Rail Coatings Market Outlook
The global rail coatings market was valued at USD 1,059.5 Million in 2019 and is projected to reach USD 1,301.2 Million by 2027, expanding at a CAGR of 3.3% during the forecast period. Rail coatings are coatings used in different types of rail vehicles to prevent them from damage such as corrosion; caused by excessive exposure from salt-water, moisture, and stray currents.
Corrosion weakens the foot of the rails and has a severe impact on rail quality, creating an elevated risk of rail breakage. To overcome from this, rail coating are used as unprotected rails are a big hazard for operation of trains.
Rail Coatings Market Dynamics
The railway sector’s budget is on the rise and countries, especially developing ones, are investing more and more funds to connect remote areas and facilitate development. As a result, new railway lines are being constructed in such countries. For instance, the Government of India, prioritizing rail infrastructure development, has enabled 100% FDI in rails.
In 2019, it commenced the High-Speed Rail Corridor project between Nagpur and Mumbai (Two cities in India). Additionally, Government of India signed a Memorandum of Understanding with the Government of Japan to implement the Mumbai-Ahmedabad high speed rail corridor by 2022.
Rail coatings have volatile organic compounds in their composition. These compounds are chemicals vaporizing at room temperature, and they contribute heavily to ground-level air pollution. The EPA regulates them primarily because of their ability to produce “photochemical smog”. This smog is haze in the atmosphere complemented by high levels of nitrogen oxides and ozone, caused by sunlight acting on pollutants. Growing environmental concerns pertaining to these compounds in coatings act as a major restraining factor of the global rail coatings market.
Tank car linings with a longer service life that transport molasses, molten sulfur; and rubber linings used to transmit ferric chloride, hydrochloric acid (HCL), and phosphoric acid are an unmet need of the coatings industry. Rubber’s service life is reduced due to UV exposure, because of which rubber that lasts longer for exterior parts on tank cars that are used to carry HCL was also recognized as an unfulfilled need for resistance against spillage of HCL. Similarly, the need to replace high-bake phenolics has been persistent for several years. These technological requirements serve as opportunities for the market.
Segmental Outlook
By Resin Type
Based on resin types, the global rail coatings market is segmented into acrylic, epoxy, polyurethane, plastisols, polyester, fluoropolymers, and others. The acrylic segment held a considerable share of the market in 2019 and is anticipated to expand at a significant CAGR during the forecast period. The large share of the acrylic segment is attributed to its advantages over its alternatives.
For instance, acrylic resins provide weather resistance, color retention, superior gloss, and resistance to hydrolysis, which in turn, increase the demand for acrylic resins across the globe. Moreover, this resin possesses several properties such as UV resistance, transparency, and high color ability for coating solutions, which is expected to increase its adoption for rail coatings during the forecast period.
By Technology
On the basis of technology, the global rail coatings market is bifurcated into water-based and solvent-based. The water-based segment held a considerable share of the market in 2019 and is anticipated to expand at a considerable CAGR during the forecast period. The large share of the water-based segment is attributed to factors such as increasing preference for water-based coatings. For instance, a Germany railway company called The Deutsche Bahn AG has been using waterborne coating products to paint railway vehicles for more than 20 years.
By Application
In terms of applications, the global rail coatings market is segmented into freight rolling stock, passenger rolling stock, locomotive rolling stock, and rolling coat 'below the solebar'. The freight rolling stock segment held a considerable share of the market in 2019 and is anticipated to expand at a high CAGR during the forecast period. The large share of the freight rolling stock segment is attributed to factors such as low cost of transportation and rising investments by rail freight companies.
By Railway Type
Based on railway types, the global rail coatings market is segregated into public transport rail and goods transport rail. The public transport rail segment is sub-segmented into intercity rail, regional rail, high-speed railway, urban rail transit, and others. The goods transport rail segment is further divided into flat car, tank car, covered hopper, open-top hopper, gandola, boxcar, auto car, and others. The public transport rail segment held a considerable share of the market in 2019 and is anticipated to expand at a significant CAGR during the forecast period. The large share of the public transport rail segment is attributed to factors such as rising urban population, improving transportation infrastructure, and growing traffic problems. Moreover, advancements in high-speed railway (HSR) systems, in terms of operational speeds and route mileage, are expected to drive the segment.
By Energy Source
On the basis of energy sources, the global rail coatings market is fragmented into steam, diesel, electric, and others. The diesel segment held a considerable share of the market in 2019 and electric segment anticipated to expand at a high CAGR during the forecast period. The large share of the diesels segment is attributed to the ability of diesel rails accelerate quickly and operate at high speeds with minimal track damage and other economic advantages.
Regional Outlook
In terms of regions, the global rail coatings market is classified as North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific accounted for a significant market share in 2019 and is expected to expand at a high CAGR during the forecast period. For instance, according to a recently published news article by the World Paint & Coatings Industry Association (WPCIA), in 2019, Asia Pacific dominated the global paints and coatings industry with around 57% share. Thus, the demand for rail coatings is expected to increase across the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Rail Coatings Market.
- Historical, Current and Projected Market Size in terms of Value.
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Rail Coatings Market Performance
Segments
By Resin Type
- Acrylic
- Epoxy
- Polyurethane
- Plastisols
- Polyester
- Fluoropolymers
- Others
By Technology
- Water-Based
- Solvent-Based
By Application
- Freight Rolling Stock
- Passenger Rolling Stock
- Locomotive Rolling Stock
- Rolling Coat 'Below the Solebar'
By Railway Type
- Public Transport Rail
- Intercity Rail
- Interior
- Exterior
- Undercoating
- Regional Rail
- Interior
- Exterior
- Undercoating
- High-Speed Railway
- Interior
- Exterior
- Undercoating
- Urban Rail Transit
- Interior
- Exterior
- Undercoating
- Others
- Interior
- Exterior
- Undercoating
- Goods Transport Rail
- Flat Car
- Interior
- Exterior
- Undercoating
- Tank Car
- Interior
- Exterior
- Undercoating
- Covered Hopper
- Interior
- Exterior
- Undercoating
- Open-Top Hopper
- Interior
- Exterior
- Undercoating
- Gandola
- Interior
- Exterior
- Undercoating
- Boxcar
- Interior
- Exterior
- Undercoating
- Auto Car
- Interior
- Exterior
- Undercoating
- Others
- Interior
- Exterior
- Undercoating
By Energy Source
- Steam
- Diesel
- Electric
- Others
By Region
- North America
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Europe
- Germany
- France
- Italy
- U.K.
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- South East Asia (SEA)
- Rest of Asia Pacific (APAC)
- Middle East & Africa (MEA)
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East & Africa (MEA)
Key Players
- Axalta Coating Systems
- RPM International Inc.
- BASF SE
- PPG Industries, Inc.
- Jotun
- GLS Coatings Ltd.
- Zytexx
- Henkel Adhesives Technologies
- The Sherwin-Williams Company
- Voestalpine AG
- Fosroc
- Teknos US, Inc.
- AkzoNobel
- Lankwitzer
- Williamson T & R
- WEILBURGER Coatings GmbH
- Nippon Paint Company Limited
- Williams Hayward Protective Coatings Inc.
- Mäder Group SA
- Kansai Paint Co. Ltd
- Hempel
Competitive Landscape
- Axalta Coating Systems, RPM International Inc., BASF SE, PPG Industries, Inc., Jotun, GLS Coatings Ltd., Zytexx, Henkel Adhesives Technologies, The Sherwin-Williams, Voestalpine AG, Forsook, Teknos US, Inc., AkzoNobel, Lankwitzer, Williamson T & R, WEILBURGER Coatings GmbH, Nippon Paint Company Limited, Williams Hayward Protective, Williams Hayward Protective Coatings Inc, Mäder Group SA, Kansai Paint Co. Ltd, Hempel.
- These players are considered as key manufacturers of the market based on their different varieties of product availability, regional presence, better supply chain management system, and the increasing demand for the products.
- The players are adopting key strategies such as product development, geographical expansion, mergers and acquisition and many other strategies to increase their demand for rail coatings.
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