Market Trends of Fusion Bonded Epoxy Coatings Industry
This section covers the major market trends shaping the Fusion Bonded Epoxy Coatings Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- In the oil and gas industry, pipes with fusion-bonded epoxy (FBE) coatings exhibit excellent chemical resistance in harsh environments, including petrochemicals, solvents, and corrosive gases. Apart from that, these coatings also provide better dimensional stability (i.e. minimal hysteresis).
- The demand for the oil and gas industry is expected to increase at most 1.4 Mb/d, by 2020. According to OPEC, the world primary demand for fuels, such as oil, gas, coal nuclear, biomass, etc., is likely to grow by 2020.
- Globally, the demand for oil, in 2018, rose about 1.3%, led by robust growth in the United States. In 2020, the demand for oil is likely to rise up to 92.3 mboe/d, and the demand for gas in 2020, the demand is likely to rise up to 65.2 mboe/d, in 2020.
- According to the British Petroleum, the share of crude oil production of the major producing countries include the United States with 16. 2% share, Saudi Arabia with 13%, Russia with 12.1%, Canada with 5.5%, Iran with 5%, etc.
- The demand for oil and gas is increasing in sectors, such as power generation, industry, transportation, residential, commercial sector, etc. due to the growing population in developing countries and robust economic development,
- According to OPEC, the energy demand in developing countries is expected to increase by 88 mnoe/d, by 2040. Developing countries, such as India and China, is likely to be the largest energy demand addition by 2040, both in the range of 22–23 mboe/d.
- The largest involvement in future energy demand is expected to come from natural gas. The demand for gas is likely to rise by about 93 mboe/d, by 2040.
- The growing petrochemical sector demand is driving the oil and gas industry, while oil demand in other industry sectors is likely to face strong competition from alternative fuels.
- Growing oil and petrochemical refineries would increase the demand for FBE coatings, hence, driving the market. Growing refineries in Asia-Pacific economies, like India and China, is also expected to increase the demand for themarket.
- All the above factors are likely to increase the demand for fusion bonded epoxy coatings over the forcast period.
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China to Dominate the Asia-Pacific Region
- In Asia-Pacific, China is the largest economy, in terms of GDP. The growth in the country remains high.
- The Infrastructure segment in China is rapidly increasing. In 2018, the National Development and Reform Commission (NDRC) has approved 27 infrastructure projects, totaling USD 219.43 billion.
- The major infrastructure projects in the country include Shanghai Urban Rail Transit Expansion, Intercity Railway along the Yangtze River in Jiangsu province, etc.
- Moreover, according to OPEC, the growth in gas consumption is mainly driven by countries, such as the United States, China, Russia, Iran, etc. The gas consumption of China is around 43 bcm.
- The Government of China plans to increase natural gas consumption to around 10% of its total energy mix by 2020. Currently, natural gas consumption is around 6%.
- By 2023, oil demand will reach around 104.7 mb/d, from 6.9 mb/d in 2018. Countries, like China and India, together, are expected to contribute around 50% of the global oil demand.
- The aforementioned factors are expected to increase the demand for fusion bonded epoxy coatings in the forecast period.
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