In the industrial context the role of paints is seen more as a method of protection from corrosion, and not just aesthetics.

Steel is a key input in industry – manufacturing, transport (surface, marine and air), construction and infrastructure. In fact per capita consumption of steel is in general considered a reliable parameter to measure the level of economic development and living standards of the people. But corrosion is one of the main problems that affect the strength of steel. Corrosion in steel is an electrochemical process caused by the effect on the iron content of steel by the simultaneous presence of moisture and oxygen in the air. In the absence of either, corrosion does not occur. Essentially, the iron in the steel is oxidised to produce rust, which occupies approximately 6 times the volume of the original material consumed in the process. A proper cleaning and preparation of the surface, followed by application of appropriate coating, is one of the effective methods of corrosion prevention.

Measuring something like the losses caused by corrosion is not easy. It can be at best a very good estimate based on sample surveys and even empirical data, but the precise figure is near impossible to zero on. There are various estimates and according to one industry stake holder, it is as high as USD 100 bn per year which roughly translates to Rs 6 lakh crore. This is mindboggling indeed. “India loses around 4-5 per cent of GDP annually on account of corrosion losses,” Sunil Duggal, CEO, Hindustan Zinc Ltd (HZL) had said during an interview to a leading press agency in October 2016. He was speaking ahead of a two-day international galvanising conference organised by HZL in association with International Zinc Association (IZA) in New Delhi. Zinc is used for galvanising steel structures in bridges, highways, public utilities, metro stations and airports, among others, to make them long-lasting and robust.

According to a recent report published by Allied Market Research (AMR), the paints and varnishes anti-corrosion coating market is expected to reach US $26,627 million, globally, by 2022, from US $14,276 million in 2015, growing at a CAGR of 9.7% during the forecast period. The epoxy anti-corrosion coating segment held approximately more than two-fifths share of the total market in 2015. Anti-corrosion coatings are used to combat the occurrence and progression of corrosion on a metal substrate. In addition, it offers high mechanical strength, high chemical and temperature resistance, wear and tear resistance, high permeability, and superior finishing ability to the metal structures.

Globalisation a key factor

According to the report, increased globalisation is a key factor that affects the anti-corrosion coating industry. Rapid economic growth in India and China has led to increased construction activities, resulting in high consumption of anti-corrosion coatings. As majority of the countries in Asia-Pacific are still largely rural, the economic growth is set to fuel the ongoing urbanisation, transforming India and China into manufacturing hubs for marine, automobile, food and beverages, pharmaceutical, and chemical industries. Moreover, increase in population in these countries is expected to boost the demand for housing and commercial infrastructure, which in turn is projected to drive the anti-corrosion coatings market growth.

Solvent-borne anti-corrosion coating segment was the largest revenue generator in 2015, as these coatings are widely used in several applications. However, it is expected to witness a downturn due to the stringent regulations imposed by government bodies such as Environmental Protection Agency (EPA) of US and Registration Evaluation Authorisation and Restriction of Chemicals (REACH) of Europe. Waterborne and powder anti-corrosion coatings are gaining popularity owing to the fact that they possess low levels of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs).

“Increased application of anti-corrosion coatings in the marine industry to reduce frictional resistance in the propellers and machinery parts of ships to improve its efficiency is expected to offer major opportunities to the market,” states Eswara Prasad, Team Lead, Chemicals & Materials at AMR.

Key findings of the anti-corrosion coatings market include:

The marine end-user segment occupied the highest share in 2015, and is expected to grow at a CAGR of 9.9%, in terms of value, during the forecast period

Asia-Pacific is the leading consumer of anti-corrosion coatings, accounting for approximately more than one-third share of the global market, followed by North America

The acrylic anti-corrosion coating type is expected to witness the highest CAGR of 10.4%

Solvent-borne anti-corrosion coating segment accounted for more than three-fifths of the global anti-corrosion coating market in 2015, and

China is the leading market in the Asia-Pacific region, growing at a CAGR 10.4%.

Asia-Pacific accounted for the largest market share in 2015, and is projected to grow at the highest CAGR, owing to high economic growth, which is expected to boost the ongoing urbanization. Rise in investments in marine, construction, automotive, and energy industries in India and China, owing to shift in the industry trends, is projected to drive the anti-corrosion coating market.

The prominent players profiled in this report include 3M Co, Akzo Nobel N.V, BASF SE, Hempel A/S, Kansai Paints Co Ltd, Nippon Paints Co Ltd, PPG Industries Inc., The Sherwin-Williams Company, The Dow Chemical Company, and Wacker Chemie AG.

The Indian scenario

The Indian paint market is expected to reach Rs 70,875 crore by 2019-20 from around Rs 40,300 crore in 2014-15, according to Indian Paint Association (IPA), the paint industry’s apex body.

The decorative paint market is expected to witness CAGR of 12.7 per cent and the industrial paint market CAGR of 9.5 per cent, says the IPD release, which summarised the findings of a report on the Indian paint market – Size & Future of Coating Industry – compiled by Nielsen Corporation. The split of the decorative paint market to industrial market is around 75-25.

Decorative paint market size in the country was Rs 30,385 crore and the industrial paint Rs 9,915 crore in FY 2014-15, the IPA release said. The industry had grown at a CAGR of 12.9 per cent from 2011-12 to 2014-15 in terms of value, it said adding that for FY 2014-15, the per capita consumption of paint in India was estimated at 3.34 kg. High growth was witnessed for exterior and interior emulsions in the decorative paints category and auto refinish and powder coatings in the industrial paints category.

IPA is an association of paint manufacturers both large as well as from the MSME sector formed to promote and protect the interests of the paint industry. The forum provides an ideal and common platform for industry discussions on providing differentiated customer experience, opportunities, challenges, market trends and best practices.