Global "Marine Sealants Market" is expected to grow at a high CAGR during the forecasting period (2022-2029).
Marine Sealants are specially engineered materials that are used in marine applications to obstruct the flow of fluids between two joined surfaces. They are majorly employed in construction and decorative applications in commercial and, passenger ships and in military vessels.
Increasing marine tourism, rising trade activities by sea and stringent regulations imposed by the International Maritime Organization (IMO) upon the usage of marine sealants are the major factors boosting the growth of the global Marine Sealants market in the forecast period.
Increasing marine tourism is a primary factor contributing to the growth of the global marine sealants market. Rising marine tourism has spurred the demand for ferry ships, passenger boats and cruise ships which in turn has increased the demand for marine sealants. According to the department of maritime affairs, the European Union, the marine tourism sector generates a total of € 183 billion in gross value added and represents over one-third of the maritime economy. As part of the EU's Blue Growth strategy, the coastal and maritime tourism sector has been identified as an area with special potential to foster a smart, sustainable and inclusive Europe. It is the biggest maritime sector in terms of gross value added and employment and, according to the Blue Growth strategy and is expected to grow by 2-3% by 2020.
Furthermore, according to the North American government, Ocean-based tourism and recreation contribute approximately $116 billion in gross domestic product to the national economy each year and is rising exponentially annually. The ocean-based tourism and recreation sector employs more Americans than the entire real estate industry, as well as more people than building construction and telecommunications combined. Leisure and hospitality in coastal counties employ almost 6.5 million people, generate over $165 billion in earnings and contribute $344 billion to the gross domestic product.
Moreover, according to the United Nations Conference on Trade and Development (UNCTAD), around 80% of the global trade by volume and over 70% of the global trade by value are carried by sea. In the forthcoming years, expanding at 4%, global maritime trade will gather momentum and will raise sentiment in the shipping industry which is expected to create huge market opportunities.
However, volatile prices of raw materials and economic fluctuations in import and export regulations are the primary factors restraining the growth of the marine sealants market in the forecast period.
Based on the Vessel Type, the market is segmented as container ships, general cargos, tankers, carriers, others (dry bulk ships).
The container ship segment is the dominant segment of the global Marine Sealants market due to the increasing global trade activities. Global shipping ports are principal infrastructural assets that service shipping and trade, and their performance is largely determined by developments in the world economy and trade. The United Nations Conference on Trade and Development (UNCTAD) estimates that the operation of merchant ships contributes about US$380 billion in freight rates within the global economy, equivalent to about 5% of total world trade. World seaborne trade volumes expanded by 2.6 percent, up from 1.8 percent in 2015. Global container containers boasted an increase in the volume of about 6% during the year, up from 2.1% in 2016, and it is expected to increase further in the forecasted years. This has spurred the demand for container ships and is a crucial factor boosting the container ships segment to dominate the global marine sealants market in the future.
The Global Marine Sealants Market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East and Africa. The Asia Pacific region is further segmented into countries such as China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific.
The Asia Pacific region is expected to grow as one of the dominant regions in the Global Marine Sealants Market owing to the increasing trade activities by the sea in countries such as China, Hong Kong, Japan, and Singapore. According to the statistics published by The United Nations Conference on Trade and Development (UNCTAD), the Asia Pacific region’s total loaded goods which were traded via sea increased from 3882.9 million tons in 2015 to 3923.0 million tons in 2016. The total unloaded goods amounted to 809.6 million tons in 2015 which increased to 899.7 million tons in 2016. The increasing trade activities in the Asia Pacific region have led to the deployment of more fleets of cargo ships and carriers which are in turn boosting the demand for marine sealants. Owing to these factors, the global Marine Sealants market is anticipated to grow at a steady pace in the future.
New product launches, expansion of facilities, mergers and acquisitions, and strategic partnerships are vital strategies adopted by most companies to contribute to the growth of the company and improve their market growth rate.
For instance, in October 2017, HB Fuller announced it has finalized its acquisition of Royal Adhesives & Sealants for $1.575 billion deepening its expertise in a specialty and high-value applications used in a range of sectors, including electronics, marine, hygiene, medical, transportation, clean energy, construction, and more.
Moreover, in August 2016, Henkel Adhesives Technologies India Private Limited (Henkel India), a fully owned subsidiary of Henkel AG & Co. the leading solution provider for adhesives, sealants, and functional coatings, has expanded the capabilities of its Pune Innovation Center with two dedicated laboratories.
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