High-Performance Anti-Corrosion Coatings Market - Forecast(2024 - 2030)

High-Performance Anti-Corrosion Coatings Market Overview

The High-performance Anti-corrosion Coatings Market size is forecast to reach US$9.1 billion by 2027, after growing at a CAGR of 5.3% during the forecast period 2022-2027. High-performance anti-corrosion coatings can be categorized into epoxy, zinc phosphate, vinyl esters, phenolic, polyurethane alkyd resin, and more. It is used in a wide range of industries which include oil and gas, infrastructure, power generation, building & construction, automotive, and other industries. According to the German Association of the Automotive Industry (VDA), the global expenditure rose to US$ 51.5 billion in 2020, out of which the German automotive industry accounts for more than one-third of total global R&D expenditure in the automotive sector. In 2019, the Florida Public Service Commission commenced a combined project for the development of two new gas-fired power plants in order to meet the future power demand of cooperative electric consumers, which is scheduled to be completed by the end of 2022. An increase in demand from the automotive and power generation sectors acts as the major driver for the market. On the other hand, fluctuating prices of raw materials including resins, titanium oxides, solvents, pigments, and additives are likely to obstruct the market and hinder its growth.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced construction, and production activities as a result of the country-wise shutdown of construction sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, a slow recovery in new development and construction contracts has been witnessed across many countries around the world since 2021. For instance, according to the General Statistics Office (GSO) of Vietnam, the building & construction industry recorded a growth of 5.7% during the third quarter of 2020, and up to 5.5% during the fourth quarter of 2020. Furthermore, in order to encourage the private investors, the government also offered incentives to developers for the construction of affordable houses and has set aside US$1.3 billion for the construction of affordable houses in the country during the period of 2018 to 2022.

In this way, a steady increase in building and construction activities is expected to increase the demand for high-performance anti-corrosion coatings such as zinc phosphate, and epoxy coating for use in the metal structures that are used to support the entire building for high strength, durability, and corrosion protection. This indicates a slow and steady recovery of the market in the upcoming years.

Report Coverage

The report: “High-performance Anti-corrosion Coatings Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the High-performance Anti-corrosion Coatings Industry.

By Resin Type: Epoxy, Zinc Phosphate, Vinyl Esters, Polyurethane, Alkyd, Thermoplastic, Chlorinated Rubber, Fluoropolymer, Phenolic, Polytetrafluoroethylene (PTFE), Others.
By Coating Technology: Water-borne, Solvent-borne, Powder, UV-curable.
By End-Use Industry: Oil and Gas, Infrastructure, Automotive, Power Generation, Marine, Building & Construction, Aerospace, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• The Epoxy Resin held the largest share in the high-performance anti-corrosion coatings market in 2021. Its wide range of characteristics, corrosion resistance, and heat resistance properties made it stand out in comparison to other resins in the market.
• Water-borne coating technology in High-performance Anti-corrosion Coatings Market is expected to see the fastest growth, especially during the forecast period, owing to its increasing demand and benefits over other types of high-performance anti-corrosion coating technology.
• Asia-Pacific dominated the High-performance Anti-corrosion Coatings Market in 2021, owing to the increasing demand for high-performance anti-corrosion coatings from the infrastructure sectors of the region. In November 2021, the Ministry of Transport (MoT) of Vietnam launched 67 new infrastructure projects as part of the 2021-2025 mid-term public investment plan.

High-Performance Anti-Corrosion Coatings Market Segment Analysis – By Resin Type

The epoxy segment held a significant share in the High-performance Anti-corrosion Coatings in 2021, owing to the increasing demand for epoxy resin due to the characteristics and benefits it offers over other types of resin. For instance, it has a wide range of characteristics, easy processing, and they are less affected by heat, water, and other factors as compared to vinyl esters, phenolic, polyurethane alkyd resin, and other types of resins. Moreover, epoxy resins are easier to process, have high strength, high mechanical properties, low reduction during cure, along with high corrosion resistance, which makes them ideal for use in high-performance anti-corrosion coatings in comparison to other resins. Hence, all of these properties are driving its demand over other types of resin, which in turn, is expected to boost the market growth in the upcoming years.

High-Performance Anti-Corrosion Coatings Market Segment Analysis – By Coating Technology

The water-borne coating held the largest share in the High-performance Anti-corrosion Coatings Market in 2021 and is expected to grow at a CAGR of 5.4% between 2022 and 2027, owing to a range of advantages they offer over other types of coating technology. Waterborne coatings are surface coatings that contain 80% water and a small number of other solvents such as polyvinyl ether and glycol. It offers a wide range of properties and benefits such as excellent adhesion properties, good resistance to heat and abrasion, along with anti-corrosion properties in comparison to solvent-borne and other types of coatings. Moreover, water-borne coatings are environment friendly due to low VOC and HAP levels which makes them less toxic and flammable in comparison to solvent-borne, and other coating technology. Thus, all of these benefits are driving its demand over other types of coating technology, which in turn, is anticipated to drive the growth of the market during the forecast period.

High-Performance Anti-Corrosion Coatings Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the High-performance Anti-corrosion Coatings Market in 2021 up to 31%. The consumption of high-performance anti-corrosion coatings is particularly high in this region due to its increasing demand from the infrastructure and industrial sectors. For instance, in December 2021, the construction of the Dung Quat industrial power plant began in Vietnam. The development of the industrial power plant is expected to be completed and become operational by the end of 2023.

Furthermore, in September 2019, the Ministry of Power, India commenced the construction of the Buxar industrial power plant in Bihar. The project is scheduled to be completed by 2023. In November 2020, the Ministry of Railways, India announced its plans to complete 513 infrastructure projects including railways, expressways, ports, and more by the end of 2024.

High-performance anti-corrosion coatings are used to protect concrete, steel, and reinforced concrete structures used in industrial buildings, bridges, railways, dams, and other infrastructures from harsh environments and climate while protecting them from corrosion. Thus, an increase in the development of industrial buildings and infrastructure in the region is expected to increase the demand for high-performance anti-corrosion coating, leading to the growth of the market in the upcoming years.

High-Performance Anti-Corrosion Coatings Market – Drivers

An increase in demand from the automotive industry is most likely to increase demand for the product

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, according to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total.

High-performance anti-corrosion coatings such as vinyl esters, zinc phosphate, and epoxy coating are used in areas of vehicles that are most vulnerable to deterioration and harsh environments. It is used to protect the automobile substrate by providing a barrier between the metal and its external environment. Hence, an increase in demand and production of automobiles is expected to increase the demand for high-performance anti-corrosion coating, leading to the growth of the market in the upcoming years.

An increase in demand from the power generation industry is most likely to increase demand for the product

Power generation plants sustain high pressure and high temperatures in harsh operations and severe environmental conditions. High-performance anti-corrosion coating is used in power plants to protect critical equipment, machinery, and systems abrasion, wear, and corrosion. In 2019, the Florida Public Service Commission approved the commencement of a combined project for the development of two new gas-fired power plants in order to meet the future power demand of cooperative electric consumers. Seminole Electric Cooperative is responsible for the construction of a new 1.1 GW power plant in Putnam County, which is expected to start its services by end of 2022. Meanwhile, Shady Hills Energy Center is responsible for building a new 573 MW natural gas facility in Pasco County. Likewise, in 2019, the Comision Federal de Electricidad (CFE), a state power utility company of Mexico, approved the construction of three natural gas-fired power plants with an overall capacity of 1720 MW.

In this way, such an increase in power projects is expected to increase the demand for high-performance anti-corrosion coatings such as vinyl esters, zinc phosphate, and epoxy coating for the protection of important equipment, and machinery used in the power plants from wear, and corrosion, thus, resulting in the growth of the market in the upcoming years.

High-Performance Anti-Corrosion Coatings Market – Challenges

Fluctuating prices of raw materials including resins, titanium oxides, solvent, pigments, and additives may confine the market growth

Shortage and lack of availability of key raw materials along with a significant increase in prices are causing disruption to the coatings industries in the UK, Europe, and other regions across the world. For instance, BCF’s monthly raw material prices survey shows the largest increase in prices of solvent in January 2021 in comparison to last year. The results depicted an increase in prices of acetone by 123%, n-butyl acetate by 91%, IPA by 41%, and n-butanol by 54%. Likewise, a sharp increase in prices for epoxy resins has been seen during the first quarter of 2021, an increase of 60% in comparison to the third quarter of 2020. Other raw materials prices are also expected to increase by 2022. Hence, fluctuating prices of such raw materials may confine the market growth.

High-performance Anti-corrosion Coatings Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the High-performance Anti-corrosion Coatings Market. High-performance Anti-corrosion Coatings top 10 companies are:

1. PPG Industries Inc.
2. BASF SE
3. AkzoNobel NV
4. Nippon Paints
5. RPM International Inc.
6. Sherwin-Williams Company
7. Beckers Group
8. H.B. Fuller Company
9. HEMPEL AS
10. Jotun

Recent Developments

• In January 2022, IGL Coatings launched its clear graphene reinforced anti-corrosion coating. The new product is capable of enduring and protecting against atmospheric corrosive conditions while allowing consumers to identify early signs of corrosion defects with its transparency.
• In February 2021, PPG Industries launched PPG HI-TEMP 1027HD coating for corrosion-under-insulation applications in North America. It is a high-build product that is capable of providing excellent protection against corrosion on pipes, vessels, and construction parts when plants are in operation. It is designed to withstand severe temperature cycles ranging from -196 degrees Celsius to 540 degrees Celsius.
• In November 2019, BASF launched MasterProtect 9000, an anti-corrosion coating system that ensures 25 years of maintenance-free protection for offshore and marine structures. It offers reliable, consistent, and highly durable protection against steel corrosion.

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