ASEAN Protective Coatings Market was valued at USD 300 million by the end of this year, and the market is projected to register a CAGR of over 3% during the forecast period.
, COVID-19 negatively impacted the market in 2020. However, the market has now been estimated to have reached pre-pandemic levels and is forecasted to grow steadily.
- The driving factors that tend to the market growth include initiatives and policies from the government to develop infrastructure and increase activities in the oil and gas sector. Increasing revenue generation from various industries such as plastics, pulp, and paper, among others, and a rising shift in focus towards sustainable coatings are the key market trends driving the market.
- With supply chain disruptions post-COVID-19 pandemic, raw material prices' fluctuation has hindered the protective coatings market.
- The growing options for bio-based coatings are further likely to provide opportunities for the studied market during the forecast period.
- Indonesia is expected to dominate the market's growth across the ASEAN region due to the rising population and increasing infrastructure activities.
ASEAN Protective Coatings Market Trends
Rising Demand from Infrastructure Sector
- The infrastructure sector is one of the major end users of protective coatings. The industry requires corrosion and environmental effects-resistant coatings due to exposure of infrastructure surfaces to heat & sunlight, water, and acid rain, dust, and other chemical effects.
- The infrastructure sector uses protective coatings for bridges and coastal Structures, including roads and rail structures, Water Treatment, public power generation, transmission, and other infrastructure, including public buildings. Moreover, ASEAN countries' organizations are shifting focus toward strict environmental regulations, which has led to an increased demand for sustainable coating systems.
- Malaysia is one of the centers of investment for major developed countries due to rising geopolitical tensions, where companies are shifting their manufacturing sector outside of China and relocating it to the countries like Malaysia. Such scenarios drive governments to reform their infrastructure sector by tabling the '12th Malaysian Plan' in 2021, in which the country has allocated USD 90.6 billion for infrastructure activities which is expected to help in fuelling the infrastructure sector in the country.
- Moreover, protective coatings also have a considerable market in the renewable and power generation as Malaysia is reviving its renewable power generation. The country is focusing on a power generation plan with a target of 31% renewable energy in its installed capacity by 2025, and 40% by 2035.
- The Philippines is focussing on investing on mega infrastrcutre projects. For instance, the 2021 national budget included a strong focus on infrastructure projects, allocating USD 6.5 billion to the Department of Public Works and Highways for transportation network development among others. Furthermore, The Department of Transportation received USD 1.3 billion for expenditures on rail transport, land public transportation, and maritime infrastructure.
- All the above-mentioned factors are expected to augment the demand for protective coatings for the infrastructure sector during the forecast period.
Indonesia to Dominate the ASEAN region
- With increasing infrastructure activities, the oil and gas sector, urbanization, and demand for better products in Indonesia, the companies have scaled up production with more efficient processes and increased manufacturing units. Various industries including Food Processing Industry, Pulp, and Paper Industry, pharmaceutical industry, and warehouses among others are also witnessing growth in demand.
- Indonesia is one of the most populated countries in the region, which is actively driving the demand for protective coatings via infrastructure development. The country is heavily investing in the infrastructure sector. For instance, the Indonesian government aims to invest around USD 430 billion in infrastructure projects from the 2020-2024 period, which is a 20% growth from the 2015-19 period. The infrastructure project includes road and rail development which accounts for a major part of the infrastructure.
- In addition to the infrastructure sector, water treatment also has a significant contribution to the consumption of protective coatings in Indonesia, as the country holds a large population and with an increasing demand to clean drinking water. For instance, according to Indonesia Statistics, the gross domestic product (GDP) from the water supply, sewage, waste management, and remediation activities in Indonesia increased by around 20% in 2021, when compared to 2018.
- Moreover, Indonesia is one of the major markets for protective coatings from the oil & gas upstream sector in the ASEAN region as the country has plans for the exploration of its proven oil reserves because of the rising crude oil prices. The country's state-owned company PT Pertamina set a target in 2022 for exploration drilling of 29 wells and the development drilling target of 813 wells. This may create a huge upside demand for protective coatings from the country's upstream segment.
- All the above-mentioned factors are expected to augment the demand for protective coatings in Indonesia in the ASEAN region.
ASEAN Protective Coatings Market Competitor Analysis
The ASEAN protective coatings market is fragmented in nature. Some of the major players in the market (not in any particular order) include RPM International Inc, AkzoNobel NV, Jotun, The Sherwin-Williams Company, and PPG Industries, among others.
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