FBE Coatings Market

FBE Coatings Market Outlook (2022-2032)

The global FBE coatings market is estimated at US$ 2.2 billion in 2022 and is expected to evolve at a CAGR of 5.2% to reach a market size of US$ 3.7 billion by 2032-end.

Fusion bonded epoxy coatings are also classified as powder coatings that are thermoset in nature and are used to protect against harsh chemicals, corrosive soils, temperature, and hydrocarbons.

Report Attributes	Details
FBE Coatings Market Size (2021A)	US$ 2.1 Billion
Estimated Market Value (2022E)	US$ 2.2 Billion
Forecasted Market Value (2032F)	US$ 3.7 Billion
Global Market Growth Rate (2022-2032)	~5.2% CAGR
North America Market Share (2021)	~21.6%
North America Market Growth Rate (2022-2032)	~3.9% CAGR
U.S. Market Growth Rate (2022-2032)	~3.7% CAGR
Market Share of Top 5 Companies	~40.6%
Key Companies Profiled	Sherwin Williams 3M Axalta Jotun Shawcor KCC Corporation AkzoNobel Denso LB Foster Chugoku Marine Paints Bayou Companies

Demand Analysis of FBE Coatings (2017-2021) Vs. Market Forecasts (2022-2032)

Fusion bonded coatings have been traditionally used since the 1950s for pipeline systems for the transportation of oil & gas, water, and various chemical compounds. This has guided a compound annual growth of 3.5% for FBE coating sales over 2017-2021.

Adoption of coating solutions in various end-use industries is expected to increase over the coming years. Manufacturers are enhancing their investment capabilities to upgrade their existing technology for producing green formulations. These powder formulations will increase the overall lifespan of the coated product.

Demand for FBE coatings for water & wastewater treatment is gaining traction and is projected to escalate at a CAGR of 4.6%. These solutions are environment-friendly and suitable for maintaining optimum conditions without disrupting the original properties of fluid during storage or transportation.

Fact.MR suggests that the global FBE coatings market will be valued at US$ 3.6 billion by 2032, expanding at a CAGR of 5.2% over the decade.

• Short Term (2022 Q2 to 2025): Coating solutions are highly demanded in the oil & gas sector. There is demand for the application of FBE coatings in onshore & offshore pipelines. However, due to volatile geopolitics and fluctuating crude oil prices, the market is anticipated to witness slow growth. The prices of FBE coatings vary per region depending on the raw material and availability of labor.
• Medium Term (2025-2028): To overcome the supply chain network gap present across different countries, manufacturers will focus on increasing the capacity of their production facilities. Also, exploration of new energy reserves will further boost the FBE coatings market.
• Long Term (2028-2032): Fusion bonded epoxy coating companies will majorly focus on product formulations that are VOC-free and safe for environmental usage. This feature will increase the interest of end-use industries and governments. With collaborative efforts, Fact.MR projects an incremental opportunity worth US$ 880 million over the 2028-2032 period.

During the years 2017-2021, the global FBE coatings market registered a CAGR of 3.5%, and according to Fact.MR’s analysis, is projected to exhibit growth at 5.2% CAGR during 2022-2032.

Analysis of overall market share of FBE coatings based on region and application. Under the application segment, steel pipelines dominate with 67.2% market share in 2022.

Why is the Usage of FBE Coatings Steadily Increasing across the World?

“VOC-Free & Green Formulations to Drive Market Growth”

Demand for pipeline networks is being driven by ongoing investments in replacing existing oil and gas infrastructure, which will enable the efficient, streamlined, and affordable transportation of fuels.

Conventional coating solutions contain solvents, if released into the environment, they might contribute to contamination, thereby increasing health concerns. Thus, evolving technology and government support to produce VOC-free formulations, also known as Green Reinforcement, will strengthen the FBE market position over the coming years.

Also, stringent regulations by governments limit carbon emissions and contribute towards sustainable development goals in the future have compelled manufacturers to focus on technological advancements, followed by easy application techniques.

Growing utilization of fusion bonded epoxy coatings on steel for water transportation, including fresh water and brine, is creating more chances for manufacturers to increase their production of VOC-free formulations that are more chemically stable.

“Diverse Applications of FBE Coatings Opening New Doors for Manufacturers”

Conventionally, fusion bonded epoxy external surface coatings have been used for protecting pipelines from natural corrosion and temperature issues. With the increasing demand for fluid transportation, an efficient supply network that would improvise the process of overall transport is required. Thus, to overcome this issue, fusion bonded epoxy internal surface coatings came into existence. This type of coating solution provides a better flow of liquids and gas internally.

Also, demand for fusion bonded coatings is increasing in the marine pipeline industry. Oil and gas firms are concentrating on expanding their portfolios of sustainable deep water and ultra-deep water ventures as a result of significant technological advancements.

Steel pipe coatings provide effective flow management in pipelines in addition to providing anti-corrosion support. Steel pipe coatings are becoming more necessary as a result of the expansion of the marine sector and marine pipeline systems.

Demand for FBE coating solutions is highly dependent on the steel pipelines market. Since there has been an increase in the exploration of new energy reserves to meet the demand of the future, it is very perceptible that if the foundation for transportation from these reserves is placed in the future, it will increase the demand for FBE coatings over the coming years.

What Challenges are Hampering FBE Coatings Market Growth?

“Fluctuation in Raw Material Prices Due to Geopolitical Instability”

Manufacturing companies are currently facing a lot of uncertainties in the market due to geopolitical issues around the world. From rising energy costs to unforeseen fluctuations in raw material costs, unexpected international barriers are disrupting the supply chain network and making it difficult for market players.

Easy availability of raw materials is becoming difficult for production, while the instability of commodity prices may not be just a short-term circumstance, and it is solely up to manufacturers whether to absorb these additional costs, find new ways to mitigate extra expenses or pass on the increasing prices to end users who are already reluctant to spend more.

Organizations with dynamic adaptability to manage fluctuations in raw material costs can efficiently generate revenue. Considering the current scenario, it is negatively impacting market expansion.

Country-wise Insights

Will the Huge Oil & Gas Sector in the U.S. Drive High Demand for FBE Coating Solutions?

The United States possesses one of the world's largest crude oil and natural gas exploration systems. The country has a large reservoir share - roughly 14% worldwide - and produces the most oil per day (18.6 million barrels per day).

Rapid development of America's shale gas resources and chemical industry presents significant opportunities. Also, the growing association of the U.S. and Europe against Russia would significantly create new opportunities for the transportation of oil & gas from the U.S.

Growing exploration jobs by the government and end-use industries are likely to create lots of space for FBE coating manufacturers in the near future.

Why is India Set to Be a Prominent Market for FBE Coatings?

While subsisting to meet energy requirements, India is adopting upgraded technologies in FBE coating solutions. High demand for FBE coatings in India is mainly because of coating solutions required on newly structured steel pipeline networks. Also, there are many upcoming projects related to pipeline infrastructure expansion that would demand FBE coating solutions.

Usage of FBE coatings in pipeline infrastructure of oil & gas, wastewater treatment, and chemical refineries is growing rapidly. The FBE coatings market in India is expected to expand at a CAGR of 4.4% through 2032.

Category-wise Insights

Why is the Application of FBE Coatings Highest in Steel Pipelines?

Steel pipelines account for more than 60% share of the application of FBE coatings.

Steel pipelines are the most suited carriers for the transportation of oil & gas, water, and wastewater. The prime reason for the increased consumption of steel as a base material is its strength, durability, and ease of workability. This will increase the use of steel pipes in the FBE coatings market, directing the growth of the commercial end-user segment at a CAGR of 4.2% during the assessment period.

Will the Oil & Gas Sector Remain the Backbone for FBE Coatings Market Progress?

The oil & gas industry is a major consumer of steel pipe coating solutions. Fusion bonded epoxy composite coatings are specifically designed for deep water petroleum extraction. These solutions are specific to meet new technological challenges owing to extreme production processes. Also, heavy investments in oil & gas pipeline infrastructure would contribute to segment growth.

The FBE coating solutions market, under the oil & gas sub-segment, is valued at 830 million and is expected to expand at a CAGR of 5.5% over the decade.

Competitive Landscape

Prominent FBE coating manufacturers are Sherwin Williams, 3M, Axalta, LB Foster, Jotun, Shawcor, KCC Corporation, AkzoNobel, Denso, Chugoku Marine Paints, and Bayou Companies.

Key manufacturers of FBE coatings are employing sustainable technologies and optimization systems for diverse end users. Market participants are also focusing on developing new product designs to address problems in terms of product placement and easy application.

Leading fusion bonded epoxy coating suppliers and finished goods providers such as Northpoint, Dura-Bond Industries, Europipe, and Kelly-Pipe play a significant role in driving overall market growth.

• Sherwin-Williams is constantly broadening its base. In April 2022, it acquired major player SIKA AG, allowing it to expand its manufacturing facilities along with gaining unique technology.
• In June 2022, AkzoNobel strengthened its African footprint by signing an agreement with Kansai Paints to acquire all its activities in Africa. On 1st April 2020, the company acquired a Mauritius leading paints and coatings company - Mauvilac Industries Limited.

Segmentation of FBE Coatings Industry Research

• By Application :

  • Steel Pipelines
  • Rebars
  • Valves & Fittings
  • Girth Welds
  • Others

• By Use Case :

  • Internal Coating
  • External Coatings

• By End-use Industry :

  • Oil & Gas
    • OffShore
    • OnShore
  • Construction
  • Sewage & Wastewater Treatment
  • Refineries & Chemical
  • Marine
  • Water Transportation
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA