Market Research

Global ACE coatings market shows signs of recovery

July 12, 2011

Agricultural, construction and earthmoving (ACE) equipment is big business, one that generates a significant demand for coatings. Prior to the recession, the ACE equipment coatings market, was valued at €2.1 billion generating demand of over 500,000 tons.

The impact of the global recession was felt in all markets. The construction industry was worst affected and spending in real terms fell by almost 20 percent in 2009. This led to dramatic declines in both equipment orders and output. Dealers and leasing companies already held surplus stock, which placed additional pressures on the equipment manufacturers. Markets declined by as much as 60 percent in some markets, including Russia, leading to overall production output of machinery falling by around 40 percent in 2009. This resulted in considerable shrinkage in associated coatings demand.

Governments set aside considerable sums of money for infrastructure and construction projects as part of their fiscal stimulus packages, intended to inject funds into key industries during the downturn. These were more effective in countries like China and contributed to stronger performance in the Asia Pacific region, which accounts for over 55
percent of the ACE equipment coatings market.

The agricultural equipment coatings segment performed comparatively better, but still witnessed declines in equipment output of around 15 percent. As a result, the value of the global market for ACE equipment coatings (including industrial trucks) in 2009 was estimated to be around €1.6 billion.

As the order books of equipment manufacturers started to fill in 2010, coatings consumption increased by around three percent, and is expected to continue growth in 2011. However, a return to pre-recession levels is not expected until 2015.

These are the latest findings of the Irfab Global Industrial Coatings Market 2010 – 2020 study. The full study, which will be completed later this year, focuses exclusively on industrial coatings and draws together a wealth of market data and industry comment collected through extensive interviews with all of the leading industry participants.

The ACE chapter, which is available separately, provides a full review of coatings for agriculture, construction and earthmoving equipment and the impact that the recession has had on consumption profiles. The machinery covered also includes materials handling equipment. The chapter considers technology trends and market developments from a regional perspective, and includes information on the key country markets in both volume and value terms. Demand drivers and market dynamics of both the agriculture and construction industries are presented. The outlook presents annual volume forecasts for the next five years, with trend indicators for 2020.

The Irfab Global Industrial Coatings Markets 2010-2020 study is PRA’s most ambitious and comprehensive industry review to date. For more information please contact Mais Haddadin of the PRA at +44 (0)20 8487 0800. Or visit for more information and to download sample pages from the study.

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