The global thermal barrier coatings market size was USD 12.40 Billion in 2015 and is expected to witness growth at a CAGR of over 6% from 2016 to 2024. These coatings form an integral part of exhaust heat management in several applications, including aerospace and automotive. The growing automotive industry has led to higher production volumes worldwide, thereby increasing the need for efficient heat management systems.
The market is expected to grow at a significant rate over the coming years owing to increasing demand from the automotive industry, which has been witnessing a significant increase in production over the past few years. The subsequent enhancements in technology in this industry have resulted in a growing requirement for advanced thermal coating technologies, thereby projecting significant growth potential for industry players during the forecast period.
U.S. thermal barrier coatings market revenue, by product, 2013 - 2024 (USD Million)
Factors such as economic growth, industrial growth, rising consumer disposable incomes and standards of living have levied high pressure on the automotive industry for higher output and better quality products. This has also led to increasing R&D investments and activities for the development of efficient technologies for application of thermal barrier coatings. Some of the key technologies in use currently are vapor deposition and plasma sprays. Such developments are mainly observed in developed countries such as the U.S., the UK, and Germany, and these trends are expected to continue through the forecast period. Countries such as Brazil, China, and India are expected to among the key countries driving the thermal barrier coatings market growth during the coming years.
Thermal barrier coatings are manufactured with the help of raw materials such as epoxy resins, polymers, aluminates, zirconia, and so on. Industry participants are engaged in extensive R&D for the development of efficient application technologies and products, while also taking several measures to increase production output to cater to the rapidly growing global demand. These measures are being continuously adopted by most players in the industry value chain. However, volatile raw material prices have resulted in severe price fluctuations in the market, thereby acting as a possible restraint to the overall industry growth.
Ceramic products accounted for the largest share in 2015, accounting for over 33% of the overall industry. This can be attributed to the superior thermal resistance and multi-layer protection offered by ceramic-based products in high-temperature applications.
In addition, this segment is expected to be the fastest-growing product segment, projected to grow at a CAGR of over 7% from 2016 to 2024, in terms of revenue. The increasing requirement of superior quality thermal-resistant materials in the automotive and aerospace segments is expected to be the primary factor driving demand for this segment.
The most commonly used form of ceramic products is the yttria-stabilized zirconia (YSZ), which is expected to dominate the industry during the forecast period, over other coating materials such as Al2O3 and mullite-based.
The stationary power plants application segment is projected to grow at the highest CAGR of over 7% during the forecast period. This rapid growth can be attributed to the growing requirement in these plants for gas turbines that can withstand high operating temperatures, ranging commonly between 1,500⁰C and 1,700⁰C. The growing population, urbanization, and changing lifestyles of people have resulted in increased pressure on the power generation industry, thereby resulting in the requirement for more gas turbines.
The automotive industry is also expected to grow at a high growth rate during the forecast period, driven by the increasing demand for automobiles, consequently increasing the demand for thermal resistant coatings in automotive parts and components.
High-Velocity Oxygen Fuel (HVOF) coating demand was valued at over USD 2.5 billion in 2015. HVOF coating technique enables the use of various coating materials including metals, ceramics, and alloys to produce coatings of exceptional hardness, improved adhesion to the substrate material, as well as significant corrosion protection and wear resistance. The rising application scope of this technology in thermal coatings is expected to drive the demand over the projected period.
Al2O3 type coating combination accounted for rover 25% of the global share in 2015. Incorporating alumina in YSZ TBC improves oxidation and corrosion resistance, as well as bond strength and hardness without a significant change material toughness. The rising demand for aluminum oxide in applications that primarily use ceramic coating materials for multilayer coating functions is expected to consequently drive the demand for aluminum oxide, which in turn is expected to propel TBC growth over the forecast period.
China is expected to be the highest growing consumer of thermal barrier coatings, projected to grow at a CAGR of nearly 9% during the forecast period. This can be attributed to the rapid growth witnessed by application industries such as stationary power plants and automotive in the country.
The Latin American market, comprising emerging countries such as Brazil, Mexico, is also expected to witness significant growth during the forecast period. The regional industry is projected to grow at a CAGR of over 7% during the forecast period. The rapid growth of the automotive industry in the aforementioned countries can be regarded as a major factor driving the demand for thermal barrier coatings in these countries.
The industry has become highly fragmented since the past few years, owing to the entry of several manufacturers in the global market. The key players in the global thermal barrier coatings market include Air Products & Chemicals, TWI Ltd., H.C. Starck Inc., and ASB Industries Inc., among others. These players are focusing on new product developments and innovation as key strategies for strengthening and sustaining their positions in the global market.
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