REPORT DESCRIPTION

Market Size and Overview:

The Biocide-free coatings market was worth USD 10.85billion in 2023 and is estimated to reach USD 19.33 billion by 2030. The market is anticipated to expand at a CAGR of 8.6% over the forecast period. The need for smoother hulls and underwater surfaces on cargo boats is the main factor propelling the market.

Biocide-free coatings, employed for safeguarding metals and alloys against degradation induced by diverse corrosive agents such as moisture, chemicals, salt, and others, offer numerous advantages to the vessels they adorn. These advantages encompass enhanced aesthetics, heightened weather resilience, fortified resistance to chemical solvents like water and oils, and increased durability during transit. The burgeoning market demand for marine anti-fouling coatings is propelled by the burgeoning ship repair and maintenance activities, escalating requisites from the oil and gas sector, and the burgeoning production of recreational boats, commercial vessels, and cruise ships. These coatings, unique in their composition, are meticulously applied to the hulls of ships to impede the proliferation of aquatic organisms and augment the efficacy and robustness of the vessel. The escalating demand for conventional offshore drilling rigs, commercial vessels, passenger ships, yachts, cargo vessels, and Floating Production Storage and Offloading (FPSO) units is poised to further galvanize market expansion. The salience of this product is anticipated to witness a substantial upsurge with the growing preference for condition-based monitoring vis-à-vis breakdown maintenance within the shipping domain. Moreover, its remarkable attributes, such as resistance to fouling, corrosion, and external contaminants, are forecasted to instigate further proliferation.

The adoption of more integrated compact systems in deepwater offshore reserves under harsh weather conditions is anticipated to drive the demand for FPSO vessels in the upstream oil and gas industry, thereby propelling market expansion. Additionally, the escalating production of alternative fuels like shale gas and tight oil in the United States is poised to amplify the utilization of FPSOs, consequently fostering the growth of the biocide-free coating market. Manufacturers and distributors of anti-fouling solutions are now mandated to market their products through online platforms owing to the surge in e-commerce avenues. Consequently, entities such as Alibaba and Made-In-China are envisaged to play pivotal roles in facilitating consumer access to biocide-free coating products. The heightened demand from emerging economies like Vietnam, the Philippines, India, South Korea, Saudi Arabia, and Mexico, among others, is projected to fuel the market for biocide-free coatings. The demand for these products from such nations is anticipated to surge in tandem with the escalation in shipbuilding activities.

IMPACT OF COVID-19 ON THE BIOCIDE-FREE COATINGS MARKET

The outbreak of COVID-19 has substantially disrupted operations across various sectors, including oil and gas, automotive, and aerospace, precipitating widespread ramifications. Consequently, a multitude of nations has enforced "stay-at-home directives" or stringent lockdown measures. Furthermore, the protracted repercussions of the COVID-19 pandemic are anticipated to impede market expansion for biocide-free coatings. The rapid spread of the coronavirus has significantly impacted global markets, with several key economies worldwide currently grappling with comprehensive lockdowns as a consequence of the pandemic. In light of this severe lockdown, consumer interest in procuring biocide-free coatings has precipitously dwindled. The closure of numerous businesses constitutes a primary challenge confronting the industry, resulting in subdued market growth for biocide-free coatings owing to the pervasive effects of the global crisis, which have reverberated across various sectors, including the coatings industry.

MARKET DRIVERS:

Stringent Environmental Regulations to Augment the Biocide-free Coating Market:

The escalating environmental consciousness and the imposition of stringent environmental regulations by both established and emerging economies are driving the demand for green coating solutions. However, these regulations are concurrently augmenting the value proposition associated with higher performance levels. Governments worldwide are increasingly prioritizing environmentally sustainable practices to mitigate the adverse impact of chemicals on the environment, human health, and marine biodiversity. For instance, the state of Washington in the United States prohibited the use of copper in hull coatings in 2018. Major companies operating in the global market are thus inclined towards offering coatings that conform to environmental regulations and industry standards.

Escalating Demand for Environmentally Safe and Sustainable Coatings:

While foul release coatings for ships were introduced in the early 1990s, they have only captured a marginal market share owing to their high cost and inferior efficacy compared to biocidal marine coatings. Biocide-free coatings have now gained prominence, facilitated by advancements in nanochemistry, enabling the production of eco-friendly coatings with enhanced foul release performance and antifouling properties. This, in turn, is anticipated to drive the demand for biocide-free coatings over the forecast period.

Expansion of the Oil and Gas Sector Driving Market Growth:

Companies are heavily investing in research and development to enhance the effectiveness of antifouling coatings, thereby bolstering end-user demand. Technological advancements on a global scale are poised to be a key factor contributing to the expansion of the global antifouling coatings market. The burgeoning population, urbanization, and escalating demand for oil and gas are also propelling market growth, with these coatings being extensively utilized to safeguard rig machinery and structural components.

MARKET RESTRAINTS:

Unstable Economic Conditions and Fluctuating Raw Material Prices:

The prevailing unstable economic conditions are primarily attributed to escalating trade tensions between the world's two largest economies, the United States and China, alongside geopolitical unrest and macroeconomic performance uncertainties. Furthermore, the ongoing COVID-19 pandemic is exerting a detrimental impact on livelihoods, businesses, and industries globally. The rapid proliferation of the pandemic has significantly disrupted international shipping markets, owing to lockdown measures and diminished demand for goods from both developed and developing nations. Additionally, the fluctuation in crude oil prices, stemming from geopolitical tensions, poses a challenge to market expansion throughout the forecast period, given that most coatings are derived from crude oil-based constituents.

Stringent Regulations to Mitigate Carbon Footprint and VOC Emissions:

Various regulatory agencies, including the California Air Resources Board and the US Environmental Protection Agency, have instituted regulations and guidelines to mitigate the carbon footprint and volatile organic compound (VOC) emissions from coatings. For instance, the EPA's Control Technique Guidelines (CTGs) impose restrictions on VOC emissions from coatings across various industries, particularly in regions with elevated levels of lower atmospheric ozone. Moreover, the Ozone Transport Committee (OTC) in the eastern United States enforces environmental regulations for thirteen states to curb VOC emissions from coatings. The escalating environmental concerns underpinning more stringent regulations governing VOC emissions from coatings could potentially impede industry expansion.

BIOCIDE-FREE COATINGS MARKET – BY TYPE

• Copper-based
• Self-Polishing Copolymer
• Hybrid
• Others.

The segmentation of the biocide-free coating market by type includes copper-based, Self-Polishing Copolymer, Hybrid, and others. In 2021, self-polishing coatings (SPCs) dominated the global market, commanding a market share of more than 80%. The application of SPCs offers several benefits, including the ability to regulate polishing rates, achieve optimal biocide release, and utilize built-in self-smoothing properties to reduce hull roughness and enhance fuel efficiency. The demand for SPC anti-fouling release coatings is primarily driven by stringent environmental regulations in the US and Europe and concerns regarding volatile organic compounds (VOCs) in coatings. Consequently, this segment is expected to witness the fastest growth rate in the global biocide-free coatings market during the forecast period.

BIOCIDE-FREE COATINGS MARKET – BY APPLICATION

• Shipping Vessels
• Drilling Rigs & Production Platforms
• Fishing Boats
• Yachts & Other Boats
• Inland Waterways Transport
• Mooring Lines

The segmentation of the biocide-free coating market by application comprises Shipping Vessels, Drilling Rigs & Production Platforms, Fishing Boats, Yachts & Other Boats, Inland Waterways Transport, and Mooring Lines. The shipping vessels sector, which represented over 30% of the biocide-free coatings market in 2021, is projected to grow at a CAGR of 3.86% during the forecast period. These coatings can be utilized across all types and sizes of vessels to reduce hull resistance, typically requiring recoating every fifth year. For large vessels like bulkers and tankers, the potential for decreased frictional force is significant, leading to extended dry-docking intervals and reduced fuel consumption by keeping hulls free from fouling agents.

From 2023 to 2030, the drilling rigs and production platforms segment is anticipated to grow at a CAGR of 8.0% in terms of revenue. The increasing capital expenditure on Floating Production Storage and Offloading (FPSO) vessels by upstream oil and gas production companies is expected to drive the demand for biocide-free coatings in this segment.

BIOCIDE-FREE COATINGS MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• South America
• The Middle East and Africa

The regional segmentation of the biocide-free coatings market encompasses North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. In 2021, the APAC region led the market with over 85% of the overall market share. Countries like China, Japan, and South Korea are major ship manufacturers in the Asia-Pacific region, supported by significant shipyards in other regional countries. Shipbuilding typically takes a minimum of two years to complete, with bulk vessel orders being delivered to Asia-Pacific nations. Shipbuilding is a thriving industry in countries like South Korea, China, Japan, Taiwan, and the Philippines, driving demand for antifouling paints. Moreover, increased investment in natural gas and crude oil exploration and production in China, India, and Thailand is expected to boost demand for biocide-free coatings in drilling rigs and production platforms.

BIOCIDE-FREE COATINGS MARKET - BY COMPANIES

Leading players in the Biocide-free coatings market include:

BASF SE

Hempel A/S

PPG Industries

Kansai Paint Co., Ltd.

Jotun

Axalta Coating Systems

AkzoNobel N.V.

The Sherwin-Williams Company

RPM International Inc.

Nippon Paint Holdings Co., Ltd.,

Others

NOTABLE EVENTS IN THE BIOCIDE-FREE COATINGS MARKET

INVESTMENT- In January 2020, BASF announced an investment to enhance the production of water-based polyurethane dispersions at its Castellbisbal plant in Spain, increasing manufacturing capacity by 30%.

PRODUCT LAUNCH- In February 2019, Hempel introduced Atlantic+, a potent new antifouling coating designed to prevent hull fouling for up to 60 months while providing unmatched protection.

PRODUCT LAUNCH- In September 2019, Hempel A/S launched "Hempelguard Max," a novel coating technology with advanced anti-biofouling capabilities, aimed at reducing annual bunker costs by USD 500 million and CO2 emissions by over 10 million tonnes.

PRODUCT LAUNCH- Nippon Paint Marine introduced the first biocide-free, low friction self-polishing copolymer antifouling technique in 2018.