Oil and Gas Corrosion Protection Market Size, Share & Trends Analysis Report By Type (Coatings, Paints, Inhibitors), By Location (Onshore, Offshore), By Sector (Upstream, Midstream, Downstream), And Segment Forecasts, 2018 - 2025

Industry Insights

The global oil and gas corrosion protection market size was estimated at USD 8.01 billion in 2015 and is expected to experience significant growth over the forecast period, primarily owing to the rising need for transportation and supply infrastructure in the O&G industry.

The global market is projected to grow at a CAGR of 4.3%, from 2016 - 2025 to reach USD 12.22 billion by 2025. This growth can be attributed to the additional benefits such as durability and toughness offered by epoxy-based coatings. North America and MEA together account for more than half of the global market size. Rapid infrastructural development and technological advancements in the O&G sector are expected to further fuel the demand over the forecast period.

U.S. oil & gas corrosion protection market, by type, 2014 - 2025 (USD Billion)

The oil & gas industry consumes these products in both the locations such as onshore and offshore for various activities such as exploration, transportation, and refining. Protection of most ferrous components in both offshore and onshore locations requires protection as they get older and become more vulnerable to the rusty surroundings. For the transportation or supply of products such as crude oil, natural gas, and intermediate products, cheaper mode of transportation such as pipelines is being increased in the past few years and this factor is expected to propel the market growth over the forecast period.

However, using corrosion protection products can pose safety and health issues to the operators. Owing to these concerns, various regulatory bodies such as OSHA, NACE, and others have imposed stringent regulations for operators’ safety and usage of the products over certain limits. NACE has designed the standards for the accommodation of methods that qualifies the quality of coatings. applied internally and externally to the pipelines which need repairs.

The oil and gas corrosion protection market has been segmented into different types such as coatings, paints, inhibitors, and others. Coatings segment accounted for the highest share globally with a revenue of USD 2.86 billion in 2015 and is expected to remain the largest segment by 2025. Coatings made from various materials including epoxy, alkyd, polyurethanes, and acrylic are used on pipelines and other components. Epoxy resin is the most preferred material used in the manufacturing of these coatings. Various factors considered in the formulation of epoxy resin based coatings include metal type, rate of flow, viscosity, flammability, and physical location.

The regional market is mainly dominated by North America and MEA, with the presence of major O&G exploration markets such as the U.S., and Saudi Arabia. Government initiatives coupled with infrastructural developments in these countries are further propelling the growth of the market in these regions.

Sector Insights

The upstream sector of the O&G industry involves activities such as exploration and production of crude oil and natural gas. These activities primarily include drilling of exploratory wells, making requisite operations, and bringing natural gas and other products to the ground surface. For these activities, various components require protection as they get older. Carbon steel is extensively used in this industry especially for pipelines and it gets freely corrodes when it comes into contact with water, which is produced with the natural gas and crude oil from underwater reservoirs.

The midstream sector consists of transportation activity of crude oil and natural gas. These products are transported by various medium including pipelines, tankers, tank cars, and trucks. The outer surface of the tanks or pipelines is prevented from the atmospheric corrosion with the help of coatings and cathodic protection.

In the downstream sector, during the refinery operations, most of the corrosion occurs due to the presence of water, H2S, CO2, sodium chloride, and sulfuric acid. In downstream, deterioration occurs due to curing agents that are present in crude oil or feedstock and are associated with process or control. To prevent such corrosion, various products including coatings, inhibitors, cathodic protection, and paints are used.

Regional Insights

The North America and MEA region are projected to contribute to market growth in the coming years primarily fueled by the need for transportation/supply infrastructure and technological innovations for the corrosion detection in various countries including U.S., Canada, Saudi Arabia, UAE, and others. The applications in the oil & gas sector such as upstream, midstream, and downstream have been experiencing significant growth in these countries over the past few years.

Global oil & gas corrosion protection market, by region, 2015 (%)

The upstream sector in North America is the prominent factor fueling the growth of the corrosion protection market in the O&G industry, which is mainly driven by growing demand for energy across the globe. MEA accounted for USD 2.56 billion in 2015 and is projected to grow at the rate of 4.5% between 2016 and 2025. The infrastructural development in oil producing countries such as Saudi Arabia, UAE, Kuwait, and others are propelling the growth of the market over the forecast period.

Oil and Gas Corrosion Protection Market Share Insight

The key players in the global market include The 3M Company, AkzoNobel N.V, Jotun A/S, Hempel A/S, Jotun A/S, Axalta Coating System Ltd., The Sherwin-Williams Company, Kansai Paints Co. Ltd., RPM International, Inc., Aegion Corporation, Ashland Inc., and BASF SE. The industry is characterized by merger & acquisitions as the players are focusing on increasing their market presence. In December 2016, AkzoNobel completed its acquisition of BASF India’s industrial coatings business which helped the company to focus on its coating businesses and decorative paints business.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the Oil and Gas Corrosion Protection market on the basis of Type, Location, Sector, and region:

• Type Outlook (Revenue, USD Million; 2014 - 2025)

  • Coatings

  • Paints

  • Inhibitors

  • Others

• Location Outlook (Revenue, USD Million; 2014 - 2025)

  • Offshore

  • Onshore

• Sector Outlook (Revenue, USD Million; 2014 - 2025)

  • Upstream

  • Midstream

  • Downstream

• Regional Outlook (Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Russia

    • Norway

    • UK

  • Asia Pacific

    • China

    • Australia

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa