Kerry Pianoforte, Editor08.09.17
The marine coatings market is comprised of a number of sub-segments such as general cargo and passenger ships, tankers, bulk carriers, and container ships and recreational craft operating in both ocean and freshwater environments. Marine coatings can be used for new construction, OEM, maintenance and repair. Applications include ballast tank linings that protect against corrosion in severe conditions and enhance vessel safety, as well as container tank linings that protect liquid cargo from contamination and pollution.
According to the ChemQuest Group’s latest market report, “Global Market Analysis for the Paint and Coatings Industry (2015-2020),” for 2015, marine coatings accounted for slightly less than 3 percent of total global coatings value and approximately 2 percent of total global volume.
Between 2010-2015 the marine coatings segment grew at an annual rate of 8.8 percent in value and 2 percent in volume, concluding with revenues of $3,836 million on sales of 808 million liters in 2015.
ChemQuest Group reported that growth of marine coatings is projected to accelerate over the next five years, resulting in a 2020 forecasted value of $4,514 million on a volume of 912 million liters.
“The ship repair and maintenance market has seen positive growth, which has been good news for the marine coatings sector,” said Andreas Glud, Group Segment manager, Marine, Dry Dock, Hempel A/S. “Industry initiatives such as the Ballast Water Management Convention, which will come into force on September 8, 2017, mean that more ships are going into dry dock.
“However, with the continued overcapacity in shipping and the low order book, the newbuilding market has been struggling,” he added. “This has resulted in a slowdown in coating activity in the Asian yards as ship owners have been scaling back shipbuilding plans and ordering fewer vessels.”
Consolidation/Continuing Shift to Asia Pacific
Consolidation within the marine coatings arena has resulted in more than 85 percent of the market being supplied by six companies, including world leaders AkzoNobel, Chugoku Marine Paints, Hempel, Jotun, Kansai and PPG. In addition to these six, Sherwin-Williams, Nippon Paint, and RPM (Carboline) are important marine market suppliers.
ChemQuest Group market analysis identified a marine coatings shift which continues to occur as the majority of the market has migrated from North America and Europe to Asia Pacific (APAC) – the latter region consuming nearly 75 percent of all global marine coatings. Europe continues to decline in marine coatings consumption, but sales are on the rise in MEA and Latin America due to increased offshore oil exploration, recovery and processing. Being a much smaller market than Europe, North America has shown growth of late. ChemQuest reports that these regional trends are forecasted to continue, with APAC dominating the market.
“Major shipping countries in Europe (Greece, Germany, the Nordic countries – the maritime hubs) and Asia (China, Singapore) are where there is the highest demand for marine coatings,” noted Glud. “Application of marine coatings is still predominantly occurring in Asia in the major ship yards and looks set to continue to be so.”
Environmental Regulations
Environmental regulations continue to have a huge impact on the marine coatings market, with manufacturers keeping a careful watch to on emerging markets like China and Korea.“The effect of the Biocidal Products Regulations (BPR) has massively impacted the marine coatings market as it set limitations on the type and number of biocides you are able to use. This means that all coating suppliers, including Hempel, have developed new products that are compliant with these new regulations,” said Glud. “At Hempel, we constantly stay abreast of all legislation trends and we are prepared if, and/or when, emerging markets like China and Korea consider implementing the same measures. In general, the marine industry is constantly under increasing pressure to be more and more efficient and compliant with evolving environmental regulations. Hempel invests heavily in R&D to develop products that have a better environmental performance.”
Price Increases
In February of this year Hempel made the decision to increase the prices of certain products as a result of the raw material cost increases of 2016 and 2017. “Raw materials used in coatings, such as copper, zinc and titanium dioxide, have increased significantly in cost over the past two years,” noted Glud. “Raw materials constitute a major part of the cost of manufacturing coatings for the protective, marine and decorative industries, and while we will always try to mitigate these cost increases, there is a limit to what could be absorbed.”
Reducing Fuel Consumption
The shipping industry is becoming more and more cost and performance focused. “This has led to suppliers needing to deliver solutions that impact the bottom line for their customers, either by a low upfront investment or reducing their fuel consumption,” noted Glud. “The most significant trend in the shipping industry is to minimize speed loss during operation as this leads to reduced fuel consumption and improved operational efficiency. The global shipping industry has become fiercely competitive over recent years and ship owners and operators and constantly seeking new sustainable efficient solutions to their operations.”
According to Glud, Hempel’s market leading and proprietary Actiguard technology, which was first incorporated in its award-winning hull coating Hempaguard, combines the best of both worlds by integrating silicone-hydrogel and full diffusion control of biocides in a single coating.
“This means that Hempaguard provides ship owners and operators with a maximum 1.4 percent speed loss over five years, an outstanding resistance to fouling during idle periods of up to 120 days, and releases 95 percent less biocide,” Glud said. “Significantly, Hempaguard retains its effectiveness at all passage speeds which offers ship owners and operators unrivalled flexibility in their fleet utilization.”
AkzoNobel launched its ‘Digital Vision’ at Nor-shipping, which brings together digital technologies that will increase efficiencies, economies of scale, and enhance transparency and accountability. This allows users to make smarter, more ecologically friendly decisions, according to the company.
“We recently launched four digital tools which are part of this exciting journey: Intertrac OBM, Intertrac Vision Lite, Intertrac Perform, and the International Marine Coatings app,” said Oscar Wezenbeek, managing director AkzoNobel’s Marine Coatings business.
The priority for Intertrac OBM is to give users actionable tips and hints that will help out ship owners in the here and now. “Imagine if, when you are out shopping, someone had analyzed where you usually went, what you bought, and benchmarked it to what others were doing,” said Wezenbeek. “That’s exactly what Intertrac OBM does for sea stores coatings.”
Intertrac OBM is an online tool that records, visualizes and analyzes OBM coating purchasing patterns by vessel and fleet. It uses the AIS data, taking advantage of the increasing satellite coverage, to record the port where paint is being delivered to the vessel. “If you’re frequently buying at a port where you’re not getting the best rates, it’ll show you where you could buy cheaper,” explained Wezenbeek. “And it can also show you how you could eliminate small-quantity ordering, and save by buying in larger batches. Overall, the efficiencies generated could save OBM coatings costs by up to 20 percent.
In 2015 AkzoNobel’s Marine Coatings business launched the first digital tool for the shipping industry that can accurately predict the potential fuel and CO2 savings offered by fouling control coatings. With more than 3.5 billion data points, Intertrac Vision is the first “Big Data” solution to accurately predict the performance of a coatings technology – before it has been applied, Wezenbeek explained.
“We have now launched Intertrac Vision Lite, a new iPad App which offers a lite version of Intertrac Vision,” Wezenbeek added. “Intertrac Vision Lite enables ship owners and operators to explore the role of big data in supporting hull performance predictions and purchasing decisions. Intertrac Vision Lite has been developed to showcase key features of the full Intertrac Vision tool. Users can input data covering a sample selection of vessel types, fouling routes and generic hull coating choices to create different coatings scenarios, and then compare variations in the effect on power requirements, fuel costs, and CO2 emissions. It also includes tips and commentary to explain the methodology that underpins Intertrac Vision, which includes the full range of parameters, and can be used to make comprehensive economic and environmental decisions.”
Intertrac Perform offers continuous monitoring of the true performance of a vessel. Co-developed with the University College of London (UCL) this software is currently being trialled.
It measures and monitors hull performance data and can validate it against predictions made by Intertrac Vision. By analyzing power and speed profiles in accordance with the ISO 19030 standard, users will be able to identify whether coatings are performing as they should, and whether extra maintenance or service may be necessary. The Intertrac family of tools allows for seamless access to our wealth of marine coatings knowledge.
The International Marine coatings app provides customers with increased convenience and flexibility in accessing the company’s wealth of coatings data. It has been specially designed to provide access to application guides, technical datasheets, product brochures, information cards and regional contacts.
In addition to technical datasheets, application guidelines and material safety datasheets (MSDS), the app also contains a full version of the most up-to-date cargo resistance guide.
“This information is essential for chemical tanker operators who need to know which coatings are suitable for specific products,” said Wezenbeek. “The glossary of terms will be invaluable in helping users keep track of the assortment of acronyms and technical terms used in the world of marine coatings, particularly those new to the industry.”
Improving safety is a key issue when dealing with the marine coatings market. AkzoNobel, oil and gas tanker operator Barrier Group and DroneOps joined forces to develop a drone capable of remotely inspecting enclosed spaces and ballast water tanks. The project will use advanced virtual reality technology to deliver safer, more accurate evaluations of ballast water tanks, offshore wind farms and other enclosed or difficult to access spaces on ships and marine structures, including inspections of coatings and corrosion.
AkzoNobel has also launched a new multi-purpose one pack primer. Interstores Alkyd Primer is the latest addition to the Interstores range and is compatible with most AkzoNobel topcoat options. Specifically created with the needs of crew in mind, it is specially formulated for brush and roller application and is suitable for all substrates above the waterline.
“With the addition of Interstores Alkyd Primer, the Interstores range is now fully equipped to meet the full spectrum of on board maintenance requirements,” said Wezenbeek. “Combined with carefully selected global port availability, we can effectively support ship operators to pick up the products in the most cost-effective locations with minimal lead time.”
“AkzoNobel has the history of being a pioneer of sustainability and innovation for coatings in the marine industry,” said Wezenbeek. “For decades, our team of chemical engineers, material scientists, biologists, hydrodynamic experts, physicists and – nowadays – digital innovation specialists have been working on projects like biomimicry, drone technology, robotics, intelligent sensors and big data applications.
“Sustainability is key driver to develop these exciting technologies. This is the only way forward in shipping. With that belief as our compass, we have developed a number of initiatives to limit environmental impact across the entire industry and to drive efficiencies for our customers, enabling them to do more with less.”
According to Wezenbeek, AkzoNobel is committed to undertake tangible actions towards lowering carbon emissions of the world’s shipping fleets, reducing emissions of biocides, and removing plastic from the world’s oceans as a part of its landmark initiative called sustainable shipping.
“We work closely with other key industry players like our recent agreement with Maersk, in which we are creating transparency on sustainable best practices in the supply chain and reducing carbon emissions,” Wezenbeek said.
• In 2015, the global marine coatings segment size was $3,836 million in value and 808 million liters in volume.
• The global market experienced 2.4 growth in value and 0.4 volume growth over the last five years.
• Average pricing has increased slightly during the past five years.
• Growth is expected to accelerate in both value and volume as the new build market continues to recover.
• Value for 2018 is forecasted to be $4,514 million on 912 million liters.
• Industry supplier consolidation has reached a very high level whereby 85 of the market is supplied by six companies.
• Consumption is directly tied to end-use new builds and maintenance and repair markets.
• Shipbuilding production growth is projected to increase during the forecasted period compared to the past five years.
• Pleasure craft production is rebounding but remains below prerecession levels.
• Compared to previous cycles, the maintenance and repair for drydocking and sea stocks for vessels will grow to support a larger fleet.
• Regulatory requirements have driven significant changes in marine coating formulation technologies, most notably in relation to antifouling coatings.
• Despite some regulatory pressure, copper-based materials will remain the workhorse technology for antifouling coatings.
• Price is a major purchase driver in the marine market, particularly for new builds. Product performance is also a key determinant.
* Source: The ChemQuest Group, Inc. estimates
According to the ChemQuest Group’s latest market report, “Global Market Analysis for the Paint and Coatings Industry (2015-2020),” for 2015, marine coatings accounted for slightly less than 3 percent of total global coatings value and approximately 2 percent of total global volume.
Between 2010-2015 the marine coatings segment grew at an annual rate of 8.8 percent in value and 2 percent in volume, concluding with revenues of $3,836 million on sales of 808 million liters in 2015.
ChemQuest Group reported that growth of marine coatings is projected to accelerate over the next five years, resulting in a 2020 forecasted value of $4,514 million on a volume of 912 million liters.
“The ship repair and maintenance market has seen positive growth, which has been good news for the marine coatings sector,” said Andreas Glud, Group Segment manager, Marine, Dry Dock, Hempel A/S. “Industry initiatives such as the Ballast Water Management Convention, which will come into force on September 8, 2017, mean that more ships are going into dry dock.
“However, with the continued overcapacity in shipping and the low order book, the newbuilding market has been struggling,” he added. “This has resulted in a slowdown in coating activity in the Asian yards as ship owners have been scaling back shipbuilding plans and ordering fewer vessels.”
Consolidation/Continuing Shift to Asia Pacific
Consolidation within the marine coatings arena has resulted in more than 85 percent of the market being supplied by six companies, including world leaders AkzoNobel, Chugoku Marine Paints, Hempel, Jotun, Kansai and PPG. In addition to these six, Sherwin-Williams, Nippon Paint, and RPM (Carboline) are important marine market suppliers.
ChemQuest Group market analysis identified a marine coatings shift which continues to occur as the majority of the market has migrated from North America and Europe to Asia Pacific (APAC) – the latter region consuming nearly 75 percent of all global marine coatings. Europe continues to decline in marine coatings consumption, but sales are on the rise in MEA and Latin America due to increased offshore oil exploration, recovery and processing. Being a much smaller market than Europe, North America has shown growth of late. ChemQuest reports that these regional trends are forecasted to continue, with APAC dominating the market.
“Major shipping countries in Europe (Greece, Germany, the Nordic countries – the maritime hubs) and Asia (China, Singapore) are where there is the highest demand for marine coatings,” noted Glud. “Application of marine coatings is still predominantly occurring in Asia in the major ship yards and looks set to continue to be so.”
Environmental Regulations
Environmental regulations continue to have a huge impact on the marine coatings market, with manufacturers keeping a careful watch to on emerging markets like China and Korea.“The effect of the Biocidal Products Regulations (BPR) has massively impacted the marine coatings market as it set limitations on the type and number of biocides you are able to use. This means that all coating suppliers, including Hempel, have developed new products that are compliant with these new regulations,” said Glud. “At Hempel, we constantly stay abreast of all legislation trends and we are prepared if, and/or when, emerging markets like China and Korea consider implementing the same measures. In general, the marine industry is constantly under increasing pressure to be more and more efficient and compliant with evolving environmental regulations. Hempel invests heavily in R&D to develop products that have a better environmental performance.”
Price Increases
In February of this year Hempel made the decision to increase the prices of certain products as a result of the raw material cost increases of 2016 and 2017. “Raw materials used in coatings, such as copper, zinc and titanium dioxide, have increased significantly in cost over the past two years,” noted Glud. “Raw materials constitute a major part of the cost of manufacturing coatings for the protective, marine and decorative industries, and while we will always try to mitigate these cost increases, there is a limit to what could be absorbed.”
Reducing Fuel Consumption
The shipping industry is becoming more and more cost and performance focused. “This has led to suppliers needing to deliver solutions that impact the bottom line for their customers, either by a low upfront investment or reducing their fuel consumption,” noted Glud. “The most significant trend in the shipping industry is to minimize speed loss during operation as this leads to reduced fuel consumption and improved operational efficiency. The global shipping industry has become fiercely competitive over recent years and ship owners and operators and constantly seeking new sustainable efficient solutions to their operations.”
According to Glud, Hempel’s market leading and proprietary Actiguard technology, which was first incorporated in its award-winning hull coating Hempaguard, combines the best of both worlds by integrating silicone-hydrogel and full diffusion control of biocides in a single coating.
“This means that Hempaguard provides ship owners and operators with a maximum 1.4 percent speed loss over five years, an outstanding resistance to fouling during idle periods of up to 120 days, and releases 95 percent less biocide,” Glud said. “Significantly, Hempaguard retains its effectiveness at all passage speeds which offers ship owners and operators unrivalled flexibility in their fleet utilization.”
AkzoNobel launched its ‘Digital Vision’ at Nor-shipping, which brings together digital technologies that will increase efficiencies, economies of scale, and enhance transparency and accountability. This allows users to make smarter, more ecologically friendly decisions, according to the company.
“We recently launched four digital tools which are part of this exciting journey: Intertrac OBM, Intertrac Vision Lite, Intertrac Perform, and the International Marine Coatings app,” said Oscar Wezenbeek, managing director AkzoNobel’s Marine Coatings business.
The priority for Intertrac OBM is to give users actionable tips and hints that will help out ship owners in the here and now. “Imagine if, when you are out shopping, someone had analyzed where you usually went, what you bought, and benchmarked it to what others were doing,” said Wezenbeek. “That’s exactly what Intertrac OBM does for sea stores coatings.”
Intertrac OBM is an online tool that records, visualizes and analyzes OBM coating purchasing patterns by vessel and fleet. It uses the AIS data, taking advantage of the increasing satellite coverage, to record the port where paint is being delivered to the vessel. “If you’re frequently buying at a port where you’re not getting the best rates, it’ll show you where you could buy cheaper,” explained Wezenbeek. “And it can also show you how you could eliminate small-quantity ordering, and save by buying in larger batches. Overall, the efficiencies generated could save OBM coatings costs by up to 20 percent.
In 2015 AkzoNobel’s Marine Coatings business launched the first digital tool for the shipping industry that can accurately predict the potential fuel and CO2 savings offered by fouling control coatings. With more than 3.5 billion data points, Intertrac Vision is the first “Big Data” solution to accurately predict the performance of a coatings technology – before it has been applied, Wezenbeek explained.
“We have now launched Intertrac Vision Lite, a new iPad App which offers a lite version of Intertrac Vision,” Wezenbeek added. “Intertrac Vision Lite enables ship owners and operators to explore the role of big data in supporting hull performance predictions and purchasing decisions. Intertrac Vision Lite has been developed to showcase key features of the full Intertrac Vision tool. Users can input data covering a sample selection of vessel types, fouling routes and generic hull coating choices to create different coatings scenarios, and then compare variations in the effect on power requirements, fuel costs, and CO2 emissions. It also includes tips and commentary to explain the methodology that underpins Intertrac Vision, which includes the full range of parameters, and can be used to make comprehensive economic and environmental decisions.”
Intertrac Perform offers continuous monitoring of the true performance of a vessel. Co-developed with the University College of London (UCL) this software is currently being trialled.
It measures and monitors hull performance data and can validate it against predictions made by Intertrac Vision. By analyzing power and speed profiles in accordance with the ISO 19030 standard, users will be able to identify whether coatings are performing as they should, and whether extra maintenance or service may be necessary. The Intertrac family of tools allows for seamless access to our wealth of marine coatings knowledge.
The International Marine coatings app provides customers with increased convenience and flexibility in accessing the company’s wealth of coatings data. It has been specially designed to provide access to application guides, technical datasheets, product brochures, information cards and regional contacts.
In addition to technical datasheets, application guidelines and material safety datasheets (MSDS), the app also contains a full version of the most up-to-date cargo resistance guide.
“This information is essential for chemical tanker operators who need to know which coatings are suitable for specific products,” said Wezenbeek. “The glossary of terms will be invaluable in helping users keep track of the assortment of acronyms and technical terms used in the world of marine coatings, particularly those new to the industry.”
Improving safety is a key issue when dealing with the marine coatings market. AkzoNobel, oil and gas tanker operator Barrier Group and DroneOps joined forces to develop a drone capable of remotely inspecting enclosed spaces and ballast water tanks. The project will use advanced virtual reality technology to deliver safer, more accurate evaluations of ballast water tanks, offshore wind farms and other enclosed or difficult to access spaces on ships and marine structures, including inspections of coatings and corrosion.
AkzoNobel has also launched a new multi-purpose one pack primer. Interstores Alkyd Primer is the latest addition to the Interstores range and is compatible with most AkzoNobel topcoat options. Specifically created with the needs of crew in mind, it is specially formulated for brush and roller application and is suitable for all substrates above the waterline.
“With the addition of Interstores Alkyd Primer, the Interstores range is now fully equipped to meet the full spectrum of on board maintenance requirements,” said Wezenbeek. “Combined with carefully selected global port availability, we can effectively support ship operators to pick up the products in the most cost-effective locations with minimal lead time.”
“AkzoNobel has the history of being a pioneer of sustainability and innovation for coatings in the marine industry,” said Wezenbeek. “For decades, our team of chemical engineers, material scientists, biologists, hydrodynamic experts, physicists and – nowadays – digital innovation specialists have been working on projects like biomimicry, drone technology, robotics, intelligent sensors and big data applications.
“Sustainability is key driver to develop these exciting technologies. This is the only way forward in shipping. With that belief as our compass, we have developed a number of initiatives to limit environmental impact across the entire industry and to drive efficiencies for our customers, enabling them to do more with less.”
According to Wezenbeek, AkzoNobel is committed to undertake tangible actions towards lowering carbon emissions of the world’s shipping fleets, reducing emissions of biocides, and removing plastic from the world’s oceans as a part of its landmark initiative called sustainable shipping.
“We work closely with other key industry players like our recent agreement with Maersk, in which we are creating transparency on sustainable best practices in the supply chain and reducing carbon emissions,” Wezenbeek said.
• In 2015, the global marine coatings segment size was $3,836 million in value and 808 million liters in volume.
• The global market experienced 2.4 growth in value and 0.4 volume growth over the last five years.
• Average pricing has increased slightly during the past five years.
• Growth is expected to accelerate in both value and volume as the new build market continues to recover.
• Value for 2018 is forecasted to be $4,514 million on 912 million liters.
• Industry supplier consolidation has reached a very high level whereby 85 of the market is supplied by six companies.
• Consumption is directly tied to end-use new builds and maintenance and repair markets.
• Shipbuilding production growth is projected to increase during the forecasted period compared to the past five years.
• Pleasure craft production is rebounding but remains below prerecession levels.
• Compared to previous cycles, the maintenance and repair for drydocking and sea stocks for vessels will grow to support a larger fleet.
• Regulatory requirements have driven significant changes in marine coating formulation technologies, most notably in relation to antifouling coatings.
• Despite some regulatory pressure, copper-based materials will remain the workhorse technology for antifouling coatings.
• Price is a major purchase driver in the marine market, particularly for new builds. Product performance is also a key determinant.
* Source: The ChemQuest Group, Inc. estimates
