Thermal Insulation Coating Market Size, Share & Trends Analysis Report By Product (Acrylic, Epoxy, Polyurethane, YSZ, Mullite), By Application (Construction, Transportation, Aerospace, Manufacturing), And Segment Forecasts, 2018 - 2025

Report Overview

The global thermal insulation coating market size was valued at USD 6,660.5 million in 2016. Recent developments in the manufacturing and automobile sectors are likely to drive the demand for the heat barrier coats in these application segments. Increasing use of environment-friendly and energy-saving products is also expected to influence the market positively.

Ongoing research & developments in nanotechnology-based thermal insulation coatings are likely to boost the market growth as they offer excellent strength and thermal resistance with lower thickness. Technological breakthroughs, innovations, and studies carried out for expanding the product’s application scope are projected to foster demand.

Rising utilization of heat insulation solutions in the defense, automotive, manufacturing, and aerospace sectors is anticipated to push manufacturers to backward integration in the value chain over the coming years. Greater participation in the value chain is likely to result in time reduction for transforming raw materials into finished products and in gaining cost advantage.

Insulation manufacturers are expanding in terms of production capacity and infrastructure with an aim to cater to the growing market requirements. Moreover, many of the product manufacturing companies are using acquisition and partnership strategies for procuring raw materials. Mergers and joint ventures are an integral part of this market and allow companies to expand their market position.

Thermal Insulation Coating Market Trends

The industry is primarily driven by significant growth in the manufacturing, construction, and automotive industries. The market is expected to expand in response to the growing demand to save energy, enhance quality, and lower equipment operating costs. The insulation coating industry has witnessed a surge due to the rising demand for energy savings, the ability to resist corrosion, and increasing strict workplace laws. Additionally, the usage of insulation coating by marines is expected to be the fastest expanding end-use industry, having high sales in many regions, and is expected to drive the market growth during the forecast period.

Thermal insulation coatings based on nanotechnology are expected to rise in popularity since they provide thermal resistance, great strength, and are thinner. The demand for this market is expected to be driven by technological advances, inventions, and studies aimed at widening the product's application area.

Thermal efficiency is one of the major issues that global insulation coating manufacturers experience. Moreover, insulation coatings are more expensive because surface treatment is required before application to avoid rust. Priming and curing may also be involved in this procedure and high-temperature ceramic coatings are applied using thermal spray technology, which is more expensive. In addition, process downtime is required for some coatings, which might add to the cost. All these factors are restraining the growth of the market over the forecast period.

Product Insights

In terms of volume, acrylic emerged as the largest product segment and accounted for 34% of the market in 2016. Its properties such as lightweight, high tensile strength, clarity for transparency, and low cost over other substitutes make it suitable for various industries. The lighter weight of acrylic also results in ease of usage and transport.

On account of high thermal coefficient, low heat conductivity, and excellent shock resistance properties, yttria-stabilized zirconia (YSZ) acts as a suitable raw material for protective coatings. Thus increasing its use in gas turbines and engines running at high temperatures.

Epoxies are used in building & construction owing to properties such as excellent resistance to abrasion, heat, and UV light, toughness, and improved dimensional stability. It is free from volatile organic compounds (VOC), thereby making it suitable for energy-efficient buildings and indoor air quality improvement. Moreover, the rising demand for green buildings is expected to create high growth potential for this product segment during the forecast period.

Application Insights

The manufacturing sector emerged as the largest application and accounted for over 32% of the market share in 2016. Growth in the manufacturing sector, owing to various government initiatives such as Make in India, One Belt One Road, Buy American Hire American is anticipated to propel the industry growth.

Equipment & machinery operating at different temperatures require heat barrier coatings to perform at optimum levels. Growing preference for products that are capable of sustaining in high-temperatures is expected to boost the growth of the manufacturing segment.

Increasing applications of insulation coating in the automotive and OEM sector is projected to create high demand for such products, as they help improve the overall performance of the vehicle by reducing heat loss and energy consumption.

Advancements in automobile technology coupled with increasing disposable income and standard of living are projected to drive the industry. These coatings are used for rooftops to control the cabin temperature and thus increase HVAC efficiency, which further translates into better fuel economy and reduced pollution. Insulation coatings are used in the aerospace & defense sector for various applications such as aerodynamic fairings, exhaust systems, heat shields, fire barriers, infrared suppression systems, and nacelle firewalls which operate on uneven temperatures.

These coatings are used to control the operating temperature which ensure reduced energy loss and increased performance. Furthermore, they are also significantly used in defense equipment owing to its characteristics of providing resistance from high temperature along with significant protection from corrosion under insulation.

Regional Insights

Low-cost labor and raw materials coupled with the presence of various end-use industries in the Asia Pacific are driving demand in this region. China and India occupy significant shares in the global manufacturing sector and are also leading automotive producers. Moreover, the price-sensitive products along with the presence of a vast number of players are likely to add to the market competition in the region. Developing economies such as India, Indonesia, and China are expected to observe robust economic growth over the near future.

Growing automotive production and investments in defense & aerospace are projected to enhance demand for this technology across the globe. Huge investments in developing new ceramics (zirconates) as a substitute for yttria-stabilized zirconia (YSZ) on account of its unfavorable phase transformation property above 1200°C is expected to introduce new products to the industry.

Massive investments in developing the infrastructure, with emphasis on building & construction sectors in Europe and Asia Pacific, is expected to boost demand over the coming years. Green building initiatives, especially in Europe is anticipated to propel demand for VOC free epoxy coatings.

Key Companies & Market Share Insights

Most of the key players operating in the global thermal insulation coatings market have integrated their raw material production and distribution operations to maintain product quality and expand regional reach. This provides companies a competitive advantage in the form of cost benefits thus increasing the profit margin. Companies are undertaking research & development activities to develop new products to sustain market competition and changing end-user requirements.

Some of the popular technologies mainly include water-based & powder coatings, UV reflective, and two-component systems. Contiline process technique is gaining popularity over the conventional batch process owing to greater output and reduced production cost. Research activities focused on new materials, which combine several properties, are projected to gain wide acceptance in this industry in the coming years. Some of the prominent companies manufacturing these products include PPG Industries, Nippon Paint Holdings Co., Mascoat, AkzoNobel N.V., Carboline Company, and Sherwin-Williams Company.

Recent Developments

• In June 2021, PPG acquired Tikkurila which is a leading Nordic paint and coating company. PPG now holds 97.1 % of Tikkurila's shares, including issued and outstanding

• AkzoNobel is expanding its African footprint after agreeing to acquire Kansai Paint's paints and coatings operations in the region. The project is planned to be completed in 2023based on the regulatory permissions

• In February 2022, Sherwin-Williams Company (NYSE: SHW) announced that it has signed an agreement with the state of North Carolina, Iredell County, and the city of Statesville to make expansions in its architectural paint, coatings manufacturing capacity, and set up a large distribution facility in Statesville. Sherwin-Williams intends to invest at least USD300 million in the project and create more than 180 fulltime jobs at the site over the next three years, effectively doubling the current workforce

Thermal Insulation Coating Market Report Scope

Thermal Insulation Coating Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global thermal insulation coating market on the basis of product, application, and region.

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Acrylic

  • Epoxy

  • Polyurethane

  • Yttria Stabilized Zirconia (YSZ)

  • Mullite

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Building & Construction

  • Automotive & Transportation

  • Aerospace & Defense

  • Manufacturing

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • The U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa