The global intumescent coatings market size is expected to reach USD 1.31 billion by 2025, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 5.1% over the forecast period. Extensive usage of passive fire protection for steel structures used in offshore and onshore extraction and purification and refining in the oil & gas industry is the key factor boosting the market growth. In addition, rising shale gas exploration coupled with expanding oil & gas industry in Asia Pacific is expected to propel demand over the forecast period. The industry is characterized by the presence of a large number of raw material suppliers leading to an increase in the switching ability of the manufacturers and high bargaining power.
However, volatile prices of the raw materials, such as epoxy resins is expected to restrain the growth to some extent. Moreover, several regulations limiting the presence of Volatile Organic Compounds (VOCs) in the formulation will also hinder market growth. On the other hand, development of advanced products that are compliant with the regulations set by the European Commission is expected to drive the demand over the next nine years. The market in Asia Pacific witnessed a significant expansion owing to increased oil & gas exploration activities, particularly in the South China Sea. Furthermore, infrastructure development in emerging economies including India, Indonesia, and Vietnam is likely to contribute to the market development over the forecast period.
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Further key findings from the study suggest:
- Water-based coatings is expected to be the fastest-growing technology segment of the global intumescent coatings market from 2019 to 2025
- Oil & gas end-use segment held the largest share of the market in 2018 and is expected to continue its dominance over the forecast period
- Asia Pacific was the largest market in 2018 and is projected to expand further at the highest CAGR during the forecast years
- Cellulosic is projected to be the largest, as well as the fastest-growing, application segment over the next few years