We Need to Pay Closer Attention to the Anti-corrosion Coatings Market

Academics estimate that implementing corrosion prevention best practices could result in global savings of between $375 and $875 billion

Despite the economic pressures caused by the COVID-19 pandemic, Russia-Ukraine conflict and a wealth of interrelated concerns, the corrosion protective coatings market has experienced remarkable growth over the past five years.

Prospects also look good for the rest of the decade, with the sector expected to witness a Compound Annual Growth Rate (CAGR) of 5 percent between 2023 and 2029. The reasons behind the market’s resilience and robustness are as obvious as they are innovative.

Essential features

Anti-corrosive coatings play a vital role in protecting infrastructure and supporting economic development. Over half of all coatings produced worldwide are used to protect new constructions as well as maintain existing structures, including residential properties, public buildings, industrial plants, and factories.

Approximately 35 percent of coatings are applied to industrial products, increasing asset lives in the process. Demand in Asia continues to rise faster than the rest of the world, with the region currently accounting for 55 percent of global consumption by volume.

The cost of not investing in anti-corrosive products is equally (if not more) significant. According to a 2013 study by the National Association of Corrosion Engineering (NACE), the annual global cost of corrosion was $2.5 trillion, equivalent to approximately 3.4 percent of the world’s gross domestic product (GDP).

NACE also determined that the burden of corrosion was most keenly felt by Arab states, with 5 percent of their combined GDP lost to related damages. Without consistent investment in anti-corrosion coatings, these figures will inevitably rise in line with efforts to mitigate climate change.

Despite the obvious need for protective coatings, COVID-19 ensured projects across a variety of industrial sectors were put on hold dampening global demand for these products. The easing of restrictions and gradual return to normal economic activity inevitably resulted in a resurgence of orders, especially on the back of huge infrastructure projects initiated by governments and international organisations. From rejuvenating existing international initiatives to instigating new domestic programmes, the political dimensions behind these investments are plain to see.

China’s Belt and Road Initiative (BRI) consists of partnerships spanning 147 countries as well as commitments to developing new and existing infrastructure at home and abroad. Since 2013, Beijing has spent almost $1 trillion on a variety of infrastructural projects that inevitably require anti-corrosive products, including Pakistan’s Gwadar Port. The Asian Development Bank estimates that China’s capital spending needs on infrastructure will reach $26 trillion by 2030.

In an effort to offer alternative sources of funding to the BRI, the European Union (EU) plans to invest $340 billion globally by 2027 in infrastructure, digital and climate projects. Closer to home, NextGenerationEU is the bloc’s €800 billion temporary instrument to support economic recovery from COVID-19 and build a greener, more digital, and resilient future.

Like the EU, the United States also sees investment in its internal infrastructure as essential to its post-COVID recovery. Beginning in 2021, the Bipartisan Infrastructure Law (BIL) will allocate an estimated $1.2 trillion in funding over ten years. Approximately $550 billion will be split between transportation, including roads and bridges, and core infrastructure such as the power grid and broadband network.

Required changes

The impact of climate change and prospect of even more extreme weather events in the coming years have increased pressure on stakeholders to ensure that the corrosion protection classification of structures meet minimum design life requirements.

Conversely, governments and societies continue to distance themselves from industrial practices identified by pressure groups like Just Stop Oil and Extinction Rebellion as harmful to the planet. These include the use of Volatile Organic Compounds (VOC) in the manufacture and use of protective coatings.

Mitigation efforts vary from region to region. In the United States, for example, the Environmental Protection Agency (EPA) regulates VOCs at the federal level for aerosol, architectural, and automobile refinish coatings.

For its part, the European Chemical Agency (ECHA) uses the REACH framework to ensure the compliance of domestic manufacturers. Internationally, the Leadership in Energy and Environmental Design (LEED) certification programme incentivizes the use of eco-friendly coating systems for a wide range of commercial and residential buildings.

Put simply, environmentally friendly coatings represent a huge growth opportunity for anti-corrosion and coating manufacturers. As things stand, the main technologies used as eco-friendly alternatives to solvent borne coatings are waterborne and high solids/powder coating.

Anti-corrosion technologies such as waterborne epoxy (WEP) coatings are nevertheless receiving significant attention due to lower VOC content associated with the omission of solvent carriers. WEP coatings also possess improved barrier properties which increase their resistance to corrosion and support further market opportunities.

Acrylic coatings are equally promising. Popular due to their excellent physical properties, such as resistance to weathering and oxidation, these products are primarily water-based, which offers ease of handling, greater economic benefits, and environmental friendliness. Acrylic coatings have also allowed for the development of alkyd resins that can be synthesised from natural vegetable sources such as linseed and soybean oil making them particularly attractive sustainable coatings.

Also inspired by the natural world, biomimetics is an interdisciplinary field that advances? multi-functional coatings via organic/inorganic hybrid systems, either for use in different environments or with additional capabilities beyond corrosion protection.

Additionally, self-cleaning superhydrophobic corrosion resistant coatings have been developed by replicating the surfaces of a Nepenthes pitcher plant. With thousands of years of evolution on its side, the natural world continues to provide insights into high performance coatings. Bridging the gap between nature, laboratory replication and commercial realisation nevertheless remains challenging.

Counting the cost

Academics estimate that implementing corrosion prevention best practices could result in global savings of between $375 and $875 billion. Laboratory studies have also demonstrated lifecycle cost savings of products such as Silcolloy corrosion resistant coatings against untreated stainless steels and high-performance alloys. This shows corrosion resistant coatings as a viable substitution for material selection in terms of corrosion control methods.

Elsewhere, a Russian study using ‘Antikor’ products across a range of industries modelled substantial direct and indirect benefits from the widespread application of anti-corrosive coatings. This included reduced metal consumption, increased electricity generation, less maintenance downtime and associated equipment costs.

With new technological innovations and increased production efficiency lowering unit costs, it is likely that coatings will continue to play a pivotal role in reducing the global cost of corrosion. The sector is not without its vulnerabilities, such as the potential for conflicts to restrict access to raw materials.

That said, the development of renewable energy applications might help manufacturers to circumnavigate such challenges while also increasing the environmental-friendliness and sustainability of the sector. All in all, the future of the anti-corrosion coating market remains bright with plenty of potential for coating suppliers and research applications.