Market Trends of Australia Industrial Coatings Industry
This section covers the major market trends shaping the Australia Industrial Coatings Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- In the oil and gas industry, protective coatings are used in pipelines and equipment of both the downstream and midstream segments to transfer oil and gas due to their anti-corrosion, heat-resistant, abrasion-resistant, and fire-resistant properties.
- Protective coatings provide a viable solution to many corrosion challenges in the oil and gas industry, including drilling, wellhead, and sub-sea equipment. Millions of paint are used to protect these assets.
- Downstream oil and gas equipment must work well under harsh temperatures, pressure, and agitation conditions. They also need to have enhanced corrosion and chemical attack resistance. Industrial coatings protect against abrasion, corrosion, pressure and temperature extremes, and potent chemical agents.
- In 2021, over 461,000 barrels per day of petroleum and other liquids were produced in Australia, of which crude oil made up 26%, condensates 46%, natural gas liquids 24%, and other drinks and refining gains made up 4%. This study indicates the large consumption of industrial coatings in Australia.
- According to British Petroleum, approximately 435 thousand barrels of oil a day were produced in Australia in 2021, compared to 453 thousand barrels of oil a day in 2020.
- According to sweet crude traders and refinery sources, Australia's crude oil exports increased 19% year over year in October 2021 due to significant shipments of sweet crude to Singapore and condensate sales to South Korea. This expansion indicates the future opportunity for the Australian industrial coatings market in the oil and gas sector.
- Hence, increasing demand for industrial coatings in the oil and gas segment is likely to dominate the market within the country.
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Growing Demand for Water-borne Coatings Technology
- Waterborne technology is a type of surface treatment in which water is used as a solvent to dissolve resin to create coatings or paints. Water-borne coatings are widely used technology due to their non-reactive and environmentally friendly nature.
- Solvent-borne coatings use organic solvent to disperse the resin, which is costly and nature compared to water-borne coatings. Hence, water-borne coatings are gradually replacing solvent-borne coatings in the automotive and construction sectors.
- Nowadays, water-borne coatings are widely used in the construction sector for floor paints, walls, roofs, metal bodies, swimming pools, and many other applications.
- Water-borne technology is widely used in the automotive industry. For instance, according to the Organisation Internationale Des Constructeurs Automobiles (OICA), Australia produced 14% more vehicles in 2021 than the previous year, which is expected to continue. Thus, the automotive sector is expected to have a high demand for water-borne technology in the future within the country.
- Australia is a major liquefied natural gas (LNG) exporter and a major petroleum consumer, consuming 1,018 thousand barrels per day, resulting in high pipeline and equipment demand within the country. Water-borne coatings are mostly used as a protective coating in the petroleum industry due to their fast drying and environmentally friendly properties, which increases the demand for water-borne industrial coatings in the country.
- Hence, with increasing demand for water-borne coatings technology, the Australian industrial coating market is projected to increase over the forecast period.
