Thermal Spray Coatings Market

The global thermal spray coatings market size was valued at USD 10.1 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. Increasing demand from the industrial gas turbines coupled with growing preference for the thermal spray coatings over hard chrome coatings is expected to augment market growth. Technological innovations for the development of cost-effective products are also expected to have a positive impact on growth. In addition, increasing product application scope owing to its advantages, such as wear and corrosion protection, low toxic gas emissions, thickness capability, and electrical resistance, is expected to fuel the demand for thermal spray coatings. Aluminum, steel, nickel, and copper are used for producing thermal spray coatings. These raw materials are also used in various other industries and applications.

The rapid growth of industries, such as paints and coatings, automotive, aerospace, medical, and packaging, is driving the demand for these materials, which could hamper the continuous flow of raw materials in the value chain. However, with the discovery of alternative resources, for instance, composites used in building and construction instead of aluminum or steel, is expected to help maintain the flow in the value chain.

Industries generating hexavalent chromium face environmental and occupational regulations, which will be even more stringent in the future. These trends are expected to positively impact the demand for thermal spray coatings. The automotive industry is a key application area for thermal spray coatings. The coatings are used to coat various parts in vehicles, such as engines, body, fenders, moldings, and suspension systems. Growing automotive production, mainly in Asia Pacific, is expected to propel the demand for thermal spray coatings. Furthermore, technological advancements, shifting consumer preference, and stringent climate-related policies are driving the demand for smart, environment-friendly, and fuel-efficient vehicles. The demand for hybrid vehicles is also expected to intensify, thus impacting the demand for thermal spray coatings.

However, the outbreak of highly contagious COVID-19 pandemic across the globe is severely affecting manufacturing industries, which, in turn, is anticipated to negatively impact the growth of the market for thermal spray coatings. Further, the outbreak has also affected the raw material prices of thermal spray coatings. Recently, crude oil prices hugely slumped owing to the outbreak of COVID-19 across the globe. The decline in demand, halts or slowdowns in the manufacturing industry, and restrictions in supply and travel are resulting in the decline of crude oil prices.