Witnessing robust expansion over 2019 - 2029, the global market for oil and gas pipeline coatings will reach the revenues worth US$7 billion towards 2029 end. Growing offshore exploration and production activities, stabilising crude oil prices, rise in cross-country pipeline projects and rehabilitation of existing pipelines are some of the key factors that would majorly account for increasing demand for oil and gas pipeline coatings in the market.
Oil and gas pipeline coatings market key takeaways
- Fusion bonded epoxy (FBE) coatings, attributing to their low coefficient of friction and low permeability, create a tight barrier that prevents permeation of cold and hot liquids. This property would continue to position them as a preferred choice for oil and gas pipeline coatings.
- The Asia Pacific region, which has more than 10 000 miles of pipeline under construction and further over 9750 miles of planned pipeline projects, is likely to reflect robust growth opportunities facing players operating in the oil & gas pipeline coatings market.
- With crude oil prices recovering, investments in the oil and gas industry are projected to rise by 6% between 2017 and 2025. These will fuel exploration and production activities around the world, propelling oil and gas pipeline coatings demand.
- In the upstream segment, although onshore sector constitutes most of the market share, offshore sector, driven by increasing investments, is estimated to witness robust growth in the oil and gas pipeline coatings market.
- Stringent regulations pertaining to volatile organic compound (VOC) emissions are anticipated to impede the growth of solvent-based oil and gas pipeline coatings, which are prone to VOC emissions during the drying process.
Pipelaying in deep waters or high operating temperatures, and increasing corrosive properties of flow materials have been driving advancements in pipeline coatings. These advances such as thermal insulation will bring forth a range of new technological frontiers in the pipeline coatings space in the near future.
Market landscape moving towards consolidation
The oil and gas pipeline coatings market is technology driven and remains dominated by a handful of players that possess extensive R&D capabilities. Leading players operating in the global oil and gas pipeline coatings market, Akzo Nobel N.V., PPG INDUSTRIES, Sherwin-Williams Company, Axalta Coating Systems, RPM International Inc., and BASF SE, are focusing on acquisitions of smaller and technology-driven paint and coating manufacturers to build on their product expertise and enhance market positioning.
What does the future hold?
Crude oil prices are extremely volatile in nature, affected by growing US oil and gas production, OPEC production cuts, and oversupply of crude oil. Considering the number of pipeline projects in the construction phase and older, existing pipelines in need of reconditioning, the oil and gas pipeline coatings market is projected to witness robust growth during the forecast period.
Read the article online at: https://www.worldpipelines.com/business-news/06122019/future-market-insights-release-report-on-oil-and-gas-pipeline-coatings-market/