ID: MRFR/CnM/5942-CR | February 2019 | Region: Global | 117 pages
Global Road Marking Materials Market is estimated to touch a valuation of USD 5.46 Billion by 2023, as per the latest report by MRFR, and expanding at 5.77% CAGR over the forecast period (2018-2023). Increased spending on road infrastructure is the primary driver of the market.
MRFR projects that the pandemic would have a substantial effect on different factors in the supply chain of road marking products that are supposed to be expressed over time. The implementation of COVID-19 lockdowns across the globe has led to many delays in numerous building projects worldwide. Factors such as delays, lack of productivity, and cost consequences due to the pandemic are also projected in many parts of the world to discourage construction activities. In the building sector, however, relief steps are given for the middle market and major companies. Because of the effects of COVID-19, reverse migration and supply chain instability are some of the many implications that the building industry is likely to face, among others. The heavy & civil engineering construction business has resumed its operations amid all these reasons.
Growing global construction boom to drive market growth
Increased investment on the construction of roads is projected to benefit the sector. Investment in the construction of road networks that will bring economic and social benefits to communities. The benefits of fostering goodwill among communities through the construction of roads and the promotion of trade are likely to provide opportunities for the demand for road marking materials. Other factors that can stimulate demand growth are developments in road marking systems and the availability of laying facilities. In order to minimise the death risk of people caused by dangerous roads, the governments of different countries have taken measures to improve road conditions and provide adequate signs on the roads. The growth in GDP and its increasing use in commercial and industrial establishments, along with growing stress on the construction activity, has led to an increase in demand for road marking materials.
Globally, several government authorities are expected to increase spending on road restoration, repair, and renovation, thus driving the demand for road marking materials. In addition, growing investment on new roads and road projects across developing markets are some of the other factors that are projected to fuel target demand growth over the forecast period. In addition, technical advancements, such as smart road marking technologies, as well as accelerated industrialization, and the demand for road marking materials has been motivated by the growth of manufacturing capability. Positive socio-economic and demographic trends such as urbanisation, increasing population, disposable incomes, and raising living standards have been positive for the growth of the global demand for road marking materials..
Growing investment in R&D activities to Create Growth Avenues for Market Players
The increased prominence of road markings in the Lane Departure Warning System (LDWS) would open up positive opportunities for development. Many technology, such as active wire guidance, laser, magnetic sensors, and image recognition devices, are used as the basis for LDWS. For road marking products, automated mobility provides a possibility in the future. For commuters driving cars, well designed and well-maintained road markings provide direction. The untapped potential of emerging markets offers attractive prospects for expansion.
Stringent Regulations to Impede Market Growth
There are some constraints and obstacles facing the overall development of the industry that will impede it. A main factor expected to delay development during the projected era is the fluctuating cost of raw materials such as pigments, resins, and additives that are derived from crude oil. In addition, the key factor inhibiting demand growth is the cautious policy of road contractors. Related to different political concerns, strict regulatory policies on solvent-based road markers, dysfunctional oil and gas markets around the world are the possible constraints that hamper the overall development of the global demand for road marking materials.
In 2017, the thermoplastic paint markings segment had a 32.3 percent market share. By 2023, the segment could rise to a value of USD 1,806.9 million. The exponential development can be due to the eco-friendly nature of thermoplastic paint markings and exceptional longevity.
Due to the use of markers to display signage and warning lines to avoid crashes and injuries, highways & streets accounted for a 55.3 percent share in 2017. The variables that can be attributed to supplying road users with knowledge and directing traffic. These markers act as a psychological deterrent and reflect the delineation of the direction of traffic. The segment is expected to demonstrate 6.09 percent CAGR over the projected period to hit a value of USD 3,085.8 million by 2023.
Asia Pacific to grow at CAGRR's peak
During the forecast era, Asia Pacific is expected to be the fastest-growing market for road marking materials. During the forecast era, factors such as growing demand for safer roads and increasing investment in the civil construction sector would promote the use of road marking materials in the Asia Pacific region. In addition, increasing awareness about safety coupled with urbanisation across India and China is another factor slated to drive growth of the target market in this region over the forecast period. During the review period, these factors are expected to increase the demand for road marking materials in the Asia Pacific region.
Expansion Strategies to be the Primary Focus of Market Players
Players already have an impressive product portfolio and can gain clients through their services. Enhancing their production capacity can help these players sustain their position in the market.
December 2020: Geveko Markings, one of the major market players of road marking materials, acquired French manufacturer Oré, which is a rising road marking paint and safety manufacturers. The acquisition marks a significant milestone in Geveko’s efforts to grow the liquid markings segment and to offer their customers a complete portfolio of road marking solutions.
January 2021: THI Investments, a long-term pan-European private equity firm, obtained a majority stake from Hull-based WJ Group, a provider of road markers and specialty highway goods and services. With organic growth led by developments in innovative technologies and vehicles, including historical strategic acquisitions, this new arrangement will allow the group to continue delivering high-quality services and to make more investments in innovation, technology and growth in the UK and European markets.
Frequently Asked Questions (FAQ) :
The global road marking materials market valuation can reach USD 5,466.5 million by 2023.
The global road marking materials market stood at USD 3,925.9 million in 2017.
The global road marking materials market can expand at 5.77% CAGR from 2018 to 2023.
The APAC region can command a massive demand share in the global road marking materials market due to various road development projects in the region.
Ennis Flint Inc., Nippon Paint Holdings Co. Ltd., Geveko Markings, Asian Paints Ltd., LANINO, TATU Traffic Group, Zhejiang Brother Guidepost Paint Co. Ltd., PPG Industries Inc., Reda National Co., Hempel, SealMaster, Sherwin-Williams, Helios Group, 3M, and Swarco AG are major players of the global road marking materials market.
Global Road Marking Materials Market - Summary
Globalization has opened up borders of countries which has in turn paved way for increased trade. Roadways were the primary medium of transportation and travelling. Road marking materials are aids used in assisting drivers of vehicles in navigating through congested traffic. In addition, reflective additives added to the mix helps drivers traverse through traffic lanes at night.
The road marking materials market is projected to reach a value of USD 5,466.5 million by 2023, growing at 5.77% CAGR over the forecast period (2018-2023). Increased budget by nations to improve roadways and highways is likely to boost market demand considerably till 2023. According to the World Economic Forum, countries in Asia Pacific had increased their budget to improve roads. The charge was led by China which continuously improved its roads to ensure better connectivity in the country. It is further exemplified by its One Belt, One Road (OBOR) initiative which would connect neighboring countries and promote unity and trust. Singapore, on the other hand, had invested close to USD 20 billion in 2018 for road improvement purposes.
New roadway projects can considerably up the road marking materials market growth till the end of the forecast period. In December 2018, the government in Australia decided to overcome problems on nearly 200 roads and bridges in Melbourne. Improvements will include resurfacing worn sections of roads, fence repairs, filling of potholes, and deployment of new guardrails and signs.
Technological upgrades in road marking systems and installation of safety devices can offer growth opportunities for players. Some of the machines which can disrupt the market are raised pavement markers, line remover machines, drying machines, road marking trucks, and self-propelled machines. For instance, pavement markers by 3M were visible at night and tough climatic conditions. Other players are offering road marling materials installation and availability of new equipment can provide the road marking materials market its much-needed impetus.
Types of materials in the road marking materials market include thermoplastic marking paint, solvent based marking paint, waterbased marking paint, two-component (cold plastic) road marking paint, and others. Thermoplastic marking paints had dominated the market in 2017, with solvent based marking paints assuming the second position. The former offers heat stability and emits less fumes compared to solvent paints. Solvent paints, on the other hand, are desired in cold climes owing to its ability to dry rapidly and avoid freezing. But waterbased paints are touted to grow at a rapid pace owing to their eco-friendly nature.
By application, the market is segmented into roads & streets, parking lot, airport, and others. Parking lots can gain shares in the road marking materials market owing to the need for these aids to prevent encroachment. Roads and streets can command high market demand owing to its application on highways, backroads, city streets, and alleys of private colonies.
Geographic segmentation of the road marking materials market is focused on the following regions – South America, North America, Europe, Asia Pacific (APAC), and the Middle East & Africa (MEA).
The APAC region is projected to exhibit a robust CAGR during the forecast period owing to initiatives by countries such as China, India, and Singapore in constructing efficient highways. Road infrastructure development projects coupled with increased budget of nations to further develop cities is likely to bode well for the market. Emphasis on safety and rollout of policies to minimize accidents and traffic violations can drive the road marketing materials market demand.
North America and Europe can contribute significantly to market revenue owing to adoption of intelligent marking systems to expedite road construction. The booming construction sector is expected to facilitate growth in these regions.
Prominent road marking material manufacturers include Asian Paints Ltd. (India), LANINO (South Africa), 3M (U.S.), Ennis Flint Inc. (U.S.), Swarco AG (Austria), Sherwin-Williams (U.S.), Geveko Markings (Sweden), Reda National Co. (Saudi Arabia), Hempel (The Netherlands), Nippon Paint Holdings Co. Ltd. (Japan), PPG Industries Inc. (U.S.), SealMaster (U.S.), Helios Group (Slovenia), TATU Traffic Group (China), and Zhejiang Brother Guidepost Paint Co. Ltd. (China).
Global Road Marking Material Market: Competitive Landscape
The prominent players in the global road marking material market are 3M, Sherwin-Williams, Swarco AG, Nippon Paint Holdings Co. Ltd, Ennis Flint Inc , Hempel , Geveko Markings , PPG Industries Inc , Asian Paints Ltd , SealMaster , LANINO, Reda National Co., TATU Traffic Group, Zhejiang Brother Guidepost Paint Co Ltd, and Helios Group.
3M, Sherwin-Williams, Ennis Flint Inc, Swarco AG, and TATU Traffic Group collectively hold the majority share of the global road marking material market. Some of the key strategies adopted by the market players includes agreements and collaborations, product development, mergers & acquisitions, and expansion.
3M is a technology-driven company that manufactures industrial, safety, and consumer products. It serves various end-use industries, such as automotive, construction, food & beverages, electronics & telecommunication, energy, healthcare, mining, oil & gas, safety, and transportation. It operates through the following segments: industrial; safety & graphics, healthcare; electronics and energy; consumer. The company manufactures road marking materials under its safety & graphics segment.
Sherwin-Williams is among the leading manufacturers in protective coatings and infrastructure protection technology. It is engaged in the development, manufacture, distribution, and sale of paint, coatings, and related products to professional, industrial, commercial, and retail customers. It serves construction, automotive, oil & gas, mining, marine, paper, healthcare, food & beverage, railway, and water treatment industries. It operates across three business segments, namely the America’s group, consumer brands group, and performance coatings group.
Swarco AG is among the leading road safety material manufacturing companies. It offers traffic management solutions, which consists of urban traffic systems, traffic lights, traffic controllers, LED variable message signs, traffic detectors, and LED street lighting products, traffic management solutions for the controlling and monitoring of highways and tunnels, variable speed control systems, vehicle classification, subsystems, and traffic detection solutions, and dynamic and static signage. It also offers various traffic materials that include glass beads, performed markings, thermoplastic markings, signage products, and software for traffic handling purpose.
Ennis-Flint Inc (formerly Ennis), manufactures and supplies pavement marking materials. Its product segments are cold-applied thermoplastic products, colored aggregates, glass beads, hot-applied thermoplastic products, traffic paints, preformed thermoplastic products, and raised pavement markers. Road marking materials are manufactured in the traffic paints and raised pavement markers segment. The products have widespread applications in airfields, bike and bus lanes, intersections, pedestrian plazas, roads/streets/highways, and roundabouts. In April, 2018, Ennis-Flint acquired the materials manufacturing business unit of Vernisol SPA.
Tatu Traffic Group is engaged in research, production, sales of road marking products and traffic safety facilities. Its business segments include road marking machines, road marking materials, and road safety facilities. It offers a variety of products, such as road marking paints and anti-skid materials.