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Chemical Processing Market Trends: How Proper Corrosion Protection Can Foster Future Growth

Written by Kira Kaleps | Jan 20, 2025 2:45:49 PM

As the global chemicals market accelerates toward a projected value of $4.95 trillion by 2031,1 with a CAGR of approximately 6.0%, manufacturers face increasing pressure to optimize their operations while maintaining the highest standards of safety and efficiency.

Underneath a seemingly calm exterior, evolving marketplace needs are shifting the focus of the types of chemicals in highest demand. This factor, alongside a churning geopolitical landscape, reemphasizes the importance of preserving capital equipment to extend its lifespan, avoiding costly repairs or replacements complicated by supply chain uncertainty. Technological innovation and Industry 4.0 rely on the chemical industry to continue fueling its growth. This article examines three major trends that will enable the chemical processing industry to maintain production and optimize efficiency, capitalizing on these market opportunities.

Top trends transforming chemical processing

1. Concentrated growth in strategic markets

The chemical processing industry is experiencing significant growth in several key sectors, particularly high-value markets. The semiconductor industry has seen accelerated growth, spurred by initiatives like the CHIPS and Science Act. Meanwhile, clean energy solutions, especially electric vehicle (EV) production, are driving demand. According to a report from Deloitte, “EVs require 85% more chemistry than internal combustion engines.”2

Other key growth segments include:

  • The global electronic chemicals and materials market is projected to grow from $57.88 billion in 2023 to $101.31 billion by 2031, achieving a CAGR of 7.24%.3
  • The wastewater treatment industry is expected to achieve a CAGR of 6.8% by 2028, driven by population growth and freshwater resource protection.4
  • The food colors market is projected to grow from $4.6 billion in 2023 to $6.0 billion by 2028, reflecting a 5.4% CAGR.5

2. The evolution of corrosion protection technologies

As the industry evolves, traditional approaches to corrosion protection are proving insufficient for modern demands. The progression of protection solutions has seen several iterations:

  • Basic carbon steel. Requires regular wall thickness measurements and inevitable replacement
  • Direct thermoplastic solutions. Options like HDPE provide basic protection but struggle with thermal expansion and structural support
  • Spray coatings. Including fusion-bonded epoxy and polymer sprays, offering moderate protection at 30-50 mils thickness

Geographic diversity in chemical processing remains strong, with major processing clusters spread across the U.S. While the Gulf Coast maintains its position as a crucial hub, significant operations exist in:

  • Decatur, Alabama, region (specialized chemicals, coolants, and resins)
  • Mount Vernon/Evansville, Indiana, region
  • Ohio and Georgia (pigments and specialty chemicals)
  • Pacific Northwest (pulp and paper chemical processing)

This geographic diversity highlights the widespread need for effective corrosion protection solutions across various climates and operating conditions, which can impact the effectiveness of the corrosion protection system selected.

3. Expanding industry applications and complexity

The chemical processing industry serves as the foundation for modern manufacturing, extending far beyond traditional applications. Even segments previously considered low-risk now require specialized corrosion-resistant equipment during production phases.

Diverse applications

Modern chemical processing facilities must adapt to meet the needs of diverse industries, including:

  • Semiconductor and electronics manufacturing
  • Clean energy solutions
  • Food and beverage processing
  • Pharmaceutical production
  • Water treatment facilities
  • Pulp and paper processing
  • Specialty chemical manufacturing

Don’t assume low-risk segments won’t require corrosion protection

Chemical processing is the backbone of modern manufacturing for industries beyond semiconductors and clean energy. For example, paper and plastics, pharmaceuticals, agriculture, and water treatment solutions rely on chemical processing and thus require robust corrosion protection to safeguard their personnel, equipment, and facilities.

Recent industry insights reveal that even segments previously considered low-risk, such as flavors, fragrances, and food ingredients, require specialized corrosion-resistant equipment during their production phases.

What many may not realize is that the manufacturing of dyes, pigments, and specialty chemicals that might be utilized in these relatively low-risk segments all involve corrosive processes. These materials, even those considered natural and sustainable, might require solvents during production or undergo purification steps that can be highly corrosive to standard processing equipment and benefit from protective measures.

For the food industry, modern chemical processing facilities must navigate increasingly complex regulatory requirements. FDA-approved resins are essential to ensuring compliance in food and flavor ingredients while ensuring product purity. The ability to provide food-grade solutions without compromising corrosion resistance has become a crucial differentiator in the market.

Evolving requirements

Success in these growing markets demands increasingly sophisticated solutions:

  • FDA-approved resins for food and beverage applications
  • Higher purity standards for electronics and pharmaceuticals
  • Stringent safety regulations
  • Complex chemistries for new product development
  • Increased focus on operational efficiency

The true cost of chemical corrosion

The financial impact of corrosion in chemical processing facilities extends well beyond the immediate expense of equipment replacement. As supply chain challenges and potential tariffs threaten to increase material costs, particularly for steel-based components, the industry can no longer sustain traditional "replace as needed" approaches to corrosion management.

The most visible costs begin with equipment replacement, combining rising material costs with escalating labor expenses for installation. These direct costs are further compounded by operational losses during replacement periods when production capacity is reduced or halted entirely. However, the hidden costs often prove more significant over time. Safety and compliance concerns take center stage, as corroded equipment poses risks to worker safety and can lead to environmental violations, resulting in regulatory fines and increased insurance premiums.

Quality control presents another significant challenge, as corroded equipment can lead to product contamination and batch rejections. Even before catastrophic failure, corroding equipment typically experiences degraded performance, leading to efficiency losses that manifest in higher energy consumption and increased maintenance requirements. These issues can damage customer relationships and erode competitive advantage.

When evaluating corrosion protection strategies, manufacturers must consider the total cost of ownership, comparing initial investments against replacement frequency, maintenance requirements, and operational reliability. While advanced corrosion protection solutions may require higher upfront investments, they often deliver superior returns through extended equipment life and improved operational efficiency.

Understanding rotational lining technology

Rotational lining represents the latest advancement in corrosion protection technology. This innovative process involves applying thermoplastic materials to the interior of metal equipment through a controlled heating and cooling process while the equipment rotates along multiple axes. This technique ensures uniform coverage and superior bonding, even in complex geometries.

Key advantages of rotational lining include:

  • Service life exceeding 20 years —four times longer than traditional solutions
  • Uniform coverage in complex geometries
  • Exceptional chemical resistance across broad pH ranges
  • Minimal maintenance requirements
  • Superior impact and abrasion resistance
  • Excellent thermal stability
  • Seamless integration with existing equipment

While the initial investment in rotational lining technology may be higher than traditional protection methods, the long-term value proposition is compelling. With service life spans exceeding 20 years and minimal maintenance requirements, manufacturers can significantly reduce their total cost of ownership while ensuring consistent product quality and regulatory compliance. As chemical processing applications become more complex and material costs continue to rise, this innovative technology offers a forward-looking solution that aligns with the industry's increasing focus on operational efficiency and sustainable growth.

A leading rotational lining provider like RMB Products can serve as an innovation partner to:

  • Collaborate on material choices for challenging applications
  • Develop custom solutions for specific processing needs
  • Support new process development with materials expertise
  • Craft plans for regular inspection and maintenance for preventive care

Maximize operational efficiency and minimize risk

As the chemical processing industry continues its expansion through 2031, the importance of reliable corrosion protection cannot be overstated. Manufacturers who take the long view by investing in superior protection solutions like rotational lining position themselves for sustainable growth and competitive advantage.

Take into consideration key factors that are expected to drive increased demand for superior corrosion protection, such as:

  • Efficiency demands. As competition intensifies, manufacturers must maximize uptime and minimize maintenance costs.
  • Complex chemistries. New product development, especially in electronics and specialty chemicals, often involves more aggressive processing conditions.
  • Quality requirements. Higher purity standards in industries like electronics and pharmaceuticals require contamination-free processing equipment and components.
  • Safety standards. Increasingly stringent safety regulations demand more reliable containment solutions.

The future belongs to those who maximize operational efficiency while minimizing risk — and RMB provides rotational lining technology and advanced materials expertise to support this evolution. Contact RMB to learn more.

 


About the Author: Kira Kaleps

As the business development manager for corrosion protection at RMB, Kira Kaleps brings 31 years of experience in thermoset and thermoplastic products and services to support chemical processing challenges. She has been involved with many industry events, including NACE, ASME, AMPP, and ACMA technical meetings. Kaleps earned her bachelor’s degree in industrial engineering from the University of Cincinnati. 

 

  1. https://www.snsinsider.com/reports/global-chemical-market-4043
  2. https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html
  3. https://www.skyquestt.com/report/electronic-chemicals-and-materials-market#:~:text=Electronic%20Chemicals%20And%20Materials%20Market%20Insights,period%20(2024%2D2031
  4. https://blog.bccresearch.com/water-and-wastewater-treatment-industry#:~:text=Water%20and%20Wastewater%20Treatment%20Technologies%3A%20Global%20Markets,period%20(2023%2D2028
  5. https://www.globenewswire.com/news-release/2024/10/02/2957036/0/en/Consumer-Preferences-in-Food-Colors-A-Deep-Dive-into-Market-Trends-The-Road-to-6-0-Billion.html#:~:text=The%20expansion%20of%20the%20processed,5.4%25%20from%202023%20to%202028.