Corrosion Inhibitors Market Forecasts to 2028 – Global Analysis By Corrosive Agent Type (Carbon Dioxide, Hydrogen Sulfide, Oxygen), Application (Oil & Gas Generation, Process and Product Additives, Water Treatment), and By Geography

Corrosion Inhibitors Market Forecasts to 2028 – Global Analysis By Corrosive Agent Type (Carbon Dioxide, Hydrogen Sulfide, Oxygen), Application (Oil & Gas Generation, Process and Product Additives, Water Treatment), and By Geography

According to Stratistics MRC, the Global Corrosion Inhibitors Market is accounted for $8.04 billion in 2021 and is expected to reach $12.82 billion by 2028 growing at a CAGR of 6.9% during the forecast period. Corrosion inhibitors are chemical compounds that prevent or reduce the rate of corrosion of the metals or alloys exposed to the environment. They are available in different forms. Corrosion inhibitors have been hugely beneficial in the construction industry and metallurgical functioning.

Market Dynamics:

Driver:

Reducing corrosion costs

The cost incurred on end-use industries due to corrosion is an important factor driving the demand for corrosion inhibitors. Total costs of corrosion include the design & construction or manufacturing, the cost of corrosion-related maintenance, repair & rehabilitation, and the cost of depreciation or replacement of structures damaged due to corrosion. These costs vary from industry to industry. According to NACE International (National Association of Corrosion Engineers), the annual cost of corrosion to the oil & gas industry in the US alone is estimated at USD 27 billion. The costs can be reduced by the broader application of corrosion-resistant materials and the application of corrosion-related technical practices. Corrosion inhibitors suppress or mitigate the corrosion process of metals. They protect the metals or alloys by acting as a barrier by forming an absorbing layer or by retarding the cathodic, anodic processes causing corrosion. The use of corrosion inhibitors in these industries lowers the maintenance and repair costs, extends the useful life of the equipment, and reduces the production loss from corrosion damage. This directly reduces the corrosive costs and drives the market for corrosion inhibitors.

Restraint:

Increasing use of corrosion-resistant materials

Basic industries in the developed market have seen a high degree of maturity. This is reflected by the replacement of steel with plastics, ceramics, composite materials, and corrosion-resistant alloys in these industries. The metals and alloys which are capable of resisting corrosion to some degree are known as Corrosion-Resistant Alloy (CRA). With the rising environmental concerns and regulatory pressures, the corrosion inhibitors market is slowly moving toward more sustainable options. The use of Duplex Stainless Steel (DSS), Super Duplex Stainless Steel (SDSS), and other exotic materials is becoming popular in the oil & gas industry to handle highly corrosive fluids as this industry has high stakes to avoid shutdowns due to material failure. Apart from corrosion resistance, exotic metals have excellent strength, durability, and ability to withstand extreme pressure & temperature, among other properties. Due to this property, these metals are being used in demanding sectors like automobile, oil & gas industry, and power generation, among other industries.

Opportunity:

Increasing industrialization in developing economies

Infrastructural development in economies such as China, India, Brazil, and South Korea, are expected to boost industrial activities and increase the consumption of corrosion inhibitors during the forecast period. According to the World Bank, emerging economies need to spend about 4.5% of GDP to achieve sustainable development. Infrastructural growth related to electricity demand, clean water demand, fuel demand, transportation demand, and construction demand are expected to boost the market for corrosion inhibitors in the next five years. Countries in Asia Pacific, including China and India, will be the fastest-growing and account for nearly 50% of the global infrastructure spending by 2040, according to an Oxford Economics study. Due to the increasing consumption of industrial water in emerging economies, the opportunity is being created for manufacturers to offer a wide range of corrosion inhibitors to various specific applications in order to protect them from corrosion.

Threat:

Need for eco-friendly formulations

The primary factor inhibiting the growth of the corrosion inhibitor market is the stringent environmental legislation. The increasing concern regarding the impact of chemicals on the environment and health has led to stringent regulatory constraints for corrosion inhibitors manufacturers. Currently, the manufacturers of corrosion inhibitors are encouraged to opt for non-toxic alternatives. The property of the non-toxic corrosion inhibitors formulations to perform under severe conditions makes it difficult for the manufacturers to provide a replacement for standard formulations. For instance, an alternative in the oil & gas industry has been zinc phosphate. Although effective, this inhibitor does not match the performance of chromate complexes like hexavalent chromium. This chemical is known for causing cancer in humans and animals, as per the United States Department of Labor.

The water-based corrosion inhibitors segment is expected to be the largest during the forecast period

Water-based corrosion inhibitors are readily soluble in water and are usually sold in solid form. They form a protective layer on the metal surface by altering the physical characteristics of the surface to resist oxidation of the metallic surface, thereby offering rust protection. Moreover, they are cost-effective, form transparent coating after drying, and can be easily applied by using spray, immersion, or brush before subsequent operations. Water treatment application captures the major share of corrosion inhibitors demand as water is used at residential, commercial, and industrial levels. However, corrosion inhibitors are majorly used for industrial and municipal applications, as all the compounds are not regulatory feasible for drinking water treatment. In industrial applications, these inhibitors are majorly used in cooling towers and boilers for various end-use industries.

The organic corrosion inhibitors segment is expected to have the highest CAGR during the forecast period

Organic corrosion inhibitor is projected to be the fastest-growing compound in the corrosion inhibitor market. They are effective at a wide range of temperature, have good solubility with water, low cost and compatible with protected materials. These compounds include the presence of oxygen, nitrogen, or sulfur atoms as double bonds. The lone pair electrons of atoms facilitate the adsorption process. The process is neither physical nor purely chemical adsorption. Adsorption is influenced by the organic inhibitor’s chemical structure, nature & surface charge, distribution of charge in the molecule, and type of aggressive media.

Region with highest share:

Asia Pacific is projected to hold the largest market share owing to the rapid industrialization in the region, which has triggered the demand from the power generation and several other end-use industries. The growing chemical and metalworking sectors in developing economies of the region, including India and China, are also projected to contribute significantly to the market in the near future. The growth in demand for water treatment chemicals in the region can be largely attributed to factors such as high population, increasing industrial growth, and growing concern for the environment. Moreover, the rising number of end-use industries in the region is also leading to innovations and developments in the field of corrosion inhibitor, thereby fueling the growth of the regional market.

Region with highest CAGR:

Europe is projected to have the highest CAGR during the forecast period. Europe is one of the prominent consumers of corrosion inhibitors owing to the massive consumption of water for industrial sectors such as sugar and ethanol and petrochemical manufacturing. Water treatment issues in Europe hold a vital role in having a direct impact on the corrosion control operations, coupled with maintaining the operational integrity of heat transfer equipment and reducing the adverse effect on the energy efficiency of process units. The corrosion inhibitors market in Europe is expected to grow over the forecast period owing to stringent government regulations on the discharge of toxic chemicals in the environment in the region.

Some of the key players profiled in the Corrosion Inhibitors Market include BASF SE, Baker Hughes Incorporated, Solenis LLC, Dow Chemical Company, Henkel, Lanxess, Championx, Nouryon, Ecolab/Nalco Water, Lubrizol, Suez, Eastman Chemical Company, Ashland, Clariant, and Lonza.

Key developments:

In July 2019: Nalco Champion, an Ecolab company, launched a yellow metal corrosion inhibitor for the cooling water that provides a superior asset protection to the customers, while also reducing the environmental impact & improving supply and stability compared to any traditional treatment chemistries.

In February 2019: Specialty chemicals company LANXESS has successfully completed a debottlenecking project resulting in a 15 percent increase in global production capacity of its Additin RC 4000 series of corrosion inhibition additives. The additional capacities are a result of process synergies identified and realized following LANXESS’s 2017 acquisition of Chemtura Corporation, which expanded its lubricant additives portfolio and global production network.

In January 2019: BASF merged its paper wet-end and water chemicals business with Solenis. The combined business is expected to operate under the Solenis name and offer increased sales, service, and production capabilities across the globe.

In January 2019: The Lubrizol Corporation announced at the European Coatings Show (Nürnberg, Germany, March 19-21) that it will showcase several new polymer and additive technologies that enhance the performance of paints and coatings. Lubrizol's latest innovations, including new Solsperse W-Series water-borne dispersants, new Aptalon polyamide polyurethanes, new dispersants for UV inks and new surface modifier technologies will be a particular focus at the show.

In July 2017: Baker Hughes merged its oil & gas equipment and services operations with GE. The development helped the company expand its corrosion inhibitors product offerings in the oil & gas industry.