, where producers
benefit from technology transfer from joint ventures and partnerships with established OEMs.
The comparative costs of metal versus plastic components will be weighed against the benefits to lower running
costs, which are achieved from the reduced overall vehicle weight.
Luxury coaches and special buses produced in low volumes often have the entire front and rear ends
manufactured from GRP, which allows the manufacturers to produce more aerodynamic and aesthetic designs.
In contrast to the Automotive OEM industry, where the plastic components are supplied by the Tier 1 suppliers
fully finished, these main truck and bus components are normally coated by the OEMs on the same paint lines as
the metal components. As a result, the coating technologies and the volume demand are included in this
chapter.
Further information on the coatings used for the smaller plastic components, used in cabin interiors by truck and
bus manufacturers, are included within the figures for Chapter 17: Coatings for Plastics.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 7-7
Transport
Trucks, Buses and Other Vehicles
Markets
Germany
Truck Production Output: Germany
(000 vehicles)
Germany is the largest market for trucks in Europe. Road haulage accounts for 95% of the total freight industry
in value terms.
After a relatively stable growth in truck production, which is attributed to increased levels of freight
transportation, the annual output of trucks dropped in 2009. According to the VDA, German manufacturers
reduced production by an average of 52% in response to falling orders, which resulted in overall reported
output falling by 65% in 2009 to 89,000 trucks.
Prior to the 2009 collapse, industry output had exceeded 200,000 units per year, and peaked at 257,000 units
in 2008. There were signs of recovery in 2010, when new registrations of heavy trucks increased by 13.4% to
reach 39,209 units. Reported output reached 134,000 units, but return to pre-recession levels is not expected
before 2015.
There is an industry concentration around Bavaria and Baden-Württemberg in the south of Germany.
Germany is home to the world’s largest truck manufacturer Daimler, based in Stuttgart. The company
represented over 55% of industry output in 2009, producing over 49,000 trucks from its German plants. Trucks
are sold in Europe under the Mercedes-Benz brand. Due to rising demand in the emerging markets, Daimler
Trucks received increased orders in 2010 and the company’s plants were operating at almost full capacity. This is
welcome news following a fall in sales of 45% in 2009. Daimler also produces trucks in Portugal and Turkey.
Domestic Truck Producers: Germany
►
Daimler
►
MAN
MAN experienced a decrease of 30% in 2009 sales, but reported an increase in new orders for commercial
vehicles of 68% in 2010 due to improved conditions in Europe and continuing expansion in Brazil. The company
produced just fewer than 15,000 vehicles in Germany during 2009, representing almost 17% of the industry’s
output. Europe remains MAN’s most important region, generating 56% of all orders, where the main markets
are Germany, the UK, France and Russia. The Americas represent 27% of sales and the remainder coming from
Asia Pacific. The main production facilities are in Augsburg (Bavaria) in the south and Ruhr (North RhineWestphalia) in the northwest of the country.
German manufacturers produce about 27% of trucks domestically and 73% at their foreign facilities. The most
important locations for German manufacturers abroad are China and Brazil.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 7-49
Transport
Trucks, Buses and Other Vehicles
A
Asia Pacific region generates
the highest demand for
associated coatings... just over
•••,••• tonnes
Markets
Truck and Bus Coatings Demand in Asia Pacific
In common with the Automotive OEM coatings market, the Asia Pacific region generates the highest demand for
associated coatings in terms of estimated quantities consumed. In 2009 just over •••,••• tonnes
(••• million litres) of coatings were used for Trucks, Buses and Other Vehicles.
Not only does the Asia Pacific account for over 65% of worldwide demand, but it was the only region to
generate positive growth throughout the recessionary period. The estimated market demonstrated growth of
5.3% CAGR over the period 2006 to 2009, reaching a value of over €442 million.
Coatings Demand for Asia Pacific 2005 – 2009 (tonne)
Truck and Bus Coatings Demand: Asia Pacific
(000 tonne)
2005
2006
2007
2008
2009
Truck
•• •••
•• •••
•• •••
•• •••
•• •••
Trailer
•• •••
•• •••
•• •••
•• •••
•• •••
Bus
•• •••
•• •••
•• •••
•• •••
•• •••
•••
•••
•••
•••
• •••
•• •••
••• •••
••• •••
••• •••
••• •••
••.•
•.•
•.•
•.•
Other Vehicles
Total
% Change
The coatings demand in the Truck segment returned modest growth of 2% in 2009 over the previous year,
following strong growth in each of the previous periods, to reach almost •• thousand tonnes (•• million litres).
This represents over 62% of the regional coatings demand. The majority of this is generated by the leading truck
production industry in China. Demand in this segment exhibited a 10.2% CAGR over the period 2006 to 2009,
making it the best performing segment along with Trailers.
Trailers demand is closely correlated to that of heavy trucks, as the units require the tractor unit for movement.
Consequently, this segment exhibited similar growth pattern to that of Truck coatings demand, and reached
••,••• tonnes (•• million litres) in ••••.
Bus coatings’ demand was artificially inflated in the early part of the review period due to Chinese investment in
transit systems prior to the 2008 Olympics. This resulted in some degree of market re-balancing in 2008, but
demand is still increasing largely thanks to the development of affordable urban transport and public transport
infrastructure in Asia Pacific, particularly in China and India. The decline of 41% in 2008 contributed to an 11.1%
negative CAGR for the period 2006 to 2009.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 7-80
Scope and Samples
Rail
Chapter Contents
8. Transport — Rail
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Passenger Industry and Rail Freight
Performance
B Urbanisation
C Growing Environmental Awareness
D Availability of Finance
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Current Technology
3.2 Technology Systems
A One-Component (1K) Coatings
B Two-Component (2K) Coatings
C
Fillers
3.3 Coatings Technology by Application
A Passenger Carriages and Multiple Units
B Locomotives
C Freight
D Refurbishment
3.4 General Coating Technology Trends
A Passenger Carriages and Locomotives
B Freight Cars
Markets
4.5 Rail Coatings Market in Americas
A Market Drivers
B Market Dynamics, Size and Growth
4.6 Rail Coatings Market in Asia Pacific
A Market Drivers
B Market Dynamics, Size and Growth
4.2 New Build Rolling Stock
A Rolling Stock Manufacturing and Trends in
Europe, Middle East and Africa
B Rolling Stock Manufacturing and Trends in
the Americas
C Rolling Stock Manufacturing and Trends in
Asia Pacific
D Rail Refurbishment
4.3 Global Market Size and Growth
A Freight Rolling Stock Coatings
B Passenger Rolling Stock Coatings
C Locomotive Rolling Stock Coatings
D Rolling Stock ‘Below the Solebar’ Coatings
5
Suppliers
6
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
7
Glossary
8
Terms and Conditions
4.4 Rail Coatings Market in Europe, Middle East
and Africa
A Market Drivers
B Market Dynamics, Size and Growth
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-30
Transport
Rail
Introduction
Regional Share of Global Freight Carried by
Volume
2.3 Impact of Economic Downturn
The characteristics of the global rail supply markets remain North America, Asia Pacific and Europe. The impact
of the economic crisis varied across these regions, and is evident in four areas:

Freight volumes

Business restructuring

New orders

Economic stimulus support
Freight volumes declined. As trade volumes declined, global freight volumes fell by 15%. In the important
Americas market, railroad operations declined by 10% to13% and in North America by as much as 18%. The
resulting fall from the peak in 2008 retuned the industry to 2005 levels. In Europe, after several years of upward
trends the recession resulted in declines in rail freight transportation during 2008 and 2009, falling by 2% and
17% respectively.
New Orders for Railroad Equipment Placed
with Leading Suppliers
Billion €
Reduced freight volumes in these regions generated overcapacity and a large number of locomotives and freight
cars were left idle. By contrast, the Asia Pacific performed well during the same period and experienced growth
of 6% in 2008, a slowdown of just 2% on the previous year. Moderate growth of 2% in rail freight volumes was
maintained in 2009.
There were signs of recovery in 2010, as the global rail freight sector expanded by over 7% to reach a volume
of nearly ten billion freight tonne kilometres. However, a return to 2008 levels is not expected until beyond
2012.
New orders declined. The leading manufacturers experienced a decline in new order values of around 10% in
2009 as a result of the recession. This offset growth experienced in new orders during the previous year.
However, new orders increased in value terms by over 41% in 2007, which contributed to 8.4% compound
annual growth rate (CAGR) over the period 2005 to 2010. Therefore, impact of the economic downturn on
the train manufacturing industry was less pronounced that other sectors and 2010 saw approximately €35.5
billion in 2010 in new orders. The industry expects continued order momentum in 2011and 2012.
UNIFE, the Association of the European Rail Supply Industry, suggests that 44% of the global rolling stock
manufacturing segment is attributed to replacement orders. Replacement orders are expected to be the main
drivers for overall growth in rolling stock production to 2020.
Asia is expected to contribute to growth though network expansion in line with urbanisation and linking main
population centres. The Middle East and Africa region is also contributing to orders for new rolling stock for both
European and Asian manufacturers.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 8-4
Transport
Rail
Technology
3.3 Coatings Technology by Application
Technology Shares of Global Passenger Carriage
and Multiple Unit Coatings
A
Passenger Carriages and Multiple Units
Rolling stock designed for carrying passengers has four distinct areas in which the coatings are required to offer
different performance properties. These are:

Exterior sides

Interior

Roofs

Below the solebar – chassis members, bogies, traction bars, etc.
Exterior Side Coatings
The sides of the carriages are the most visual parts of the rolling stock, and are finished in a variety of different
colour schemes to reflect the livery of the operating company. The key performance requirements for exterior
carriage body coatings are:
The most widely used coating
system used in most parts of the
world consists of a two
component epoxy primer
followed by a two component
polyurethane finish.

High gloss and gloss retention

Resistance to UV radiation and temperature cycles

Chemical resistance, in particular to strong cleaning materials

Scratch and chip resistance
Rail companies operating urban services will also require the gloss and colour of the coating to be unaffected
when graffiti is removed with strong solvents.
The most widely used coating system used in most parts of the world consists of a two component epoxy
primer followed by a two component polyurethane finish. Some specifications require an intermediate primer
surface layer, again based on two component polyurethane. The finish can be either a one coat system or,
where graffiti resistance is required, a coloured base coat followed by a clear coat.
Whilst the basic technologies are common globally, the form in which they are used varies from region to
region. The general trends are:
In Europe, waterborne epoxy primers and waterborne polyurethane finishes are almost exclusively used. The
clear coat is either waterborne or solventborne, depending on individual preference. The manufacturers of
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 8-10
Transport
Rail
Outlook
6 Outlook
6.1 Forecast Commentary
Coating Demand Trend in 2010
In 2010, rail coatings reached ...
••• million litres and a value of
€••• million.
As the global economy showed signs of recovery and world GDP returned to growth in many markets,
improved production of key commodities traditionally transported by rail increased the demand for
transportation and rolling stock.
New freight cars orders and deliveries showed signs of recovery in the important US market. Freight cars
scrapped due to end of life contributed to a decrease of inactive rolling stock from 29% of the total rail capacity
to about 21% by the beginning 2011, which means that about 30% of idle vehicles returned to operation. This
generated estimated growth in rail coatings of around 7% in 2010, bolstered by an 18% increase in the new
build coatings category and a 3% increase in refurbishment coatings. In 2010, rail coatings reached an estimated
•• million litres (•••,••• tonnes) with a value of around €460 million.
Rolling Stock Trends to 2020
The global economic recovery will continue to be unbalanced with GDP in the developed and emerging
economies at below 3% and above 8% respectively to 2012. However, we believe that the rail manufacturing
industry and demand for associated coatings will not mirror the projected economic growth profile. Looking
forward to 2015 and 2020, regional specific factors will shape the growth of the rolling stock market. These
include:

The level of implemented infrastructure development projects

Rolling stock replacement rates

Regional levels of rail modernisation

National preference for rolling stock types.
For example, Russia and the United States need to replace aging freight cars that have been in operation for
nearly 30 years. These two countries are also planning to introduce very high-speed trains, but they may not be
as committed to this as Western Europe and Asia Pacific.
Having already implemented major modernisation projects for their passenger fleet, when locomotive hauled
and push-pull trains were replaced by multiple units, the demand for passenger coaches will decline in Western
Europe. In Asia Pacific, the recent development of very high-speed (VHS) trains in China will be accelerated by
further expansion to 20,000 km by 2015. India has big plans for modernisation of rolling stock and rail
infrastructure development will further augment the growth level in China.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 8-61
Scope and Samples
Aircraft
Chapter Contents
9. Transport — Aircraft
1
2
Executive Summary
Introduction
4
4.1 Global Market Drivers and Trends
A Global Aircraft Fleet
B New Aircraft Production
C Aircraft Size and Substrates
D Maintenance, Repair and Overhaul of Aircraft
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Markets
Technology
3.1 Impact of Coatings on Flight Dynamics
A The Dynamics of Flight
B Effect of Coatings on Flying Efficiency
3.2 Technology Drivers
A Cost Considerations
B Weight Reduction
C Environmental Impact
4.2 Global Market Size and Growth
A Aircraft Coatings Demand in the Americas
B Aircraft Coatings Demand in Europe, Middle
East and Africa
C Aircraft Coatings Demand in Asia Pacific
4.3 Suppliers Global Position
5
3.3 Current Technology
A Civil Aircraft Coatings
B General Aviation Aircraft Coatings
C Helicopter Coatings
D Other Aircraft Coatings
E Maintenance, Repair and Overhaul Coatings
Outlook
5.1 Forecast Commentary
5.2 Forecast Data
6
Glossary
7
Terms and Conditions
3.4 Standards and New Developments
A Standards and Regulations
B New Developments
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-34
Transport
Aircraft
B
The critical consideration for
aircraft coatings is the
smoothness of surface finish
achieved by the topcoat
Technology
Effect of Coatings on Flying Efficiency
The key factor with drag is air flowing over the airframe. Consequently, the critical consideration for aircraft
coatings is the smoothness of surface finish achieved by the topcoat. The effect can be considerable and led to
Boeing’s decision, for example, to use only one paint colour on the engine nacelle inlet of the latest 787
Dreamliner.
Boeing found that the tiny edge created where one colour is laid over another affected airflow to such an extent
that using only one paint colour could save as much as 22,000 gallons (more than 100,000 litres) of fuel per
year. If that is accrued over the expected lifetime of the aircraft it creates savings of 880,000 gallons (or 4 million
litres) per aircraft.
The accumulated weight of coatings can also be significant. For example, the coatings dry-weight on the exterior
of the Airbus A380 is approximately 1,600 pounds (725 kgs) compared to the exterior coatings dry-weight on a
Boeing 747 of approximately 1,060 pounds (480 kgs). Typically, the exterior coatings on these aircraft consist of
an epoxy primer, high solids topcoat, separate wing coating and a small quantity of area-specific coatings. The
interior structural coatings can add a further 1,600 pounds (725 kgs). This gives a total coatings dry-weight on the
aircraft of around 4,260 lbs (1,930 kgs) that has to be overcome by lift. Any reduction in weight that does not
affect coating functionality will have an accumulating cost benefit.
As a general guide, every kilogramme of weight removed from a commercial jet aircraft will save around 25
gallons of fuel per annum.
New developments in nano-coatings offer an alternative to the traditional convention of smooth finish. Tiny
dimples around the area of high drag forms a thin layer of slightly turbulent air between the surface skin and the
boundary layer of the airflow over the surface. This layer has the effect of insulating the aircraft from some of the
worst affects of local drag thereby reducing the overall drag coefficient to improve overall performance.
Whether this high-end technology will be cost effective for widespread adoption by civil airline operators remains
to be seen, but EasyJet are already trialling nano-coatings supplied by tripleO claimed to reduce carbon
emissions by up to 2% and deliver fuel efficiencies.
Gliders also trade height for speed and range. Anything that can increase speed for an equivalent loss of height
will be of interest to the serious, competitive glider pilot. Increased speed will also extend the competitive range
of a glider, so the premium cost of such a surface may be justifiable.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 9-6
Transport
Leading Civil Aircraft Manufacturers by Output in 2010:
World
►
Airbus (France)
►
Boeing (United States)
►
Bombardier (Canada)
►
Embraer (Brazil)
Aircraft
B
Markets
New Aircraft Production
North America has traditionally been the main producer of aircraft. This position was challenged with the
emergence of Airbus during the 1970’s. Deregulation of the US market resulted in ‘legacy carriers’ facing stiff
competition from new entrants based on the low-cost airline model.
The emergence and success of low-cost carriers has changed the demand profile for aircraft producers. Demand
is expected to diversify over the next five years with almost 50% of global demand generated in developing
countries. The increased demand for aircraft in the MEA and Asia Pacific regions, coupled with attractive labour
costs, has resulted in manufacturing operations shifting to South America and Asia, particularly China where the
aerospace industry has experienced significant growth.
Large Civil Aircraft
Airbus Deliveries and 2010 Order Book
There are two major OEMs for large civil aircraft. These are:

Airbus Industries

The Boeing Company
The industry is traditionally very competitive and consolidation has resulted in the two major manufacturers
essentially creating a duopoly for the new large civil aircraft market. The recession severely affected the demand
for new aircraft and this led to even sharper competition.
Airbus Industries had forward orders for 644 aircraft at the end of 2010, with over 500 delivered in the same
period. The manufacturing locations are:

United Kingdom – two wing and pylon assembly centres located in Broughton and Filton

France – the structures for the wing box are produced in Nantes

Spain – the empennage and composite materials are manufactured in Getafe and Illescas

Germany – the final assembly plant is located in Hamburg.
The order backlog and lead times to manufacture have protected manufacturing output as measured by
reported deliveries, which maintained an annual average growth rate of 4% over the period 2006 to 2010. The
rate of delivery increases did slow from 6.6% in 2008 to 3.1% and 2.4% in 2009 and 2010 respectively.
Source: SpeedNews
Coatings and livery are applied at the final assembly plant in Germany. Air France Industrie and Sabena
Technics are the two main approved MRO applicators. Interior coatings are mainly supplied by Mankiewicz.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 9-30
Transport
Estimated coatings demand...
•.• million litres with a value of
around €70 million
Aircraft
Markets
New aircraft production generates an estimated coatings demand of over • million litres (>•••• tonnes) per
year. The largest segment of the OEM Aircraft Coatings market is civil aircraft, represented by Airbus and
Boeing, generating demand for over •.• million litres (>•,••• tonnes) per year.
The sheer volume of smaller aircraft in the general aviation segment generates significant demand for Aircraft
Coatings, which peaked at just over •.• million litres (•,••• tonnes) in 2008 before the recession resulted in a
sharp decline in production output and associated coatings consumption, which fell to just under •••,••• litres
(•••• tonnes) in 2009. The majority of this was within the North American market, which in 2009
represented almost 60% of all turboprop and piston general aviation aircraft manufactured worldwide and
almost 50% of total business jet output.
World Consumption of Coatings for Aircraft by Segment 2005 – 2009 (000 litres)
2005
2006
2007
2008
2009
• •••
• •••
• •••
• •••
• •••
General Aviation Aircraft
•••
•••
• •••
• •••
•••
Rotorcraft
•••
•••
•••
•••
•••
Others
•••
•••
•••
•••
•••
Maintenance, Repair and Overhaul (MRO)
• •••
• •••
• •••
• •••
• •••
Total
• •••
• •••
• •••
• •••
• •••
Civil Aircraft
Although using less coatings per aircraft than OEMs, the sheer volume of operational fleets and repaint
frequencies results in the majority of coatings demand being for MRO operations. The fastest growing markets
for MRO activities are in Asia Pacific (where Singapore is the established hub), the Middle East and South
America.
The recession resulted in consolidation in the airline industry. As some operators merged, a number of aircraft in
the combined fleets required new paint schemes to reflect the new brand. This helped to reduce the impact on
MRO coatings demand. Airline operators also use their fleet branding to gain an advantage in an increasingly
competitive environment and to create consumer “trust” in the airline, which creates further demand for Aircraft
Coatings.
Although OEM coatings are typicaly applied during final assembly, the application of coatings to airframes and
structural components can take place at paint shops throughout the supply chain, making it difficult to provide
market details at the country level within the scope of this study. Regional demand is discussed.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 9-40
Scope and Samples
Marine
Chapter Contents
10. Transport — Marine
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A The Global Fleet
B Shipbuilding
C Ship Repair and Maintenance
D Seaborne Trade
E The Global Supply Chain
F Ship Construction Finance
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of the Economic Downturn
3
Technology
3.1 Deep Sea and Coastal
A Shop Primers
B Antifouling Coatings
C Cargo Hold Coatings
D Tank Coatings
E Topside and External Superstructure
F Ship Interiors and Engine Room
3.2 Yachts and Super-Yachts
A Yachts
B Super-Yachts
3.3 Containers
3.4 Standards and New Developments
Global Industrial Coatings Markets 2010 – 2020
Markets
4.2 Global Market Size and Growth
4.3 Market Segmentation: Size, Drivers and Key
Features
A Deep Sea
B Coastal
C Offshore Supply Vessels
D Leisure Craft: Yachts and Super-Yachts
E Containers
4.4 Suppliers and Global Position
5
Outlook
5.1 Forecast Commentary
5.2 Forecast Data
6
Glossary
7
Terms and Conditions
© PRA 2011
Page 0-38
Transport
Marine Coatings
Introduction
2.2 Macro Drivers
The Relative Economics of Shipbuilding to Ship Repair
The major demand driver of the marine industry is the level of economic activity and global trade in
commodities and raw materials. Seaborne trade is closely linked to Gross Domestic Product (GDP) where the
percentage increase is generally a multiple of 2.5 to 2.7 of GDP growth.
Shipbuilding
The major supply drivers of the industry are:

The capacity of shipbuilding yards, as the time to construct a vessel means that supply is unable to react
quickly to demand

The cost of construction where higher raw material inputs will reduce demand due to higher vessel prices

Access to vessel financing, the economic life of vessels.
The more complex the vessel, the less sensitive the market is to labour cost.
In 2006 the global shipbuilding industry was operating at full capacity with most yards sold out until at least 2009.
The market growth in 2006 to mid 2008 was due to: huge demand for freight capacity driven by China, low
financing costs and investors reacting to market trends.
The principal drivers for 2010 onwards for shipbuilding are:
Ship Repair

An increase of consumer confidence in Europe and North America, Chinese demand for imports of raw
materials and exports of consumer goods

Increase of demand within the Chinese domestic market. The 12th Chinese Annual Plan for 2011 to
2014 is forecasting approximately 8% GDP growth

Increased availability of funds for investment in new vessels, which can then be built at a profit.
Ship repair activity depends on:

The level of shipping activity. One consequence of the crisis has been the extension of maintenance
intervals

The emergence of lower cost repair yards and availability of skills

The number of retired vessels. Ships that have been taken out of service will either be scrapped or put
back into service. Those returning to service will require overhaul, including complete replacement of the
antifouling coating.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2010
Page 10-7
Transport
Marine Coatings
Markets
4.2 Global Market Size and Growth
Global Consumption of Marine Coatings (2009)
Coatings Demand by Region and Activity
The shipbuilding industry has seen a dramatic decline of order intake in 2009 as new orders placed fell from
approximately 170 million GT in 2007 to just over 86 million GT in 2008 and 18 million GT in 2009. However,
due to the average time taken to build a new vessel the demand for marine coatings has been protected from
the full effects of the recession and there was an estimated 6% growth in new build coatings demand in 2009.
In addition, demand for coatings from commercial shipbuilding experienced a surge in 2007 due to the impact of
regulations for ballast tank coatings. This resulted in the approximate split of 1:1 between shipbuilding to
maintenance, repair and overhaul (MRO) shifting to approximately 2:1.
Global commercial shipbuilding coatings demand experienced a compound annual growth rate (CAGR) of 14%
with an estimated consumption of over ••• million litres (•••,000 tonnes) in 2009. It should be noted that we
have expanded our fleet analysis from commercial vessels of over 100,000 GT in the previous study to vessels
of over 2,000 GT to provide a more comprehensive review of coatings demand. This results in an upward
revision on trend data of around ••• million litres. The revised figures for 2005 and 2006 are included below.
The Global Market for Commercial New-Build Marine Coatings (000 litres) 2005-2009
2005
2006
2007
2008
2009
Europe & MEA
•• •••
•• •••
•• •••
•• •••
•• •••
Americas
•• •••
•• •••
•• •••
•• •••
•• •••
Asia Pacific
••• •••
••• •••
••• •••
••• •••
••• •••
•• •••
•• •••
•• •••
•• •••
•• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••
••
••
••
Rest of World
Total Commercial Coatings
% change
Global Industrial Coatings Markets 2010 – 2020
© PRA 2010
Page 10-58
Transport
Marine Coatings
E
Container Output
000 TEU
Markets
Containers
In 2006, the global production of containers was 3 million TEU and 185,000 reefer containers. China produced
about 90% of the world’s containers but relied on imports for more than half of the steel plate (of less than two
millimetres thick) used. The production of containers increased significantly in 2007 reflecting the boom in
exports from China.
In 2008 the impact of the recession resulted in significant cost cutting measures. The reduction in seaborne trade
in 2009 negatively impacted on container demand as containership operators adopted conservative ordering
strategies. Although China remained the major producer of new containers, a number of factories were closed.
This resulted in a considerable fall in output down 36% in 2008 and a further 89% in 2009.
Total coatings demand in this segment (including demand from both new build and refurbishment activity) is
estimated to be around •.• million litres (••,000 tonnes) of marine coatings, representing a fall of 40% CAGR
over the period 2005-2009.
Estimated Coatings Demand for Containers 2005-2009
2005
2006
2007
2008
2009
Litres (000)
••• •••
••• •••
••• •••
••• •••
••• •••
Tonnes
••• •••
••• •••
••• •••
••• •••
••• •••
••
••
••
••
% change
As operators divested idle containers in 2009 for recycling, the growth in seaborne trade and signs of recovery in
2010 led to container shortages. This has led to an upsurge in container demand and associated coatings
demand of over ••% year-on-year from 2009 to 2010
We expect this to decelerate in 2011 and, taking into account new containerships coming online in 2013-2014,
expected rates of global GDP growth and aggregated analyst forecasts, we expect container output to return to
peak levels around 2015.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2010
Page 10-72
Scope and Samples
Protective Coatings
Chapter Contents
11. Construction & Infrastructure — Protective Coatings
1
Executive Summary
3
2
Introduction
3.1 Steel Protection
A Prefabrication or Shop Primers
B Primer Coatings
C Intermediate Coatings
D Top Coats
4.1 Global Market Drivers and Trends
A Infrastructure
B Oil and Gas
C Petrochemicals and Refining
D Industrial and Other Processing
3.2 Concrete Protection
A Coating Types
4.2 Global Market Size and Growth
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
A Government Funding
B Oil and Commodity Prices
Technology
4
3.3 Coatings Technology by Application
A Bridges
B Water Treatment
C Power Stations (excluding Wind Turbines)
D Wind Turbines
E Oil Refineries and Chemical plants
F Offshore Oil and Gas
G Pipelines
H Food Processing
I Mining
J Pulp and Paper
3.4 Standards and Developments
A Standards and Regulations
B New Developments
Markets
4.3 Market Segmentation: Size, Drivers and Key
Features
A Transportation and Coastal Infrastructure
B Water and Wastewater Treatment
Infrastructure
C Public Power Generation and Transmission
Infrastructure
D Oil Refineries, Petrochemical Plants and Storage
E Oil and Gas Exploration and Production
F Manufacturing and Other Processing
G Intumescent Coatings
4.4 Suppliers and Global Position
5
Outlook
5.1 Forecast Commentary
5.2 Forecast Data
Global Industrial Coatings Markets 2010 – 2020
6
Glossary
7
Terms and Conditions
© PRA 2011
Page 0-42
Construction and Infrastructure
Protective Coatings
Estimated Share of Generic Coatings Systems Applied to
Steel for Bridges
3.3 Coatings Technology by Application
A
Technology
Bridges
The principle factors that determine the level of corrosion risk are:
Estimated Share of Generic Coatings Systems Applied to
Concrete for Bridges

Exposure to moisture: the level of corrosion risk will depend heavily on the local microclimate due to
winds and weather conditions

Exposure to a marine environment: based on the distance from the sea and on the microclimate

Expose to salt: used in de-icing chemicals

Airborne industrial pollution: older bridges may be at risk having been built at a time when the level of air
quality was much less than it is today. Air quality still presents a serious problem in countries such as Russia,
China and India
The rate of corrosion can be assessed using ISO 9223 and the overall environment using ISO 12944. The
choice of coating will depend on whether it is for a new build or for maintenance.
New Build Coatings
The selection of coating system for a new bridge is defined by the local specifications and regional environment.
It is possible to make some generalisations. The time to first maintenance of a newly applied coating is now
between 20 and 25 years.
A general system used for the Protective Coating is:

Primer

Intermediate coat

Top coat
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 11-31
Construction and Infrastructure
Protective Coatings
Markets
Despite maturing shallow water areas, Gulf of Mexico oil production is projected to reach 1.8 million bpd by
2013, with growth resulting from successful exploration and development of reserves in the deeper. Deepwater
production now accounts for 70% of all Gulf of Mexico oil production and 36% of gas production.
Whilst the deep and ultra-deep water production is more expensive and risky, requiring floating platforms, the
Gulf of Mexico is a well-established area with a large number of shallow fields requiring platforms that are fixed o
the seabed.
The EIA projects that US crude production volumes will increase to 2035. The majority is expected to come
from deepwater offshore fields. A number of fields, such as Great White, Norman, Tahiti, Gomez, Cascade, and
Chinook, either started producing in 2009 or are expected to start producing in the next few years. Most are in
the Central Gulf of Mexico.
Mexico is the second area after the North Sea where oil production is projected to decline by 2035. According
to EIA, oil production in Mexico including offshore (80%) and onshore (20%) is expected to decline to
approximately 1.4 million barrels per day by 2025.
© Laoma | Dreamstime.com
Leading Operators in North America
►
Shell Offshore
►
Anadarko Petroleum Corporation
►
Chevron Corporation
►
ATP Oil & Gas Corporation
►
Eni SPA
►
Marathon Oil Corporation
►
Noble Energy Inc.
►
Statoil
Most of Mexico’s oil production occurs in the Gulf of Campeche, located off the south-eastern coast of the
country. The two main production centres in the area include Cantarell and Ku-Maloob-Zaap (KMZ), with
smaller volumes also coming from the fields off the coast of Tabasco state. In 2009 Cantarell and KMZ
represented 57% of Mexico’s total crude oil production. Mexico has 222 fixed structures with an order book
showing an additional 19 units.
Mexican laws restrict foreign ownership of hydrocarbon resources and its resource policies have kept back
overseas and domestic investment which results in production levels slowing down. It is assumed that these
political barriers will not exist after 2015.
PEMEX is a state-owned company and is the only petroleum operator in Mexico, holding a monopolistic
position on natural gas exploration and production in the country. It is one of the largest oil and natural gas
companies in the world.
Canada has three oil projects off its Atlantic coastline, all located in the Jeanne d’Arc Basin. The basin has seen an
increase in investment in recent years, with both White Rose and Hibernia announcing plans to expand
production by incorporating satellite fields. Outside of the Jeanne d’Arc Basin, StatoilHydro announced in 2009
that it had discovered commercial quantities of crude oil at its Mizzen field in the Flemish Pass basin. In 2009,
ExxonMobil submitted its proposed Hebron project for regulatory approval, which could come on stream as
soon as 2017 and reach a peak production rate of 176,000 bbl/d. Operators at the Atlantic oil fields must
contend with harsh natural conditions, including rough seas, seasonal icebergs, and extreme temperatures.
These factors will require the application of high performance protective coatings with long life expectancy.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 11-97
Construction and Infrastructure
Protective Coatings
D
Regional Share of Protective Coatings for Oil
Refineries, Petrochemical Plants and Storage
Markets
Oil Refineries, Petrochemical Plants and Storage
Representing around 20% of overall protective coatings consumption, Oil Refineries, Petrochemical Plants and
Storage is the largest single industrial category.
The coatings used to protect oil refineries and chemical plants are applied to storage tanks, containment areas,
process units, and structural steel, high temperature areas (reactors, process plant and chimneys), pipelines,
power generation plant and onsite water treatment facilities.
The most significant areas to be coated in a refinery are the storage tanks; tank capacity is directly proportional to
the processing capacity of the facility and coatings demand has been estimated based mainly on plant output as
an indicator of size.
The economic crisis had little effect on the demand for protective coatings in this industry segment as assets need
to be maintained irrespective of volume throughput due to the harsh operating conditions and the industry
health and safety regime. All companies have established maintenance schedules (including defined painting
intervals) that results in a stable demand profile.
At 20% of overall protective
coatings consumption, Oil
Refineries, Petrochemical Plants
and Storage is the largest single
industrial category ... with an
associated value of €••• million.
Over the period 2006-2009, protective coatings consumption had 2% CAGR. This resulted in an estimated
market of almost ••• million litres (•••,000 tonnes) in 2009 with an associated value of €••• million and
representing growth of almost 1.9% on the previous year.
Protective Coatings Demand for Oil Refineries, Petrochemical Plant and Storage (2005-2009)
2005
2006
2007
2008
2009
Litres (million)
•••
•••
•••
•••
•••
Tonnes (000)
•••
•••
•••
•••
•••
•.•
•.•
•.•
•.•
% Change
There have been only minor additions to refining capacity during the review period. The exception is China
(from 7 million barrels per day to 8.6 million) and India (from 2.9 million to 3.8 million) contributing to strong
regional growth that resulted in Asia Pacific taking 29% of protective coatings in volume terms. Only North
America has a larger share with 30% of the market volume in 2009.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 11-127
Scope and Samples
Industrial Wood Coatings
Chapter Contents
12. Construction & Infrastructure — Industrial Wood Coatings
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Construction Trends
B Consumer Activity
C Furniture Production
D Joinery
E Flooring
5.1 Suppliers Global Position
4.2 Global Market Size and Growth
7
Glossary
4.3 Coatings for Wooden Furniture
A Furniture Coatings Demand in Asia Pacific
B Furniture Coatings Demand in Europe, Middle East
and Africa
C Furniture Coatings Demand in the Americas
8
Terms and Conditions
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Current Technology
3.2 Technology Systems
A Solventborne and Waterborne Liquid Coatings
B UV Coatings
C Powder Coatings
3.3 Coatings Technology by Application
A Furniture
B Joinery (Millwork)
C Flooring
3.4 Standards
Markets
5
6
Supplier
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
4.4 Coatings for Joinery
A Joinery Coatings Demand in Asia Pacific
B Joinery Coatings Demand in Europe, Middle East
and Africa
C Joinery Coatings Demand in the Americas
4.5 Coatings for Wooden Flooring
A Flooring Coatings Demand in Asia Pacific
B Flooring Coatings Demand in the Americas
C Flooring Coatings Demand in Europe, Middle East
and Africa
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-46
Construction & Infrastructure
Industrial Wood Coatings
Typical Coating Systems Used in Kitchen Cabinets
The main coating technologies are summarised below, together with the type of furniture for which each
technology is used:
System
Typical Use
Nitrocellulose
Indoor furniture
2K Polyurethane
Technology
Process
Speed
Advantages
Disadvantages
4
Glossy
Hard surface
Alcohol resistant
Thin films
Low coating cost
Poor light & solvent
resistance
High level of volatiles
Poor chemical
resistance
Kitchen furniture
Domestic and
commercial furniture
2
High chemical &
mechanical resistance
Flexible
Hard surface
Scratch resistance
Relatively expensive
Limited pot life
Acid Catalyst
Kitchen furniture
4
High chemical &
mechanical resistance
Flexible
Hard surface
scratch resistance
Formaldehyde emission
Unsaturated
Polyester
Furniture
3
High grade glossy surface
Scratch resistant
High solids
Thick film
Light resistance
Styrene emission
Acrylic and PUD
dispersions
Kitchen furniture
primers
Domestic furniture
3
Low solvent
Substrate wetting
UV-curable PUD
Kitchen furniture topcoats
4
Low solvent
Substrate wetting
UV-curable
coatings, “100%”
Flat pack furniture
Kitchen worktops
5
Low solvent
High chemical &
mechanical resistance
Flexible
Hard surface
scratch resistance
Investment costs of the
application equipment
Where 5 = fastest and 1= slowest in terms of drying / curing rates
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 12-14
Construction & Infrastructure
Industrial Wood Coatings
Markets
Kitchen Furniture
Main Country Producers of Kitchen Cabinets by
Share: World
Kitchen cabinets have evolved over the past twenty years, as the role and function of the kitchen has been
transformed into a family gathering space, often designed ‘open plan’ to share the main living area.
Consequently, the design of kitchen units has become more important and they are offered in a wide range of
styles and colours.
Kitchen cabinets are supplied in three main types:
Main Country Producers of Office Furniture by
Share: World

Ready assembled units in a set range of products, allowing kitchens to be designed on a modular basis

Flatpack cabinets, also using a modular design base

Custom-made cabinets individually made to meet specific consumer needs.
The choice of cabinet type depends on budget, ease of fitting, available space and regional preference. The high
share of ready-assembled units and constraints of custom-made cabinets has resulted in a localised supply for
kitchen production. In contrast to the rest of the domestic furniture industry, production of kitchen cabinets is
concentrated on a small number of major players within each region, resulting in higher levels of production
intended for export markets.
The main exporting nations are Germany, Italy, Canada and China. Luxury kitchen cabinets account for around
half million units worldwide, with an additional one million of middle and middle-high end kitchen units exported.
The recession resulted in Italian exports being reduced by 15% and German exports by 10% in 2009.
The US is the largest importer of kitchen furniture with the import value peaking in 2006 at around €900 million
but falling to €600 million by 2008 as the credit crunch impacted on the housing market. The next two biggest
importing nations are France and the UK, with imports continuing to grow up until 2008 to levels of €380 million
and €220 million respectively.
Commercial Furniture
The global office furniture market, supplying a range of wood, metal and upholstered furniture and storage units
to the commercial, institutional and healthcare sectors was worth around €50 billion in 2009.
The main manufacturing region is EMEA, which represents around 40% of global furniture production in value
terms. The Americas region represents around 33% of global production, mainly due to the US as the single
largest contributor to office furniture production with over 23% of world output in value terms.
Production is highly concentrated with ten countries accounting for 70% of global production.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 12-49
Construction & Infrastructure
Leading Joinery Coatings Markets: EMEA
million litre
Industrial Wood Coatings
Markets
Japan represents the third largest regional market for joinery coatings, which are estimated to be around ••
million litres (••,000 tonnes) in 2009.
With the activity on new housing slowing down, there is a growth in renovation and maintenance activity on
existing housing stock. The proportion of maintenance, repair and renovation of the total construction market is
around 25%. Longer term, joinery coatings demand is expected to benefit from new house starts in response to
government incentives, changing demographics and housing needs and, in the short term, significant
reconstruction following The Great East Japan Earthquake that occurred in 2011.
Aluminium is the leading material used for windows in Japan, with over 80% market share followed by PVCu.
Wood window frames are normally aimed at the high-end market. Japanese wood window frame manufacturers
are typically small companies using imported timber.
B
Overall Production Shares of Window Frames and
Doors: Europe
Joinery Coatings Demand in Europe, Middle East and Africa
The market for joinery coatings in the EMEA region generated estimated demand of around •• million litres
(••,000 tonnes) in 2009 with a value of €••• million. Over 90% of coatings demand is for doors and around
5% for window frames. The remaining consumption is associated with trim such as skirting boards and
architraves.
The construction industry in Europe performed badly during the recession. The United Kingdom, Ireland,
Denmark and Spain were worst affected. Government incentives and support initiatives were generally
ineffective, and where positive impacts were felt they were short-lived. Consequently, demand for joinery
coatings experienced declines in 2008 and 2009. European demand for joinery coatings is estimated to be
around •• million litres (>••,000 tonnes).
The share of PVCu window frames and doors is the highest in the world, whilst the share of wood represents
the lowest regional demand. The highest market share for PVCu is found in the UK and Russia, where these
substrates account for around 75% of units produced.
As a leading regional producer of doors, Spain represents the largest market for joinery coatings. Production
output peaked in 2007 at over 37 million units before falling to 20.5 million in 2009. Poland has more than
3,000 manufacturers of windows and doors where Inwido (Sweden), the largest producer in Europe, leads the
local market. Wood and wood framed aluminium windows account for 45% of Poland’s joinery exports.
Production of wood window frames in Italy during 2009 was just over six million units, significantly down from
the peak of 2007 when over 14.5 million units were produced.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 12-77
Scope and Samples
Agriculture, Construction and Earthmoving
Chapter Contents
13. Construction & Infrastructure — Agriculture, Construction and Earthmoving
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Agriculture Trends
B Construction Trends
2.1 Market Definition
2.2 Macro Drivers
4.2 Global Market Size and Growth
2.3 Impact of Economic Downturn
3
Markets
4.3 Agriculture Equipment
A Market Drivers
B Market Dynamics, Size and Growth
Technology
3.1 Current Technology
3.2 Technology Systems
A Solventborne and Waterborne Liquid
Coatings
B Powder Coatings
C Electrocoat
D Pigments
4.4 Construction, Earthmoving and Mining Equipment
A Market Drivers
B Market Dynamics, Size and Growth
4.5 Materials Handling Equipment
A Market Drivers
B Market Dynamics, Size and Growth
3.3 Coatings Technology by Application
A Agricultural Equipment
B Construction, Earthmoving and Mining
Equipment
C Materials Handling Equipment
D Repair and Maintenance
4.6 Suppliers Global Position
3.4 General Technology Trends
6
Glossary
3.5 Regulations and Developments
7
Terms and Conditions
Global Industrial Coatings Markets 2010 – 2020
5
Outlook
5.1 Forecast Commentary
5.2 Forecast Data
© PRA 2011
Page 0-50
Construction & Infrastructure
Agriculture, Construction and Earthmoving
B
Technology Use in Coatings for Construction,
Earthmoving and Mining Equipment: World
Technology
Construction, Earthmoving and Mining Equipment
Construction equipment can be broadly classified as:
1.
Heavy and medium equipment: large capital items
2.
Light equipment: smaller machinery items, trucks and tooling manufactured by small specialist companies
Light equipment is often used in conjunction with the heavier capital equipment and operating environments
result in similar coatings requirements for both. The surface finish quality must be excellent as the equipment is
exposed to demanding operating conditions. The components that need to be coated range from large forged
steel components to metal sheet and small plastic parts. It can be an expensive and time consuming process to
get a coating system approved by OEMs.
The items coated include:
Technology Use in Coatings for Construction,
Earthmoving and Mining Equipment: Regional

The chassis

Engine

Cabin

Wheels or track

Other parts: including the excavator arms and bulldozer blades etc.
Technology Use in Coatigns for Construction Equipment Coatings Technology by Region
Solventborne
Waterborne
Powder coating
E-coat
Europe and Middle East Africa
70
8
14
9
North America
62
10
18
10
South America
85
0
10
5
Asia Pacific
80
0
10
10
Construction equipment can be used in a wide range of climatic conditions, from the high temperatures of the
deserts of the Middle East to the low temperatures in northern Canada or Siberia. Each OEM has its own
performance specifications against which coatings must be approved. The coatings must be capable of meeting
these specifications over the full range of working environments.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 13-18
Construction & Infrastructure
Agriculture, Construction and Earthmoving
A
Markets
Agriculture Trends
Environment and Climate
World Food Prices
(Index, 2002-04 = 100)
The regional climate is a major determinant of agricultural output and crop yields are heavily influenced by
variations in the weather. This has created a cyclical demand for related equipment; April to July is the principal
period for agricultural output in the Northern Hemisphere and September to January in the Southern
Hemisphere. Consequently, the peak selling season for agricultural equipment in the Northern Hemisphere, for
example, is March to June and to ensure stock availability, dealers place their orders during the autumn and
winter months.
The impact of adverse weather patterns on agricultural output is well recognised. Recent adverse impacts, such
as droughts, have been attributed to climatic change. These impacts are expected to become more prominent.
As weather patterns become less predictable, crop yields fall placing pressure on farming industries. To counter
the effects of regional weather cycles on demand for agricultural equipment, suppliers have established global
supply markets. Localised manufacturing operations have been established to meet the local requirements for
specialist equipment.
Food Production and Prices
Farming is a cyclical industry but a combination of factors has resulted in dramatic variances in recent years
leading to volatility in both farm input and output prices. The markets for grain, for example, experienced poor
global harvests in 2007 leading to low stocks, which in turn pushed up prices. The 2008 global harvest was
much better and so prices fell accordingly.
Source: FAO
In 2006, prices of the world’s most popular food staples including wheat, corn, soya and rice began rising. In
2007 and 2008 world food prices experienced a dramatic increase, especially cereals, oils and dairy products.
The United Nation’s Food and Agriculture Organisation (FAO) reported 56% increase in the world food price
index from 2006 to 2008. The factors that contribute to price volatility include:

Droughts, which negatively affected grain producing nations

Falling world food stockpiles and grain reserves

Rising oil prices

Increased planting of crops for bio fuels

Changing diet and strong rise of per capita meat consumption in developing countries.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 13-28
Construction & Infrastructure
Construction Output Growth for Key Asia Pacific
Markets 2005–2010
Agriculture, Construction and Earthmoving
Markets
Construction in Asia Pacific
The Asia Pacific region performed strongest with an average annual growth rate of between 9% and 10% during
the global recession. China and India showed the highest growth rate over the period 2005 to 2009.
China has replaced Japan as the second largest construction market in the world and is expected to outpace the
US around 2016 to become the world’s leading construction market. Total construction output is expected to
remain relatively high, although growth will slow in the next two years to approximately 7% or 8% per year.
Whilst the housing price level in China has not reached that of the US and UK, the trend is upward and houses
have become less affordable. The Chinese government’s ambitious plans to build 36 million affordable homes
over 2011to 2015 with €128.7 billion (1.3 trillion Yuan) allocated in 2011 could face financial challenges.
The Chinese government requires builders to keep residential construction costs low. However, the rise in
commodity and raw material prices, particularly steel, is likely to affect construction prices.
The construction industry in India has been growing with an average growth rate of 9% to11% year-on-year
and represents between 6% and 8% of the country’s GDP. Construction activity is stimulated by the
government’s decision to let 100% Foreign Direct Investment (FDI) into the country’s property market.
Construction Output Growth for Key Asia Pacific Markets 2005–2010
2005
2006
2007
2008
2009
2010
China
16.0
17.2
16.2
9.5
18.6
17.5
India
12.9
11.4
11.0
4.7
7.6
10.3
Japan
0.5
-0.1
-6.0
-8.1
-5.2
-6.9
Indonesia
7.5
8.3
8.6
7.4
7.0
6.7
Malaysia
-1.5
-0.3
7.3
4.2
5.7
5.9
Philippines
-5.8
9.9
20.0
8.0
9.4
9.4
Singapore
0.7
2.5
16.7
20.1
16.2
8.2
South Korea
-0.3
2.2
2.6
-2.5
1.9
-0.4
Vietnam
10.9
11.0
12.2
-0.4
11.4
10.1
Australia
6.6
6.7
6.4
5.7
-2.4
5.2
Source: OEF
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 13-36
Scope and Samples
Pre-coated Metal Sheet
Chapter Contents
14. Construction & Infrastructure — Pre-coated Metal Sheet
1
Executive Summary
2
Introduction
5
5.1 Suppliers Global Position
2.1 Market Definition
6
2.2 Macro Drivers
Outlook
6.1 Forecast Commentary
2.3 Impact of Economic Downturn
3
Suppliers
6.2 Forecast Data
Technology
3.1 The Coil Coating Process
3.2 Technology Systems
A Solventborne Liquid Coatings
B Other Coating Technologies
7
Glossary
8
Terms and Conditions
3.3 New Developments and Standards
A New Developments in Coil Coating
B Standards
4
Markets
4.1 Global Market Drivers and Trends
A Construction Activity
B Design
C Appliances and Metal Furniture
D Transportation
E Other
4.2 Global Market Size and Growth
A Coil Coatings in Asia Pacific
B Coil Coatings in Europe, Middle East and Africa
C Coil Coatings in the Americas
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-54
Construction and Infrastructure
Pre-coated Metal Sheet
Introduction
2.3 Impact of Economic Downturn
Coil coatings demand was
dramatically affected by the
global recession.
Coil Coatings Supply Chain
All application markets for pre-coated metal sheet, (construction, domestic appliances, transportation and metal
furniture) are directly linked to macro economic conditions. Consequently, coil coatings demand was
dramatically affected by the global recession.
Construction was the worst affected as spending in real terms fell by almost 20% in 2009 due to the economic
downturn. This led to signifiacnt declines in pre-coated metal output and associated coating demand. Industrial
customers in all regional markets and application sectors reduced capital expenditures, resulting in declining order
levels for steel and aluminium.
Associated coil coating demand reached a low point at the end of 2008 and early 2009. Both steel and
aluminium producers and the coil coating companies reduced capacity and headcount. Consequently, when the
market recovered in 2010, coaters struggled to meet increased orders with the available manpower and
production capacity.
Transportation demand also declined across all sectors during the recession. In 2009, the production of heavy
trucks fell by more than 18% whilst production of passenger cars and light commercial vehicles fell by 12% over
the previous year. The major markets for recreational vehicles are in Europe and the US. Both were badly
affected by the recession as consumers experienced tighter credit restrictions and pressure on personal finances.
This led to severe downward pressures on the market and production declined by as much as 32%.
Production output of domestic appliances was around 475 million units in 2009. The major markets for coil
coatings in this sector are Europe, the United States and Japan. The European appliances market declined by
over 6.5% in the period 2008 to 2009, whilst the North American and Japanese markets fell by approximately
8.5% and 10% respectively.
Sales and production output of metal furniture also declined during the recession. Major producers of office
furniture, such as Steelcase, reported weak financial performance in 2009 as business and consumer confidence
in the developed markets was weakened. Falling demand resulted in production declines of 29% in the United
States and almost 7% in Europe. Producers in the Asia Pacific benefitted from resilient demand.
One of the biggest challenges for coil coaters during the recession was the lack of predictability over the supply of
coatings. The paint industry suffered as raw materials derived from petrochemicals, minerals and metals were in
short supply due to capacity cuts further upstream in the supply chain. The lack of certain ingredients, such as
titanium dioxide, led to an escalation of coatings costs at a time when coil coaters faced cost pressures from their
downstream customers, limiting the opportunity to pass on increases and placing pressure on margins.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 14-4
Construction and Infrastructure
Pre-coated Metal Sheet
Selected Coil Coating Companies with New and
Existing Capacity: China (including Taiwan)
China is the world’s largest single producer country of pre-coated metal sheet and the largest consumer of
coatings in this market. The country consumed •••,••• tonnes in 2009 and •••,••• tonnes of coatings in
2010, exhibiting annual growth of about 6%.
(000 tonne)
Markets
The coil coating industry was growing consistently at double digit annual growth until the recession. Similar
growth is not expected to continue, but the country is expected to exhibit annual growth of around 8%.
Growth in China can largely be attributed to government support and fiscal stimulus measures that contributed
to increased domestic demand in recent years.
It is estimated that the Chinese coil coating market has about 200 coil coating lines, but a large number of them
are crude, hand built lines running at low speeds. There are only around 100 high-tech high-speed lines.
Pre-Coated Metal Sheet Capacity Additions in China (tonne)
Coil Coater
New Pre-coated
Metal Capacity
Comments
Yieh Phui Enterprise (Taiwan)
••• 000
New line started operating in 2009
Tianjin Angang
••• 000
New line started operating in 2010
Weike Dope Chemical
••• 000
First stage of project initiated in 2011
Baosteel Huangshi Coating Sheet
n/a
Commissioned a new special colour coating sheet facility in 2011
The development and growth of the domestic industry presents significant opportunities. In addition to new
capacity introduced over the last few years, Panhua Group (Jiangsu Province) has also announced the
commissioning of a new colour coated steel sheet production line in Chongqing, whilst Tianyuan Manganese
Industry is intending its own colour coated stainless steel plate production programme. Although the short-term
capacity introductions are not clear, these projects have the potential to add over one million tonnes of capacity.
Coating use by substrate is around 80% for pre-coated steel and the remaining 20% for pre-coated aluminium.
Building and construction is the largest category of coil coating demand in China, for both exterior and interior
applications. The building industry accounts for between 80% and 90% consumption of pre-coated sheet. The
same share applies for both the steel and aluminium coaters, although the end applications differ.
The main usage for pre-coated aluminium sheet is interior applications, such as suspended ceilings and
composite or sandwich panels used in high rise buildings.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 14-40
Construction and Infrastructure
Selected Coil Coatings Suppliers: EMEA
Pre-coated Metal Sheet
Suppliers
Europe, Middle East and Africa
AkzoNobel has consolidated its leading position within the EMEA region through its acquisition of
Schramm Coatings in Germany. The acquisition was part of a deal with SSCP of Korea. BASF sold its coil and
extrusion coatings businesses in North America to PPG, but it is still a leading player in the coil coating market in
the EMEA region with production facilities in Germany, the UK, Russia and South Africa.
►
AkzoNobel (Netherlands)
►
BASF (Germany)
►
Becker Industrial Coatings (Sweden)
►
Holland Coatings Industries (Netherlands)
►
ISVA Vernici (Italy)
►
Salchi Metalcoat (Italy)
►
Siquam (Italy)
In terms of Pre-coated Metal Sheet coatings suppliers judged by headquarters reporting group revenues within
the European and MEA region, the main players based on estimated coil coating source revenues are:
►
Walter Mäder (Switzerland)
1.
AkzoNobel
2.
Becker Industrial Coatings
3.
BASF.
Selected Coil Coatings Suppliers: Americas
Valspar acquired of the Teknos Nova Coat business in Finland during 2007, which had earlier acquired the coil
coatings business of Tikkurila. This gave Valspar a strong position in the European market for the first time.
Finland is seen as a strategic location as it offers opportunities to serve the expanding Eastern European markets.
The Americas
►
Dura Coat (United States)
►
Kel Coatings (Canada)
►
PPG (United States)
►
The Magni Group (United States)
►
TecCoat (United States)
In terms of Pre-coated Metal Sheet coatings suppliers judged by headquarters reporting group revenues within
the Americas region, the main players based on estimated coil coating source revenues are:
►
Titan Coatings (United States)
1.
Valspar
►
Valspar (United States)
2.
PPG
3.
Dura Coat.
The North American coil coating market has also seen consolidation over the last five years resulting in an
expansion of market share for PPG and Becker Industrial Coatings. The top five suppliers to this region now
have over 80% share of the market. The same suppliers have also established production or distribution
operations in South America.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 14-54
Scope and Samples
Metal Packaging Coatings
Chapter Contents
15. Packaging & General Industrial — Metal Packaging Coatings
1
Executive Summary
4
2
Introduction
4.1 Global Market Drivers and Trends
A Demographic Trends
B Packaging Trends
C Industry Trends
2.1 Market Definition
2.2 Macro Drivers
2.3 Impact of Economic Downturn
3
Technology
3.1 Current Technology
A Beverage Cans
B Food Cans
C Other Types of Metal Packaging for Food
D Non-Food Applications
3.2 Technology Systems
A Coatings for Beverage Cans
B Coatings for Food Cans
C Resin Systems Used for Food and Drink
Applications
3.3 New Developments and Standards
A New developments
B Standards
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Markets
4.2 Global Market Size and Growth
A Coatings Demand in Europe, Middle East
and Africa
B Coatings Demand in Asia Pacific
C Coatings Demand in the Americas
5
Suppliers
5.1 Suppliers Global Position
6
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
7
Glossary
8
Terms and Conditions
Page 0-58
Packaging & General Industrial
Metal Packaging Coatings
Metal Packaging Coatings Technology by Share:
World
3.2 Technology Systems
Technology
Coating systems used in food applications need to comply with the regulations for direct food contact. They
must also fulfil the performance standards required depending on the type of food or beverage intended to be
packages. These may include:

Stain resistance: For example, when packing tomatoes and other red fruits

Sulphur resistance: For example, when packing meat and fish products

Acid resistance: For example, when packing fruits or a variety of other pickled foodstuff.
In addition, the coatings used for processed foods need to withstand the high temperatures and pressures
associated with the sterilisation process for these products.
Technology Shares by Resin Chemistry in Metal
Packaging: World
Over the last ten years, there have been no significant changes made to the coatings technology and chemistry
for food and beverage can applications, although there is a trend towards higher solids solventborne systems,
waterborne systems and, to a lesser extent, UV overprint varnishes for reduced VOC. However, the
waterborne share in food cans is still less than 10% and is mainly used for interiors and exteriors of two-piece
aluminium food cans.
The inks for the decoration of can exteriors are predominantly solventborne alkyds and polyesters, although the
use of waterborne and UV technology is increasing. The switch from solventborne inks to UV curing systems is
always linked to investments in new coating lines or refurbishment of existing lines.
Solventborne systems are the most important technology used for metal packaging, representing almost 60% of
coatings consumed. Epoxy based resins are the most important systems used in can coatings with an estimated
share of almost 50% of the total can coatings market.
Note: The epoxy segment includes epoxy-acrylic, epoxyphenolic and epoxy-ester. ‘Others’ includes alkyds and
urethane modifications.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 15-16
Packaging & General Industrial
Metal Packaging Coatings
Markets
Food Production and Prices
World Food Prices
Index (2002–04 = 100)
Farming is a cyclical industry but a combination of factors has resulted in dramatic variances in recent years
leading to volatility in both farm input and output prices. The markets for grain, for example, experienced poor
global harvests in 2007 leading to low stocks, which in turn pushed up prices. The 2008 global harvest was
much better and so prices fell accordingly.
In 2006, prices of the world’s most popular food staples including wheat, corn, soya and rice began rising. In
2007 and 2008 world food prices experienced a dramatic increase, especially cereals, oils and dairy products.
The United Nation’s Food and Agriculture Organisation (FAO) reported a 56% increase in the world food price
index from 2006 to 2008. The factors that contribute to price volatility include:

Droughts, which negatively affected grain producing nations

Falling world food stockpiles and grain reserves

Rising oil prices

Increased planting of crops for bio fuels

Changing diet and strong rise of per capita meat consumption in developing countries.
The sensitivity of market values is higher when stocks are low and is exaggerated by speculative elements. In
2008 the prospect of commodity super-cycles encouraged trading until the recession reduced trading demand
for many products.
Source: FAO
World Food Prices Index (2002–04 = 100)
2006
2007
2008
2009
2010
2011(E)
Meat
118.5
125.1
153.2
132.9
152.0
167.9
Dairy
128.0
212.4
219.6
141.6
200.4
225.6
Cereals
121.5
166.8
237.9
173.7
182.6
249.3
Oils
112.0
169.1
225.4
150.0
193.0
278.5
Sugar
209.6
143.0
181.6
257.3
302.0
419.2
Food Price Index
126.5
158.6
199.6
156.8
185.1
233.4
Source: United Nation’s Food and Agriculture Organisation (FAO)
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 15-34
Packaging & General Industrial
Metal Packaging Coatings
B
Metal Packaging Coatings Demand by Segment:
Asia Pacific
000 tonne
Markets
Coatings Demand in Asia Pacific
Following 4.7% CAGR over the period 2006 to 2009, the market for Metal Packaging Coatings in Asia Pacific
reached an estimated demand of •••,000 tonnes (••• million litres) with an associated value of approximately
€••• million.
The most important segment within the region is beverage cans, which accounted for 46% of estimated
coatings consumption for metal packaging. It is also one of the fastest growing sources of demand, exhibiting a
4.6% CAGR over the 2006 to 2009 period, to reach over •••,000 tonnes (•• million litres).
Growth is driven primarily by rising affluence, living standards and number of middle to high-income earners in
the developing markets of China and India. The markets of Australia, Japan and Korea are relatively mature with
only moderate growth profiles.
Beverage can producers in Asia Pacific have traditionally favoured steel three-piece cans. However, the use of
aluminium is growing and now represents around 55% of material consumption. At the same time, steel cans
are shifting towards two-piece cans, which are better suited to the growing volumes of beers and carbonated
soft drinks.
Metal Packaging Coatings Demand in Asia Pacific by Segment (2005 – 2009)
2005
2006
2007
2008
2009
Beverage Cans
•• •••
•• •••
•• •••
•• •••
••• •••
Food Cans
•• •••
•• •••
•• •••
•• •••
•• •••
• •••
• •••
• •••
• •••
• •••
Drums
•• •••
•• •••
•• •••
•• •••
• •••
Caps, Crowns and Closures
•• •••
•• •••
•• •••
•• •••
•• •••
General Line
•• •••
•• •••
•• •••
•• •••
•• •••
••• •••
••• •••
••• •••
••• •••
••• •••
4.7
5.0
4.3
4.9
(tonne)
Aerosols
The market in Asia Pacific is
estimated to be almost
•••,000 tonnes
Total
% Change
The best performing market segment over the period 2006 to 2009 was caps, crowns and closures, which
exhibited 8.6% CAGR to reach over ••,000 tonnes (•• million litres). This is also one of the largest single
segments of demand within the region, accounting for approximately 16% of estimated consumption.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 15-52
Scope and Samples
General Industrial Coatings
Chapter Contents
16. Packaging & General Industrial — General Industrial Coatings
1
Executive Summary
4
2
Introduction
2.2 Macro Drivers
4.1 Global Market Drivers and Trends
A Economic Trends
B Consumer Activity
C Industrial Activity
2.3 Impact of Economic Downturn
4.2 Global Market Size and Growth
3
4.3 Aluminium Extrusions
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
2.1 Market Definition
Technology
3.1 Current Technology
3.2 Technology Systems
A Waterborne and Solventborne
B Powder Coatings
C Electrocoat
3.3 Coatings Technology by Application
A Aluminium Extrusions
B Metal Furniture, Fixtures and Fittings
C Automotive Components
D Specialist Machinery Markets
E Appliances
F Heating, Ventilation and Air Conditioning
G Other Consumer Products
H Job or Trade Coaters
3.4 General Technology Trends
Markets
4.4 Metal Furniture, Fixtures and Fittings
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.5 Automotive Components
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.6 Specialist Machinery
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.8 Heating, Ventilation and Air Conditioning
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.9 Bicycles
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.10 Market Segmentation: Other Consumer Products
5
Suppliers
5.1 Suppliers Global Position
A Europe, Middle East and Africa
B The Americas
C Asia Pacific
D Job or Trade Coaters
6
Outlook
6.1 Forecast Commentary
6.2 Forecast Data
7
Glossary
8
Terms and Conditions
4.7 Domestic Appliances
A Segment Definition
B Market Drivers
C Market Dynamics, Size and Growth
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-62
Packaging & General Industrial
General Industrial Coatings
B
Applications for Powder Coatings
Technology
Powder Coatings
Thermoset powder coating is a major global technology for the industrial coating of a wide variety of
components. Approximately 90% of powder coatings are used within the General Industrial metal coating
sector, with the remaining 10% being used in sectors such as Protective, ACE, Motorcycles, Auto OEM and
Industrial Wood (all these markets are covered in separate chapters).
Powder coatings used for General Industrial metal applications represent around 30% of the total coating
demand. The main end applications for powder coatings in the General Industrial metal sector are:

Metal Furniture and Fixtures

Appliances

Automotive Components.
The principal resin systems used are:
Polyester
Comparative Properties of Polyester Exterior Grades
Polyester powder coatings are the most common and versatile chemistry used in powder coatings. They can be
formulated for indoor or outdoor applications.

Hybrid: carboxy functional polyester cross-linked with 30–50% epoxy. Used for indoor applications such
as appliances, metal furniture etc.

Polyester, exterior grades: carboxy functional resins cross linked with a hardener such as TGIC (triglycidyl
isocyanurate ) or HAA (ß-hydroxyalkylamides) for powders with good exterior durability. TGIC is used in
most regions except Europe where the requirement to label the boxes of powder as being toxic has led to
HAA being the main hardener used in this region. Hardeners based on terephthalic acid diglycidyl ester
with trimellitic acid triglycidyl ester (Araldites PT910 & 912) are also used in Europe. The hardeners are less
reactive than either TGIC or HAA and are mainly used in powder coatings for special applications, such as
anti-gassing coatings for galvanised steel.
The comparative properties of the three systems are summarised in the figure (left).

Polyester, Super-durable: Standard exterior polyester powder coatings, when tested for two years
exposure in Florida, lose 50% of their gloss and thereby fail to meet the higher American standard of
architectural specifications, which requires five years’ exposure in Florida for AAMA 2604 and 10 years for
AAMA 2605. The development by the powder coating industry of super durable coatings has resulted in
polyester powder coatings that meet the 5 year Florida exposure test for AAMA 2604. The super durable
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 16-14
Packaging & General Industrial
Shares of Global Appliance Coatings Demand by
Region 2009
General Industrial Coatings
C
Markets
Market Dynamics, Size and Growth
The market is characterised by the presence of a few multinational conglomerates with extensive product
ranges. The correlation between the sales of appliances and macro-economic trends resulted in contractions in
market demand in 2008 and 2009.
Production output is estimated to be over 480 million units in 2010, reflecting signs of recovery and slight growth
on the previous year, when output was around 475 million units. Europe and the US are the main
manufacturing locations for appliances, but there has been a shift towards relocating manufacturing operations to
Asia Pacific, which has contributed to stronger coatings consumption in that region.
Coatings demand associated with the production of appliances generated a total demand of around •• million
litres (••,000 tonnes) in 2009. After strong growth in 2006 the market slowed in 2007 and declined in 2008 as
a result of the recession. Continued growth in Asia Pacific resulted in overall growth of 0.6% in 2009.
Industrial Coatings Demand for Appliances by Region 2005-2009 (000 litres)
2005
2006
2007
2008
2009
Europe & MEA
•• •••
•• •••
•• •••
•• •••
•• •••
Americas
•• •••
•• •••
•• •••
•• •••
•• •••
Asia Pacific
•• •••
•• •••
•• •••
•• •••
•• •••
Total
•• •••
•• •••
•• •••
•• •••
•• •••
•.•
•.•
•.•
•.•
% Change
Companies in the United States and
Europe are expected to remain the
leaders ... but production is
expected to continue shifting
towards Asia Pacific
Manufacturing companies in the United States and Europe are expected to remain the leaders due to their
technical expertise but production is expected to continue shifting towards Asia Pacific. This has traditionally been
due to lower labour costs; the relative advantages are likely to be reduced as China labour rates increase, but
there are still advantages to having local manufacturing in order to increase market penetration into the
potentially large markets within Asia Pacific.
Leading suppliers of household appliances to Asian markets (Daewoo, Matsushita, Samsung and LG Group) are
already facing increasing competition from western producers aggressively targeting the region by establishing
subsidiaries, forming joint ventures, and acquiring or merging with local companies. This should result in a
reduction in imports for appliances into the key Asia Pacific markets but drive further demand for coatings.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 16-85
Packaging & General Industrial
General Industrial Coatings
Outlook
6.2 Forecast Data
Forecast Coatings Demand By Region
Forecast General Industrial Coatings Demand 2010-2020 (000 litres)
(million tonnes)
2010
2011
2012
2013
2014
2015
2020
Aluminium Extrusions
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Metal Furniture
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Auto Components
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Specialist Machinery
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Domestic Appliances
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
HVAC
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Bicycles
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Other
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Total
• ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• •••
Forecast General Industrial Coatings Demand by Region 2010-2020 (000 litres)
2010
2011
2012
2013
2014
2015
2020
Europe & MEA
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Americas
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Asia Pacific
• ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• ••• • ••• •••
Forecast General Industrial Coatings Demand by Technology 2010-2020 (000 litres)
2010
2011
2012
2013
2014
2015
2020
Powder
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Solventborne
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Waterborne
••• •••
••• •••
••• •••
••• •••
••• •••
••• ••• • ••• •••
Electrocoat
••• •••
••• •••
••• •••
••• •••
••• •••
••• •••
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
••• •••
Page 16-116
Scope and Samples
Coatings for Plastics
Chapter Contents
17. Packaging & General Industrial — Coatings for Plastics
1
Executive Summary
4
2
Introduction
5.1 Suppliers Global Position
2.2 Macro Drivers
4.1 Global Market Drivers and Trends
A Economic Trends
B Consumer Activity
C Industrial Activity
2.3 Impact of Economic Downturn
4.2 Global Market Size and Growth
6.2 Forecast Data
2.1 Market Definition
3
Technology
3.1 Current Technology
3.2 Technology Systems
A Solventborne and Waterborne Liquid
Coatings
B UV Coatings
C In-Mould Coating
3.3 Coatings Technology by Application
A Automotive OEM
B Trucks and Buses
C Motorcycles
D Passenger Rail Interiors
E Aircraft Interiors
F Consumer Electronics
G PVC Flooring
H Others
3.4 New Developments and Standards
A New developments
B Standards
Markets
5
6
Suppliers
Outlook
6.1 Forecast Commentary
7
4.3 Transportation
A Market Definition
B Market Drivers
C Market Dynamics, Size and Growth
Glossary
8 Terms and Conditions
4.4 Consumer Electronics
A Market Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.5 PVC Flooring
A Market Definition
B Market Drivers
C Market Dynamics, Size and Growth
4.6 Other Coatings for Plastics Markets
A Market Definition
B Market Drivers
C Market Dynamics, Size and Growth
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 0-66
Packaging and General Industrial
Coatings for Plastics
C
In-mould Spray Skin Coating Process for
Polyurethane
Technology
In-Mould Coating
In-Mould Coating (IMC) is the application of paint to a plastic component as an integral part of the moulding
process, resulting in a fully finished part straight from the mould. The two main types of plastic substrates that are
coated with this technique are polyurethane-based RIM compounds (reaction injection moulding) and SMC
(sheet moulded compound, based on glass fibre reinforced unsaturated polyester).
A typical IMC process consists of the following stages:
1.
The mould is preheated to 70°C or higher, depending on plastic type.
2.
The inside of the mould is coated with a release agent followed by flash off.
3.
The coating is applied, usually by spray, at 20 – 30 microns to the top and bottom of the tool, followed by
flash off.
4.
The plastic compound is injected.
5.
The tool is closed for a set time, depending on the compound, until the plastic compound and the coating
are fully reacted.
6.
The painted part is removed, trimmed and packaged for shipment to assembly plant.
Alternatively, the part can be moulded first, the tool opened and the liquid coating injected between the inner
mould side and the part. The tool is then closed again.
IMC offers the following advantages:

Reduced production costs; by eliminating preparation stages such as cleaning and degreasing, priming and
sanding

Reduced processing times; typically three to five minutes compared to 40 to 60 minutes for post-painting

Wide range of gloss and texture effects; through the design of the mould inner surface

Lower material costs

Less capital intensive equipment requirements.
Global Industrial Coatings Markets 2010 – 2020 © PRA 2011
Page 17-11
Packaging and General Industrial
Coatings for Plastics
Consumer Electronics Coatings for Plastics: World
The importance of brand and perception of product value results in a significant investment in product
promotion based on functionality and design. The role of coatings in high-end products is important and can be
used as a further differentiator in a competitive market. Manufacturers of premium consumer electronics, such as
Apple and Sony, focus on differentiating their products based on quality and are reluctant to reduce prices to
gain market share in emerging markets. This will help to ensure some continued demand for coatings.
million litre
Markets
The equipment used within this market typically has a short product lifecycle, which is generally between six
months and two years. The coatings and the processes used in their application are less demanding than those of
Transportation.
Global Consumer Electronics Coatings for Plastics Demand by Category and Segment (2005 – 2009)
000 litre
2005
2006
2007
2008
2009
•• •••
•• •••
•• •••
•• •••
•• •••
Televisions
•• •••
•• •••
•• •••
•• •••
• •••
Audio/Video
• •••
• •••
• •••
•• •••
• •••
Others
• •••
• •••
• •••
• •••
• •••
•• •••
•• •••
•• •••
•• •••
•• •••
•• •••
•• •••
•• •••
•• •••
•• •••
• •••
• •••
• •••
• •••
• •••
Portable Electronics
•• •••
•• •••
•• •••
•• •••
•• •••
Mobile Phones
•• •••
•• •••
•• •••
•• •••
•• •••
• •••
• •••
• •••
• •••
• •••
•• •••
•• •••
•• •••
•• •••
•• •••
5.8
8.6
4.1
-12.2
Home Entertainment
Computers and Gaming
PC and Console
Peripherals
Others
Total
% Change
The home entertainment category has exhibited a declining share in estimated Coatings for Plastics
consumption, falling from almost 45% in 2005 to just over 30% in 2009. This category generated an estimated
demand of almost •• million litres (••,000 tonnes) in 2009 with a value of approximately €•••million.
This decline can be attributed to changes in product design within the television segment and improvements to
moulding technologies, resulting in considerable reductions in the surface areas that require coating.
Global Industrial Coatings Markets 2010 – 2020
© PRA 2011
Page 17-59