LATAM Protective Coatings Market Overview
The LATAM Protective Coatings market size is estimated to reach a value of US$1.3 billion by the end of 2027 after growing at a CAGR of 5.8% during the forecast period 2022-2027. Protective coating refers to a thin paint layer made of polymers namely, epoxy, polyurethane, acrylic and alkyd which is applied on the surface of other materials to prevent them from corrosion. The anti-corrosive, UV resisting and anti-discoloration properties of the protective coatings are influencing its market demand in the LATAM region where it has high applicability in major sectors such as transportation, building & construction, mining and energy generation. Factors such as bolstering growth of the automotive sector, growing mining output and increase in energy generation capacity in LATAM are driving the growth of the LATAM protective coatings industry. However, the high cost of raw materials in LATAM region is anticipated to pose a challenge to the growth of the LATAM protective coating industry, thereby affecting the LATAM protective coatings market size during the forecast period. COVID-19 pandemic disrupted industrial activities in LATAM countries namely Brazil, Argentina, Mexico, Chile and Columbia which reduced the demand for protective coatings in major industrial sectors in such countries, which negatively impacted LATAM protective coatings industry outlook.
LATAM Protective Coatings Market Report Coverage
The “LATAM Protective Coatings Market Report – Forecast (2022 – 2027)” by IndustryARC, covers an in-depth analysis of the following segments in the LATAM Protective Coatings Industry.
By Resin – Epoxy, Alkyd, Acrylic, Polyurethane,
Polyester and Others
By Technology – Water-based, Solvent-Based, Powder-Based and Others
By Application – Automotive Components (Fittings, Castings, Exhaust Pipes, Fuel & Brake System), Pavement, Flooring, Roofs, Pipeline External, Turbine & Blades, Industrial Equipments, Turbine Engines, Semiconductors, Transformers and Others
By End-Use Industry – Transportation (Aerospace [Commercial, Military and Others], Automotive [Passenger Vehicles (PCV), Light Commercial Vehicles (LCV) and Heavy Commercial Vehicles (HCV)], Building & Construction [Residential, Commercial, Industrial and Infrastructural], Energy Generation [Wind, Solar, Hydro and Others], Electrical & Electronics [Smartphones, Laptops, Computers, Televisions and Others], Mining, Oil & Gas [Off-Shore and On-Shore] and Others)
By Geography – Mexico, Brazil, Argentina, Colombia, Chile and Rest of Latin America
- Brazil dominates the LATAM Protective Coatings industry, owing to rapid growth in the automotive, building & construction and energy generation sectors, which is influencing the demand for protective coatings in the country.
- The rich anti-corrosive and impact resistance properties of protective coatings are driving its market demand in major sectors in LATAM, thereby positively impacting the LATAM protective coatings industry outlook.
- The growing price of major raw materials such as epoxy and polyurethane will increase the overall cost of protective coatings which would negatively impact the LATAM Protective Coatings market size.
Figure: LATAM Protective Coatings Market Revenue, 2021-2027 (US$ Billion)
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LATAM Protective Coatings Market Segment Analysis – by Resin
The Epoxy resin held the largest share in the LATAM Protective Coatings market share in 2021 and is forecasted to grow at a CAGR of 5.9% during the forecast period 2022-2027. Epoxy resin in comparison to other resins such as polyurethane, acrylic and alkyd is more impact resistant as well as heat and fire resistant and also, epoxy is more cost-effective than other resins. The demand for epoxy is rising in the LATAM region especially in the transportation sector for automotive parts, energy generation and the building & construction sector due to its application in industrial equipment, automotive components, turbine & blades and building materials. Owing to its high performance and cost-effective nature coupled with its growing applicability in the transportation and building & construction sector, the demand for epoxy as a protective coating is significantly rising in the LATAM region, thereby boosting the segment growth during the forecast period.
LATAM Protective Coatings Market Segment Analysis – by End-Use Industry
Building & Construction sector held the largest share in the LATAM Protective Coatings market share in 2021 and is forecasted to grow at a CAGR of 6.3% during the forecast period 2022-2027. Protective coating has major use in building & construction materials such as steel and cement as it improves their durability and increases their wear resistance. Building & construction sector has shown tremendous growth in LATAM countries namely Mexico and Argentina on account of growing investment in the sector and high demand for residential units which has increased the overall construction output. For instance, according to World Bank, in May 2021, World Bank approved a loan of US$347 million to Argentina for its Mitre Passenger Railway Line Modernization Project. Furthermore, according to Mexico’s National Institute of Statistics and Geography, in Q2 of 2021, the construction industry in Mexico posted a high year-on-year growth rate of 33.8%. With the significant growth in the building & construction sector, the demand for protective coatings for construction materials has also increased in the LATAM region, thereby positively impacting the LATAM protective coatings market in the building & construction sector during the forecast period.
LATAM Protective Coatings Market Segment Analysis – by Geography
Brazil held the largest share in the LATAM Protective Coatings market share in 2021 up to 34% and is forecasted to grow at a CAGR of 6.5% during the forecast period 2022-2027. Protective coatings consisting of epoxy, polyurethane, or acrylic have high applicability in automotive components such as valves and building materials such as steel, as it prevents from corrosion. Brazil has shown tremendous industrial growth on account of growing investments in infrastructure construction and technological advancements in automotive production which increased its economic development. For illustration, according to the International Organization of Motor Vehicle Manufacturers, in 2021, Brazil’s motor vehicle production increased to 2.24 million units from 2 million, showing a 12% increase from 2020. Furthermore, according to statements of the Brazilian government, in 2021, the government invested US$160.7 million in its 762 infrastructure projects including renovations and construction of event spaces, public squares, waterfronts and asphalt paving and viewpoints. An increase in infrastructure construction and automotive production has accelerated the demand for protective coatings in Brazil, which has resulted in the positive market growth of the LATAM protective coatings market.
LATAM Protective Coatings Market Drivers
Growing Mining Output:
Protective coatings which consist of polymers namely epoxy, polyurethane, or acrylic has high applicability in the mining sector where it is used to protect the metal equipment from wear and tear. The mining sector is growing rapidly in the LATAM region on account of growing metal prices and the need to generate more government revenue, which has increased mining output. According to the National Institute of Statistics and Geography, in January 2022, Mexico’s total mining output increased by 2.5% in comparison to the same month in 2020. Furthermore, according to the Brazilian Institute of Geography and Statistics, in May 2021, the mining output of Brazil increased to 11.6% in comparison to the 5.8% decrease it showed in 2020 for the same month. The increase in mining output will result in more usage of mining equipment which would accelerate the demand for protective coatings to prevent such equipment from corrosion, thereby positively impacting market growth in LATAM during the forecast period.
Increase in Renewable Energy Generation Capacity:
Protective coatings due to their anti-corrosive and rich mechanical properties are majorly used in the energy generation sector in components such as wind turbine blades and solar panels to protect them from surface contamination and improve their durability. Latin American countries like Mexico, Brazil and Chile due to having an abundance of natural resources has increased their renewable energy generation capacity. For instance, according to National Electric Power Agency, in January 2022, Brazil approved 4,993.78 megawatts of wind and solar power projects to increase its renewable energy capacity. According to Mexican Wind Energy Association, in 2021, Mexico's wind energy capacity reached more than 8,000 megawatts which showed a record increase of 136% in installed capacity since 2010. Furthermore, according to International Energy Agency, Chile’s renewable capacity is forecasted to get double in the 2021-2026 period with solar energy and wind energy accounting for 90% of the expansion. The increase in renewable energy generation capacity will accelerate the demand for protective coatings in Mexico, Brazil and Chile, thereby positively impacting the growth of the LATAM protective coatings industry.
LATAM Protective Coatings Market Challenge
Growing Price of Raw Materials:
Major raw materials for making protective coatings comprise polymers such as epoxy, polyurethane and acrylic. Due to unfavorable climatic conditions and growing utility & logistics costs the overall cost of such raw materials has increased, thereby posing a challenge for market growth. For instance, Japanese Company DIC Corporation announced a worldwide increase in the price of its epoxy resins by US$0.9 per/kg. Also, Mitsubishi Chemicals announced that from 6 December 2021, the prices of its polyurethane resin will increase by US$0.73 per/kg globally. Increase in the price of epoxy and polyurethane will limit the production and consumption scale of protective coatings in Latin American countries like Mexico which will negatively impact the LATAM protective coatings market size during the forecast period.
LATAM Protective Coatings Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the LATAM Protective Coatings market. The top 10 companies in LATAM Protective Coatings Market are:
1. Akzo Nobel NV
2. Arkema Group
3. BASF SE
4. Beckers Group
5. H.B. Fuller Company.
7. Jotun A/S
8. Kansai Paint Co. Ltd
9. Nippon Paints
10. PPG Industries
- In June 2022, Hempel launched Hempaprime CUI275 which is a fast-drying protection coating that is specifically designed to increase productivity and provide corrosion protection at energy generation and oil gas facilities.
- In October 2021, protective coatings manufacturer Tnemec Co. Inc acquired Epoxytec International Inc., which is a manufacturer of protective and structural-grade coatings and linings.
- In March 2019, Akzo Nobel launched Sikkens which is a new protective coating system that offers exceptional performance against fire, provides lasting beauty and increases durability.
Report Code – CMR 1305
Report Code – CMR 1028
Report Code – CMR 0110
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