Corrosion Protective Coatings Market

Market Overview

The global corrosion protective coatings market was valued at USD 10.80 billion in 2023. It is estimated to reach USD 15.70 billion by 2032, growing at a CAGR of 4.25% during the forecast period (2024–2032). Corrosion can have several harmful effects, including structural degradation, reduced efficiency, environmental impact, and economic loss, amongst others. The economic loss places the most significant burden on industries. Thus, industries are demanding efficient corrosion protective coatings to curb this loss. This is anticipated to drive global market growth. Moreover, the growing research and development initiatives to create more advanced and efficient corrosion protective coatings are estimated to generate market growth opportunities.

Corrosion protective coatings are specialized substances used on surfaces to prevent or reduce corrosion damage. These coatings serve as a protective layer that shields the surface from corrosive factors such as moisture, chemicals, salt, and atmospheric pollutants. This helps prolong the lifespan of the material underneath and lowers maintenance expenses.

Corrosion protective coatings are extensively utilized in oil and gas, marine, automotive, aerospace, infrastructure, and manufacturing industries. They are available in diverse forms, such as epoxy, polyurethane, acrylic, and alkyd-based coatings, and can be applied using various procedures, such as spraying, brushing, or dipping. The coatings provide corrosion resistance, durability, and adhesion capabilities to safeguard metal surfaces and structures in challenging conditions.

Highlights 

• Epoxy dominates the type segment
• Asia-Pacific is the largest shareholder in the global market

Market Dynamics

Corrosion Protective Coatings Market Drivers

Economic Loss Due to Corrosion 

Corrosion globally results in annual losses totaling USD 5,000 billion. Industry estimates indicate that over the past 30 years, corrosion has incurred an annual direct cost of around 3.1% of a country's gross national product (GNP). Corrosion-related economic losses can be categorized as direct or indirect. Countries can avert losses and save significant capital by utilizing corrosion protection coatings.

Companies in the industry can save expenses by avoiding direct costs like replacing damaged machinery parts, labor costs for repairs, expenses for repairing structures, costs for galvanizing or nickel-plating steel, and expenses for adding corrosion inhibitors to water or other environments. Indirect losses include losses to machinery that compel companies to shut down and, ultimately, affect the overall economy. Therefore, these factors contribute to the expansion of the global market.

Corrosion Protective Coatings Market Restraint

Environmental Concerns 

Environmental concerns significantly limit the corrosion protective coating market since typical coating formulas contain volatile organic compounds (VOCs) and harmful chemicals. Companies must adhere to severe environmental standards due to regulatory constraints that target the reduction of air and water pollution and promoting human and environmental safety. Noncompliance with these regulations may lead to fines, legal responsibilities, and harm to one's reputation.

Furthermore, the rising awareness of sustainability and eco-friendly activities among consumers and enterprises is boosting the demand for environmentally sustainable coating solutions. Market participants are pressured to create and market low-VOC or VOC-free coatings, water-based formulations, and alternative materials that reduce environmental effects. The shift to eco-friendly coatings would necessitate substantial investments in research and development, production procedures, and regulatory adherence, which could affect profitability and market competitiveness.

Corrosion Protective Coatings Market Opportunities

Increasing Research and Development

Ongoing research and development efforts lead to advanced corrosion protective coatings with improved performance characteristics. For instance, in February 2023, researchers at ETH Zurich created an exceptional corrosion protection material, Poly (phenylene methylene), which can be applied like paint, heated, and sprayed onto a surface where it solidifies. The polymer reveals holes and cracks in the protective layer by not emitting fluorescence. It automatically heals any damage without needing additional external assistance. The polymer can be entirely extracted and recycled at the end of a product's lifespan with minimum material loss.

Furthermore, in August 2023, scientists at the Max-Planck-Institut für Eisenforschung (MPIE) created a machine learning model that improves the accuracy of predicting corrosion behavior by up to 15% compared to current frameworks. This model reveals novel yet practical corrosion-resistant metal compositions. Its unique strength comes from combining numerical and verbal data. This model was first created to combat pitting corrosion in high-strength alloys but can now be applied to analyze all properties of alloys. This creates opportunities for market expansion.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global corrosion protective coatings market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global corrosion protective coatings market shareholder and is expected to expand substantially during the forecast period. 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, 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 globally, with many players operating in the regional market. Most manufacturers in the country hold the advantage of backward integration. However, as the sector expands, new competitors seek to join the market and take advantage of low labor and raw material costs.

Furthermore, government and non-government agencies are employing corrosion protective coatings in several infrastructure development projects to enhance the protection of several components. For instance, Mumbai experiences substantial water loss daily due to pipeline ruptures. Brihanmumbai Municipal Corporation's hydraulic department (BMC) initiated the procurement process to apply a three-layer anti-corrosion epoxy coating to rusty water pipelines in August 2023 to address the issue and extend their lifespan. The process of epoxy pipe coating includes coating pipes, tanks, and other containers with a layer of epoxy resin. This coating safeguards the internal surfaces of the pipes against corrosion and chemical degradation while enhancing fluid flow. These factors boost the regional market's growth.

North America is a significant market for corrosion protective coatings, driven by infrastructure development, industrial growth, and stringent regulatory standards. The United States is a key contributor to market growth, with demand stemming from oil and gas, transportation, and marine sectors. The direct cost associated with corrosion losses in the United States exceeds USD 1 trillion annually. The U.S. Department of Defense incurs corrosion expenses totaling USD 20 billion. This is expected to foster the regional market growth.

Furthermore, the key market players are introducing novel corrosion protective coatings to enhance their market share. For instance, in June 2023, AkzoNobel's Powder Coatings unit introduced a new line of Interpon Redox high-performance primers for steel and other metal goods in the North American market to address corrosion issues. The new Interpon Redox range provides superior corrosion protection in challenging substrates and environments, particularly in coastal locations and regions with high humidity. Such factors are estimated to propel North America's corrosion protective coatings market.

Segmental Analysis

The global corrosion protective coatings market is segmented by type, technology, and industry.

Based on type, the global corrosion protective coatings market is divided into epoxy, polyurethane, alkyd, and inorganic zinc. 

The epoxy segment dominates the global market. Epoxy corrosion protective coatings are a type of protective coating that contains epoxy resins as the primary binding agent. These coatings are widely used in various industries to protect metal substrates from corrosion, chemical damage, and abrasion. Epoxy coatings offer excellent adhesion to metal surfaces, forming a strong and durable protective barrier. In February 2024, scientists found that electrophoretic epoxy coatings have improved corrosion protection performance. The incorporation of amino-functionalized graphene oxide leads to improved corrosion protection performance of electrophoretic epoxy coatings. Thus, epoxy corrosion protective coatings are popular for protecting metal surfaces and structures in industries where corrosion prevention is critical for maintaining asset integrity and longevity.

Based on technology, the global corrosion protective coatings market is divided into solvent-borne, waterborne, and powder coatings.

Waterborne corrosion protective coatings are a type of protective coating formulation where water serves as the primary solvent or carrier instead of traditional organic solvents. These coatings contain resins, pigments, additives, and other ingredients dispersed in water to form a stable emulsion or solution. Waterborne coatings are gaining popularity due to their environmental friendliness, low VOC content, and compliance with stringent regulatory standards.

Waterborne coatings are compatible with existing application equipment and processes, allowing easy integration into manufacturing operations. They can be applied using conventional spray, brush, or roller methods and more advanced techniques such as electrostatic spraying. Moreover, waterborne corrosion protective coatings offer an effective solution for protecting metal substrates from corrosion damage, meeting the growing demand for sustainable coating technologies in various industries.

Based on industry, the global corrosion protective coatings market is bifurcated into marine, oil and gas, automobile, paper and pulp industries, infrastructure, power generation, and others. 

The marine industry is a key end-user 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.

Impact of covid-19

Recent Developments

In February 2023, PPG introduced the PPG STEELGUARD 951 coating, offering efficient corrosion protection in highly corrosive atmospheric conditions up to ISO 12944 C5 without requiring an additional top coat. This feature helps in saving time and expenses during projects.

June 2023: Zentek Ltd., a firm specializing in graphene technology, created a new corrosion protection technology using functionalized graphene oxide over the past two years. ZenARMORTM provides exceptional performance, self-healing capabilities, and a possible environmental benefit.