High Temperature Coatings Market

Market Outlook for High Temperature Coatings

Advancements in aerospace, automotive, metal processing, and other industries have led to increased demand for high temperature coatings in recent years.

While stakeholders in the high temperature coatings industry are fully utilizing sky-high demand to gain market share, regional players in prominent markets such as North America, Asia Pacific, and Europe are set to witness higher requirements over the coming years.

A new study by Fact.MR provides detailed insights on the global high temperature coatings market, along with demand-supply trajectories, driving and restraining factors, and other key aspects across the globe for the forecast period of 2021 to 2031.

Historical & Future Outlook of High Temperature Coatings

With exponential growth of aerospace, defense, petrochemical, and other industries, demand for high temperature coatings has never been so high.

While an exclusive set of properties such as providing insulation from high temperatures, capability of improving an engine’s horsepower, flexibility in terms of composition, to name a few, has given high temperature coatings the spotlight, continuous efforts by manufacturers to bring in a wide variety of products has further catered market growth in the last 5 years from 2016 to 2020.

Demand for high temperature coatings is growing fast with the development of flurry of products by top companies in order to target a broader range of consumers.

Additionally, increase in the number of manufacturing hubs and highly advanced supply chains are propelling the growth of high temperature coating suppliers. According to Fact.MR, the global high temperature coatings market is expected to expand at over 4% CAGR through 2031.

How is Steady Growth of the Aerospace & Defense Industry Fuelling Sales of High Temperature Coatings?

High temperature coatings can operate up to 1,200º C, and offer excellent outgassing properties in aerospace systems. With growth of the aerospace and defense industry, demand for these coatings has risen substantially in this sectors.

According to a report titled “Aeronautics Industries- Internal Market, Industry, Entrepreneurship and SMEs”, by the European Commission (EC) on 22nd March 2019, aeronautics is one of the European Union’s (EU’s) high-tech sectors in the global market, comprising developing and manufacturing civil and military aircraft, helicopters, drones, aero-engines, and other systems and equipment. As per the report, research, development, and innovation (RDI) expenditures represent 10% of the industry’s turnover, one-third of which is being financed by the public sector.

This gives an idea about how big the opportunity is for high temperature coating manufacturers around the world.

Will Requirement for High Temperature Coatings Increase from the Automotive Industry?

High temperature coatings, being an integral part of the automotive industry, will witness higher demand over the coming years, owing to significant growth of this industry.

According to a report titled “Automotive Spotlight- The Automotive Industry in the United States”, published by Select USA, since Honda opened its first U.S. plant in 1982, almost every major European, Japanese, and Korean automaker has produced vehicles and invested more than US$ 75 billion in the United States, while the total Foreign Direct Investment (FDI) in the U.S. automotive industry reached US$ 114.6 billion in 2018.

According to a report published by the Ministry of Commerce & Industry of India in September 2020, in the automotive sector, India is set to move towards global dominance, in terms of auto components and automobiles, while the Society of Indian Automobile Manufacturers (SIAM) is improving the scale and production of its products and services.

Such factors will pave new paths for high temperature coating suppliers to excel further over the coming years.

What are the Key Challenges Faced by High Temperature Coating Manufacturers?

Despite witnessing high demand from diverse sectors, high temperature coatings are often costly and involve time-consuming process cycles, which also require expensive laboratory set-ups and raw materials. These act as constraints for more versatile adoption.

Furthermore, the COVID-19 pandemic has taken a toll on high temperature coating manufacturing processes due to the economic crisis and shortage of raw materials and labor.

A disrupting logistics sectors and decline in demand span all of 2020. However, as the effects of the pandemic subsided and requirement for high temperature coatings is rising again, suppliers and manufactures are expecting more opportunities that can be explored in the near future.

Country-Wise Analysis

What Makes China Lead the Global High Temperature Coatings Market?

China is the focal point of the world’s largest high temperature coatings market, Asia Pacific, and holds unlimited potential for stakeholders in this industry.

Fast-paced growth of the automotive industry and increase in requirement from petrochemical, aerospace, and other key end-use industries are predicted to raise the market value in China through 2031.

According to a report titled “China-Automotive Industry”, published by the ‘China Country Commercial Guide’ division of the China Privacy Shield Framework, China continues to hold the world’s largest automotive industry, with the Government of China expecting that automobile output will reach 35 million units by 2025.

According to China Association of Automobile Manufacturers, over 27 million vehicles were sold in 2018. Definitely, this makes China highly lucrative for key players in the high temperature coatings industry.

Why Does the United States Hold a Key Position in the High Temperature Coatings Landscape?

The United States has been dominating the world’s second-largest high temperature coatings market, North America, since the past decade. Highly advanced manufacturing sectors and impressive growth in automotive, aerospace, and other industries are fuelling sales in the country.

As stated in a report titled “The United States Auto Industry”, published by the United States Department of the Treasury, on December 19, 2014, the treasury announced that it had sold its remaining 54.9 million shares of Ally Financial Inc. (Ally) common stock, exiting the last Troubled Asset Relief Program (TARP) equity investment under the Auto Industry Financing Program.

As per the report, the U.S. automotive industry is growing at the fastest pace since June, 2009.

According to Select USA, in 2018, the United States exported 1.8 million new light vehicles and 131,200 medium and heavy trucks valued at over US$ 60 billion. This data represents ample of opportunities awaiting high temperature coating manufacturing companies in the U.S.

What’s Driving Sales of High Temperature Coatings in Germany?

Being the epicenter of the high temperature coatings market in Europe, Germany holds a major share in the region.

As demand for high temperature coatings is spiraling upward with advancements in major end-use industries, manufacturers are coming across scope to expand their profit margins further.

Recently, the European Commission launched its ‘Green Auto Industry Rescue’ initiative, which aims to inject EUR 100 billion (US$ 109 billion) into the European Union (EU) automotive sector, as part of its plan to promote clean modes of transportation such as electric cars.

This will indirectly help in increasing the turnover of high temperature coating manufacturing companies in Germany.

Why is Japan a Lucrative Pocket for Stakeholders in the High Temperature Coatings Industry?

Japan is gaining rapid traction with steadily rising demand from various end-use industries, starting from metal processing to coil coatings.

Additionally, growing requirement from automotive and aerospace industries is fuelling sales in the country.

According to a report titled “Japan Automotive OEM and Parts”, published by the International Trade Administration, the automotive industry is Japan’s leading industry, with 5.4 million people, approximately 8% of the nation’s workforce, having an automotive-related job.

As stated in the report, nearly 17 trillion JPY (about US$ 160.5 billion), or about 21% of Japanese total exports are automotive-related products. This makes Japan worth exploring for high temperature coating manufacturers.

Category-Wise Insights

Which Application is Dominating High Temperature Coatings?

Presently, aerospace & defense, automotive, and a few others are dominating demand for high temperature coatings, owing to high requirement from these sectors.

According to a report published by the World Economic Forum (WEF), revenues in aerospace & defense (A&D) is growing fast since 2013, while technical advancements are further aiding market expansion.

Some of the other key segments in terms of application are coil coatings, petrochemicals, marine, metal processing, and stoves & grills.

Which Resin is Most Sought-After by High Temperature Coating Manufacturers?

According to Fact.MR, epoxy high temperature coatings are mostly sought-after in terms of resin type, due their capability of providing optimum protection in cost-effective ways.

These types of coatings not only provide insulation against high temperature, but also against abrasion, corrosive fluids, turbulence, and others.

Other key resin types boosting the growth of suppliers are silicone, polyester, acrylic, and alkyd.

Competitive Landscape

The global high temperature coatings market is rapidly gaining momentum, making the competition fiercer for key players. In order to hold a dominant position, key players are launching a variety of products more frequently.

For instance,

• Jotun A/S launched its new unique high temperature coating Jotatemp 1000 Ceramic, due to increasing demand from the hydrocarbon processing industry, in 2017
• Hempel A/S launched its new extensive range of products, such as Hempel’s Silicone Aluminium 56914, Hempel’s Silicone Acrylic 56940, and others, from 2015 to 2020.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	USD Million for Value
Key Regions Covered	North America Latin America Europe South Asia East Asia Middle East & Africa Oceania
Key Countries Covered	US Canada Germany U.K. France Italy Spain Poland Russia China Japan South Korea India Thailand Malaysia Vietnam Indonesia Australia New Zealand GCC Countries Turkey, Northern Africa South Africa
Key Segments Covered	Application Resin Region
Key Companies Profiled	Akzo Nobel NV Aremco Products, Inc. Axalta Coating Systems Belzona International Ltd. Carboline Company Chemco International Ltd. General Magnaplate Corporation Hempel A/S Jotun A/S PPG Industries, Inc. The Sherwin-Williams Company The Valspar Corporation Weilburger Coatings GmbH Whitford Corporation
Report Coverage	Market Forecasts Brand Share Analysis Competition Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization & Pricing	Available upon Request

High Temperature Coatings Market Segmentation by Category

Application

• Aerospace & Defense
• Automotive
• Coil Coatings
• Petrochemical
• Marine
• Metal Processing
• Stoves & Grills
• Other Applications

Resin

• Epoxy
• Silicone
• Polyester
• Acrylic
• Alkyd
• Other Resin Types

Region

• North America
• Latin America
• Europe
• Middle East and Africa (MEA)
• East Asia
• South Asia
• Oceania