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.
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.
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.
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.
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.
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.
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.
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 Segments Covered
By Resin Type
Some frequently asked quetions about this report!
Additional company profiles can be provided on request.
Yes, the report covers types of rail coatings such as acrylic, epoxy, polyurethane, plastisols, polyester, fluoropolymers, and others.
According to this Growth Market Reports, the market from rail coatings is likely to register a CAGR of 3.3% during forecast period 2020-2027, with an anticipated valuation of USD 1,301.2 million by the end of the 2027.
In addition to market size (in USD Million) and company market share (in % for base year 2019), other data such pricing analysis, technological advancements, top ongoing railway network projects across world, and vehicles in operation worldwide.
The rail coatings market is anticipated to grow significantly during forecast period due to Infrastructure development across developing nations and rising preference for high-speed rail transportation.
Public transport rail and goods transport rails are expected to further fuel the market over the forecast period.
Factors such as competitive strength and market positioning are key areas considered while selecting top companies to be profiled.
The market is expected to witness a decline of -2.3% in 2020 as compared to 2019 owing to the negative impact of COVID-19 on the rail coatings market.
The base year considered for the global rail coatings market report is 2019. The complete analysis period is 2017 to 2027, wherein, 2017 & 2018 are the historic years and the forecast is provided from 2020 to 2027.
Major market players include Axalta Coating Systems, RPM International Inc., BASF SE, PPG Industries, Inc., and The Sherwin-Williams Company.
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