MENA CORROSION PROTECTIVE COATINGS AND ACID PROOF LINING MARKET ANALYSIS

Corrosion protective coatings is applied on the surface in order to prevent degradation from oxidation, chemical, and moisture. It creates a barrier between the environmental factors and surface of the product that inhibit the corrosion of the surface. Zinc and titanium dioxide is commonly used for corrosion protective coatings. Acid proof lining provides resistance to chemical, mechanical, and thermal stresses. Moreover, acid proof linings are also used in the transition areas such as dry or wet and hot or cold.

MENA corrosion protective coatings & acid proof lining market was valued at US$ 2,583.7 million in 2022, and is expected to exhibit a CAGR of 7.2% over the forecast period (2023-2030).

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Drivers

Growing Non-oil Industries

Increasing focus of the government and consumer in the MENA region to promote non-oil industries is expected to drive the market growth. Growth in the major investment in the development of public infrastructure and manufacturing sectors by regional bodies for the growth of the economy is further projected to accelerate the market growth.  

Increasing Steel Production 

Increasing steel production in MENA region is expected to drive the market growth of the corrosion protective coatings & acid proof lining. According to the World Steel Association, the Middle East produced 38.5 Mt of crude steel in 2018, indicating increase of 11.7% from 2017. Iran produced 25.0 Mt in 2018, indicating increase of 17.7% from 2017.

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Restraints

Complications Associated with the Inventory Management

High dependence on the import, challenges associated with the maintaining inventory, and high cost of the imports is projected to hamper the market growth of the corrosion protective coatings & acid proof lining. All these factors result in higher operational costs and lower return of investment.

High Dependency on Import 

Lack of manufacturing facility for the production of the corrosion coatings in the Middle East is expected to hinder the market growth. Most of the demand for corrosion protective coatings is met through import from North Africa regions have a large number of manufacturing facilities.

Figure 1. MENA Corrosion Protective Coatings & Acid Proof Lining Market Value (US$ Mn), By Country, 2022

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MENA Corrosion Protective Coatings & Acid Proof Lining Market: Country Analysis

Saudi Arabia held dominant position in the MENA corrosion protective coatings & acid proof lining market in 2022, accounting for 33% share in terms of volume, followed by U.A.E. and Qatar, respectively. Rising demand for protective coatings from the mining industry is expected to drive the Saudi Arabia corrosion protective coatings & acid proof lining market growth.

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Opportunities

Growing Demand for Industrial Coatings

Growing demand for industrial coatings, owing toto increasing number of manufacturing facilities is expected to offer opportunities to MENA corrosion protective coatings & acid proof lining market. Growing number of manufacturing industries across the major MEA economies such as Israel, Iran, South Africa, Egypt, Nigeria, Saudi Arabia, Algeria, UAE, and Qatar contribute around 70% of regional GDP, and a present large number of regional coatings market.

Growing Chemical Sector in the MENA Region

Growing chemical sector in the region is projected to provide lucrative growth opportunities to the market of MENA corrosion protective coatings & acid proof lining. According to the GPCA, GCC chemical industry grew by 2.7% in 2021, Seven product segments account for 90% of the GCC's total chemical output, dominated by basic chemicals, agri-nutrients, and commodity polymers. Saudi Arabia represents the largest chemical production in the GCC, valued at 115.3 million tons, followed by Qatar and the UAE. These three countries account for 93.4% of the GCC’s total capacity. Over the last 10 years, the GCC chemical industry has continued to build its capacity by registering an average growth of 5.6% during forecast Period.

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Trends

Specialty coatings are gaining popularity for pipeline corrosion applications across various industries, and this is expected to be a major trend in the market. Specialty coatings ensures the smooth and proper functioning of the operations across various industries. In MENA region where pipelines are highly exposed to harsh environments and adverse operating conditions, and thus maintenance of the pipeline is utmost importance in the region.

The market is experiencing a swift shift from industry-defined products and pre-formulated to customized and industry-specific product launches. This trend is highly prevalent in the oil & gas and petrochemicals industry. This ongoing trend is expected to drive the market growth over the forecast period.

Figure 2. MENA Corrosion Protective Coatings & Acid Proof Lining Market Share, By Product Type, 2020

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MENA Corrosion Protective Coatings & Acid Proof Lining Market: Segmentation Polymer coatings segment held a dominant position in the market and accounted for 65% share in the MENA corrosion protective coatings & acid proof lining market in 2022. Rising demand for polymer coatings from the mining industry is expected to drive the segment growth.

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Competitive Section

Major players operating in the MENA corrosion protective coatings & acid proof lining market include Hajjan Trading & Industrial Services Company Ltd. (HATCON), KCC Corrosion Control Co. Ltd., Al-sabaiea National Gen. Cont. & Gen. Trad. Co., Rezayat Protective Coating Company Ltd., Bahrain Rubber Company W.L.L., Anticorrosion Protective Systems L.L.C., Al Gurg Paints LLC., DicoTech Limited, REMA Tip Top AG (Tip Top Oberflächenschutz Elbe GmbH), General Industries Co. Ltd, FABA Commercial Services W.L.L., and Ashland

MENA Corrosion Protective Coatings & Acid Proof Lining Market: Recent Developments

• On January 1, 2020, Al Gurg Paints  signed an exclusive distribution agreement with Al Gurg Paints for their Viero brand in order to increase its presence in the UAE market. The agreement was signed by Stefano Deri, Export Director Cromology and Easa F. Al Gurg, Chief Executive Officer, Easa Saleh Al Gurg Commercial & Industrial Group.
• On November 27, 2020, DicoTech received the appreciation letter for the successful completion of ORYX GTL Shutdown– 2020 on Fireproofing Scope
• On Septemeber 08, 2021, Ashland Global Holdings, Inc. has established a renewable annual trust for ongoing and future environmental remediation and related litigation. The initiative follows Ashland’s announcement in February to align its operations with the ambitious aim of the Paris Climate Accord to limit global temperature rise to 1.5°C above preindustrial levels. At that time, Ashland also became a signatory to the United Nations Global Compact and is making the UN principles part of the company’s business strategy, culture and day-to-day operations.

On Septemeber 03, 2021 Ashland Global Holdings, Inc.  Announced that it has entered into an uncollared accelerated share repurchase (ASR) agreement with JPMorgan Chase Bank, National Association, to repurchase an aggregate of $450 million of Ashland common stock, with an initial delivery of approximately 3.9 million shares. The program is subject to the $1 billion share repurchase program authorized by Ashland Board of Directors on March 15, 2018 from which $800 million is outstanding