The market for Industrial Coatings is anticipated to register a CAGR of over 4% during the forecast period. Factors such as growing demand for high durable products and increasing application of powder coatings are expected to offer numerous opportunities for growth in the industrial coatings market.
- Increasing Demand for Protective Coatings and growing usage of corrosion coatings are augmenting the growth of the market.
- Harmful environmental impact of solvent-borne coatings is likely to hinder the market’s growth.
- Rising demand for high durable products are projected to act as an opportunity for the market in future.
Key Market Trends
Increasing applications in Oil and Gas Industry
- Oil and Gas segment includes oil and gas exploration, production and refining facilities in offshore and onshore platforms, refineries, pipelines, gas pipelines, petrochemical units, and storage terminals. The oil and gas industry uses protective coatings in both the upstream and downstream segments for the movement of oil and gas toward the refineries. In this industry, various types of protective coatings are used, such as anti-corrosion, heat-resistant, abrasion-resistant, fire-resistant, and others.
- The industry has been trying to find ways to cut capital charges. This, along with the need to adhere to strict environmental regulations, has led to demand for a coating system with a long life, which will be effective in the protection of the assets.
- Furthermore, offshore oil and gas production has some of the most demanding conditions. Therefore, coating systems used there must be equipped likewise. Offshore, there is prolonged exposure to penetrating UV rays and constant contact with rough seawater, which increase the need for protective coatings. Also, protective coatings are also applied to pipelines. Without pipeline corrosion protection, the annual cost of oil and gas corrosion damages, due to lost production time and equipment failure, can be stellar.
- Additionally, countries such as United States, Saudi Arabia, Russia, China, Canada, among others are the major countries contributing to the growth of the oil and gas industry.
- All the aforementioned factors are expected to drive the global market during the forecast period.
India Likely to Increase the Demand for the Market
- In Asia-Pacific region, India is one of the dominating country. The market is majorly driven by the availability of low labor at low cost, low raw material prices, and the growing urban population in the region.
- The construction sector has also been increasing in India with a faster rate supported by government investments for infrastructure development; new projects like metros, bridges, and buildings are being constructed across the country.
- The government policy of ‘Make in India’ has led to growing FDI in the manufacturing sector in the country which has led to the advancement of various industries. This in turn has boosted the market for industrial coatings in the country.
- India wants to reform its power generation sector, including upgrades to energy infrastructure and plans to introduce new technology to make its electricity supply more reliable and resilient. This could cost almost INR 2.5 trillion (USD 35 billion) over the forecast period. The manufacturing and investment of new facilities on the power generation sector are expected to contribute to the demand for the protective coatings market in the country.
- Hence, the aforementioned factors are driving the demand for the protective coatings. This, in turn is increasing the demand for paints and coatings market in the country.
The global market for Industrial coatings segment is a consolidated market among the top players accounting for major share of the market. Major Players include Jotun, Akzo Nobel NV, PPG Industries, The Sherwin-Williams Company, Axalta Coating Systems and Nippon Paint ( NIPSEA GROUP). amongst others.
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