ID: MRFR/CnM/3546-CR | July 2018 | Region: Global | 141 pages
As per the analysis conducted by Market Research Future (MRFR), the Global Pipe Coating Market is expected to acquire a market value of USD 15,968.4 Million while expanding with a CAGR of 5.18% by 2023.
The demand for the transport of liquids over long distances has increased, which has led to the construction of pipelines on land and in the seas. The network of pipelines allows the movement of liquids like sewer, water, crude oil, and petroleum products and natural gas. The demand for coatings has increased with the increasing number of pipelines to transport various commodities for the distribution centers. The importance of coatings for pipes is very high globally because unchecked corrosion of the pipe’s wall can lead to service interruptions, leaks, and even explosions.
The prevailing pandemic across the globe has posed severe threats to the expansion of the global market for pipe coating. The lockdown enforced by several countries has negatively affected the pipe coatings industry. The logistics and supply chains have been disrupted. However, the market is expected to witness expansion in the future.
The market is expected to witness growth due to the increasing investments made by the governments of evolving countries towards water & wastewater treatment facilities. Furthermore, the demand for sewage treatment has also been rising due to rapid urbanization and the surging technological advances in the pipe coatings market.
Drivers
Increasing Construction and Infrastructural Facilities to Favor the Market Expansion
The growing construction and infrastructural facilities in the developing economies globally have accelerated the energy demand significantly, which is expected to favor the pipe coatings market. The need to transport oil that is produced subsequently is expected to augment the pipe coatings industry positively. The manufacturing firms in the pipe coating market are expected to be backed by the favorable government regulations in certain regions, including foreign direct investment (FDI) policies and reduced taxes that can fuel the augment the pipe coating market share.
Opportunities
Adoption of Green Coatings can Offer Lucrative Opportunities
The growing adoption of green coatings and mobile coating technology can offer various lucrative opportunities for the expansion of the pipe coatings market.
Restraints
Expenses associated with Pipe may hamper the Market Growth
The high expenses associated with the pipe coating is anticipated to hinder the market growth during the forecast period. In addition, the high content of VOC in the coatings is likely to be another significant factor that can reduce the pipe coatings market size.
Challenges
Fluctuating Prices of Oil may pose a Challenge to the Market
The volatility of the price of oil and its derivatives are expected to pose a challenge to the market, which is likely to hinder the industry growth in the coming period.
Cumulative Growth Analysis
The Market is Expected to Grow Significantly in the Assessment Period
The market is likely to show significant growth in the assessment period owing to the growing initiatives taken to launch new products and rising partnerships and collaborations.
By Product
Based on product, the global market for pipe coating is segmented into Fusion Bonded Epoxy, Metallic Coatings, Concrete Coatings, and Thermoplastic Polymer Coatings. The concrete coatings and thermoplastic polymer coatings are further sub-segmented into polyethylene (P.E.), polytetrafluoroethylene (PTFE), polypropylene (P.P.), and polyurethane (P.U.). The fusion-bonded epoxy is expected to gain prominence to protect steep pipe used in pipeline construction, valves, and others.
By Form
The market is segmented into Liquid and Powder. Between the two, the powder coating is expected to offer better durability and is environmental-friendly due to the absence of VOCs.
By Surface Type
Based on surface type, the global market for pipe coating is segmented into External and Internal. The interiors coatings are applied to the interiors of pipes that are maybe carrying corrosive fluids, while external coatings are majorly used where soil, water, and air pose a significant challenge.
By End-Use
Based on the end-use, the global market for pipe coating is segmented into Chemical Processing Marine, Water & Water Treatment, Oil & Gas Industry, and Others. Among all, the oil & gas industry segment is expected to dominate the market during the assessment period.
APAC region to lead the Global Market for Pipe Coating
APAC region is expected to acquire a market value of 11,525.9 kilotons while expanding at a CAGR of 5.13% by 2023. The increasing demand for energy in the region is expected to be a key factor that can fuel the regional market. The rising government expenditure on new pipelines for water and water treatment industry and the oil & gas industry is also expected to contribute to the market expansion. Among all APAC nations, China is expected to make the most significant contribution, followed by India and Japan. China is likely to expand at a CAGR of over 6% during the forecast period, while India is expected to grow at a CAGR of 5.5%.
Europe is expected to procure the second position in the global market for pipe coating. In the region, Germany and Russia are expected to be the most lucrative nations responsible for an important share of the region. The demand for pipe coating in this region is accredited to the rapid expansion of the oil and gas industry together with the growing new pipelines in the region. The European market is anticipated to expand at a CAGR of over 4.10 percent during the forecast period. However, the imposition of stringent E.U. regulations is a significant barrier to the market’s growth.
Meanwhile, the North American region and is anticipated to display a stable CAGR over the review period. Countries in the region, such as; the U.S., Mexico, Canada, are expected to make a promising contribution that may augment the regional market.
The Middle East and Latin American region, on the other hand, are expected to demonstrate sound growth during the forecast period.
The Competition in the Market is expected to strengthen in the Coming Period
The key players operating in the steel pipeline coatings market are making substantial investments in R&D to develop and innovate high-performance coatings, which can strengthen the prevailing competition.
Industry News
December 2020: Perma-Pipe International Holdings, a US-based pipe services company, announced its subsidiary, Perma-Pipe Egypt, has been awarded USD 6 million in contracts by China State Construction Engineering Company for the provision of field joints, thermally insulated pipe, and leak detection system. The project is to be carried out in the Centraal Business District of the New Administrative Capital of Egypt.
Report Overview
The global market for pipe coating is expected to grow significantly during the forecast period owing to the increasing launch of new products and the growing need for pipe construction.
Frequently Asked Questions (FAQ) :
The global pipe coatings market size can touch USD 15,968.4 million by 2023.
The global pipe coatings market stood at USD 11,800 million in 2017.
The global pipe coatings market is expected to expand at 5.18% CAGR from 2018 to 2023.
The oil & gas industry drives the global pipe coatings market.
Arkema SA, BASF SE, Shawcor, 3M, AkzoNobel N.V, The Bayou Companies, LLC, Wasco Energy, Tenaris, PPG Industries, Inc, The Sherwin-Williams Company, Specialty Polymer Coating Inc, DowDupont Inc, LyondellBasell Industries Holdings B.V, and Axalta Coating Systems Ltd are key players of the global pipe coatings market.
Valued at USD 11.85 billion in 2017, the global pipe coating market is expected to grow to value USD 15.96 billion by the end of 2023 and witness a moderate CAGR of 5.18% during the forecast period of 2018 to 2023. The increasing demand for pipe coatings in the chemical processing industry and the growth of related industries is expected to drive the global market toward an upward trend.
Increasing energy demands has greatly augmented oil & gas activities across the globe. This industry employs the extensive use of pipes, which are a cost-effective method of transportation and storage. In order to ensure longevity and reduced effects of corrosion, pipe coatings are used both internally and externally. The oil & gas industry is expected to be a key driver of market growth during the assessment period as pipes are used for product refining lines, CO2 & water injection lines, transportation of crude & natural gases. Additionally, the growth of crude and natural gas trade has created the need for well-connected pipelines, particularly in regions with emerging economies. Use of pipe coatings to ensure the quality of the pipes and to maintain the quality of the transported material is vital, thus facilitating market growth. Globally there is a prevalence of urbanization with emerging economies experiencing rapid urbanization. The growing demand for appropriate sewage and water treatment processes in these emerging economies is expected to drive pipe coatings market growth. Pipe coatings are crucial in pipes used for sewage and water treatment facility networks as the constant contact of water is likely to increase the risk of corrosion, pipe coatings mitigate this problem. Market players have developed coatings specific to the use of the pipe. For instance cement mortar, coal tar enamel and liquid applied epoxy are used primarily in water transport pipes. Growing global population, increased demand for energy and other consumables have increased the need for well-connected pipes which are properly coated for protection.
Several raw materials are used to create different types of pipe coatings for different purposes. Pigments, dispersants, curing agents, binder & resins, solvents, and additives are some of the raw materials that are used extensively in the development of pipe coating products. The prices of these raw materials are often unstable and tend to fluctuate with a tendency for the price to move upwards making them somewhat expensive. This directly affects the pipe coatings market as these raw materials are crucial, the increasing prices of raw materials are likely to result in increased prices of the final product which in turn, affects the demand for pipe coatings negatively. However, investment in research and development activities has brought about the development of mobile coating technologies which substantially reduced logistic costs incurred in the transportation of pipes. The innovation in the coatings process is leading to the discovery of considerable opportunities for the global market. Another significant factor encouraging expansion of the pipe coatings market is the growing concern regarding the environment which has led end-users to demand products with low emission of volatile organic compounds. The shifting preference for coatings that contain low VOC is expected to facilitate the development of innovative products that meet these demands.
The global pipe coating market is segmented on the basis of product type, surface type, form, end-use, and region. By product type, the market is segmented into thermoplastic polymer coatings, fusion bonded epoxy, metallic coatings, concrete coatings and others. The thermoplastic polymer segment accounts for the largest share of the total market due to a resistance to abrasion and corrosion which makes this material and its various varieties ideal for use in oil & gas pipelines.
By surface type, the market is segmented into internal and external. By form, the market is segmented into liquid and powder. Of these, powder coatings are expected to possess the majority share due to restriction on the use of solvent-based coatings and growing environmental concerns worldwide.
By end-use, the market is segmented into oil & gas industry, marine, water & water treatment, chemical processing and others. The Oil and gas industry is expected to be the biggest consumer of pipe coatings as the industry is growing considerably to meet increasing energy demands. The oil & gas segment is projected to witness a CAGR of 5.28% during the assessment period.
Regional Analysis
The pipe coating market is led by the Asia Pacific, which is additionally projected to be the fastest growing region in the global market during the review period. Rapidly growing oil & gas and chemical processing industries in this region are expected to be major contributors to market growth. Moreover, the region is making substantial investments in renovation and implementation of new pipelines. The region is witnessing increasing industrialization due to the availability of cheap labor and lower overall operating costs; this is set to increase demand for pipe coatings during the forecast period.
Europe accounts for the second largest market and is closely followed by North America. Both regions have similar growth patterns, and the market for pipe coatings have reached some degree of maturity thus shifting the focus toward developing economies. However, ongoing renovations of infrastructure and the presence of several key players in the region that invest in the development of novel products are responsible for the significant positions that these regions maintain.
Competitive Tracking
The competitive landscape of the global pipe coating market includes various leading players who implement various strategies to promote market growth. Innovations of the existing pipe coating technology and the development of pipe coatings with highly desirable traits are some of the strategies used by prominent players. Profiled extensively in the report are market leaders such as AkzoNobel N.V., Axalta Coating System Ltd., Trnaris, Shawcor, and LyondellBasell. Other important market players that have been analyzed include 3M, The Sherwin-Williams Company, BASF SE, Wasco Energy and Arkema among others.
Global Pipe Coating Market: Competitive Landscape
Some of the prominent players covered in the global pipe coating market report are Covestro AG, AkzoNobel N.V, Arkema SA, 3M, The Sherwin-Williams Company, Axalta Coating Systems Ltd, Specialty Polymer Coating Inc, DowDupont Inc, BASF SE, PPG Industries, Inc, Shawcor, Wasco Energy, LyondellBasell Industries Holdings B.V, The Bayou Companies, LLC, and Tenaris. Among the above-mentioned companies, AkzoNobel N.V, Tenaris, Shawcor, Axalta Coating System Ltd, and LyondellBasell are the major players operating in the global pipe coatings market.
The global market for pipe coatings consists of many proficient players. Therefore, most of the manufacturers are substantially investing in research and development. Some of the key industry players adopt various organic and inorganic strategies to keep their domination intact in the market. The producers have adopted various strategies such as acquisition, product innovation, joint ventures, capacity expansion, and agreements as part of their business survival strategies.
AkzoNobel N.V. is one of the leading producers of pipe coating across the globe. The company is headquartered in the Netherlands and having presence in 80 countries across the globe. The company has a wide range of products in the coatings market and is considered to be the largest manufacturer of powder coatings in the world. In terms of pipe coatings, their powder coating product range RESICOT offers superior performance and has a lower carbon footprint. AkzoNobel also has Universal Pipe Coating (UPC) product INTERBOND, which has an excellent temperature range of -196°C to 205°C with enhanced corrosion protection abilities in uninsulated as well as insulated environments. The company operates mainly in three segment specialty chemicals, performance coatings, and decorative paints with a major geographical foothold in Europe, Asia Pacific, and North America among others. The company generated 40% revenue in the performance coating segment in 2017 and has a workforce of over 40,000 across the globe.
Tenaris engages in the manufacturing and supplying of steel and other pipeline products and services mainly to the energy industry. The company operates mainly through two segments namely tubes and others. The tuber is the major segment generating of revenue of over 93% in 2017. The tube segment includes the production of both seamless and welded tubular products and related services, particularly for the oil and gas industry. The company is headquartered in Luxembourg and has a workforce of over 21000. Tenaris operations are spanned across the globe with steelmaking, pipe rolling and forming units in more than 15 countries and has research and development facilities and product testing facilities in over 25 countries.
Shawcor is a leading energy service company specialized in products and services for pipelines and pipe services. The company mainly operates through two business segments namely pipeline & pipe services and petrochemical & industrial segment. The company provides pipe coatings, insulation coatings, custom coatings, and joint field applications for both offshore and onshore applications. The company’s major strategy is to make a substantial investment for the technological up gradation in the forthcoming years. It is one of the largest pipeline product and service providers with over 85 years of pipeline service experience. The company operates its network with the workforce of around 6000 across the globe.
Axalta Coating System Ltd. along with its subsidiaries is involved in the manufacturing of coating solutions for vehicles, industrial, and refinish applications. The company operates in two business segments: transportation coating and performance coating group. Axalta’s product NapGard® is a leading choice in the global fusion bonded thermosetting epoxy coating among various end-use industries including oil and gas. The company has over 150 years of experience in the coating industry. Moreover, it has 51 manufacturing units, 4 global technology centers, and global presence in more than 130 countries. The company was founded in 1866 and has a major presence in the U.S., the Middle East, and China.
LyondellBasell Industries Holdings B.V, a subsidiary of LyondellBasell, is chemical company headquartered in the Netherlands. The company operates through five segments: Olefins and Polyolefins–Americas, olefins and polyolefins–Europe, intermediates and derivatives, and refining & technology. It has a major presence in the U.S. and Germany. The company is focusing on constant capacity expansion and innovation to extend their market dominance. However, the presence of stringent regulations on the VOC content of coatings is a major threat to its business.