Railway coatings market was valued at US$ 2,334.2 Mn in 2022 and is estimated to reach US$ 3,497.6 Mn by 2030, exhibiting a CAGR of 5.2% during the forecast period (2023-2030). According to Railway Coatings Market Report, By Product Type (Primer, Base Coat, and Topcoat), By Coating Type (Electrocoat, Liquid Coating (Solvent-borne and Waterborne), and Powder Coating), By Application Area (Interior and Exterior), by Application (OEM and Refurbishment), By End Use (Light Rail Vehicles, High Speed Railways, Locomotives, Metros, Regional Trains, Freight Wagons, and Others), and By Region (North America, Latin America, Asia Pacific, Europe, and Middle East & Africa), published by Coherent Market Insights.
Railway coatings are protective coatings that are applied to various components of a railway system. These coatings assist in the prevention of corrosion, wear and tear, and weather damage. They also give aesthetic improvement as well as color-coding for identification. Railway coatings are commonly applied to steel buildings, tracks, bridges, and rolling stock and are normally intended to survive the severe conditions of railway settings. Their major goal is to increase the lifespan of railway assets while also ensuring safe and efficient operation.
Drivers
The growth of the railway coatings market is expected to be driven by the increasing demand for mass transportation and rail freight transport. This increase in mass transportation through railways and metros is expected to favor demand for interior and exterior railway coatings such as primer, base coat, undercoat, and topcoat for the OEM, Original equipment manufacturer and refurbishment applications related to railways in the near future. For instance, according to international energy agency, over 25 countries have developed high-speed rail networks, totaling more than 45,000 km of track. China already has about 60% of the world’s track length, and aims to have 38,000 km operating by 2025. Under the Net Zero Scenario which refers to the balance between the amount of greenhouse gas (GHG) that's produced and the amount that's removed from the atmosphere, activity levels in high-speed rail need to increase by 60% by 2030.
Analysis of the Railway Coatings Market
Among regions, Asia Pacific accounted for a significant market share in 2022. The Asia Pacific region held a market share of 35.6% in terms of revenue in 2022 with respect to the railway coatings market in North America. According to the International Union of Railway, Asia Oceania accounted for 77% of passenger-kilometers (pkm) in 2022. Furthermore, China, India, and Japan accounted for the highest number of passenger-kilometers of rail transport in 2017, according to the same source. Thus, significant demand for rail transportation in the region plays an important role in driving growth of the railway coatings market in Asia Pacific.
Railway Coatings Market - COVID-19 Impact
Even though passenger train services are suspended in various regions due to the pandemic, freight services still continue to function to provide essential commodities. This may temporarily increase the demand for railway coatings for freight rail applications. The effect of the pandemic is not likely to have a long-term impact on the railway coatings market as rail transportation is one of the principal modes of transportation for freight transport and for passengers. Furthermore, the governments of various countries are likely to continue their investments in rail projects to cater to the transportation needs of the growing population.
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Key Takeaways of the Market:
Among coating type, the liquid coating segment held the largest revenue share of 63.5% in the global railway coatings market in 2022. Liquid coating is segmented into solvent-borne and waterborne. Major advantages of solvent-borne coating include faster drying time and being less susceptible to environmental conditions, such as humidity and temperature, during the curing phase.
Key players
The major players operating in the global railway coatings market include 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. These players are focusing on various strategies such as mergers & acquisitions in order to strengthen their market presence and expand their product portfolios. Helios Coatings provider to the automotive industry of proprietary, environmentally friendly, metallized and premium paint coatings agreed to acquire Berger's railway coatings Manufacturer (Metals & Chemicals, and products thereof) business under an asset sale and purchase agreement. All business assets of the Berg Railway Coatings division, such as formulation and railway certification, as well as client database (excluding customers from India and China), will be purchased upon fulfilment of deal conditions. Furthermore, Helios Coatings launched its first French subsidiary, "KANSAI Helios France SAS," to manage the railway coating business purchased from Berger inside the Helios Group. The transaction is scheduled to be completed in the first quarter of 2023.
