Surface Protection Services Market Overview
The Surface Protection Services market size is estimated to grow at a CAGR of 5.3 % in 2024-2030 and is estimated to reach a value of US$19.5 billion in the year 2030. Surface protection services encapsulate any type of service that is used in providing protection of interior surfaces in facilities, manufacturing units, industrial equipment & tools, and so on. Some common types of surface protection services are protective coatings, usually corrosion protective coating and mechanical protective coating, protective films, floor coatings like epoxy floor coating and floor painting, and more. The demand for the surface protection services industry is primarily being driven by the oil & gas sector and the manufacturing sector where surface protection services are essential in preventing corrosion and maintaining industrial equipment and facilities.
With growing awareness of environmental sustainability, there's a significant shift towards eco-friendly surface protection solutions. Customers are increasingly demanding products and services that minimize environmental impact, such as water-based coatings, biodegradable films, and recyclable materials. Service providers are adapting their offerings to meet this demand by developing and promoting environmentally friendly surface protection options.
Nanotechnology is playing a significant role in surface protection services. Nano-coatings, which utilize nanomaterials to create thin, durable layers on surfaces, offer enhanced protection against corrosion, wear, and weathering. These coatings provide superior performance compared to traditional methods and are being increasingly adopted across various industries, including automotive, electronics, and construction. As nanotechnology continues to advance, we can expect further innovations in surface protection services, including improved durability, flexibility, and functionality.
COVID-19 Impact
During the COVID-19 pandemic, many industries had suffered a tumultuous time, and it was no different for the Surface Protection Services Market. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. The supply chain was greatly disrupted as many businesses followed the lockdown protocols. Some of the primary end-use industries of surface protection services are the manufacturing sector, the oil & gas sector, and the aerospace & defense sector. There was a historic decline in the demand for oil during the Covid-19 Pandemic. According to the International Energy Agency (IEA), global energy consumption decreased by 4% in 2020. According to the International Air Transport Association, the demand for passenger air travel fell by 65% from 2019 to 2020 with international travel decreasing by 75.6% since 2019. However, the economy is now recovering as many people are getting vaccinated and lockdown procedures are being lifted globally. As such, many of the sectors are now recovering from their losses in the Pandemic. As such, the Surface Protection Services Market is estimated to grow significantly within the forecast period of 2024-2030.
Report Coverage
The report: “Surface Protection Services Market Report – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the surface protection services industry: -
By Service Type: Corrosion Protection Coating, Mechanical Protection Coating, Electroplating, Thermal Spray, and Others.
By Application: Pipelines, Hydraulic Shafts & Cylinders, Process & Vessel Equipment, Tanks, Pumps & Compressors, and Others.
By End Use Industry: Manufacturing, Oil & Gas, Mining, Power & Energy, Aerospace & Defense, and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East, and Africa).
Key Takeaways
• The Asia-Pacific region will dominate the surface protection services market within the forecast period of 2024-2030 which is primarily being driven by the growth of the energy and manufacturing sector in the region.
• Surface protection services are commonly used for corrosion protection in various applications such as pipelines, tanks, and vessel equipment, especially in the oil & gas industry. As such, the growing the energy sector proves to be a great driver for the surface protection services market.
• One of the key drawbacks of surface protection services are the presence of volatile organic compounds (VOC’s) in various coatings that prove to be harmful for the body and the environment as well. This proves to be a challenge for the surface protection services market within the forecast period of 2024-2030.
Surface Protection Services Market Analysis – By Service Type
The corrosion protection coating type of service holds the largest share of 25.2% in the surface protection services market. Corrosion protection coatings are applied on metal parts and surfaces to prevent the corrosion of metals over a longer period. They are modified to provide corrosion protection for various substrates and corrosive environments. It is used in preventing degradation brought about by oxidation, moisture, exposure to chemicals, and more. They are primarily used in pipelines, hydraulic shafts & cylinders, and tanks. According to the Global Energy Monitor, in 2023, approximately 69,700 kilometers (km) of gas transmission pipelines are under construction globally, an 18% increase over the previous year, at a cost of US$193.9 billion. With the rising usage of corrosion protection coating type of services in pipelines the market for surface protection is estimated to rise.
Surface Protection Services Market Analysis – By End-Use Industry
The oil & gas industry held the largest share in the surface protection services market in 2023 and is estimated to grow at a CAGR 5.9% during 2024-2030. Surface protection services are extensively used in the oil & gas industry to prevent corrosion in pipelines, tanks, and vessel equipment and also in mechanical protection for pipelines that suffer from environmental pressure. As such, an increase in demand for the oil & gas industry is a catalyst for the growth of the surface protection services market. According to the International Energy Agency (IEA), the oil demand is set to rise to 104 million barrels/day (mb/d) by 2026. The demand is primarily being led by the petrochemical industry where ethane, liquified petroleum gas (LPG), and naphtha account for 70% of the demand.
Surface Protection Services Market Analysis – By Geography
Asia-Pacific region dominated the surface protection services market with a share of 43% in the year 2023. This is because of the increase in demand for the oil & gas and manufacturing sector in the region. According to the International Energy Association (IEA), Asia will continue to dominate growth in the global oil demand, accounting for 90% of the increase between 2019 and 2026. This is primarily because of the high demand of the automotive industry in the region. In addition, the manufacturing sector of countries in the Asia-Pacific region has also witnessed significant investment growth. For instance, according to the India Brand Equity Foundation (IBEF), Manufacturing exports have registered highest ever annual exports of US$ 447.46 billion with 6.03% growth during FY23 surpassing the previous year (FY22) record exports of US$ 422 billion. Due to such reasons, the demand for surface protection services has also seen a significant increase. As such, the Asia-Pacific region dominates the surface protection services market within the forecast period of 2024-2030.
Surface Protection Services Market Drivers
The increase in demand for the energy sector:
The demand for the oil & gas and the energy sector has seen a significant increase, especially after the Covid-19 pandemic. According to the International Energy Agency (IEA), the oil demand is forecast to rise to 104 mb/d by 2026. The world’s oil production capacity is projected to increase by 5 mb/d by 2026. Asia is also estimated to drive 90% of this demand with Asian crude oil imports being forecast to surge to 27 mb/d by 2026. Similarly, the global energy supply is also estimated to grow by 1.3% per year from 2024 to 2030. As surface protection services are essential in these industries, the demand for the surface protection services market is also estimated to grow within the forecast period of 2024-2030.
The growth of the aerospace & defense industry:
Surface protection services are widely used in the aerospace and defense industry for a variety of applications. They add benefits like corrosion and wear protection, increased hardness and low friction properties to the aircraft which are essential for high quality standards and safety. According to the Boeing Commercial Market Outlook 2021-2040, the global fleet of aircrafts is estimated to grow by 3.1%, with estimated new deliveries of 43,610 new aircrafts, by 2040. This is especially being reinforced by the rapid increase in domestic traffic especially after the COVID-19 pandemic. This is mostly being driven by the Asia-Pacific region, which is expected to see a 4.2% increase in fleet size by 2040. As a result, this proves to be a significant driving force, as the growing demand for surface protection services within the aerospace &defense industry will enhance the demand for surface protection services market.
Surface Protection Services Market Challenges
The presence of volatile organic compounds (VOCs) in surface protection services:
One of the key challenges of the Surface Protection Services Market is the presence of volatile organic compounds (VOCs) in different coating technologies used in these services. VOCs can cause irritation in the eyes, nose, and throat, difficulty in breathing and nausea, and can damage the central nervous system as well. As it is a toxic substance, there are various regulations that limit and mitigate the production of materials that can contain VOCs. For example, the U.S. EPA regulates VOCs at a Federal level in 40 CFR 59. The VOC levels in various coatings and products are limited to ensure safety in use and cannot be produced if it exceeds the limit. Such regulations prove to be a key challenge for the Surface Protection Services Market within the forecast period of 2024-2030.
Surface Protection Services Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. The key companies in the Surface Protection Services market are:
1. Tenaris (Shawcor)
2. 3M Company
3. Integrated Global Services Inc.
4. AkzoNobel
5. Delta T & Protective Products
6. Corrosion and Abrasion Solutions Ltd.
7. PPG Industries
8. Abtrex Industries, Inc.
9. Spence Corrosion Services Ltd.
10. T.F. Warren Group, Inc.
Recent Developments
• On January 5, 2022, Integrated Global Services Inc., a provider of thermal spray surface protection services, acquired AmStar, which is GE Steam Power’s on-site thermal spray coatings technology, this helps to expand Integrated Global Services’ portfolio of corrosion and erosion resistant coatings.
• On October 1, 2023,AkzoNobel unveiled a new powder coating technology that can reduce energy consumption and carbon emissions by up to 25%. The company also completed the sale of its specialty chemicals business to The Carlyle Group and GIC for US$ 12.5 billion.
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