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Americas Silicone Roof Coatings Market - Forecast(2023 - 2028)
Americas Silicone Roof Coatings Market Overview
The Americas Silicone Roof Coatings Market size is forecast to reach US$ 231.8 million by 2027, after growing at a CAGR of 4.1% during the forecast period (2022-2027). The silicone coatings are majorly applied on the substrates such as Metal, Concrete, Asphalt, Membrane and Plastic, (Thermoplastic polyolefin (TPO), Ethylene Propylene Diene Monomer (EPDM), Polyvinyl chloride (PVC), Hypalon and Others), Spray Polyurethane Foam (SPF) and others. One of the major factors driving the growth of the Americas silicone roof coatings market is the increasing demand for eco-friendly and sustainable green building structures across the region. Also, the increasing growth of the construction industry with rising investments and developments in the region is one of the primary reasons behind the upliftment of the Americas silicone roof coatings market. For instance, South America’s booming construction industry offers a diverse range of investment options. According to the International Trade Administration (ITA), Private investment promotion agency of Peru “ProInversion” is looking to attract investment in 51 public-private partnership (PPP) projects valued at over US$ 9.2 billion over the period of 2020-2024. Also, as per a press release of March 2020, the government of Venezuela plans to construct over a total of five million new housing units by 2025. Thus, positively impacting the growth of Americas silicone roof coatings market during the forecast period. The substitute to silicone roof coatings like acrylic roof coatings might hinder the market growth as they are highly reflective, cost-effective, and dirt resistant.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced manufacturing, and production activities as a result
of the country-wise shutdown of manufacturing sites, shortage of labor, and the
decline of the supply and demand chain all over the world, thus, affected the
market in 2020. During COVID-19 pandemic, several manufacturing industries,
including building and construction were forced to shut down their production
facilities and services across regions as America implemented partial or
complete lockdown policies in response to the pandemic, resulting in significant
production losses for the manufacturers. For instance, during the year 2020,
owing to the global pandemic, there were supply trade disruptions of raw
materials in Brazil which affected the market growth. Also, towards the end of
the year 2020, the GDP contribution from the construction sector of Brazil
decreased to US$2,562.8 million from US$2,598.0 million. However, the progress
in the different end-use industries is slowly and gradually rising as per the
betterment of the situation.
Report Coverage
The report: “Americas Silicone Roof Coatings Market Report– Forecast (2022-2027)”,
by IndustryARC covers an in-depth analysis of the following segments of the Americas Silicone Roof Coatings Market Industry.
By Roof Type: Flat Roof, Low-Slopped Roof, Steep-Slopped
and others.
By Coating Type: High Solid and Solvent-Based.
By Substrate: Metal, Concrete, Asphalt, Membrane
and Plastic, (Thermoplastic polyolefin (TPO), Ethylene Propylene Diene Monomer (EPDM),
Polyvinyl chloride (PVC), Hypalon and Others), Spray Polyurethane Foam (SPF)
and Others.
By Application: Building & Construction
(Residential Construction, (Large Apartments and others), Non-residential
Construction), Industrial Construction and others.
By Geography: North America (USA, Canada, and
Mexico), South America (Brazil, Chile and the Rest of South America).
Key Takeaways
- Silicone roof coatings are widely used in green buildings in the region as it is a non-chalking, eco-friendly product that allows a building to become more resistant to the elements. Thus, the rising development of green buildings in the region is likely to boost the market growth.
- For instance, in 2021 the Canadian Government invested US$1.5-billion in a program designed to spur green building through retrofits, upgrades and new construction of public institutions. The five-year plan aims to save energy and cut costs and pollution while creating jobs, with potential projects ranging from environmentally friendly community centers to energy-efficient library windows.
- In the United States, the impact of a changing climate is tremendous. For instance, in 2021 alone the historic droughts and wildfires in the West, unprecedented storms and flooding in the Southeast, and record heatwaves across the country. Therefore, increasing the demand for silicone roofs as their proprietary formulation eliminates the use of primers, in most instances, providing superior coating adhesion, and extends the life of the existing roof: concrete, modified bitumen, single-ply, metal roof panel, and smooth BUR and also significantly lower labor and materials costs.
Americas Silicone Roof Coatings Market Revenue Share, By Application, 2021 (%)
Americas Silicone Roof Coatings Market Segment Analysis – By Roof Type
Flat Roof segment dominated the Americas silicone roof coatings market with a revenue share of 46% in 2021 and is expected to rise at a CAGR of 2.6% during the forecast period from 2022-2027. The demand for silicone roof coating for flat roof is rising mainly due to its ability to withstand ponding water indefinitely. Because silicone coatings are not water-based, they absorb no moisture. Silicone is non-sacrificial and as such it doesn’t slowly shed as time goes by. It will stay fully intact for the life of the roof.
Furthermore, silicone doesn’t need to be reinforced with roof
fabric, which saves time and money on installation. The last major benefit to
silicone roof coating for flat roof is the need for less than most other
flat roof coatings. As little as 2 gallons can be used for 100 square feet.
Thus, anticipating the segmental growth of Americas silicone roof coatings.
Americas Silicone Roof Coatings Market Segment Analysis – By Coating Type
High solids segment dominated the Americas
Silicone Roof Coatings Market with a share of 72% in 2021 and is expected to
rise at a CAGR of 4.7% during the forecast period from 2022-2027. High solids
silicone roof coatings are designed for application over existing smooth
surface BUR, granulated cap sheet, concrete, metal, spray foam, thermoplastic
polyolefin, polyvinyl chloride, and Hypalon membranes, and Others. They are
resistant to UV rays, ponding water, oxidation, wind-driven sand, rain, and
snow, and temperature extremes allow the roof coatings to provide long-term
protection. Because of the coatings’ high reflectivity, it can expect to save
up to US$0.50 per square foot on the energy bill after installing a silicone
roof coating. Thus, the demand for Americas silicone roof coatings is increasing
during the forecast period.
Americas Silicone Roof Coatings Market Segment Analysis – By Substrate
By Substrate, Asphalt dominated the Americas
Silicone Roof Coatings Market with a share of 41% in 2021 and is expected to
rise at a CAGR of 3.7% during the forecast period from 2022-2027. Asphalt is a
black or brown petroleum-like material that is a major substrate of silicone roof
coating as it gives a consistency varying from viscous liquid to glassy solid.
The constant rising in the production of asphalt has led to segmental growth,
positively impacting the Americas silicone roof coatings market. For instance,
Ammann, US company has scaled up its production with wide range of 11 models of asphalt plants ranging from 60 TPH to 260 TPH offering complete flexibility to
the customer’s demand from various end-users like paint and coatings,
constructions, and others. This anticipates the rising growth of America's
silicone roof coatings market during the forecast period.
Americas Silicone Roof Coatings Market Segment Analysis – By Application
Building & Construction segment dominated the Americas silicone roof coatings market with a revenue share of 72% in 2021 and is expected to rise at a CAGR of 4.3% during the forecast period from 2022-2027. The growing American economy, urbanization, government spending on public infrastructure, rising sale of commercial and residential construction, and improved logistics are key growth drivers for Americas silicone roof coatings market. For instance, according to the report released by Census Bureau, The Us Construction spending during February 2022 was estimated at a seasonally adjusted annual rate of Us$1,704.4 billion, which is 0.7 percent above the revised January estimate of US$1,695.5 billion. The February figure is 11.2 percent above the February 2021 estimate of US$1,533.3 billion. Thus, with the rising segmental growth, the demand for Americas silicone roof coatings market rises.
Americas Silicone Roof Coatings Market Segment Analysis – By Geography
North America dominated the Americas silicone
roof coatings market with a revenue share of 87% in 2021 and is expected to
rise at a CAGR of 3.9% during the forecast period from 2022-2027. Rapid
industrialization coupled with economic improvement in the region has resulted
in high demand. The development and investment in the growing end-use like
construction, and others are escalating the market growth. For instance,
according to US Census Bureau, privately?owned housing units authorized by
building permits for February 2022 were around 1,859,000 which is 7.7% above
the February 2021 rate of 1,726,000. Construction beings for around 1,769,000
houses in February 2021 which is 22.3% more than 2021. Furthermore,
according to the Statistics Department of Canada, capital expenditures on
non-residential construction and machinery and equipment are expected to rise
8.6% to $298.2 billion in 2022, with a 10.4% increase in 2021. This strength is
based on record-high capital investments expected by the public sector, which
is expected to reach $116.8 billion in 2022. Therefore, a rise in investment in the nonresidential sector will help to boost the demand for the silicone roof coating
market.
Americas Silicone Roof Coatings Market – Drivers
The Surge in the Activities of the Construction Industry
The expansion of real estate and housing,
rising disposable income, and rising desire for stylish and durable homes with
durable silicone roofing owing to its properties such as it is permanent and
will not degrade, chalk or crack under harsh UV rays, water-resistant and
withstand oxidation, sand and hail storms, and extreme of temperatures are all
factors driving the Americas silicone roof coatings market. Contractors and
manufacturers prefer silicone roof coatings as it is remarkably stronger in
response to moisture and extend the life of the roof. Thus, silicone roof coatings
demand is increasing as it can be applied on metal roofs, built-up roofing, and
weathered single-ply membranes. Also can be used to recoat existing
polyurethane foam, modified bitumen, concrete, wood, and other roofing surfaces.
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Source: U.S. Census Bureau USA is considered as one of tay 2021, as depicted in figure 2 the seasonally adjusted annual rate of privately-owned housing units authorized by building permits in May was 1,681,000, which is 34.9% (2.4%) higher than the May 2020 rate of 1,246,000. Thus, rising construction activities is further anticipated to boost the market growth over the forecast period. |
|
Source: Statistics
Canada According to Statistics Canada, in April 2021, as depicted in figure 3 the investments made in the residential, industrial, commercial, and institutional and governmental sectors in Canada were US$12,241.4 billion, US$770.59 billion, US$2,456.7 billion, and US$1,123.8 billion, as compared to the investments made in March 2021 i.e. US$10,412.41 billion, US$762.78 billion, US$2,475.46 billion, and US$1,110.55 billion. Thus, the rapidly rising construction investments is estimated to drive the market for Americas silicone roof coatings over the forecast period. |
Silicone roof coating systems are ideal for
restoring the existing asphalt, concrete, metal, or single-ply low sloped,
commercial roof. They are environmentally friendly containing high solids, low
VOCs and no hydrocarbon solvents. They also offer moisture-curing system that
can be applied in excess of 40 mils in a single coat without blistering to
restore and repair the existing roof without a costly tear-off. Most businesses
consider silicone roof coating when their roof is aging or has leaks. Repairs
may be recommended before getting on with the coating application. The labor
and materials may range between rates of $0.70 and $1.40 per square foot. One
of the strengths of silicone roof coating restoration is that it is easy to
install and convenient to renew the roof. A silicone coating system usually
costs between US$2 and US$3.50 per square foot. A complete roof tear-off and
installation can cost US$4 -US$10 per square foot, which is comparatively
cost-effecting compared to other roof coatings like acrylic. Restoring a roof
using a low-VOC, cool roof solution such as silicone roof coatings isn’t limited
to improving only the environment inside a building, it can also deliver benefits
to the wider environment. According to the Southern California Air Quality
Management District (SCAQMD), high-VOC architectural coatings largely contribute to the smog levels found in and around cities such as Los Angeles.
Using low-VOC silicone coatings can reduce these emissions and help improve air
quality. By reducing the overall temperature of a building, using a cool roof
coating can also help to reduce the urban heat island effect where cities are
much warmer than rural areas, resulting in less energy use, fewer pollutants
from power sources, and lower smog levels. Thus, the above-mentioned factors in the restoration of the roof using
silicone coating is driving the market growth of Americas silicone roof
coatings during the forecast period.
Americas Silicone Roof Coatings Market Challenges
The Presence of Alternative Roof Coatings Might Hinder the Market
With growing concerns about the adoption of
environmentally safe products, manufacturers of the silicone roof coating market
are gravitating towards manufacturing various roof coatings such as acrylic and
a white pigment, such as titanium dioxide (rutile) roof coating. Acrylic roof
coatings are suitable for use on a variety of substrates including metal,
modified bitumen, built-up roofs, ethylene propylene diene monomer, thermoplastic
polyolefin, and polyvinyl chloride, concrete, and spray polyurethane foam. Silicone
roof coatings are only applicable on flat surfaces whereas acrylic can be used
on steep-slope metal roofs. However, they possess similar tensile strength,
silicones are more durable than acrylics in the long run. Acrylic reflective
roof coatings have proven beneficial in increasing the albedo of buildings.
Besides, their cost-effectiveness is dependent on building design parameters
and location, and the ability of the coating to remain reflective. The
coating’s ability to function successfully is a composite of its initial
reflectivity, dirty pickup resistance, mildew resistance and its ability to
maintain its functional properties after years of in-field service. Furthermore,
the constant development and growth of the acrylic roof coatings in American
region is negatively impacting the growth of Americas silicone roof
coatings. For instance, in 2021 US based
Metacrylics Roof Coatings launched Q COAT, a new fast-setting and ponding water-resistant acrylic roof coating system that is rain resistant in under 30
minutes and can be recoated in as low as 2 hours. On the Other hand, Engineered
Polymer Solutions (EPS) company launched EPS 2252, a high solids acrylic
emulsion designed to adhere to low-energy substrates commonly used in roofing. Thus, the above developments of the
alternatives are hindering the market growth of the Americas silicone roof
coatings market during the forecast period.
Impact of Russia-Ukraine War
With the Russian invasion of Ukraine, U.S.
contractors face a triple threat of war, inflation, and supply chain snarls as
they struggle to source building materials. The war is likely to have multiple
effects on construction materials costs and availability. For instance, Russia
is a major producer of aluminum and copper, which had already surged 33% and
25% respectively, year over year in January 2022 as stated in a report
published by The White House Washington. That means prices of materials forged
from those metals could rise even higher. According to the U.S. Bureau of Labor
Statistics, on average, input prices for nonresidential construction surged
more than 24% over the past year. Construction costs for government buildings
were up 13.2% year over year in January 2022, according to the Bureau of Labor
Statistics. The cost for the construction of highways and streets was up 20%,
while steel mill products rocketed up 113%, and plastic construction products
rose 35%. According to the Associated General Contractors of America's analysis
of February Producer Price Index data, most of the materials and commodities
the construction industry depends upon are seeing double-digit year-over-year
cost increases, with steel and diesel seeing some of the largest gains, at
nearly 75% and nearly 58%, respectively. According to the US Department of States,
Russia and Ukraine hold a significant share of America’s commodities trade.
Some commodities Russia supplies extensively include palladium, natural gas,
nickel, and aluminum. So, it comes as no surprise that the commodities sector
touched record highs recently. The prices for nickel and aluminum to their
highest of about 33% and 20% higher in 50 years. Besides, the average price of
on-highway diesel fuel was US$4.05 a gallon, the highest level in almost the past
nine years, with futures for heating oil, a close proxy for diesel, jumping
another 12 cents. Thus, the transportation of construction material increases
accordingly. Thus, hampering the overall market growth of Americas silicone
roof coatings market.
Americas Silicone Roof Coatings Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Americas Silicone Roof
Coatings Market. Americas Silicone Roof Coatings Market top 10 companies are:
- Carlisle
- GE (Momentive)
- Huntsman
- KST (division of Sherwin-Willimans)
- Hempel (Neogard)
- Progressive Materials
- Gaco
- Gardner-Gibson
- Garland
- Inland Coatings
Recent Developments
- In January 2021, Momentive announced the acquisition of KCC Corporation’s Silicones business in Korea and the UK and also its sales operations in China, to further enhance the Momentive’s global capabilities in advanced silicones and specialized applications.
- In January, 2021, CARLISLE Construction Materials Ltd. launched SILICONE PRO, a silicone roof coating for the UK wide customers.
- In July 2021, Carlisle Companies Incorporated announced the acquisition of Henry Company from affiliates of American Securities LLC, a U.S. private equity firm.
- In October 2020, Henry Company acquired National Coatings Corporation, based in Camarillo, California, a leading commercial roofing systems manufacturer.
- In August 2019, Mule-Hide Products Co. added seven colors of 100% silicone roof coating finish coat to its silicone roof coating system, providing new options for creating durable, low-maintenance roofs, beautiful, and ensuring crew safety.
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