Russia Protective Coatings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Key Highlights

• The rising demand from Russia's oil and gas industry is expected to drive the country's protective coatings market.
• Fluctuations in the prices of raw materials are expected to hamper the market's growth. The war in Ukraine has also significantly affected market growth.
• The rising demand for powder coatings is expected to offer various opportunities for market growth during the forecast period.

Russia Protective Coatings Market Trends

The epoxy resins segment expected to dominate the market

• Epoxy resins are one of the most commonly used resins in protective coating formulations. Epoxy resin and polyurethane hardener are two of the significant components of epoxy coating formulations. When mixed, the resin and hardener engage in a chemical reaction that creates cross-linking of the elements as it cures.
• Epoxy-based coatings are used for walls, floors, tanks, bricks, natural stone, etc. They are also used in terrace and bathroom waterproofing. Furthermore, these waterproofing products can be used as wall coatings in areas of food manufacture and storage, such as dairies, grain silos, and breweries.
• The 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 appropriate for heavy-duty industrial floors.
• The prices of epoxy resin coatings have increased compared to other resins due to the increase in raw material prices. However, due to its advanced properties, the epoxy resins segment registered a CAGR of over 2.2% during the forecast period.
• Because of the above reasons, it is likely that the demand for protective coatings made from epoxy resin will grow during the forecast period.

Oil and Gas Industry to dominate the market

• In the oil and gas industry, protective coatings are used mostly because they offer excellent corrosion resistance, water resistance, and fire resistance. In the oil and gas industry, safety protocols play a vital role, so protective coatings are used to avoid risks related to damage, accidents, and the health of workers.
• Russia is one of the world's top three crude oil producers. The country relies heavily on revenues from the oil and gas industries. For instance, in 2021, the oil and gas industry in the country contributed 45% of the Russian federal budget.
• In 2021, the Russian production output of crude oil reached 10.5 million barrels per day (bpd), making up 14% of the world’s total supply. And in 2021, the country exported 4.7 million bpd of crude oil to countries around the world. China is a significant importer of Russian crude (1.6 million BPD).
• Russia's crude oil exports have been hurt by the ongoing war between Russia and Ukraine and by economic sanctions from other European countries.However, in 2022, after Russia increased its crude oil shipments to China, the total shipments are expected to reach up to 17 billion cubic meters (bcm), or 60 percent more than the last year.
• Also, Russia has been increasing its capacity to export liquefied natural gas (LNG) in order to compete with the United States, Australia, and Qatar, which are all exporting more LNG.In 2021, the government came out with a long-term plan for LNG development. The goal was to export between 110 and 190 bcm/year of LNG by 2025.
• All of the aforementioned factors are expected to have an impact on the country's market for protective coatings.

Russia Protective Coatings Industry Overview

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