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    Market Research

    Intumescent Coatings Market to Reach $1.3 Billion by 2026: Global Market Insights

    ...

    Intumescent Coatings Market to Reach $1.3 Billion by 2026: Global Market Insights
    Global Market Insights03.25.20
    The intumescent coatings market exceeded $985 million globally in 2019 and is estimated to grow at 4.8+% CAGR between 2020 and 2026. 
     
    Increasing investments in shale gas exploration and rapid demand for lightweight & advanced thin film coatings are the major factors stimulating the market demand.
     
    An intumescent is a substance that swells on exposure to heat, thus increasing in density and are widely used in fire protection for various end industries such as automotive, oil & gas, and construction. It is a layer of protective substance that works by a chemical reaction triggered by heat resulting in an insulating layer without the release of water. Stringent safety regulations along with increasing demand for cost-effective and high-performance solutions for fire and corrosion protection is likely to boost the intumescent coatings market share.
     
    Increasing investment in shale gas exploration along with rising demand for advanced lightweight and thin-film coatings is likely to boost the global intumescent coatings market. Industry players are rapidly investing in R&D & capitalizing on emerging sustainability and safety trends which is increasing the adoption of intumescent coatings.
     
    Increasing crude oil demand in the automotive and petrochemical industry accompanied by rising natural gas should increase oil & gas exploration thereby favoring intumescent coatings demand. Companies are also focusing on providing and offering high-grade fire protection coatings that align to strict fire safety standards which are likely to stimulate the intumescent coatings market.
     
    U.S. regulation NFPA 251 standards specify tests to check fire resistance of the materials used in the oil & gas and construction industry to provide fire safety. Intumescent coatings manufactured have to be tested under this standard for fire protection. This regulation is increasing competition among industry players to gain maximum market share by rapidly developing new product lines which are likely to boost regional intumescent coatings market share.
     
    The market is segmented by technology into water-based and solvent-based. The growing construction industry and rapid increase in renovation activities are likely to favor epoxy-based coatings demand in a fire protection mechanism for interior structure. Additionally, increasing investment to diversify product portfolio for construction-specific applications such as structural and wall coatings is likely to augment the intumescent coatings market.
     
    Epoxy intumescent coatings are forecasted to grow at a CAGR of over 4.5% by the end of the forecast period. These coatings are widely used for structural steelwork such as frames, beam, and columns owing to high thermal stability, quick response time, and smooth and minimalistic appearance. Strict government compliances & norms towards fire safety codes and the use of high quality & tested materials accompanied by growing construction projects should boost the intumescent coatings market growth.
     
    Intumescent coatings market is segmented by application into hydrocarbon and cellulosic. Hydrocarbon intumescent coatings are widely used to reduce fire risk caused by oil & gas leaks owing to their high thermal stability and chemical resistance. Industry players are investing in installing these coatings to ensure worker safety and stringent government compliances which should boost market demand.
     
    The market for hydrocarbon intumescent coatings is likely to surpass $695 million by 2026. These coatings form a tough insulating char in event of a fire breakout and protect the steel framework from getting too hot which reduces the spread of fire. These coatings can be applied at different concentration rates which makes them compatible with onshore and offshore production facilities. Additionally, a rise in hydrocarbon and petrochemical complexes use in the oil and gas industry may enhance the intumescent coatings market outlook.
     
    Based on the end-use industry, the market is bifurcated by end-use into automotive, oil & gas, and construction industry. Increasing demand for CNG and electrical vehicles owing to changing consumer preferences on sustainability is likely to boost product demand. Also, the rising demand for safe vehicles & enhanced protection for sparking and gas leaks is likely to strengthen the intumescent coatings market size.
     
    The automotive segment will surpass $105 million by the end of 2026. These coatings are applied under the hood and car bottoms to protect the vehicle from various hazards such as overheating, corrosion, CNG gas leak, and battery sparking. Fireproofing and heat resistance are the key characteristics to drive market demand. The rapid adoption of innovative technologies in the automotive is likely to accelerate the intumescent coatings market value.
     
    North America is likely to register over 4.5% gains by 2026. Increasing construction & renovation activities in the U.S and Canada supported by rapid urbanization trends is likely to support intumescent demand. They are widely utilized in fire protection of structural steel, wood, and other components. Changing consumer perceptions on safety is likely to increase product penetration in residential construction which should boost the intumescent coatings market.
     
    Strict regulations to fireproof skyscrapers along with rapid investment in the construction of sky rise buildings are likely to boost market share. Industry players in the region are investing in manufacturing high grade & performance solutions for modern buildings which should encourage the use of these coatings. Furthermore, changing consumer perceptions of safety and strict fire regulation compliances is likely to boost the intumescent coatings market forecast.
     
    The intumescent coatings industry is consolidated, and major players include 3M Company, AkzoNobel, Albi Manufacturing, PPG Industries, Sherwin-Williams, SIKA AG, Jotun Group, Isolatek International, Hempel, Flame Control Coatings, Firetherm, Crown Paints, Carboline, Bollom Fire Protection, and Albi Manufacturing. Industry players are rapidly investing in R&D to capitalize on emerging trends towards safety, fire standards, and regulations.
     
    In May 2017, AkzoNobel opened a new performance coating facility investing $35 million in Chonburi, Thailand aiming to meet the demand and serve their customers of Thailand and other South East Asian regions. AkzoNobel also invested $15 million in February 2017 in the UK to develop an innovation hub by bringing in together more than 100 scientists to revolutionize company product portfolio and product innovations.
     
    In September 2016, Carboline acquired Specialty Polymer Coatings, Inc. a major manufacturer of high-performance coatings in the global oil & gas pipeline market to operate as a free-standing business that will combine technology and service locations of the companies and their dominance in the Intumescent coatings market. 
     
    In March 2017, Hempel expanded its production capacity by starting a new factory in Kuwait which increased its production by 28 million liters of coating and strengthened Hempel’s position in the Middle East. It also strengthened its distribution network in North America with a new Central Distribution Center in Texas which covers more than 202,000 square feet.
     
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