Market Trends of South Africa Protective Coatings Industry
The infrastructure segment dominates the market
- Protective coatings applied to steel, which is commonly used for civil structures such as stadiums, transportation hubs, and public buildings, are the backbone of modern cities. Corrosion protection of steel bridges is important to maintain both structural performance and aesthetics over time, with protective coatings being the most common form of corrosion protection.
- Infrastructural activities are increasing in the South African region. According to the African Development Bank Group, the infrastructural investment index in the country has increased to 81.67 in the year 2022, compared to 80.19 registered in the previous year. The increasing infrastructural construction market is expected to drive the market for protective coatings.
- In June 2022, Radisson Hotel Group (RHG) opened a new Radisson Blu brand property in Durban, making it the group's 14th hotel in South Africa. RHG's portfolio in the country now includes 14 hotels in operation and two under construction. Similarly, in the first half of 2023, Radisson Hotel Group announced seven new hotels in the African region, which involves the construction of a new hotel in South Africa.
- Furthurmore, in October 2022, the Department of Public Works and Infrastructure (DPWI) laid out its plans to improve healthcare infrastructure across South Africa over the next few years. Also, for the government's future infrastructure plans, which include the construction of more healthcare facilities and clinics, as well as the maintenance or replacement of existing structures that have fallen into disarray, it will rely heavily on the private sector, including through the NHI (National Health Insurance).
- South Africa has a good network of rail and road infrastructure compared to other African countries, but the country is facing issues in maintaining the infrastructure. For this purpose, the government has budgeted USD 57.5 billion (ZAR 900 billion) to build and maintain the transport infrastructure until 2027.
- The South African government devised a "National Infrastructure Plan 2050," which focuses on delivering infrastructure development across energy, transport, digital communications, and water by 2050. Through 2040, USD 394.5 billion (ZAR 6.224 trillion) will be invested in infrastructure development.
- Thus, the infrastructure end-user segment will likely dominate the market during the forecast period.
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The Power Generation Industry to Register Significant Growth rate
- Protective coatings are also extensively used in the power sector for mainly corrosion and heat resistance. Power generation can take any form, from wind, hydroelectric, and nuclear to fossil fuel facilities, each of which presents its challenges for protective coatings systems.
- In fossil fuel power systems like coal and natural gas, Protective coatings are extensively used for plant assets, including feed systems to the turbine, recovery, and water handling systems. Similarly, in hydroelectric power plants, corrosion protection coatings are used for critical parts, including conduits, penstocks, and metal water gates.
- Protective coatings are also extensively used in the wind sector, where they are used to protect and extend the operational life of onshore and offshore wind turbine installations, including towers and foundations, turbine component blades, and other equipment.
- According to the Ministry of Mineral Resources and Energy, South Africa's total domestic electricity generation capacity is 58,095 megawatts (MW) overall. Coal is the primary energy source for South Africa, comprising around 85 percent of the country's energy mix. In 2022, the country's total thermal production capacity is registered at 48,380 megawatts (MW). The increasing production capacity of thermal energy in the country is expected to drive the market for protective coatings in the country.
- Similarly, wind electricity generation is increasing in South Africa. In 2022, the wind energy capacity in South Africa corresponded to over 40 percent of Africa's total wind energy capacity. According to International Renewable Energy Agency (IRENA), the total wind energy generation capacity is registered at over 3 gigawatts. Furthurmore, the wind electricity generation in the country is anticipated to reach 17.742 gigawatts by the year 2030. Thus, the increase in the production capacity of wind energy is expected to drive the market for protective coatings in the country.
- Thus, the power generation end-user segment will likely register significant market growth during the forecast period.
