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Buoyant End-user Application Sectors Spur Demand for Protective Coatings in Europe Notes Frost & Sullivan - In Europe's mature protective coatings market, growth in coating sales hinges on the success of individual end-user application markets
Buoyant End-user Application Sectors Spur Demand for Protective Coatings in Europe Notes Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2009/09/08 - In Europe's mature protective coatings market, growth in coating sales hinges on the success of individual end-user application markets.

   
 
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Accordingly, energy sectors including power generation, oil and gas, as well as the bridges and highways markets are growing faster than segments like water and wastewater, commercial architecture or the manufacturing industries.

New analysis from Frost & Sullivan (chemicals.frost.com), European Protective Coatings Market, finds that the market earned revenues of EUR 876.2 million in 2008 and estimates this to reach EUR 944.6 million by 2015. This research covers the following application sectors: oil and gas, power generation, infrastructure, commercial architecture, water and wastewater and the manufacturing industries.

There are currently more than 360 major players in the protective coatings market in Europe. In 2008, unit shipments for the European protective coatings market stood at 118.4 million litres. By 2015, unit shipments may well reach 121.1 million litres, growing at a CAGR of 1.1 percent.

"The protective coatings market will be buoyed by investments in energy facilities, power generation plants, and infrastructure projects," notes Frost & Sullivan Research Analyst Gaurav Meshram. "Although the current economic downturn is restraining the market, with limited growth projected for several quarters in some applications, growth prospects are set to improve in the near term."

In terms of both volume and revenue, the highly mature Western European market is experiencing limited growth in comparison with its rapidly growing Eastern European counterpart. Volumes in the Western European protective coatings market fell by 5 to 7 percent in January 2009, resulting in intensifying competition as coating companies vied for declining market share.

"Western European protective coating manufacturers should focus on promoting global sales to maintain momentum," advises Meshram. "They also need to respond effectively to customer needs on a continuous basis."

In Eastern Europe, the protective coatings market shows more promise, both in terms of volume and revenue. Coating companies in Eastern Europe will see revenue growth thanks to robust market growth in the region.

Environmental legislation stimulates large multinational coating manufacturers and accelerates innovation. By continuously investing in R&D capabilities, large coating companies are able to offer new products, leverage attractive opportunities, and profit from a first mover advantage.

Conversely, small- and medium-sized enterprises (SMEs) see tighter environmental regulations as a threat since they must constantly invest in R&D in to introduce new product lines that comply with EU directives.

A major challenge lies in securing a reliable and sustainable source of the raw materials necessary for resin production. The resin, which is used to formulate paints and coatings, must exhibit both heavy-duty performance characteristics and anti-microbial and self-healing properties.

"Rising raw material costs, especially of metal complexes, coupled with stringent environmental regulations, profoundly affect market prospects," remarks Meshram. "Coating manufacturers have to work with cheaper raw materials while nonetheless improving the anti-corrosion performance properties of end products to meet stricter environmental regulations."

If you are interested in a virtual brochure, which provides a brief synopsis of the report and a table of contents, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.

The European Protective Coatings Market is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: North America Protective Coatings Market and U.S. Protective Coatings Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

European Protective Coatings Market / M39E

 
 
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Buoyant End-user Application Sectors Spur Demand for Protective Coatings in Europe Notes Frost & Sullivan

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Publisher Contact: Monika Kwiecinska 
+48 22 390 4127 monika.kwiecinska[.]frost.com
 
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