Seal Coat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Seal Coat Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The global seal coat market is expected to register a CAGR of over 4% during the forecast period.

• The COVID-19 pandemic hampered the global seal coat market. The construction industry came to a standstill due to the unavailability of raw materials, the shortage of laborers, and disruptions in the supply chain. However, the upsurge in the construction industry post-pandemic is likely to drive the consumption of seal coats.
• Over the medium term, the increasing commercial construction activities, pavement construction, rapid industrialization, and urbanization are major factors driving the global seal coat market. On the flip side, strict rules about the environment and health risks caused by polycyclic aromatic hydrocarbons (PAHs), which can cause cancer, and a ban on coal tar-based seal coats in many regions will slow the growth of the market over the next few years.
• Rising refurbishment and repair activities in developed and developing countries will likely offer new growth opportunities for the industry. North America dominates the global market, with the largest consumption of seal coating in countries such as the United States and Canada.

• Seal coatings are used to reduce the effects of asphalt binders or other materials used in parking lots or driveway construction, thereby increasing their lifespan. Further, seal coatings provide a layer of protection by blocking harmful intrusions such as water, oils, and ultraviolet (UV) ray damage. These coatings also result in a slip-resistant surface and are aesthetically pleasing owing to their deep black finish, which adds magnificence to the parking lot or driveway.
• Moreover, driveways or parking lots are exposed to excessive chemicals like gasoline and water. Such external elements can weaken and eventually destroy the layers of asphalt. Applying a seal coat acts as a barrier to such chemicals, water, and even UV rays. It also saves money and time spent repairing cracks and damage to the driveway or parking lot, extending its lifespan.
• In North America and Europe, almost every building (small to big housing or high-rise buildings) has driveways and parking lots. Additionally, shopping centers, schools, hospitals, malls, multiplexes, stadiums, airports, etc., have driveways and parking lots. Increasing construction of such buildings and other commercial institutions in these regions is expected to drive the market for seal coats in the future.
• In Germany, construction industry orders were USD 110 billion in 2021, 9.4% higher than in the previous year. The volume of permits for new buildings was close to USD 128 billion, 8% more than the previous year, especially due to rising construction prices.
• However, building permits for dwellings issued from January to November 2022 was down 5.7% compared with the same period a year earlier. In November 2022, the construction of 24,304 dwellings was permitted in Germany. The Federal Statistical Office (Destatis) reported a decrease of 16.3%, or 4,716 building permits, compared with November 2021.
• Further, Europe is expanding in retail, with the construction of new malls across the continent. The Vegas Kuntsevo in Russia, Mall of Scandinavia in Sweden, Westfield Bradford in the United Kingdom, Weberzeile Ried in Austria, Mall of Europe in Belgium, and Lublin Mall in Poland are some of the recent constructions happening in Europe lately.
• Moreover, according to the National Asphalt Pavement Association (NAPA), more than 90% of parking areas in the United States are surfaced with asphalt pavement. Therefore, the new construction of parking areas will significantly impact the demand for seal coats, as they are mandatory for asphalt pavement preservation.

• Seal coats are substances that extend the life of pavements, driveways, roadways, racetracks, and other capital assets by protecting the pavement from the natural aging process caused by water, debris, chemical leaks, ultraviolet rays, and others. Most pavements in the United States are made of asphalt because more than 99% can be reused in other projects.
• As per the National Asphalt Pavement Association (NAPA), about 3,600 asphalt mix production sites operate in the country, producing around 420 million metric tons of asphalt pavement material annually. Every year, the aviation industry witnesses grants and passenger facility charges of USD 4 billion from the Airport Improvement Program, which is spent on airfield runways, aprons, and taxiways.
• In 2022, the US Department of Transportation’s Federal Aviation Administration (FAA) announced nearly USD 1 billion in funding from President Biden’s Bipartisan Infrastructure Law to improve airport terminals across the United States. The funding will advance improvements at 85 airport terminals throughout the United States to expand capacity, increase energy efficiency and provide greater accessibility.
• Furthermore, the FAA announced that construction is underway on a new air traffic control tower at Asheville Regional Airport (AVL) in North Carolina. The new energy-efficient tower will help the airport meet the growing demand for air travel in the region alongside an expanded and modernized terminal. It will be 127 feet tall and topped by a 440-square-foot cab for three air traffic controllers.
• Furthermore, according to the United States Census Bureau (USCB), the country is also embarking on a significant number of commercial construction projects, all in various stages of development. Some commercial projects underway in the country include the Forbidden City and All Net Arena & Resort in Las Vegas, the Ko Olina Atlantis Resort in Hawaii, the Miami Herald Redevelopment in Florida, and The Wharf - Phase 2 in Washington DC. The development of all such projects will require the construction of new driveways and parking lots, increasing the demand for seal coats in the coming years.
• Furthermore, about 35% of the asphalt pavement expenditure in the country is recorded in the residential and non-residential construction segments. Besides, the expenditure of the United States on commercial building construction is estimated to grow by more than 4% annually over the forecast period. With the increased trend of nuclear families in the country, apartments have become one of the major preferences, leading to the construction of high-rise residential buildings and townships, thus increasing parking spaces, walkways, and driveways in such segments.
• Therefore, these factors are expected to boost the demand for seal coats in North America, propelling the overall industry's growth.

The seal coat market is highly fragmented, as the market share is divided among many players. Some of the key players include Seal Master, RaynGuard, Neyra, Star Seal Inc., and Crafco, among others.

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