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Corrosion Protective Coatings Market Size Forecast to Reach $31.5 Billion by 2026

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Corrosion Protective Coatings Market Size Forecast to Reach $31.5 Billion by 2026

March 24
20:32 2021
Corrosion Protective Coatings Market Size Forecast to Reach $31.5 Billion by 2026

Corrosion Protective Coatings Market
With the Increasing Oil & Gas, and Power Generation Projects, the Demand for Corrosion Protective Coatings Will Also Substantially Increase, Which Will Drive the Market Growth.

Corrosion Protective Coatings Market size is forecast to reach $31.5 billion by 2026, after growing at a CAGR of 7.6% during 2021-2026. The robust CAGR can be attributed to the rising adoption of water-based and solvent-borne protective coatings in various end-use industries ranging from construction to transportation. Protective coating for corrosion is also used to protect culturally significant works, such as outdoor sculptures and architectural elements against deterioration due to moisture, salt spray, oxidation, or exposure to various industrial chemicals. Further, the rapid growth of the marine industry supported by growing sea transportation has increased the demand for epoxy-based paints and coatings. Furthermore, the flourishing oil & gas industry is also expected to drive the corrosion protective coatings industry subsequently, during the forecast period.

COVID-19 Impact

The COVID-19 pandemic is having a huge impact on various end-use industries such as marine, oil & gas, energy generation, construction industry, and more. Due to the Covid-19 outbreak, the corrosion protective coating end-use industries are facing issues such as delays in receiving solvent-borne protective coatings from the manufacturers due to the restriction on import and export of materials. The pandemic has disrupted the supply chains of resins and coatings and altered demand trends that have had a major impact on the prices of raw materials. The delivery of raw materials is also delayed, which is further resulting in delayed shipments to the customer. The oil & gas industry has suffered a lot during 2020 as the whole supply chain was disrupted. For instance, According to the International Energy Agency, Ecuador’s oil and gas income is projected to fall by 85% in 2020 compared with the 2019 value. Thus, owing to the pandemic, the projects, and operations of various end-use industries including oil & gas, construction, and marine industry have significantly fallen, which is having a major impact on the corrosion protective coatings market.

Corrosion Protective Coatings Market Segment Analysis – By Resin Type

The epoxy segment held the largest share of more than 30% in the corrosion protective coatings market in 2020, owing to the various advantages such as durability, scratch resistance, abrasion resistance, impact resistance, strong chemical resistance and weatherability. By forming a physical barrier, epoxy-based paints and coatings protect against corrosion and resist attack by aggressive species when integrated with corrosion inhibitors. It has been determined when nanoparticles are incorporated into epoxy resins, the corrosion rate is significantly reduced, and good electrical insulating properties are imparted. All these extensive characteristics of epoxy resins are the key factors anticipated to boost the demand for epoxy-based corrosion protective coatings in various regions during the forecast period.

Corrosion Protective Coatings Market Segment Analysis – By Type

The solvent-borne protective coatings segment held the largest share of more than 35% in the corrosion protective coatings industry in 2020, owing to better adhesion, superior cohesiveness, faster drying property, and widespread applications of solvent-borne protective coatings. The water-based segment is the fastest-growing segment, owing to the various advantages that it offers over solvent-borne products including lesser toxicity improved air quality and brighter appearance, and more. In addition, they provide excellent adhesion, low toxicity, and flammability due to low VOC levels and HAP emissions, and thus allow coating manufacturers to meet clean air regulations. Furthermore, the development of environment-friendly waterborne products (VOC free powder) as a substitute to solvent-borne coatings is expected to pose a challenge to the solvent-borne protective coatings segment growth.

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Corrosion Protective Coatings Market Segment Analysis – By End-Use Industry

The oil & gas segment held the largest share in the corrosion protective coatings market in 2020 and is growing at a CAGR of 5.2%, owing to the increasing usage of VOC free powder-based corrosion protective coatings in the oil & gas industry. The expected cost of oil and gas corrosion damage, due to equipment failure and lost production time, can be enormous without corrosion protection. The punishing effects of chemicals, water, and sea salt spray on tubing, pipelines, fasteners, and equipment are caused by the increasing demand for corrosion protective coatings in these applications. While hot-dip galvanized, cadmium, and zinc-plated coatings are industry-standard, they lack durability and deteriorate in tough offshore environments. The corrosion protective coatings extensively minimize the effect of corrosion and abrasion and improve the longevity of costly equipment, which is the major factor driving the demand for corrosion protective coatings in the oil & gas industry during the forecast period. Various oil & gas projects are also under construction, which will boost the market growth. For instance, the North Field expansion, slated to be completed by 2023 will increase Qatar’s LNG production capacity from 77 million tons per annum (Mtpa) to 126Mtpa by 2027.

Corrosion Protective Coatings Market Segment Analysis – By Geography

Asia Pacific region held the largest share in the corrosion protective coatings market in 2020 up to 37%, owing to the escalating oil & gas and construction industries in the region. Asia Pacific economic growth is closely related to its energy demand; therefore, the need for oil and gas is projected to grow more, thereby propelling the sector growth. According to the BP Statistical Review of World Energy 2020, the production of oil increased to 361.8 million tons in 2019 as against 361.0 million tons in 2018, in the Asia-Pacific region, an increase of 0.8% between 2019 to 2018 period. In October 2020, Torrent Gas Ltd, announced to invest INR 8,000 crore (US$ 1.1 billion) in India over the next five years to expand its urban gas operations and set up 500 CNG pumps by March 2023. As a consequence, Australia’s 89 billion cubic meters of gas export potential is greater than ever, following a 30 percent increase per year over the previous five years. Thus, with the escalating oil & gas industry, there will be an upsurge in the demand for corrosion protective coatings, which is anticipated to drive the market in the Asia Pacific region.

Corrosion Protective Coatings Market Drivers

Increasing Losses and Damage Due to Corrosion

Corrosion has been acknowledged as one of the major problems faced by various end-use industries. On a monetary basis, the losses caused by corrosion can be very high and pose a direct threat to the welfare of general property as well as people’s lives. The consumption of fixed capital (CFC) loss in 2019 was more than 10 percent of India’s GDP, according to the Ministry of Statistics and Program Implementation (MOSPI). There is a huge monetary loss due to rust, corrosion, wear and tear, accidental damage, and other such factors, which in turn affect the consumption of fixed capital (CFC). Such losses contribute to economic depreciation and are seen mostly in the manufacturing and real estate sectors. By using corrosion-resistant materials, such as coatings, more than one-third of the losses can be prevented. Therefore, one of the biggest drivers for the growth of the corrosion protection coatings market will be the need to reduce losses due to corrosion.

Flourishing Power Generation and Oil & Gas Sector

In the oil & gas, and power generation sector, corrosion control of metallic structures is an important activity in technical, economic, environmental and safety terms, owing to which corrosion protective coatings are extensively used in these sectors. The negative impacts of corrosion are so enormous that providing corrosion protection for offshore structures and ensuring safe and productive drilling operations at sites is imperative for the oil & gas and power generation industries. In February 2019, the progress of the National Strategic Project Development, namely the Cirebon Power Unit 2, with a capacity of 1×1000 MW, has now reached 39 percent and is targeted to operate in February 2022. Eni S.p.A aims to begin the production of natural gas from its Merakes offshore project in Indonesia in 2021. Construction of Tangguh Train 3 is progressing, with Indonesia’s BP-operated LNG export facility adding 3.8 MTPA of production capacity to the existing facility, bringing the total capacity of the plant to 11.4 MTPA. With the increasing oil & gas, and power generation projects, the demand for corrosion protective coatings will also substantially increase, which will drive the market growth.

Corrosion Protective Coatings Market Challenges

Stringent Government Regulations

The government has imposed stringent regulations intending to reduce the emissions of volatile organic compounds (VOC) from coatings. REACH and LEED GreenSeal GC-03 2nd Ed., 1997 specify, for corrosion protection coatings, the VOC content in grams per liter (g/l). These regulations have put pressure on manufacturers of coatings to comply with the standards by reducing the content of VOC while attempting to improve or maintain the quality and performance of these coatings at the same time. As the regulations brought about a change in the technology used for the production of coatings, the regulations also affected the price of corrosion protection coatings. These are moderate-to-high solid content solvent-based coatings. Regulations have, however, forced manufacturers to explore the production of solvent-based coatings with a low solid content or to produce coatings based on water. Any technology change results in high investment because there is a change in the production process, which also affects the performance of coatings for corrosion protection. Therefore, for the growth of the market, the regulations present a challenge for the market.

Corrosion Protective Coatings Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the corrosion protective coatings market. Major players in the corrosion protective coatings market are Akzo Nobel N.V., PPG Industries Inc., Jotun A/S, The Sherwin-Williams Company, Kansai Paint Co. Ltd., Hempel A/S, Chugoku Marine Paints, Axalta Coating Systems, Nippon Paint Co., Ltd., and Teknos.

Acquisitions/Technology Launches

In September 2020, Vestas and Hempel have entered into a strategic partnership to cooperate in the field of innovative wind turbine surface protection solutions. To help reduce the CO2 footprint, this partnership helped to develop more innovative and sustainable coating solutions.

In May 2020, USD 3.51 billion has been invested by Hempel to build a new factory in Yantai Chemical Industrial Park, China. It will have a capacity of more than 100,000 tons per year for production. This expansion focuses on supplying its customers in the region with innovative and more sustainable coating solutions.

In February 2020, to mitigate carbon impacts, PPG collaborated with Dow on the Sustainable Future Program. The partnership focused on advances in steel anti-corrosion coating products designed to deliver reduced greenhouse gas (GHG) emissions by boosting energy efficiency while helping to reduce the steel infrastructure’s high maintenance costs.

Key Takeaways

Asia Pacific dominates the corrosion protective coatings market by region, owing to the flourishing end-use industries in the region. Investments by many public and private players are supporting the growth of oil & gas, construction, and other sectors. For instance, Oil and Natural Gas Corporation’s 78,000 b/d KG-D5 deepwater oil and natural gas development project is slated to commence in 2021.

The increasing use of enhanced oil recovery (EOR) methods in the oil & gas sector have created the requirement for coatings that can endure high temperatures, corrosion, and pressure efficiently and ensure long-term protection of structures, which is driving the corrosion protective coating demand in the sector.

Rising international trade through waterways is one of the key factors raising the demand for coating to protect ships from corrosion. Corrosion protective coatings such as epoxy-based paints and coatings acquired excellent properties such as dimensional stability, thermal resistance, advanced toughness, and others, owing to which it is largely used as protective coating.

Related Reports :

A. Inorganic Corrosion Inhibitors Market

https://www.industryarc.com/Report/18245/inorganic-corrosion-inhibitors-market-research-report-analysis.html

B. Corrosion Inhibitors Market

https://www.industryarc.com/Research/Corrosion-Inhibitors-Market-Research-510942

For more Chemicals and Materials Market reports, Please click here

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