Global Traffic ​​​​Road Marking Coatings ​Sector ​is Favorable and Experiencing Steady Growth

3 Min Read

Significant Government Spending and Demand for Improved Coatings is Driving Market 

The road marking coatings market is made up of products that provide visual barriers and boundaries for traffic routes, as well as information and warning signs. Road markings are crucial to roadways and help prevent accidents by aiding in the orderly movement of traffic. Last year, the global traffic road marking coatings market size was valued at $6.89 billion. It’s expected to reach $9.78 billion by 2032, growing at a compound annual growth rate of 3.9%. In 2023, the Asia Pacific region dominated the market with a share of 39.91%, with a total market size of $2.75 billion.¹ 

Market growth is driven by large government spending that supports new infrastructure construction as well as repair and maintenance. Additional growth factors include rising global road accidents and safety concerns, and a demand for more eco-friendly and durable road coatings.   

Industrial Market Investment Insights 

Sectors Driving Market Growth 

Substantial Government Interest: A massive increase in government infrastructure spending globally is driving road marking coatings market growth. In the U.S., the Bipartisan Infrastructure Law allocates $350 billion towards investments in highway programs through 2026.² The Government of India allocated $14.85 billion to the Ministry of Road Transport and Highways in the Union Budget 2021-22.³ In addition, driven by government initiatives to decrease road accidents, companies are making investments into improving marking functionalities. For example, 3M Company has developed a new product that boosts marking visibility on concrete roads. 

Water-based Coatings: Based on coating type, the market is segmented into water-based, solvent-based, and thermoplastic. Water-based coatings currently command a prime share of the market due to being more environmentally friendly. Specifically, demand for thermoplastic and epoxy coatings is increasing, driven by the cost-effective price and superior mechanical strength, elasticity, flexibility, and abrasion resistance. This demand is expected to have a significant market impact.⁴  

Road Marking Lines and Labels: Based on application, the road marking lines segment dominates with a market share of 55.1% and is projected to grow due to rising usage.⁵ However, the road marking labels segment, which includes informational signage such as speed limits and road hazards, is expected to become the fastest-growing application segment because of high suitability for various terrain. 

Airport Infrastructure: As part of the Bipartisan Infrastructure Law, the U.S. government granted nearly $1 billion toward the improvements of airport infrastructure.⁶ This is expected to further increase market growth and provides ample opportunities for investments in companies who specialize in airport markings. 

Industry Landscape and Challenges 

Competitive Landscape: The market is concentrated with a few major global players, including:

• Dulux Protective Coatings 
• Rua Seguridad 
• Berger Paints 
• Langfang Tenroads Glass Products Co., Ltd. 
• Resincoat Ltd 
• Asian Paints Ltd. 
• Sherwin-Williams Company 
• Geveko Markings 
• 3M Company.⁷  

Despite the concentrated market, there is ongoing deal activity and opportunities for investors. Companies are seeking to increase market share through joint ventures, M&A s, production capacity expansions, and new product developments. For instance, in 2022, Geveko Markings acquired Oré Peinture, a French manufacturer of road marking paint and safety materials. This acquisition resulted in the expansion of Geveko Markings’ presence in France, as well as an increase in its overall assets and production capacity.⁸ 

Risks and Restraints: Market challenges include the high cost of raw materials required to manufacture coatings, and stringent regulations surrounding their contribution to volatile organic compounds (VOCs). However, the demand for more eco-friendly coatings creates opportunities for investors in low VOC coatings and technology.⁹

Paving the Way for Smart Investments 

The global traffic road marking coatings market is experiencing steady growth, primarily driven by increasing government infrastructure funds and demand for more eco-friendly and superior coating tech. This market offers promising opportunities for private equity firms. 

We connect private equity clients with seasoned advisors who can provide deep analysis and strategic guidance. Contact us to find out more.  

Resources:

¹Fortune Business Insights Traffic Road Marking Coatings Market Size, Share & Industry Analysis
²Bipartisan Infrastructure Law
³Ibid.
⁴Ibid.
⁵Traffic Road Marking Coatings Market Size, Share & Trends Analysis Report By Product (Paint,Thermoplastic, Epoxy), By Type (Permanent, Removable), By Application, By Region, And Segment Forecasts, 2024 – 2030
⁶Biden-Harris Administration Announces Nearly $1 Billion in Grants from the Bipartisan Infrastructure Law to Improve 114 Airports Across the U.S.
⁷Ibid.
⁸Road Marking Paints and Coating Market
⁹Global Insight Services Traffic Road Marking Coatings Market Analysis and Forecast to 2031