RAILWAY COATINGS MARKET ANALYSIS

The railway coatings market was valued at US$ 2,334.2 Mn in 2022, and is expected to exhibit a CAGR of 5.2%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 3,497.6 Mn by 2030. Railway coatings are protective coatings that are applied to different surfaces of trains and railway equipment to increase their durability and endurance. These coatings provide corrosion, weathering, abrasion, and chemical resistance. They are primarily employed in the railway sector to extend the life of rolling stock, enhance energy efficiency, and lower maintenance costs. Furthermore, these coatings improve the attractiveness of trains while protecting them from graffiti and vandalism. Railway coatings are used on train exteriors, interiors, bogies, tracks, and a variety of other components. The Global Railway Coatings Market is predicted to rise as the rail transportation sector expands internationally.

Global Railway Coatings Market - Impact of Coronavirus (COVID-19) Pandemic

Railway coatings are used for coating the interior and exterior of railcars, locomotives, tank cars, and hoppers. The spread of COVID-19 globally resulted in lockdowns, and cease in economic activities, which severely impacted the coatings sector. The demand for coatings virtually collapsed for a period until governments lifted their restrictive policies in different regions. Despite the pandemic situation, many countries have decided to continue rail construction activities. For instance, in April 2020, the U.K. government approved the continuation of the construction of the High-Speed 2 (HS2) rail project. This, in turn, is expected to boost the demand for railway coatings in the near future. However, the delay in many railway construction projects is expected due to the pandemic. For instance, the completion of the US$ 1.5 Billion railway construction project in Nigeria got delayed due to the COVID-19 outbreak as workers from China were unable to return to Nigeria.

Figure 1. Global Railway Coatings Market, By Distribution Channel, in 2022

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Global Railway Coatings Market: Growth Drivers

New railways and repair and refurbishment of existing railways

Introduction of new railways and the repair and refurbishment of existing railways is driving the Global Railway Coatings Market growth. Railway coatings consist of protective coatings for the interior or exterior of rail cars such as tank cars, boxcars, open hoppers, and covered hoppers. Building of new railcars as well as the maintenance of the existing ones are driving the market growth. The installation of new railroads, as well as the maintenance and restoration of existing railways, are significant drivers of the railway coatings industry. These coatings are applied to the inner and external surfaces of rail cars, such as tank cars, boxcars, and hoppers, to protect them. As the rail transportation infrastructure expands throughout the world, the demand for railway coatings is likely to rise. For instance, according to Indian Ministry of railways, the dismantling of old abandoned unsafe Foot Over Bridge at Ludhinana (Firozepur Division, Northern Railway) was completed on 5th May 2020. Dismantling of this 135 meter long old abandoned FOB structure over 19 tracks and 7 passenger platforms was overdue since 2014 after new FOB was commissioned.

Increasing demand for mass transportation and rail freight

The increasing demand for mass transportation and rail freight are expected to foster the Global Railway Coatings Market growth. For instance, according to American Public Transportation Association (APTA), in 2022 commuter rail ridership means a passenger rail transport service that primarily operates within a metropolitan area in the U.S. and 17.29% in October 2022 with respect to 17.82% in November. With increasing population and urbanization across the globe, the demand for mass transportation is also increasing. For instance, according to International Association of Public Transport, as of 2021, there was 15,824 km of LRT network in operation, mainly distributed between Europe (58%) and Eurasia (22%). At a global level, the length of infrastructure has been increasing by 1% per year on average since 2015.

Railway Coatings Market: Market Restraints

Government regulations on raw materials used in railway coatings

Government regulations on raw materials used in railway coatings are expected to hamper the product demand. Regulations limiting or eliminating the use of raw material that affects the environment and health of the people is a major factor hindering the Global Railway Coatings Market growth during the forecast period. The use of Volatile Organic Compounds (VOCs) and Hazardous Air Pollutants (HAPs) in coatings is mentioned in the regulations by governments and environmental agencies such as the U.S. Environment Protection Agency, European Commission, and Environment and Climate Change Canada. These regulations are updated from time to time. However, while government regulations on raw materials can initially hinder the growth of the railway coatings market, there are several ways to counterbalance this impact. By investing in research and development, fostering partnerships, providing incentives, raising awareness, and promoting recycling, the industry can adapt to meet regulatory requirements while still driving growth and innovation.

Market Trends

Development of coatings to improve corrosion resistance and provide long-term protection

Growth of new coatings to improve corrosion resistance and provide long-term protection are some of the current trends in the railway coatings market. There is a rising emphasis on creating innovative coatings that may successfully increase corrosion resistance and offer long-term protection for railway infrastructure in the railway coatings market. These coatings are made to endure extreme environmental conditions such as dampness, chemicals, and UV radiation. The desire to extend the service life of railway equipment, decrease maintenance costs, and improve safety is driving demand for such coatings. Increased urbanization and increased investment in rail infrastructure projects lead to market expansion. Nanotechnology advancements have enabled the creation of new coating materials with greater corrosion resistance and endurance. These coatings are suited for railway applications because they have great adhesion, strong abrasion resistance, and increased flexibility. Finally, the railway coatings market is shifting towards the development of new coatings that offer corrosion resistance and long-term protection. These coatings are critical for ensuring the longevity of railway equipment, lowering maintenance costs, and complying with environmental standards.

Global Railway Coatings Market: Market Segmentation

On the basis of product type, in 2022, the topcoat segment accounted for 46.1% of the revenue share. Topcoat offers mechanical resistance, chemical resistance, color shade stability, high gloss, high resistance, and facilitates easy removal of graffiti, and provides scratch resistance. This is expected to drive the demand for railway coatings in the topcoat segment during the forecast period. Topcoats offer mechanical resistance, preventing physical damage and wear and tear on train surfaces. They also provide chemical resistance, protecting against the detrimental effects of numerous chemicals with which the railway may come into touch. Another advantage of topcoats is their color shade stability, which ensures the railway's visual attractiveness throughout time. Topcoats also provide a high sheen, giving the railway a smooth and polished look. Their tolerance to external elements including sunshine, moisture, and temperature variations adds to their attractiveness. Topcoats also make graffiti removal easier, lowering the maintenance work necessary to maintain train surfaces clean. Furthermore, they are scratch resistant, reducing surface damage from external pressures. Overall, the benefits of topcoats make them a popular choice for railway coatings, fueling the demand for this category over the projection period.

Railway Coatings Market: Regional Analysis

Among regions, Asia Pacific held the dominant position in the global  Railway Coatings Market in 2022, accounting for 35.60% of the market share in terms of revenue, followed by Europe and North America. This is attributable to the fast expansion of the railway sector in countries, such as China and India, where major investments are being made to extend and enhance their railway networks. The Asia Pacific railway sector is expanding as a result of increased urbanization and need for efficient transportation networks. As a result, the need for railway coatings to improve the longevity and performance of rail infrastructure is increasing. In terms of market share, Europe followed Asia Pacific, reflecting the region's well-established railway network and modernization activities. The necessity for corrosion protection, weather resistance, and aesthetic appeal in railway coatings drives the Railway Coatings industry. North America also accounted for a sizable market share, owing to continuing infrastructure development projects and the necessity for sophisticated coatings to safeguard railway systems from adverse weather conditions. Overall, Asia Pacific's dominance in the worldwide Global Railway Coatings Market may be due to the region's vast railway networks, large-scale infrastructure projects, and a growing emphasis on sustainability and environmental protection.

Figure 2. Global Railway Coatings Market, By Region, 2022

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Railway Coatings Market: Key Developments

• On December 2 2022, Akzo Nobel N.V, a company which creates paints and performance coatings, completed the acquisition of the wheel liquid coatings business of Lankwitzer Lackfabrik, a company which offers industrial coatings, thus strengthening the company’s performance coatings portfolio.
• On June 1, 2022, AkzoNobel acquired African paints and coatings from Kansai Paint which is a chemical company. This will strengthened the AkzoNobel footprint in Africa.
• On November 15, 2022, Sherwin-Williams, the global paint, and coatings company, unveiled the major expansion of its Sheffield production facility. The objective was to deliver a huge boost to the local economy.
• On November 9, 2022, Sherwin-Williams the global paint, and coatings company, acquired Germany-based wood coatings companies, Oskar Nolte GmbH and Klumpp Coatings GmbH.

Global Railway Coatings Market: Key Companies

The key players active in the Global Railway Coatings Market are Akzo Nobel N.V., The Sherwin-Williams Co., Axalta Coating Systems, Weilburger Coatings GmbH, Hempel A/S, HSH Railway Finishes, PPG Industries, Inc., HELIOS, Teknos Group, and Nipsea Group.

*Definition: The rails and rail parts are exposed to several factors including water, salt, moisture, and stray currents. These factors lead to the damage of rails due to corrosion, which can weaken the foot of the rails, creating a high risk of rail breakage. Railway coatings provide sustainable protection to the rails against corrosion. The coatings are insulated and waterproof in nature, and can be applied to all types of flat bottom rails.