HIGH TEMPERATURE COATINGS MARKET ANALYSIS

High Temperature coatings or HTCs are used to protect the systems which subjected to high temperature conditions on a regular basis. They are designed to withstand temperatures from 150^OC to 800^OC. The use of HTCs helps in reducing heat losses, keep corrosion under insulation (CUI) in check, reduce thermal fatigue and maintain efficiency. CUI is the petrochemical industry’s worst complication. It occurs when moisture seeps into the insulation and the high temperature condition is optimal for corrosion. The application of HTCs helps keep the effect of moisture to a minimum and subsequently translates into energy and cost savings.

Low consumer awareness in medium and small scale industries about high temperature corrosion risks is a major challenge for market players. Moreover, raw material availability is dependent upon the oil industry.

High Temperature Coatings Market Taxonomy

On basis of Coating Technology

• Liquid Coating
  • Solvent borne
  • Water borne
• Powder Coating
• Others (Laser, Radiation-cured etc.)

On basis of Resin type

• Epoxy-Based
• Acrylic-Based
• Silicone-Based
• Polyethersulfone (PES)
• Polyester-Based
• Alkyd-Based
• Others
  • Perfluoroalkoxy Alkanes (PFA)
  • PEEK
  • Polyphenylenesulfide (PPS)
  • Urethane
  • Hybrids
  • Vinyl-Ester
  • Others

On basis of End User

• Energy & Power
  • Oil and Gas
  • Solar
  • Wind
  • Others
• Petrochemical & Chemical Industry
• Metal Processing Industry
• Cookware, Bake ware, and Small Appliances
• Marine
• Automotive
• Coil Coatings
• Woodstoves, Gas Stoves, and Barbecue Grills
• Aerospace & Defense
• Building & Construction
• Others

Liquid Coatings, either hand applied or sprayed is losing its market, though, it is preferred over powder coatings when specialized paint colors and tolerances are required. Powder coatings offer better durability, toughness and have the environmental advantage of not having any solvents or VOCs.

Epoxy phenolic coatings have high heat and chemical resistance are widely used as coatings in refineries, power generation and secondary containment. Silicone coatings can withstand high temperatures over 550^OC. Polyesters tapes are used for masking applications in high temperature equipment. Acrylic coatings offer decorative properties such as color retention and gloss. They hold the largest market share in the HTC market.

The largest end users are the energy and petrochemical industries due to use of heater-treater, separators, furnaces and transport of heated material. HTCs help decrease energy losses and reduce non-productive time. Automotive is also a major end user, coatings are applied on engine components and decreases effect of heat fatigue.

High Temperature Coatings Market Outlook

• Asia Pacific is the fastest growing and the largest market for high temperature coatings. The petrochemical industry has a marked shift from North America to India and China, due to low cost of labor and close proximity to major oil producing Middle East nations. Furthermore, energy, cookware and automobile markets have also grown due to population boom. This has driven demand for HTCs.
• North America has augmented HTC market growth, due to growing energy, automobile, electronics and construction sector. Increased shale gas production has driven growth the petrochemical industry as well. High thermal efficiency in chemical processing can help the manufacturers in this region to compete with low-cost products made in Asia. Europe is expected to lose its market share during forecast period due to decline of end-user industries.
• In Latin America, the growth of HTC market can be attributed to the energy and automotive industry. Brazil is expected to strongly drive growth in both E&P and refining. Political uncertainties and regulatory complications are hindering growth in other countries of the region.
• Middle East and North Africa are consolidated regions for oil and gas and petrochemicals. A return to political stability of Iraq, Syria, and Iran are having crucial advantage in the growth of the HTC market.

The companies are adopting various organic and inorganic growth strategies in order to sustain their market position. Tnemec Co. launched Endura-Heat line of products that offer CUI protection at 650^OC with custom color matching available. The key players in this market include Jotun A/S, Aremco, AkzoNobel N.V., Hempel, Belzona International Ltd., The Sherwin-Williams Company, PPG Industries Inc., The Valspar Corporation, Whit ford, Weilburger Coatings GmbH, Axalta Coating Systems, Carboline, Chemco International Ltd.

Key takeaways of the market

• In February 2019, PPG Industries expanded its high temperature resistance coatings line with the introduction of PPG Hi-Temp 900 coating. This new product is launched to minimize the operation cost associated with corrosion under insulation in refineries and petrochemical industries.
• In April 2018, Axalta Coating Systems established a new high as well as low temperature coating plant in Gujarat India. The addition of this new facility doubled company’s coating production capacity to meet the increasing demand from commercial vehicle & industrial segment.
• In July 2017, Axalta Coating Systems launched high temperature & corrosion resistance internal pipe coating. This new product is able to provide an economic alternative in order to protect internal surface of pipelines in oil & gas industries.
• In February 2017, Jotun A/S launched high temperature coating named Jotatemp 1000 ceramic to meet rising demand from hydrocarbon industries. This product is easy to apply, can sustain up to 1000 degree Celsius and offer excellent corrosion, heat & fire resistance.