The need for efficient processes and long-lasting coatings with the ability of reducing heat loss, along with environmental-friendly coatings and the growing need for energy saving coatings mainly in Asia-Pacific (APAC) region are expected to drive the market growth during the forecast period 2020-2025. Thermal Insulation Coatings Market size is forecast to reach $8,880.3 million by 2025, after growing at a CAGR of 6.3% during 2020-2025.
Globally, the demand for the market is estimated to increase from the industrial, automobile, defense & aerospace, building & construction end-use industries due to the growing use of heat insulation solutions and low conductivity and high coefficient properties of thermal insulation coatings. Furthermore, government initiatives and regulations to improve the manufacturing sector and increase the use of energy saving and eco-friendly products will increase the size of the thermal insulation coating market in forecast timeframe. Hence, the following factors will overall increase the growth of the thermal insulation coatings industry over the forecast period.
The thermal insulation coatings are majorly used in hot water pipes, processing tanks, boilers, HVAC, pressure valves, heat exchangers, and processor, that is widely used in the manufacturing industry that includes metal component manufacturers, food and beverages industries, fabrication and finishers among others. In these components, thermal insulating coating works not only to reduce temperatures, but also provides energy savings, thermal insulation and personnel protection all in an easy spray-on application. Thermal insulation coating provides excellent thermal insulation in a thin film coating, energy savings in order to reduce energy consumption for heating or cooling. The better formulation of thermal insulation coatings which includes almost all the properties to withstand any harsh condition in order to protect it from high temperature and corrosion tends to increase the demand of the market.
According to International Trade Centre (ITC), the world export of acrylic resins was worth USD 13,490,819 thousand in 2016, and USD 15,291,934 thousand in 2017, which further increased to USD 17,152,076 thousand in 2018. Also, according to the European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. Also, the European Construction 2020 Action Plan aimed at stimulating favorable investment conditions for the building and construction industry. Thus, such investments and initiatives in the construction industry by the government are flourishing the construction industry is various regions. And with the increasing building and construction sector, the demand for acrylic industrial coatings will also substantially increase, which will boost the acrylic based industrial coatings market during the forecast period.
Asia-Pacific dominated the thermal insulation coatings market with a share of 41.2% in 2019 and is projected to dominate the market during the forecast period (2020-2025). Asia-Pacific countries include China, Japan, South Korea, India, Australia & New Zealand, Taiwan and Others. Demand for the thermal insulation coatings is rising because of the region’s growing manufacturing, construction, aerospace, transport and automotive industries. According to Boeing (Commercial Market Outlook 2018-2037), China will need 7,690 new aircraft over the next 20 years valued at US$1.2 trillion. Around 74 percent of the demand for single-aisle aircraft will be during this time, while for wide-body, the demand will be 21 percent. China also accounts for 15 % of the world's commercial aircraft fleet at present, and by 2037 that will be nearly 20%. Also, according to the International Trade Administration (ITA), the total Japanese EV market stands at 27,000 units in 2018, a 250% increase during the past 10 years. In 2019, domestic sales of SUVs stand at 514,000 units and this indicates a rise of 37 percent in the last 3 years. According to OICA, the total number of motor vehicle production in Malaysia increased from 4,60,140 in 2017, to 5,65,000 in 2018, which then increased to 5,71,632 in 2019. Thus, increasing automobile production and growing development in various end use industries in this region will further drive the market for thermal insulation coatings in the forecast period.
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Thermal Insulation Coatings Market Growth Drivers:
- Growing demand for energy saving coatings
The surface temperature of the material increases due to the accumulated heat as it absorbs solar energy, and the high temperature caused by solar radiation causes many inconveniences and even problems in industrial development and daily life. A large amount of energy is consumed to maintain the proper temperature of the object. The production of reliable and economical thermal insulation materials is the key to meeting the urgent energy saving and pollution mitigation needs. Due to its good thermal insulation efficiency, economical, simple to use and adaptability to a wide range of substrates, the thermal insulation coating is increasingly common in the face of a variety of choice of thermal insulation materials. With the thermal insulation functional fillers in the coating system, the film shows a certain thermal insulation effect by reflecting, radiating or insulating heat. As a result, the surface temperature of the material will be substantially reduced when protected by thermal insulation coatings. The growing demand for energy saving coatings will tend to increase the market growth of thermal insulation coatings.
- Increasing development of advanced thermal insulation coatings
Researchers and manufacturers are looking at effective and advanced thermal insulation coating material to reduce the energy consumption. Over the past few years, a number of ceramic materials, mostly oxides have been suggested as new thermal insulation coating (TIC) materials. Numerous industries are incorporating the thermal insulation coatings at industrial level to attain the energy saving needs. As an example, in heavy duty gas turbines continuously increasing hot gas temperatures leads to increased thermal loadings of the hot gas path materials. In this scenario, thermal insulation coatings come into important role as they provide reduction in the super alloys temperature and cooling air needs. It has been estimated that the thermal insulation coating material with increased temperature capability enables the next generation of gas turbine with >60% combined cycle efficiency. Thus, the growing demand of advanced thermal insulation coatings will lead towards the growth of the thermal insulation coatings market globally over the forecast period.
The Major Players in this Market Include
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the thermal insulation coatings market. In 2019, the market of thermal insulation coatings has been consolidated by the top ten seven players accounting for 27.4% of the share. Major players in the thermal insulation coatings market are AkzoNobel N.V., The Dow Chemical Company, PPG industries, Inc., Sherwin-Williams Company, Mascoat, Jotun Group, Nippon Holdings Co. Ltd., Carboline Company, Grand Ploycoats Company Pvt. Ltd., and Kansai Paint Co., Ltd. among others.
- In September 2019, Nippon Paint (USA) Inc., a subsidiary of Nippon Paint Holdings Co., Ltd., has invested approximately $60 million to set up a factory to manufacture automotive coatings in Chattanooga, Tennessee. The new plant provided consumers in the United States, Canada and Mexico with electro-coat ('E-Coat') and other vehicle coatings.
- In January 2018, Carboline Company acquired the Strathmore and American Coatings product lines. This acquisition allowed Carboline Company to offer a more diverse portfolio of products and technology for customers.
- In June 2017, Sherwin-Williams Company acquired the Valspar Corporation. With the acquisition a world-class brand portfolio, an extended product range, premier technology and engineering channels and an extensive global presence was generated.
Furthermore, the impact of COVID-19 will have a ripple effect on the thermal insulation coatings market, as the industries it serves continue to be negatively impacted. Due to COVID-19 palindrome, for thermal insulation coatings, record declines in consumer spending, customer shutdowns, and lack of capital expenditures are trends all having a negative impact on the market. The automotive and manufacturing industries have been greatly affected across the wide spectrum of industrial segments. At this critical juncture, various manufacturers are focused on what be the ‘new normal’ will look like. Although production at most of the thermal insulation coatings and its related units has resumed in a staggering manner, the continuing increase in the number of cases, value and supply chain disruption and the falling demand has caused anxiety among the leading thermal insulation coating producers.
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