Mordor Intelligence analysts have published the 2018 version of their study on the Global Intumescent Coatings Market. Here are the 3 predictions for the future of the market from the report:
1. Increasing Raw Material Prices may Hamper the Market Growth
From early 2017, there has been a steep rise in the costs of raw materials used in the paints & coatings industry in the wake of oil price rises and currency fluctuations. The supply chain of raw materials required for coatings is such that a small rise in demand increases pressure on a certain key chemical, causing quick changes in prices. In 2018, market leaders, such as PPG and Jotun, have increased the prices globally for marine and protective coatings products, due to extensive inflation across a number of raw material categories, epoxy resins, etc. The increase in raw material prices is expected to hamper the growth of the intumescent coatings market.
2. Rapidly Expanding Oil & Gas Sector
One of the key trends in the intumescent coatings market is the rapidly expanding oil & gas sector. The industry has been trying to find ways to cut capital charges. This, combined with the need to adhere to strict environmental regulations, has created a demand for intumescent coating systems have long lives, which will be effective in the protection of assets. The oil & gas industry in APAC is expanding due to the increasing demand for energy and petrochemicals. Countries, such as India, Malaysia, Indonesia, China, South Korea, and Japan are experiencing an increase in the offshore drilling activities.
For instance, the Bison, Iguana, and Gajah Puteri (BIGP) project in Indonesia involve the development of three oil & gas fields in Iguana, Bison, and Gajah Puteri regions. Such factors will consequently result in an increase in the demand for intumescent coatings in APAC. Thus, the increasing oil production in the emerging economies is likely to boost the consumption of intumescent coatings in the oil & gas sector during the forecast period.
3.Emergence of Powder Coating Technology
Powder coating is the technique of applying dry paint to a part. In a normal wet coating, such as automotive coating, the solids are in suspension in a liquid carrier, which has to evaporate before the solid coating is produced. The powder coating process is similar to a liquid coating process, except that the coating is a dry powder rather than a liquid. The powder sticks to the parts because of the electrostatic charging of the powder and grounding of the parts. Powder coatings are easy to apply and are of a higher quality. Additionally, the powder coating technology is environment-friendly as it generates no VOCs. It finds a wide range of applications in automotive, building and construction, and electrical and domestic appliances industries. Increasing support for the use of powder coatings in comparison to conventional liquid paints by regulatory agencies, such as EPA and REACH, on account of negligible VOC emissions is expected to be a key driver for market growth.
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