Market Trends of Nigeria Protective Coatings Industry
This section covers the major market trends shaping the Nigeria Protective Coatings Market according to our research experts:
Oil and Gas End-user Industry to dominate the market
- The oil and gas (including the chemical industry) sector is one of the major end-user segments of protective coatings. The sector requires chemical resistance due to a high-temperature environment in its business operations.
- In addition, apart from high temperature, the coating is used to prevent metal and steel structures from corrosion and chemicals, as they are exposed to moist and damp climatic conditions. It is used for the oil and gas industry's tanks, pipes, valves, and pumps.
- Nigeria is one of the largest and oldest oil producers in Africa. The oil and gas sector is one of the most important sectors in the country's economy, accounting for more than 90% of the country's exports and 80% of the federal government's revenue.
- Moreover, the country is investing heavily in LNG facilities, gas processing facilities, and gas pipeline projects. The expansion at the Bonny LNG plant by introducing train 7 alone is expected to add 35% more LNG capacity to the country. With this, Nigeria Liquefied Natural Gas (NLNG) Limited plans to invest USD 7 billion in the Train-7 project, which would expand its production capacity to 30 mtpa, making Nigeria the 3rd largest gas exporter in the world after Qatar and Australia. The Bonny LNG expansion site is expected to come on stream in 2024.
- According to the National Bureau of Statistics, Nigeria, the oil and natural gas sector accounted for more than 7% of the country's gross domestic product (GDP) in the second and third quarters of 2021, a 2% decrease from the first quarter of 2021.
- Therefore, the growing investments in the oil and gas sector are expected to drive the country's protective coatings market during the forecast period.
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Epoxy resin based Protective Coatings to Dominate the Market
- The epoxy resins are reinforced polymer composites derived from petroleum sources after a reaction process involving epoxide units. These resins help in the development of several properties in coatings, which include strength, durability, and chemical resistance.
- The fast drying, toughness, outstanding adhesion, resistance to water, and good curing make these resins suitable to protect metals and other surfaces. Conversely, the coatings derived from epoxy-based resins have limited gloss retention. They can also be used as binders for coating applications to enhance the durability of coating for floor and metal applications.
- Epoxy-based protective coatings offer protection against acids, alkalis, solvents, fuels, fatty acids, salt or sugar solutions, chemical cleaning agents, and much more. It is suitable for heavily loaded industrial floors.
- Epoxy-resin-based coatings find numerous industrial applications, such as in steel pipes and tanks in the oil and gas industry and water treatment plants for flooring.
- Epoxy-resin-based coatings are primarily used for protective purposes in infrastructure due to its properties (abrasion resistance, chemical resistance, and corrosion protection), which increases its consumption in the infrastructure sector. According to the World Bank, Nigeria would need to invest USD 3 trillion in infrastructure. Following this, the Nigerian government launched a 30-year infrastructure plan with a target date of 2043, with the goal of increasing Nigeria's infrastructure stock to 70% of GDP.
- Epoxy resin based protective coating is used in mining sector for the protection of metal equipment. Furthemore, According to the National Bureau of Statistics, Nigeria, the mining and quarrying sector contributed around 6% of Nigeria's GDP in 2021. This trend is projected to benefit the studied market.
- Therefore, owing to the aforementioned factors, the demand for epoxy-based Protective coatings is expected to increase during the forecast period.
