Pipe Coatings Market

Rise in Oil and Gas Segment is driving market growth

In the oil and gas industry, pipes are required in petroleum offshore and onshore production and refineries. In the petroleum industry, pipes are required upstream, midstream, and downstream. Hence, it generates higher demand for pipe coatings. In the oil and gas industry, epoxy pipe coating is used extensively, as it is resistant to high temperatures, chemicals, and corrosion. Without pipeline corrosion protection, damages occur, which leads to equipment failure and loss of production time. Tubing, pipes, fasteners, and equipment are subjected to the punishing effects of chemicals, water, and sea salt spray.

Industry-standard hot-dip galvanized, cadmium, and zinc-plated coatings lack durability and deteriorate in tough offshore environments. However, metal coatings' proprietary gas pipe coating products minimize the effects of corrosion and abrasion and improve the longevity of costly equipment. With recovery prices in the oil and gas industry, exploration and production have started increasing. The major increase in oil & gas offshore exploration and production activities is noticed in the North Sea, North America, and Middle Eastern regions.

According to BP, ly, oil production in 2021 increased by about 1.6% from the previous year and is expected to increase market CAGR over the forecast period.

Additionally, the application of pipe coatings in various industry verticals and the rise of developing countries are expected to positively impact the demand for pipe coatings. The increase in demand witnessed in shale gas development is another factor expected to drive the growth of the pipe coatings market. A key trend observed is the increased usage of abrasion-resistant overlays (ARO). ARO is a coating designed to resist and withstand the toughest abrasions and surface damage. The implementation of AROs ensures better pipes' performance and increases their longevity. This driver positively affects the pipe coating market revenue during the forecast period.

Hardide Coatings, a developer of advanced surface coating technology, will introduce the first of a new line of ready-coated and upgraded components in 2024, featuring a JP-5000 4" copper nozzle for high-velocity oxy fuel (HVOF) thermal spray painting. The tungsten/tungsten carbide-based Hardide chemical vapor deposition (CVD) coating has been shown to increase the operational life of HVOF thermal spray copper nozzles by 5 to 40 times when spraying carbide or metallic-based powders. The ready-coated nozzles have O-rings that can tolerate greater temperatures over extended durations of service.

The Global Pipe Coating Market Industry is projected to experience substantial growth in the coming years. With an anticipated market size of 9.8 USD Billion in 2024, the industry is expected to expand significantly, reaching 16.8 USD Billion by 2035. This growth trajectory indicates a compound annual growth rate of 5.01% from 2025 to 2035, reflecting the increasing demand for advanced coating solutions across various sectors. The market's expansion is likely to be fueled by factors such as infrastructure development, technological advancements, and the need for sustainable practices.

The oil and gas sector remains a crucial driver for the Global Pipe Coating Market Industry, as it requires robust and reliable pipe systems to transport hydrocarbons safely. The increasing exploration and production activities in offshore and onshore oil fields necessitate the use of high-performance coatings that can withstand harsh conditions. As the sector expands, the demand for specialized coatings that provide corrosion resistance and thermal insulation is expected to rise. This trend is likely to contribute to the market's growth trajectory, aligning with the projected increase to 16.8 USD Billion by 2035.

The expansion of water and wastewater management systems is a significant factor influencing the Global Pipe Coating Market Industry. With urbanization and population growth, there is an escalating need for efficient water distribution and wastewater treatment systems. Pipe coatings play a vital role in ensuring the longevity and reliability of these systems by preventing corrosion and biofouling. As municipalities and industries invest in upgrading their infrastructure, the market is poised for growth, potentially reaching 9.8 USD Billion in 2024, driven by the need for effective pipe coating solutions.

The Global Pipe Coating Market Industry is experiencing a surge in demand driven by extensive infrastructure development projects worldwide. Governments are increasingly investing in transportation, water supply, and energy sectors, necessitating the use of durable and corrosion-resistant pipes. For instance, the global infrastructure investment is projected to reach approximately 9.8 USD Billion in 2024, highlighting the growing need for effective pipe coating solutions. This trend is likely to continue, as the industry anticipates a compound annual growth rate of 5.01% from 2025 to 2035, further propelling the demand for advanced pipe coating technologies.

Technological innovations in coating materials and application techniques are significantly influencing the Global Pipe Coating Market Industry. The introduction of advanced polymer coatings and nano-coatings enhances the performance and longevity of pipes, making them more resistant to environmental factors. These advancements not only improve the efficiency of coating processes but also reduce costs associated with maintenance and replacement. As a result, the market is expected to grow to 16.8 USD Billion by 2035, as industries increasingly adopt these innovative solutions to meet stringent regulatory standards and enhance operational efficiency.

The Global Pipe Coating Market Industry is increasingly shaped by stringent environmental regulations and a growing emphasis on sustainability. Governments and organizations are implementing policies that mandate the use of eco-friendly materials and processes in various industries. This shift towards sustainability is driving the demand for environmentally friendly pipe coatings that minimize environmental impact while maintaining performance. As industries adapt to these regulations, the market is likely to see a rise in the adoption of sustainable coating solutions, which could contribute to the projected growth of 16.8 USD Billion by 2035.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North American pipe coating market, due to the easy access & abundance of shale gas and newly discovered reserves of oil, will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: PIPE COATING MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's pipe coating market accounts for the second-largest market share due to the presence of the manufacturing sector. This leads to the requirement for process pipes, increasing demand for process pipe coatings. Further, the German pipe coating market held the largest market share, and the UK pipe coating market was the fastest-growing market in the European Region.

The Asia-Pacific pipe coating market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to the increasing demand for pipeline infrastructure from the oil and gas, chemical, mining, water and wastewater, agriculture, and construction industries. Moreover, China’s pipe coating market held the largest market share. The Indian pipe coating market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the pipe coating to the market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Pipe Coating industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the pipe coating industry to benefit clients and increase the market sector. The pipe coating industry has offered the military some significant advantages recently. Major players in the pipe coating market, including Axalta Coating Systems Ltd., Akzo Nobel N. V, The Sherwin-Williams Company, ShawCor, PPG Industries Inc, and others, are attempting to increase market demand by investing in research and development operations.

Sherwin-Williams Company is an American Cleveland, Ohio–based Company in the paint and coating manufacturing industry. Henry Sherwin and Edward Williams founded the Company. The duo went on to shape an industry and create a legacy. With stores, distribution centers, and facilities spanning the globe, they can deliver the best paints, coatings, and related products to the world. The Sherwin-Williams Company announced that it had completed its acquisition of the European industrial coatings business of Sika AG. The acquired business will become part of Sherwin-Williams’ Performance Coatings Group operating segment.

Shawcor Ltd is a Canadian oilfield Services Company based in Toronto, Ontario, and listed on the Toronto Stock Exchange. It specializes in providing services to the pipeline sector of the oil and gas market. It is one of the largest pipe-coating providers in the world. In 2017, it had a revenue of $1.56 billion. Shawcor Ltd. began a new plant in Shanghai, China, to manufacture various organically modified specialty silicones. Products produced in batch processes are used in applications involving polyurethane, paints, and coatings and in several industrial applications.