Anti Corrosion Coatings Market Environmental Impact

Posted 2024-06-21 10:33:03

The anti corrosion coatings market comprises liquid and powder coating compounds that act as protective layers in preventing surfaces from rusting and corrosion caused by environmental factors. Technologies such as epoxy, polyurethane, acrylic and alkyd based coatings are extensively used in oil & gas pipelines, chemical tanks, automotive, marine and infrastructure for their anti corrosive properties.

The Global anti corrosion coatings market is estimated to be valued at US$ 46.90 Bn in 2024 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the anti corrosion coatings market are BASF, Ashland Inc., Nippon Paint Co. Ltd., AkzoNobel N.V., Jotun A/S, Axalta Coating System Ltd., The Sherwin-Williams Company, Kansai Paints Co. Ltd., PPG Industries Inc. and Hempel A/S. BASF being one of the largest producers offers anti corrosion coatings under the MasterProtect and Peran brands.

The growing demand from oil & gas industry and infrastructure expansion in emerging nations of Asia Pacific and Middle East Africa are major factors driving growth of anti corrosion coatings market. Government investments and initiatives towards rapid urbanization has increased the requirements of anti corrosion protected structures and assets.

The accelerating industrialization and expansion of manufacturing sector worldwide is also augmenting consumption of anti corrosion coatings. Infrastructure projects in sectors such as water pipelines, bridges and commercial buildings need anti corrosive coatings to increase durability and service life of structures.

Market Key Trends

Environment regulations regarding volatile organic compound (VOC) emissions from coatings are forcing manufacturers to develop low VOC and water based coating technologies. AkzoNobel launched its International brand in 2021 made from renewable raw materials exhibiting 95% lower carbon footprint and 100% recyclable. Major players are investing in R&D to offer sustainable anti corrosion solutions without compromising on performance. Another trend gaining popularity is the thermal spray coatings technology used majorly in oil & gas industry which involves applying protective layers through wire arc and flame spraying methods. This technology provides 10 times thicker coatings vs conventional liquid/powder techniques thereby increasing protection lifespan substantially.

Porter’s Analysis

Threat of new entrants: New entrants face high initial investment costs to achieve economies of scale and gain brand recognition in this market.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes and standardized nature of anti-corrosion coatings products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of raw material substitute options and presence of many suppliers in the market.

Threat of new substitutes: Threat of new substitutes is low as anti-corrosion coatings have well-established application areas and substitutes face high switching costs.

Competitive rivalry: The market is moderately competitive due to presence of many international players.

Geographically, North America holds the largest share of the anti-corrosion coatings market in terms of value, supported by growing oil & gas refineries and robust infrastructure development in the region. Asia Pacific is the fastest growing regional market due to rapid industrialization, infrastructure development and growing water treatment sector in major countries like China and India.

Geographical regions where the market is concentrated in terms of value include North America and Western Europe due to early adoption of advanced coating technologies in oil & gas, petrochemicals and infrastructure sectors. The anti-corrosion coatings market in Asia Pacific is the fastest growing regional market supported by increasing investments in water treatment plants, pipelines and oil & gas exploration projects in major economies. Countries like China, India and Southeast Asian nations are expected to drive high demand.