The market for Intumescent Coatings is anticipated to register a CAGR of more than 4% during the forecast period. The intumescent coating layer expands and produces a ‘char’, which insulates the material inside from flames, by cutting off the oxygen necessary for combustion. Due to these properties, intumescent are used as a coating material to protect substances from heat and fire damage.
- Increasing construction activities in emerging economies of Asia-Pacific as well as growth in oil & gas exploration activities are augmenting the growth of the market.
- Rise in the prices of raw materials is likely to hinder the market’s growth.
- Growing shale gas production is projected to act as an opportunity for the market in future.
Key Market Trends
Oil & Gas Industry to Dominate the Market
- Oil and gas sector is one of the major end-users for the intumescent coatings market. The sector essentially requires fire protection and fireproofing, owing to a high temperature environment in its business operations, including horizontal drilling and refining. In addition, apart from fire protection, the product is used to prevent metal and steel structures from corrosion and chemicals, as they are exposed to moist and damp climatic conditions.
- Offshore oil and gas production have some of the most demanding conditions. Therefore, coating systems used in it are to be equipped likewise.
- Offshore, prolonged exposure to penetrating UV rays and constant contact with rough seawater increase the need for intumescent coatings.
- The oil and gas industry in Asia-Pacific is growing, due to the rising demand for energy and petrochemicals. Countries, such as India, Malaysia, Indonesia, China, South Korea, and Japan are experiencing an increase in offshore drilling activities.
- For instance, the Bison, Iguana, and Gajah Puteri (BIGP) project in Indonesia involves the development of three oil and gas fields in Iguana, Bison, and Gajah Puteri regions. Factors, such as these are expected to consequently result in an increase in the demand for intumescent coatings in Asia-Pacific.
- Thus, growing oil production in the emerging economics of the world is expected to boost the consumption of intumescent coatings in the oil and gas sector during the forecast period.
India to Dominate the Asia- Pacific Region
- India’s construction sector has been growing rapidly, with an increased investment by the government. The growth of commercial real estate has been driven largely by the service sectors, especially IT-ITeS.
- In addition, companies like Reliance Industries Limited and Indian Oil Corporation have planned for expansion in oil refineries, over the next five years.
- According to International Air Transport Association (IATA), India is one of the fastest-growing domestic markets, worldwide, with 190 million passengers traveling in the recent year, and it is expected that 337 million domestic and 84 million international passengers would travel by 2030. This growth is expected to boost the demand for new aircraft and air navigation service technologies, which, in turn, is expected to augment the demand for intumescent coatings, over the forecast period.
- The growing automotive industry, coupled with the increasing number of petroleum refineries, is expected to majorly boost the intumescent coatings market in the country, over the forecast period.
The global market for Intumescent coatings segment is a consolidated market among the top players accounting for major share of the market. Major Players include Jotun, Akzo Nobel NV, PPG Industries, The Sherwin-Williams Company, Jotun and Hempel A/S, amongst others.
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