THERMAL SPRAY COATINGS MARKET ANALYSIS

Thermal spray coating is a technology that is used to enhance the surface of solid materials in order to offer resistance to corrosion, cavitation, wear, and abrasion. Thermal spray coating is also used to offer electrical conductivity for insulation and chemical resistance to the light metal surface. Moreover, it is widely adopted across various end-user industries for extending the shelf-life of products and to repair and re-engineer damaged components. Some of the major end-users of thermal spray coating are aerospace, industrial gas turbines, automotive, and medical.

Global thermal spray coatings market was valued at US$ 10,342.89 Mn in 2021 in terms of revenue, exhibiting a CAGR of 5.1% during the forecast period (2022 to 2030).

Drivers

Growing demand for thermal spray coating over hard chromium plating across various industries is a prominent factor expected to propel market growth. Hard chromium plating is widely used in the aircraft landing gear, turbine engines, propeller hubs, and hydraulics. However, hard chromium process consists of hexavalent chromium that has a bad impact on the environment. Hence, a growing preference for thermal spray coating over hard chromium plating is projected to propel the market growth.

Growing demand for titanium and hydroxyapatite coatings by using thermal spray coating across medical implants is expected to foster the market growth over the forecast period. Thermal spray coating is applied to the medical devices in order to offer surface roughening and biological fixation. Demand for thermal spray coating is especially gaining demand for orthopedic medical devices. Hence, growing application of thermal spray coating in medical implants is expected to foster market growth.

Among region, North America dominated the global thermal spray coatings market in 2021, reporting 39.8% market share in terms of revenue, followed by Europe and Asia Pacific, respectively.

The thermal spray coatings market experienced decrease in sector during the COVID-19 pandemic. This is illustrated by significant decline in the industrial, automotive, and construction sectors.

From March 31, 2020, until manufacturing companies receive instructions from the government authorities to reopen, manufacturing enterprises had extended the closure of all of their operations at their workplaces and production facilities across the world.

In addition, the thermal spray coating market saw a significant decline in production as a result of the decrease in workers due to social distancing rules during the COVID-19 pandemic.

Figure 1. Global Thermal Spray Coatings Market Value Share (%), By Region, 2021

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Market Restraints

High cost associated with the thermal spray coatings, especially in the complex structure is expected to restrict the market growth. This process is mainly carried out by robots. Robotic functions are programmed in such a manner that optimum coating properties are maintained even if the process is repeated. However, robots require frequent adjustments in case of a complex structure that needs to be coated which leads to significantly increase in the cost of the process. Hence, the high cost of the thermal spray coating is expected to negatively impact the market growth of thermal spray coatings.

In thermal spray coating, thick coatings are difficult to obtain and the coating formation process is not clear. This factor is expected to hinder the market growth of thermal spray coating. Moreover, this process requires precaution and measures to control noise, dust, fumes, and other issues as these factors can have negative environmental effects. Furthermore, volatile prices of raw material for spray coatings are expected to hinder market growth.

Market Opportunities

Rising demand for thermal spray coating from the automotive industry is projected to show lucrative growth opportunities over the forecast period. Also, the booming automotive industry, especially in the U.S region, is expected to propel the market growth. According to the International Trade Administration, the U.S. has one of the largest automotive markets in the world. In 2018, U.S. light-vehicle sales reached 17.2 million units.

Rising application of thermal coating from conventional and renewable energy generation plants is projected to foster market growth. Functional coatings are broadly used in energy generation instruments for efficient turbine operation. Rising demand for wear-corrosion and oxidation-resistant energy generation instrument is expected to offer significant growth opportunities to the thermal spray coating market over the forecast period.

Figure 2. Global Thermal Spray Coatings Market Value Share (%), By Application, 2021

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On the basis of Application, in 2021, Aerospace accounted for the largest market share of 36.7% in terms of revenue, followed by Industrial Gas Turbines and Automotive.

Recent Developments

• In June 2019, Oerlikon Metco, a provider of surface technologies, that develops solutions and equipment and offers services to considerably improve the efficiency and longevity of precision components and tools for the metal and polymer processing industry had signed an agreement to acquire AMT AG, a switzerland company that designs and builds integrated thermal spray coating systems in Kleindöttingen, Switzerland. The acquisition aligned with Oerlikon's strategy to focus on and expand its surface solution technologies while expanding the market applications and customer access to its services. AMT increased Oerlikon Metco's product and service offerings for turnkey solutions and thermal spray applications.
• In December 2019, Bodycote, provider of heat treatments and specialist thermal processing services acquired Ellison Surface Technologies, a provider of thermal spray and engineered coating surface technology services. Due to this collaboration Ellison’s business generated revenues of $59 million (£48 million) for 2019

Competitive Section

Major players operating in the global thermal spray coatings market include Sulzer Ltd, Praxair, Inc., Oerlikon Group, Curtis-Wright Corporation, Bodycote plc. , Thermal Spray Technologies Inc., ASB Industries, Inc., Abakan Inc., and Metallisation Ltd.