Corrosion Protective Coatings Market

Market Overview

Corrosion Protective Coatings Market: Overview

The Global Corrosion Protective Coatings Market Is Expected to Grow at A CAGR of 5.3% From 2016 To 2026, Reaching A Total Market Size Of 11.6 billion By the End of The Forecast Period.

Corrosion protective coatings are applied on a substrate to prevent corrosion impart resistance against abrasion. These coatings create a layer that acts as a barrier to avoid contact between the substrate and water, salt, and other environmental elements, thereby preventing oxidation or exposure to a variety of chemicals that cause corrosion and extending the strength, durability, and lifespan of an object/equipment.The corrosion protective coatings market is gaining traction against a backdrop of rising adoption in the construction and automotive sectors, particularly in developing economies.

The corrosion protective coatings market is expected to grow at a steady pace as these coatings help protect valuable assets and extend the lifespan of machinery. These coatings register strong demand from a plethora of industries where they help protect products, equipment, and machinery. Demand is further expected to rise with the growth of infrastructure, construction, and marine sectors in developing economies growing at a rapid pace.

The three key drivers for the corrosion protective coatings market are:

• Growth of the marine industry,
• Industrialization in APAC, and
• Growth of construction and automotive industries.

Market Dynamics

Infrastructure, Construction, Manufacturing, & Automotive — Other Prominent End-User Sectors Contributing to Market Growth

Apart from protecting the substrate from corrosion, corrosion protective coatings offer thermal resistance, toughness, and dimensional stability to the material. Thus, they are extensively adopted in construction to provide strength to a structure and extend its life. After marine, construction is the next most important end-use sector for the corrosion protective coatings market.

In the automotive sector, corrosion protective coatings are used on automobile parts and bodies to prevent corrosion and extend the lifespan. The growth of the sector will thus create opportunities for the corrosion protective coatings market across almost all regions. Other industries such as oil and gas, paper and pulp, and power generation are also expected to accelerate the demand for these coatings. Additionally, increasing imports and exports through sea routes have surged the demand for coatings from ships in the commercial sector.

orrosion Protective Coatings Market Life Cycle

The market is yet in the growth stage, propelled by growing adoption in the marine industry in developing countries such as India and China, where the demand is increasing significantly year on year. These countries have strong marine industries, which further solidifies growth prospects for the corrosion protective coatings market in years to come. The marine industry in developed economies, such as the U.S., is also expected to significantly contribute to the overall market growth.

Cost of Corrosion for Economies

Globally, corrosion accounts for losses amounting to USD 5,000 billion every year. Industry estimates have shown that the annual direct cost of corrosion to the overall industrial economy in the past 30 years is around 3.1% of a country’s GNP (Gross National Product). In the U.S. alone, the direct cost is over USD 1 trillion per year. The U.S. Department of Defence has corrosion costs worth USD 20 billion. As per NACE International, the corrosion cost in any developing country is around 5% of its GDP.

The overall economic loss due to corrosion can be divided into two types, i.e. direct losses and indirect losses. By using corrosion protective coatings, countries can prevent these losses and save significant capital. Companies from the industry can save on direct losses such as replacing corroded parts of machinery and the labor cost associated with it, cost of repairing structures, cost of galvanizing or nickel plating steel, and cost of addition of corrosion inhibitors to water or any other environment. Indirect losses include losses to machinery that compel companies to shut down and, ultimately, affect the overall economy.

Segmental Analysis

Epoxy to Account for the Largest Share of the Pie Among the Segments by Type

Four types of corrosion protective coating resins — epoxy, polyurethane, alkyd, and inorganic zinc — have been identified in terms of market segmentation by type. The epoxy segment is estimated to account for the largest value share, followed by the alkyd segment. Epoxy resins are highly volatile and offer superior corrosion protection. The high demand for environment-friendly or VOC-free protective resins drives the growth of this segment, particularly in developed countries of Europe such as Germany and France.

Marine Industry — A Key End-Use Sector

The marine industry is a key end-use sector of the corrosion protective coatings market as these coatings are extensively used in ships and naval vessels for protection against extreme temperature and pressure changes in water. The high salt content in seawater further exacerbates the problem of corrosion. Corrosion protective coatings also help protect materials from deterioration due to organic development caused by salt and water.

Commercial shipping, shipbuilding, and naval and fleet ownership are the key sectors driving market growth in the marine industry. Anti-corrosion coatings are mainly used for vessels and commercial ships such as cruise ships, yachts, boats, freight carriers, and tows.

The trade of passenger and cargo ships also drives the corrosion protective coatings market. The graph below portrays the region-wise trade of ships.

Proper Application to Avoid Blistering & Detachment — A Key Point of Consideration for End-Users

Incorrect application of corrosion protective coatings can lead to blistering and/or partial or complete detachment. Blistering is one of the key causes of coating failure. It refers to the small to medium-sized bubbles or blisters that form under the paint film. Blistering can cause the partial or complete detachment of a coating from the metal surface, which causes the trapped moisture to expand the paint film.

Painting during rain or in the direct sunlight on a hot substrate, which dries the paint surface quickly, can result in blistering. Blistering degrades the quality of the coating and reduces the lifespan of the metal, which damages the structure and its quality.

Impact of covid-19

Regional Analysis

Asia-Pacific The Most Prominent Region in the Global Corrosion Protective Coatings Market

Asia-Pacific dominates the global corrosion protective coatings market, backed by substantial investments in India and China’s infrastructure, marine, construction, and energy sectors. China is a key producer as well as consumer of corrosion protective coatings, and rapid urbanization is further spurring the growth of end-use sectors such as construction, power generation, and chemical in the country.

China, Japan, and South Korea lead Asia-Pacific’s shipbuilding industry; but, the trend is changing, and Vietnam, the Philippines, and India are rapidly emerging as key markets. China is the largest manufacturer of corrosion protective coating resins in the world, with a significant number of players operating in the regional market. Most manufacturers in the country hold the advantage of backward integration. But, as the industry grows, new players seek to enter the market and leverage cheap raw material and labor costs.