The global marking materials market size to cross USD 5.50 billion, growing at a CAGR of 4% during the forecast period. The global marking materials market will be shaped up differently during the forecast period on account of the outbreak of the COVID-19 pandemic. It has been highly competitive due to a large number of unorganized players. The market growth will be steady, with supply-side parameters not impacting the industry cost structure on a wider scale. The challenges for the market are majorly from the demand side, with varying degrees of fluctuation across regions.
Growth rates have been truncated on account of COVID-19. The growth prospects for residential, commercial, and other public buildings sectors are the most affected. On the demand side, volumes are growing while prices have not been allowed to fluctuate drastically due to high competition.
APAC is the leader in terms of value and volume. The acceptance of new and more efficient road marking materials is low on a global scale, with only a few industrialized countries showing affinity toward the same.
- The water-based segment is expected to observe an incremental growth of over $580 million. Water-based solutions are being environmentally friendly as they reduce road striping volatile organic compounds emissions by over 60%.
- The roads and highways segment is likely to cross the revenue of over $4 billion due to the high growth opportunities of marking materials in APAC countries, especially China.
- Europe is projected to experience an absolute growth of over 30% on account of favorable government support and strongly-aided high private investments in the construction industry
MARKING MATERIALS MARKET SEGMENTATION
This research report includes a detailed segmentation by
INSIGHTS BY MATERIALS
The demand for water-based marking materials is increasing among end-user sectors on account of their lower environmental impact. These materials are increasingly preferred by government agencies in limited countries in the APAC region. The majority of the demand for water-based materials still comes from mature countries of APAC and Europe. With water-based road marking paints have low service live on dirty roads, the application is likely to be affected during the forecast period.
Cold plastic and thermoplastic markings have emerged as more cost-effective solutions than traditional paints. Cold plastic marking materials are mainly used for marking roads and based on methyl methacrylate. Increasing road safety is the growing concern in many of the countries. The major application areas are asphalt roads rather than concrete ones. However, unlike paints, plastic-based materials are dependent on the application surface. These are applicable to concrete and bituminous surfaces and boast of high abrasion resistance.
The spray version of thermoplastics is gaining popularity in recent times. However, this type of thermoplastic is yet to make a mark, and hence, the road construction industry continues to use traditional materials. Although thermoplastic marking materials generally produce the longest service life, they are not cost-effective solutions for roads.
INSIGHTS BY END-USER
The road marking materials market share will continue to hold a higher share on account of high demand from new development and maintenance projects. Road marking material suppliers are likely to be affected by the outbreak of the COVID-19 in 2020 and in the Q1 2021. Maintenance projects are expected to take a hit across regions in terms of delayed calls for tender submission or limiting the maintenance aspect to city limits or central business districts.
Paved roadways and highways beyond the tier I cities are expected to take a massive hit. The long-term strategy of road planning by the UK Government is expected to provide steady growth for road marking materials UK during the forecast period.
The growth of smart and modern airports has a major effect on the global marking material market. The usage in airports is mainly for parking lot infrastructure, pavements, tarmac markings, and cargo handling facilities. The investment in vertical and horizontal markings is high in airport construction, and hence airports hold a high share in the market. Airports are aggressively focusing on renovation plans and injecting substantial investments into new airports and airport projects.
China is expected to overtake the US as the major hub for air travel as it intends to have 400 airports by 2035. With many emerging countries in APAC, MEA, and Latin America privatizing airports to gain more investment and make operations at airports more professional and on par with modern airports in developed countries, a significant focus will be ensuring high-quality marking at airports and regular maintenance.
The industrial sector usage of marking materials is high, especially in Europe and North America. The usage is lower in APAC, and the reason is mainly attributed to not-so stringent regulations and lack of their enforcement. The industrial sector makes use of high-quality marking materials as durability is a major concern in the industry.
The demand is not uniform across regions; however, the overall demand on the global markets is steady since the economic downturn in any one region is offset by the growth in other regions. The COVID-19 pandemic is expected to impact the Q2 2020 demand. The US, France, the UK, Germany, and China are expected to witness high demand for marking materials for warehouses and factories. Therefore, the demand for marking material in industrial production sites is expected to remain stable during the forecast period.
Over the past few decades, emerging economies in APAC that are witnessing high economic growth, high consumption, and increasing industrial and manufacturing competition, have started to challenge developed countries in global manufacturing.
INSIGHTS BY GEOGRAPHY
The APAC is one of the largest air travel markets that recorded a high air passenger traffic of over 1,500 million in 2018. The region accounts for almost 35% of the global air passengers. The marking materials demand is growing in Asia Pacific since the region has several global airports, warehouses, factories, and transportation stations. The market is also growing as the IMF and/World Bank-financed projects in urban cities of China, India, Australia, Japan, and South Korea has witnessed high growth.
The market demand is expected to accelerate further as China is focused on improving the transport grid system, comprising 10 north-south and 10 east-west corridors by linking and extending the main routes during the forecast period.
The marking materials market size in Japan is witnessing steady growth in volume and value aided by higher demand from road infrastructure planning and development. The focus area has been the efficient high-quality marking material with a high lifecycle cost savings and durability. Japan, South Korea, and China together hold more than 60% of the market share in APAC, with growing demand from several end-users.
INSIGHTS BY VENDORS
The marking materials market size is highly competitive as it is characterized by low entry barriers with no major requirement in technology or capital investment. The industry is largely unorganized, especially in APAC, Africa, and Latin America. The pricing pressure is high in the industry on account of a large number of unorganized players in the market.
The APAC region alone has over 60% unorganized players, which is not the case in mature regions such as Europe and North America. Vendors are manufacturing a wide range of road markings products such as thermoplastic marking materials, parking marking, primers for application of thermoplastic road marking paints, and road marking machinery.
The marking materials market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Material
- Cold Plastic
- Roads & Highways
- Transportation Stations
- Warehouses & Factories
- South Korea
- North America
- Latin America
- Middle East & Africa