Analysts have predicted that Nigeria and Angola will lead the oil and gas paint and coating market, and estimated that revenue from the sector could reach $1,131.4 million in 2019.
They said the two countries present attractive growth and operational expansion opportunities for manufacturers in the offshore oil and gas (O&G) paints and coatings market.
With raw material availability and local manufacturing capabilities catalysing production and supply lines, the two countries are rapidly emerging as the African hub for the offshore O&G paints and coatings market.
New analysis from Frost & Sullivan, Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola, finds that the market earned revenues of $675.1 million in 2014 and estimates this to reach $1,131.4 million in 2019.
The applications covered in the study are offshore O&G facilities, dry docks and fabrication yards.
“The subsidisation of manufacturing makes Nigeria and Angola vital to the production of offshore O&G paints and coatings in Africa, with the goal of African needs being fulfilled by African countries,” said Frost & Sullivan Chemicals and Materials Research Analyst Abdul-Baasit Abdullah.
“The drop in crude oil prices has reduced the base costs of paint through a reduction in raw material cost of 8.3%, driving competitive pricing and consumption.”
Construction of local production facilities will be vital in order to ensure cost-competitiveness, as transportation costs of raw materials are steep. Local construction will be further justified once higher import tariffs are implemented by the Nigerian and Angolan governments.
As import duties are lower for unfinished than for finished goods, suppliers could consider setting up a local presence in the form of a mixing plant where imported raw materials are blended.
“While in-country manufacturing is a must-have, building a brand reputation will be essential for long-term, sustainable growth,” noted Abdullah.
“Partnerships between local and international companies will speed up the development of high-quality products and assist offshore O&G paints and coatings manufacturers in meeting demand in the Nigerian and Angolan markets.”
Analysis of the Offshore Oil & Gas Paints and Coatings Market in Nigeria and Angola is part of the Chemicals & Materials Growth Partnership Service program.