Currently, China is witnessing high growth in its steel and furniture industries while India is similarly experiencing positive growth in its construction and steel industries. ASEAN countries are witnessing growth in construction, marine, automotive and furniture industries.
"As a result of this, we can expect to see positive growth coming from the related coating segments such as decorative, industrial wood, marine, automotive and protective coatings," Sheila said.
2011 will also see higher domestic growth in Asian countries with development on the way, spurring the growth of domestic or local players. More local players are expected to enter the industrial coatings segment especially due to higher participation with large MNC's and technology transfer that has greatly contributed to the local player's technology expertise.
In terms of industry specifics, the coming year will see the industry players creating a competitive edge by introducing new innovative products in the market with enhanced "sustainability" features. Many have already set in place strategies to recapture market share after a 2 year lull period. Green-based technology will see high growth; particularly for powder and water based type coatings.
The term 'green coatings' is not a new term within the industry but over the last couple of years there has been a slow uptake of these kinds of coatings due to a significant lack of demand from end use industry users. Whilst coating manufacturers are pushing these products into the mainstream, the lack of awareness and incentives and higher cost to use these types of coatings within the local consumers have been a barrier to be overcome.
"Nonetheless, we can now certainly see shifts in mindsets moving forward as local governments are coming on board to raise the level of commitment and push for green technology," said Sheila. "For example, in early 2010, the Malaysian government launched a RM1.5 billion 'green technology fund scheme' plus providing tax incentives for green certified buildings.
"Moving forward we expect to see growth of 'green coatings' in this region especially in relation to energy conservation, low VOC (volatile organic compound) emissions and a significant shift from solvent to water based paints," Sheila said.