"Governments in both Europe and North America have rolled out initiatives to improve road infrastructure, boosting sale volumes as well as encouraging the development of durable, high-performance products with enhanced visibility and skid resistance," said Frost & Sullivan Chemicals, Materials and Food Research Analyst Soundarya Shankar. "Manufacturers are further making an effort to develop temperature-sensitive paints that glow under specified conditions to warn drivers, for instance, when conditions are slippery due to ice formation."

These advanced solutions are likely to take a few years to gain traction, as several conservative road contractors prefer basic, low-cost products. Others demand high-performance solutions at competitive prices, shrinking coating manufacturers’ margins. The large number of market participants offering similar products has commoditized road-marking products and added to price pressures.

Moreover, continued economic strain in North America and Europe will affect construction and infrastructure spending to an extent. Focus on expanding railway infrastructure is also posing a threat to road construction and renovation, affecting the road-markings market.

"In this competitive market, enabling vertical market integration by launching manufacturing units for road marking and traffic paints will allow road contractors and applicators to acquire better control over cost and quality of products," concluded Shankar. "This is a visible trend in the European market and the one that is rapidly gaining momentum in North America."

For additional information about the study, e-mail Julia Nikishkina at julia.nikishkina@frost.com.