Growth Opportunities in the Road Marking Materials Market

01 September 2021

The early usage of marking materials was limited to the median line which demarcated roads as incoming and outgoing traffic lanes. Road marking materials market help to ensure that proper guidance and warnings are conveyed to people who travel by foot or use any mode of transport. Road markings play a critical role in the road and highway infrastructure as they provide vital information to motorists and drivers. The marking materials market is expected to witness an increase in mergers and acquisitions activities as low profit margins could take a toll on small players. The market players traditionally kept the prices less volatile and have allowed drastic fluctuations owing to the high competition. The global road marking materials market is expected to reach over USD 5 billion by 2025.

The growth opportunities for regional and local road marking materials market players also exist as they target the lower or Tier-markets or cities by producing products at a cheaper cost. The competitive intensity is higher in the APAC due to a largely untapped market and growing investments in road infrastructure. The APAC region alone has over 60% of unorganized  marking materials market players. In thermoplastic marking materials, the resins required for the manufacture of thermoplastic constitute around 50% of the total expenditure and is hence a major spend category. Geveko Markings is one of the leading manufacturers and suppliers of marking materials for road markings and decorative horizontal applications.

Read: Marking Materials Market Global Outlook and Forecast 2020-2025

Increase in Number of Airports and Spending on Road Safety

In few decades, the aviation industry is experiencing significant growth. The rise in the number of airports is due to the economic growth witnessed in the last decade in many developing economies. Though the US has the largest aviation market, the APAC region is witnessing high traction currently. The aviation industry accounted for the highest growth, with China, the US, Saudi Arabia, the UAE, and western European countries plowing in high value in the capacity expansion of existing airports and greenfield projects. The increase in middle-class households in major economies such as China and India are driving up the number of airports and consequently the requirements for parking which, in turn, will help boost the growth of the marking materials industry.

The rise in road accidents is creating concerns in many countries encouraging them to increase their spending on road safety hence, fueling the demand for road marking materials market. Every year, the US federal government provides approximately USD 579 million to the states to invest in road safety. More than 85% of road traffic deaths occur in low-income and middle-income countries. Marking materials are gaining high traction in developing countries as they are an effective way of reducing accidents.

Is APAC Gaining Traction in the Road Marking Materials Market?

The road marking materials market in the APAC region is characterized by bureaucratic hurdles in the roads and highways sector. Authorities have committed to developing exceptional road infrastructure in the region. The surface transportation infrastructure budget allocation is among the top priorities in many countries of APAC. The marking materials demand is growing in APAC as the region has several international airports, warehouses, factories, and transportation stations. Sourcing raw materials based on their prices from different countries is one of the strategies adopted by vendors worldwide. The region accounts for almost 35% of the global air passengers. Construction activities and infrastructure development across APAC will positively impact the growth of the road marking materials market.

Read: Coding and Marking Ink Market Global Outlook and Forecast 2019-2024

FAQs about the Road Marking Materials Market:

Q. What is the market size of the road marking materials?

A. The global road marking materials market size to cross USD 5.5 billion by 2025

Q. What is the market growth of road marking materials?

A. The global road marking materials market is projected to grow at a CAGR of over 4% during the forecast period.

Q. What is the market segmentation of the marking materials?

A. The global road marking materials market is segmented by materials, end-users, and geography.

Q. What is the market insight of the road marking materials?

A. The water-based segment in road marking materials is expected to observe an incremental growth of over USD 580 million.

Q. What are the major regions in the road marking materials?

A. The leading regions in the global road marking materials market include APAC, Europe, North America, Latin America, and MEA.

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