Corrosion Inhibitors Market

The demand for corrosion inhibitors is driven by the growth of industries such as oil & gas, power generation, and metal processing. The emphasis on renewable energy sources such as wind, solar, and hydropower for power generation to eliminate carbon emissions has resulted in the growth of the power generation industry, which is expected to propel the demand for corrosion inhibitors in the coming years. The expanding water treatment industry due to water scarcity and increasing regulations against wastewater disposal in the industrial sector has led to a rise in the demand for water treatment chemicals, thereby driving the growth of the global corrosion inhibitors market.

Additionally, increasing oil and gas production and extraction activities in emerging markets such as India, China, Thailand, Malaysia, and Indonesia on account of the rising demand for petroleum products, fuel, and energy is likely to offer significant opportunities to the manufacturers of corrosion inhibitors.

However, stringent environmental regulations against the use of chemical corrosion inhibitors due to their adverse impact on the environment, aquatic life, and human health are likely to restrain market growth during the forecast period.

The demand for corrosion inhibitors is mainly driven by the growing water treatment industry on account of water scarcity and stringent regulations against wastewater disposal in the industrial sector. The use of corrosion inhibitors in water treatment plants helps reduce the rate of corrosion in flow pipelines.

The need for zero discharge of industrial water has led to the adoption of reverse osmosis (RO) membranes and other processes to enable plants to reuse and recycle water. RO membranes are used in industrial and municipal water treatment and for the pretreatment of water for boilers and cooling towers. This is likely to result in an increased demand for corrosion inhibitors in the coming years. Additionally, rising spending on water treatment and desalination projects in developing nations to meet the growing demand for water coupled with an expanding population is likely to fuel the demand for water treatment chemicals in the near future. For instance, in South Africa, the government has allocated around USD 4.2 billion for human settlements and water and electrification programs in the national budget for 2019, which is likely to impact the demand for water treatment chemicals and, thus, corrosion inhibitors.

Furthermore, the increased use of hydraulic fracturing in the oil & gas industry has led to a rising demand for water. Corrosion inhibitors, among other water treatment chemicals, help companies reuse water for various production processes.

Hence, the growth of the water treatment industry with an increased demand for water in the residential and industrial sectors has led a rise in the demand for water treatment chemicals, which is likely to drive the growth of the global corrosion inhibitors market during the review period.

Increasing oil & gas production and extraction activities in emerging economies such as India, China, Thailand, Malaysia, and Indonesia on account of the rising demand for petroleum products, fuel, and energy in numerous applications is likely to drive the demand for corrosion inhibitors in flow pipelines. For instance, in 2017, The Indonesian Husky-CNOOC Madura Limited, a subsidiary of CNOOC Limited, started operations in the BD field for gas production. The company aims at producing 100 million standard cubic feet per day (MMSCFD) and 7,000 barrels of condensate per day from the BD field.

CNOOC Limited started production at the Weizhou 12-2 oil field Phase II project in the Beibu Gulf in the South China Sea, which produces 6,400 oil barrels per day and is likely to expand production capacity to 11,800 barrels per day by the end of 2019. Moreover, international players operating in the oilfield services industry such as Baker Hughes are also emphasizing starting new projects in Asia-Pacific.

Technological advancements and rising investments in infrastructure are expected to drive oilfield drilling activities during the review period which will result in opportunities for players in the global corrosion inhibitors market.

The expanding automotive and transportation industry on account of the rising per capita disposable income and increasing international trade has led to a growing demand for fuel. Additionally, an emphasis on efficient sources of energy due to rising environmental concerns is likely to stimulate natural gas production.

Furthermore, the growth of the oil & gas, paper and pulp, and chemical processing industries is likely to lead to an increased demand for water treatment chemicals to treat the wastewater generated by these industries. Therefore, the growth of various industries in emerging economies presents lucrative opportunities for manufacturers of corrosion inhibitors.

Corrosion inhibitors are widely used in numerous industries including oil & gas; however, due to their adverse impact on the environment, several end users are adopting thermoplastic pipes and auxiliaries in lieu of metal for flow lines. For instance, in May 2018, Solvay developed a polyvinylidene fluoride (PVDF) grade under the brand name Solef to improve the capabilities of steel pipes and flowlines in the oil & gas industry. Solef eliminates the need for corrosion inhibitors in pipes, improves performance, and reduces operating costs. Ashland, a globally renowned specialty chemicals company, offers epoxy vinyl ester resins under the brand name Derakane for manufacturing corrosion-resistant fiber-reinforced plastic products such as tanks, pipes, ducting, and pultruded profiles. These resins are also used for chemical containment and transportation in various applications including mineral processing, pulp and paper, chemical processing, and wastewater treatment.

Hence, the adoption of thermoplastics in flow pipelines due to their superior benefits including improved performance and resistance to high temperatures and corrosion is likely to result in a reduced demand for corrosion inhibitors, thereby restraining market growth during the forecast period.