The Asia Pacific coating resins market features a largely fragmented vendor landscape, wherein the leading eight companies collectively accounted for a nearly 59% of the overall market in 2014, says a recent report by Transparency Market Research. The report states that the market chiefly constitutes medium- and large-scale coating resin manufacturers. The intense level of competition and low profit margins make the market a difficult one to venture for small-scale companies.
While low profit margins constitutes a major threat, opportunities abound in green technologies as several countries in the region already have or are under the process of instigating strict environment protection rules and regulations, making the growth prospects of harmful emission producing products bleak. As such, waterborne technologies and product innovation could be the key to reinstating command over the market in the near future.
Transparency Market Research estimates that the global coating resins market will exhibit a 5.9% CAGR from 2015 to 2023, rising from an opportunity of US$4.3 bn in 2014 to US$7.2 bn by 2023.
Market in China to Continue Bullish Run
Of the key end users of coating resins, the building and construction industry is the primary consumer of coating resins in Asia Pacific and is likely to remain the key contributor of revenue to the overall market over the forecast period as well. In 2014, the sector accounted for a massive 38.2% of the Asia Pacific coating resins market in terms of volume. The automotive industry, standing next to the building and construction sector in terms of consumption of coating resins, is also expected to remain a key consumer over the forecast period as sales of consumer vehicles soar in emerging economies in the region.
From a geographical standpoint, the market in China is presently the dominant contributor of revenue to the Asia Pacific coating resins market. The country held a massive 59.5% of the overall market in 2014 and is likely to continue its bullish run in the Asia Pacific coating resins market, in terms of both manufacturing and consumption capacity over the report’s forecast period as well.
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Mounting Rise in Construction Activities to Foster Growth Prospects
Mounting rise in construction activities, especially in the region’s several rapidly urbanizing and developing economies, is expected to emerge as one of key factors driving the demand for coating resins in the next few years. Other factors complementing this trend, such as the rising disposable incomes of the population and the rising population in urban settings, and hence the added need for new construction projects, will also contribute to the increased demand for coating resins market in the region. The Asia Pacific coating resins market will also benefit from the thriving automotive industry in the region, an industry that is one of the key consumers of a variety of coating resins.
Fluctuating Costs of Raw Material Could Hamper Market Growth
The market’s future growth prospects could be hindered to an extent owing to the fluctuating costs of conventional raw materials, most of which are derived from petrochemicals. The high demand for most of these raw materials across a number of industries does not only threaten the stability of costs, it also reflects on their supply. Moreover, stringent emission reduction norms could hamper the uptake of a variety of polluting products in the near future.