Coatings Market Overview
A coating is a type of covering which is applied on the surface of a material to protect it from various external factors such as corrosion, fouling, and icing. This coating acts as a protective barrier against deterioration of the surface due to its reaction with the environment. Oil and gas industry frequently faces challenges during the offshore installations as the pipelines which are used to transport oil and gas and refinery equipment face the problem of corrosion. Coating controls the corrosion and is also applicable on the offshore rig, pipelines underground and petrochemical equipment.
The global coatings market in petrochemical and energy industry attained a market value of USD 12,351.1 million in 2019 and is anticipated to grow at a CAGR of about 5% over the forecast period, i.e., 2021-2028. Coatings used in the petrochemical and energy industries are highly formulated in order to meet the requirements of the end users to prevent the containers, tankers, equipment, and various other facilities at the site from harsh environmental conditions, chemical reactions and contacts. The requirement increases with the growing plant maintenance & performance and escalating demand for energy & petrochemical products in the market, which is estimated to increase the market growth of coatings in petrochemical and energy industries over the forecast period. Introduction of smart coatings in such industrial applications have benefited the end users with long lasting high end performance of coatings and better operation performance, which is encouraging the key market players to engage themselves in more research and development as well as production facilities of smart coatings.
Growth Highlights based on Region during 2019-2028
On the basis of region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. The coatings market in petrochemical and energy industry in Asia Pacific is growing significantly on account of increasing developments pertaining to the exploration of unconventional oil resources across the region. The Asia Pacific market is anticipated to grow at the highest CAGR of 5.9%, during the forecast period i.e. 2021-2028. Asia Pacific coatings market in petrochemical and energy industry is projected to reach a valuation of USD 6,534.1 million by the end of 2028. This growth is estimated to be driven by the overall economic growth of the region that are associated with various business opportunities.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
On the basis of coating, the market is segmented into polyurethane coating, epoxy coating, acrylic coating, alkyd coating, smart coating and others. Among these segments, the epoxy coating type occupies the largest market share of the coatings market across the globe. Moreover, this segment is anticipated to witness the highest growth at a CAGR of 4.8% over the forecast period on the back of its environment-friendly characteristics.
By Coating Layer
Based on the coating layer, the market is segmented into single layer and multi-layer coating. Out of these, the multi-layer coating segment of coatings market in petrochemical and energy industry reached USD 6,682.3 Million in 2019 and is expected grow further at a CAGR of 5.2% over the forecast period. The growth of this segment is primarily driven by the advantage of multi-layer coating of providing better mechanical damage-resistant compared with single layer coating.
The market for coatings is segmented by technology into water based, solvent based and powder. Out of these segments, the segment for solvent-based coating occupies the largest market share of the coatings market across the globe. Moreover, this segment is anticipated to flourish at a CAGR of 4.9%, over the forecast period, which can be attributed to its eco-friendly characteristics and increasing government regulations.
On the basis of application, the market is segmented into anti-corrosion, anti-icing, anti-fouling and others. The anti-corrosion application of global coatings market in petrochemical and energy industry is expected to expand at a CAGR of 5.3% over the forecast period. The anti-corrosion segment is projected to reach to a valuation of USD 9,209.8 Million by the end of 2028 on account of increasing demand for anti-corrosion coating in petrochemical and energy industry.
Market Drivers and Challenges
The growing number of technological advancements pertaining to the development of advanced coating materials which are used for energy infrastructure along with increasing adoption of innovative surfacing technologies for the application of such coatings are anticipated to greatly impact the market growth. Recently, the use of protective coatings in the petrochemical industry, which enhances the equipment performance by reducing the wear and tear of different parts, is becoming increasingly popular. These wear and corrosion resistant coatings significantly enhance the field operations. Lastly, increasing R&D investments by various prominent market players for the advancement of such protective corrosion-resistant coatings are also anticipated to propel the market growth.
Stringent regulations pertaining to the content of volatile organic compound (VOC) in the coatings is a major limiting factor anticipated to impact the market growth over the upcoming years. The VOCs are categorized as air pollutants and thus can have a severe environmental impact along with a deteriorating impact on the health of the exposed individuals. Moreover, the price volatility of crude oil in tandem with various resins, which are used as raw materials for the manufacturing of coatings for the energy sector, is expected to hamper the market growth in the forthcoming years.
Top Featured Key Players
Some of the affluent industry leaders in the global coatings market in energy & petroleum industry are Dupont, PPG Industries, Inc., Ancatt, Axalta Coatings Systems, RPM International Systems, BASF SE, Wacker Chemie AG, Hempela A/S and 3M.