Market Trends of US Protective Coatings Industry
Increasing Activity in the Oil and Gas Sector
- The oil and gas industry is one of the key contributors to the US economy. The oil and gas industry operates in high-temperature environments, thus necessitating heat-resistant coatings. Coatings are also used to protect metal and steel structures from corrosion when exposed to moist and damp conditions. In the oil and gas industry, they are used for tanks, pipes, valves, and pumps, among others.
- To prevent corrosion during oil and gas transportation to refineries, the oil and gas industry uses protective coatings for both upstream and downstream segments. The industry has been looking for ways to reduce capital costs. The need to comply with stringent environmental regulations has resulted in the bio-based coatings demand in the region, which is expected to witness positive growth in the forecast period.
- Offshore oil and gas production faces some of the most difficult challenges. As a result, the coating systems used must be capable of withstanding these conditions. Long-term exposure to penetrating UV rays, as well as constant contact with heat waves in the oil and gas sector, boosts the demand for protective coatings.
- According to BP Statistical Review 2022, the overall oil production in the country is on the rise over the decade. For instance, in 2021, oil production in the country was 16,585 thousand barrels per day whereas, in 2020, the production stood at 16,458 thousand barrels per day. In addition, the growth rate was 7.7% yearly over the decade in the period between 2011-21.
- Moreover, the same source cited that the country witnessed positive growth in the production of natural gas. For instance, in 2020, the natural gas produced was 915 billion cubic meters whereas, in 2021, the production increased to 934.2 billion cubic meters,which is around 2.3% growth. In addition, over the decade, production has been increasing by 4.2% yearly.
- All the above-mentioned factors are expected to augment the demand for protective coatings for the oil and gas industry during the forecast period.
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Infrastructure Sector Fueling in Demand for Protective Coatings
- The infrastructure sector is one of the major end users of protective coatings. The industry requires corrosion and environmental effects-resistant coatings due to exposure of infrastructure surfaces to heat and sunlight, water and acid rain, dust, and other chemical effects.
- The infrastructure sector uses protective coatings for bridges and coastal structures, including roads and rail structures, water treatment, public power generation and transmission, and other infrastructure, including public buildings. Moreover, organizations in the United States are shifting focus toward strict environmental regulations, which has led to an increased demand for sustainable coating systems.
- In 2021, the United States witnessed an upgrade in the infrastructure GPA from D+ in 2017 to C- in 2021. This upgrade was due to the increase in the country's infrastructure construction activities, including highways, bridges, aviation, schools, and public parks, among others. In addition, the country is expected to witness funding of USD 3,350 billion over the period of 2020 to 2029. The increasing construction and urbanization are fueling the demand for protective coatings in the United States.
- Moreover, in 2021, the White House funded around USD 2.9 billion for major infrastructure projects, which are part of a USD 1 trillion commissioned by Congress. Moreover, USD 66 billion is approved for rail infrastructure, USD 1.55 billion for highways, and USD 12.3 billion for a new tunnel between New York City and New Jersey.
- All the above-mentioned factors are likely to have a positive impact on the demand for protective coatings in the infrastructure sector during the forecast period.
