LATAM Marine Coatings Market - Forecast(2023 - 2028)

LATAM Marine Coatings Market Overview

LATAM Marine Coatings Market size is forecasted to grow at a CAGR of 4.2% during the forecast period 2022-2027. The service life of marine vessels is significantly shortened by corrosion, which degrades the marine components. And since marine coatings shield the surfaces and components of ships and marine containers from abrasion and corrosion, marine coatings based on epoxy, alkyd, polyurethane, acrylic, polyester, and fluoropolymer resin are frequently applied to marine vehicles. Rising investments by government and companies in the shipbuilding industry coupled with growing naval trade in the region would be key factors in driving the demand for the marine coatings market in the Latin American region. Moreover, increasing government initiatives to promote marine trade is anticipated to further fuel the market growth over the forecast period. The novel coronavirus pandemic had far-reaching consequences in the LATAM marine industry. Due to the production shutdowns, marine coating adoption fell sharply, which had an indirect impact on the LATAM Marine Coatings Market size in 2020.

Report Coverage

The “LATAM Marine Coatings Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the LATAM Marine Coatings industry.

By Product Type: Anti-fouling Coatings, Anti-corrosion Coatings, Foul Release Coatings, and Others
By Resin: Epoxy, Polyurethane, Acrylic, Alkyd, Polyester, Fluoropolymer, and Others
By Technology: Water-based, Solvent-based, and Others
By Substrate: Metals (Aluminum, Steel, and Others), Plastics, Rubbers, and Others
By Application: Marine OEM, and Marine Aftermarket
By End-Use Industry: Cargo Ships, Passenger Ships, Naval Ships, Offshore Ships, and Others
By Geography: Mexico, Brazil, Argentina, Colombia, Chile, and the Rest of LATAM

Key Takeaways

• Brazil dominates the LATAM Marine Coatings Market, owing to the growing marine industry in the region. The increasing freight transportation coupled with the increasing government initiatives and investments is the major factors expanding the marine industry in Brazil.
• In March 2020, Brazilian state-controlled company Empresa Gerencial de Projetos Navais (EMGEPRON) awarded the Águas Azuis consortium to debut construction of the first of four ships in 2021 for commissioning in 2024. Such projects are directly supporting the LATAM Marine Coatings Market size.
• The need for dry-docking of vessels subsequently, new shipbuilding activities, and the growth in offshore drilling are propelling the growth of the LATAM Marine Coatings Market. The shipping trade is also growing in LATAM, thereby further aiding the market growth.
• The rising government initiatives and investments in the LATAM marine coatings industry also contribute to the market's long-term viability.
• However, the regulatory norms applied by the government for the use of VOC-based marine coatings might pose a restraint to the growth of the LATAM Marine Coatings Market.

Figure: Brazil Marine Coatings Market Revenue, 2021-2027 (US$ Million)

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LATAM Marine Coatings Market Segment Analysis – By Packaging

The epoxy segment held a significant share in the LATAM Marine Coatings Market in 2021 and is forecasted to grow at a CAGR of 4.3% during the forecast period 2022-2027. Epoxy coating films are strongly resistant to most chemicals and make excellent anticorrosion coatings, owing to which they are one of the principal materials used to control corrosion in the marine environment. Furthermore, epoxy marine coatings are widely used in those parts of ships that are continuously exposed to seawater and ultraviolet (UV) rays. Largely, marine epoxy resin coatings are used to protect ships and their parts that sit underwater (such as hulls, ballast tanks, cargo tanks, decks, etc.) from persistent and repetitive corrosion. This results in an increased demand for epoxy marine coatings from the shipping industry, thereby leading to the growth of the epoxy segment of the LATAM Marine Coatings Market.

LATAM Marine Coatings Market Segment Analysis – By End-Use Industry

The cargo ships segment held a significant share in the LATAM Marine Coatings Market in 2021 and is forecasted to grow at a CAGR of 4.5% during the forecast period 2022-2027. Marine coatings based on alkyd, polyurethane, acrylic, polyester, and fluoropolymer are often used in cargo ships for the primary purpose of material protection. Marine coating protects the steel against corrosion, the wood against rot and aging, the bottoms of the boats against fouling, the concrete against deterioration and corrosion of the reinforcements, and the rest of the materials against elements such as pollution. The marine ship demand and construction are flourishing in various LATAM countries, for instance, in May 2022, the cargo ship S/V Vega Gamleby has been acquired by SAILCARGO Inc. Between Colombia and the United States, Vega will transport 82 tonnes (148 cubic meters) of dry goods, including green coffee beans. The acquisition of Vega will enable SAILCARGO INC. to earn revenue this year and advance its vision of clean shipping. This will open the way for SAILCARGO's first ship, Ceiba, which is still being built in Costa Rica and is scheduled to launch in 2023. This will enable the business to begin shipping before Ceiba is complete. Such projects are directly supporting the LATAM Marine Coatings Market growth in the cargo ship industry.

LATAM Marine Coatings Market Segment Analysis – By Geography

Brazil acquired the largest portion of the LATAM Marine Coatings Market share in 2021 up to 36%, owing to the bolstering growth of the marine sector in Brazil. The Brazilian marine industry is being spurred by various government initiatives and investments. For instance, in March 2020, R$ 5.6 billion in investments for the naval sector were approved by the Council Director for the Merchant Marine Fund (CDFMM). R$4.9 billion of the total approved amount was given to projects that the board had already approved, and R$654.3 million went to new projects. In May 2022, The Board of Directors of the Merchant Marine Fund, managed by the Ministry of Infrastructure of the Brazilian government, approved an investment of R$1.028 billion for the naval industry. The materials will be applied to the building, maintenance, conversion, and modernization of ships. About R$803.8 million of this total will be used to build 12 new vessels, and R$224,7 million will be used for repair work. Such projects are accelerating the construction of new ships in the country. And with the increasing production of marine vehicles, it is anticipated that the demand for coatings in the marine industry will significantly increase, which will accelerate the demand for the marine coatings market in Brazil over the forecast period.

LATAM Marine Coatings Market Drivers

Bolstering Growth of the LATAM Maritime Industry:

The maritime industry is growing at a lucrative rate in LATAM countries on account of various marine projects in LATAM, for instance, in March 2020, Brazil's navy will receive four frigates from a consortium made up of German shipbuilder Thyssenkrupp AG and Brazilian aircraft manufacturer Embraer SA between 2025 and 2028. The contract was signed in Rio de Janeiro as part of Brazil's effort to update its navy to patrol Atlantic offshore resources like its sizable pre-salt oil reserves. A state-owned Brazilian company with ties to the Ministry of Defense, Emgepron, awarded Sembcorp Marine a US$150 million engineering, procurement, and construction contract in June 2022. The Brazilian Navy will use the NApAnt, a new build support vessel that Sembmarine will build, to conduct scientific research as part of the Brazilian Antarctic Program. In 2024, AmaWaterways will launch its first ship on Colombia's Magdalena River, and it will be "a blend" of the line's vessels based in Africa and the Mekong. Cosmos Agencia Martima SAC, a DP World subsidiary with headquarters in Callao that offers pilotage services along the Peruvian coast, has recently placed an order with Peru's Doig Marine SA shipyard to design and build two pilot boats in May 2020. With planned cruises on the Peruvian Amazon River, Aqua Expeditions will launch its new riverboat, RV Aqua Nera, in October 2020. The new build offers 3-, 4-, and 7-night cruises that leave from Iquitos, Peru, and explore the Pacaya-Samiria National Reserve and the tributaries of the Peruvian Amazon River. Such marine projects in LATAM are accelerating the growth of marine coatings, thereby driving the LATAM Marine Coatings Market growth.

LATAM Marine Coatings Market Challenges

Various Drawbacks Associated with Marine Coatings:

Some of the major issues related to the marine coatings industry such as inconsistency in the raw material prices and the production issues are considered major challenges for the marine coatings market growth. The application of marine coatings poses health risks because of the fumes released during production, and mistakes and failures like orange peel runs, sags, mud cracking, over sprays, and others that occur during application are thought to be the main obstacles to the market's expansion. Similar to the previous statement, the main obstacle to the growth of the marine coatings market is product wastage during the application, which averages around 20% for each application. All these factors are limiting the marine coatings market in LATAM.

LATAM Marine Coatings Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the LATAM Marine Coatings Market. The LATAM Marine Coatings top 10 companies are:

1. PPG Industries
2. AkzoNobel
3. Hempel
4. Sherwin-Williams
5. Jotun
6. Chugoku Marine Paints
7. Nippon Paint
8. Kansai Paint
9. Axalta
10. BASF Coatings

Recent Developments

• In February 2021, to improve antifouling performance to a level and consistency never before seen, Nippon Paint Marine introduced new antifouling technology on a global scale. In comparison to other hull coatings, it also significantly reduces the amount of time and film thickness needed for the application.
• In January 2021, the self-polishing antifouling coating FASTAR has been introduced globally by Nippon Paint Marine Coatings Co., Ltd., a Group company that manufactures marine coatings. FASTAR is the first self-polishing antifouling coating to utilize both a hydrophilic and hydrophobic nanodomain structure.
• In November 2020, after three years of success in the North East Asian and West European markets, Jotun introduced its tried-and-true Jotacote Universal S120 primer to the global market, including LATAM.

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