The market for insulation coating is expected to register a CAGR of about 7% globally during the forecast period. Insulation is the process of isolating something from the environmental effects and retain its normal state of being. It includes controling the utilization of energy-efficient factors, while helping to reduce carbon footprint. Insulation coating is made up of non-conducting materials, thus preventing the target item from its surroundings. Insulation coating is used to protect the product from electricity, sound, heat, and other factors. The growing demand for the construction industry and rising applications in the marine sector have been driving the market's growth.
- However, the high initial cost of insulation coating and the unfavorable conditions arising due to the COVID-19 outbreak across the globe are likely to hinder the growth of the studied market.
- Increasing demand from the aerospace industry is likely to provide opportunities for the insulation coating market over the next five years.
- Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and India due to its strong industrial base.
Key Market Trends
Automotive and Marine Industry to Dominate the Market
- The automotive and marine industries stand to be the dominating segments, owing to ensure stringent regulations mandating the use of insulation coating to conserve energy and achieve efficiency in operations.
- Beneficial properties of insulation coating, such as high thermal coefficient, energy-saving, and low thermal conductivity make them utilized by various equipment and machine parts in automotive in various end-user industries, to prevent them from environmental effects, thereby anticipated to drive the market growth for insulation coating.
- In the automotive industry, insulation coatings are used on rooftops to control the cabin temperature, which results in better fuel efficiency, reduced energy consumption, and reduced pollution. These advantages make insulation coatings one of the most desirable solutions in automotive applications.
- Insulation coating is used in shipbuilding construction as marine environment is prone to corrosion due to high moisture content and it provide thermal barrier and anti-condensation capabilities which is likely to augment the demand of insulation coating in marine sector.
- Acrylic based insulation coating is expected to witness significant growth over the forecast period owing to its light weight, low cost, high tensile strength and transparency over other counterparts.
- With the increase popularity for electric vehicles and new ships orders, the production of automotive and ships is expected to rapidly increase.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region stands to be the largest and fastest growing market for construction. Factors, such as the growing need for energy conservation and ensuring stringent regulatory norms by the International Green Construction Code (IgCC) standards which in turn have been driving the insulation coating requirements in Asia-Pacific.
- Epoxies based insulation coatings are used in the construction industry, due to properties such as high resistance to abrasion, UV light, and heat and durability. The rise in demand for green buildings is projected to create high growth potential for the epoxy segment during the forecast period.
- In Asia-Pacific region, China is the leading consumer of insulation coating due to government initiatives and regulations to strengthen the manufacturing industry fosters the global insulation coating market growth.
- Increasing consumer awareness regarding energy conservation and increasing investment in infrastructural development and remodeling activities in countries like India, China, and Indonesia have been further driving the insulation coating in the region.
- Japan is one of the important country in the shipbuilding industry. The new orders in the country have been increasing since 2016. The count reached a total of 344 units in 2018 and 109 units in first half of 2019. However, orders, in terms of gross tonnage, recorded a drastic increase by reaching 1,031 (10,000 GT) from 283 in 2017.
- Furthermore, announcement regarding the merger of the country’s shipbuilding majors, Imabari Shipbuilding and Japan Marine United, is likely to create more opportunities for the players in the Japanese marine anti-fouling coatings market, in the near future. This merger, if and when completed, may constitute almost 10% of the global shipbuilding business.
- Hence, all such market trends are expected to drive the demand for insulation coating market in the region during the forecast period.
The global insulation coating market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Akzo Nobel NV, Carboline, Jotun, The Sherwin-Williams Company, and PPG Industries Inc., among others.
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