Thermal Spray Coatings Market (2024 - 2030)

Thermal Spray Coatings Market Summary

The rising use of gas turbines in helicopter engines, tanks, ships, and locomotives is expected to help augment the demand for thermal spray coatings due to their high temperature and corrosion resistance, which protects the parts against fire in high-temperature and moisture-laden conditions.

The properties provided by thermal spray coatings include wear resistance against abrasion, cavitation, and erosive forces, chemical resistance, electrical insulation, and better adhesion between the substrate and top layer of components. The stringent regulations by the U.S. EPA, REACH, and OSHA regarding the curtailment of hard chrome plating, which produces a byproduct recognized as a carcinogen, influence the coating manufacturers to adopt sustainable solutions that can further propel the market growth in various end-use industries. In North America, the U.S. accounted for the largest share of the regional market in 2021.

In North America, the U.S. accounted for the largest share of the regional market in 2023. This is attributed to the high demand from power generation plants for industrial gas turbines, which are expected to witness a surge in gas turbine demand due to the policy transition of the U.S. government toward replacing coal with natural gas for electricity generation. According to the Rural Health Information Hub, there are currently 46 million adults over the age of 65 years living in the U.S., which is expected to grow to 90 million by 2050. The rising geriatric population and improved healthcare services in the U.S. are expected to drive the market for orthopedic implants required in knee cap replacement surgery and are anticipated to grow the market in the region.

Market Concentration & Characteristics

Market growth stage is medium and pace of the market growth is accelerating. During production of thermal spray coatings, due to flammable and carcinogenic nature of solvents the product needs frequent development. The degree of innovation in thermal spray coatings market remains low to medium. In recent past, powder-based coatings which are environment friendly products, has observed growing interest from market participants.

Thermal spray coatings market is characterized by low to moderate level of merger & acquisition activities. The market participants mainly adopt these strategies to reduce competition & risk, diversify the products, and increase the market share & profits. Collaboration and joint ventures are other strategies, wherein companies are looking to access the necessary knowledge and expertise in particular business and operation to pave the way for growth.

The impact of regulations on the thermal spray coatings market is low. These coating products are environment-friendly as they do not contain harmful solvents owing to low and compliant Volatile Organic Content (VOC). This results in higher Leadership Energy and Environmental Design (LEED) benefits coupled with safer working environments for applicators.

Threat of substitutes is expected to remain at medium and high levels. Hard chrome plating is plausible substitute to thermal spray coating products. However, the manufacturers in the aerospace and automotive industries prefer the latter as it is relatively simple technique. Technological advancement is expected to drive the innovation in thermal spray coatings and thus expected to gain prominent share over hard chrome plating.

End-user concentration is expected to remain at low to moderate levels over the coming years. The end-users in the market are from medical, automotive, aerospace, paper and gas turbine industry. There are large number of consumers available in the market along with requirements specific to application, this makes end-user concentration low.

Material Insights

Ceramics material segment dominated the market with a revenue share of over 31.0% in 2023. This is attributed to the fact that ceramic coatings have excellent adhesion properties, which help them adhere to the surface and provide corrosion protection, thermal barrier, dielectric strength, and sliding wear resistance to the coated materials. Due to the thermal barrier property, ceramics are often utilized in heat insulation applications to improve the operational efficiency of components in high-temperature environments and extend the service lifespan of components. Abradable materials tend to wear when rubbed against a highly abrasive material while protecting the underlying material and leaving it damage-free. It is used for coating gas turbine engines for clearance control, which helps prevent the change in dimensions that occur due to thermal expansion since the rotating assemblies and blades heat up and cool down during operation.

Hence it is used in aviation gas turbines, power generation, and gas and steam turbines as it improves safety and reduces fuel consumption. Abradable material is used for coating shafts, drive collars, labyrinth seals, compressor wheels, compressor impellers, and turbine wheels, which will further fuel its growth in the aerospace, steel, industrial gas turbine, and automotive industries. Carbide coatings are used in power, pulp & paper, and the automotive sector components to provide abrasion, adhesion, erosion, and fretting resistance to components. Their high melting point and the ability to maintain strength, hardness, and wear resistance at high temperatures make them suitable for coating gate valves, fixtures, pump housings, and wear plates. Also, carbide-based thermal spray coatings are used for coating components that are highly expensive and would further drive their consumption in the market.

Technology Insights

Plasma spray technology segment dominated the market with a revenue share of over 32.0% in 2023. This is attributed that this process provides the advantage of spraying metallic and ceramic materials onto various surfaces with excellent bond strength while minimizing substrate distortion on both large and small components offering. It provides electrical conductivity, clearance control, wear resistance, and heat & oxidation resistance to the substrate surface. The plasma thermal spray coatings process is used on printing rolls, gas turbines, industrial diesel engine piston rings, and oil & gas machinery. Moreover, this process is adopted widely in coating orthopedic and dental implants due to its ability to produce a dense and porous surface layer, surface roughness, and microstructure of the coatings depending upon the requirement.

The growing incidence of orthopedic injuries or diseases, such as arthritis and osteoarthritis, and the rapid rise in the geriatric population, especially in Europe and North America, propel the demand for orthopedic implants, which might fuel the growth of plasma thermal spray coatings technology. Cold spray technology uses thermal energy to soften or melt the feedstock and impacts particles at a high velocity onto a substrate. This technology finds use in corrosion protection, electronics, and the automotive industry due to its compatibility with various alloys, metals, composites, and refractory metals. The cold spray technology application is driven by its development to cover other end-use sectors, contributing to its growth.

For instance, in April 2020, members of the 28th Maintenance Squadron’s Additive Manufacturing and Rapid Repair Facility conducted a cold spray repair to a B-1B Lancer Forward Equipment Bay (FEB) panel. This type of repair increases aircraft availability at a reduced operational cost through the sustainment of legacy aircraft components and can positively impact segment growth in the aerospace sector. High-velocity oxy-fuel (HVOF) was the subsequent dominating technology in the global market. It is used to restore or improve a component’s properties or geometry, enabling the equipment’s life extension.

The advantages of HVOF over other technologies, such as lower porosity due to greater particle impact velocities, higher strength bond to the underlying substrate, lower oxide content, smooth surface, better wear resistance, and improved corrosion resistance, drive the segment growth. However, HVOF-sprayed coatings can be highly complex since their properties & microstructure depend upon numerous processing variables. Also, the powder sizes are restricted to about 5 - 60µm, which further limits its application.

Application Insights

Aerospace in the application segment dominated the market with a revenue share of over 32.0% in 2023. This is attributed to the high product demand in aerospace applications as parts in an aircraft are prone to degradation owing to particle erosion, hot corrosion, metal-to-metal wear, and fretting. According to a report published by Deloitte in 2021, due to the pandemic-induced impact on customer demand and pricing pressure, many aerospace manufacturers are seeking new aftermarket services revenue opportunities. This is expected to increase the Maintenance, Repair, and Overhaul (MRO) work, which can boost product demand in aerospace applications.

The global focus on decarbonization is increasing due to the rising environmental issues from coal-fired power plants. This has driven many companies to work to develop power generation systems to develop alternatives to achieve carbon-free power generation. For instance, in March 2021, Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI) Group, commenced the development of a 40-megawatt (MW) class gas turbine that is fueled by 100% ammonia (NH3). Since ammonia does not produce carbon dioxide (CO2), it can push power generation companies to utilize industrial gas turbines for power generation requirements, simultaneously growing the demand for thermal spray coatings.

Regional Insights

North America Thermal Spray Coatings Market

North America dominated the market with a revenue share of 28.6% in 2022 due to the high product demand in key industries in the region, including aerospace, oil & gas, automotive, medical, and power generation. Moreover, the governments in the U.S. and Canada are funding projects to develop innovative coatings that can act as a driving factor for market growth. For instance, in February 2022, the Government of Canada announced to provide USD 18.92 million (CAD 24 million) through the New Frontiers in Research Fund for a project to develop unique molecular coatings that could save maintenance costs across sectors including healthcare, infrastructure, automotive, aerospace, and consumer electronics.

The aerospace sector in Asia Pacific is gaining traction due to major aircraft manufacturers like Airbus setting up manufacturing bases in the region and sourcing aircraft components from regional players in India like the Tata Group, Dynamatic Technologies, and Mahindra Group Companies. This can propel the market growth in the region as they have a huge demand for automotive components subjected to extreme pressures and temperatures. The Middle East & Africa region is the world leader in oil production. The presence of major oil-producing countries, such as Saudi Arabia, Kuwait, Oman, Bahrain, Libya, Iraq, Angola, and Iran, is expected to create high product demand in the oil & gas industry of the region.

In addition, the improving healthcare sector, majorly in GCC countries, is anticipated to fuel the demand for medical devices, which, in turn, will create lucrative growth opportunities for the regional market. According to the Saudi National Committee for Steel Industry, the steel industry is the primary factor driving the non-oil contribution to the economy of Saudi Arabia. Also, the government is launching special economic zones to attract foreign companies to set up manufacturing bases in the country and contribute to the non-oil economy, which can further push the growing steel industry and positively impact the market for thermal spray coatings.

Key Companies & Market Share Insights

Some of the key players operating in the market include Cincinnati Thermal Spray, Inc., Höganäs AB, and 4 H.C. Starck, Inc. among others.

• Cincinnati Thermal Spray, Inc., offers various types of products, including wear & corrosion, friction engineering, corrosion resistance, thermal protection, and electrical coatings.

• Höganäs AB operates through several subsidiaries, namely Höganäs Japan K.K, Höganäs HOGAP AB, Höganäs France S.A.S, Höganäs East Europe LLC, North American Höganäs Holdings Inc., and Höganäs Italia S.r.I and is engaged in the manufacturing of thermal spray coatings.

• H.C. Starck Inc. is engaged in the production of refractory metals, thermal spray powder, high-performance ceramics, niobium & rhenium, tantalum, molybdenum, and tungsten

• Medicoat AG, Praxair Surface Technologies, Inc. and Precision Coatings, Inc. are some of the emerging market participants in the specialty chemicals market.

• Medicoat AG provides coating systems and spray coatings for the medical sector. It offers optimized medical coatings that comply with the ISO standards and ASTM requirements.

• Praxair Surface Technologies, Inc. is engaged in the production and distribution of surface-enhancing materials and offers ceramic and metallic coatings to address problems such as oxidation, high temperature, galling, erosion, corrosion, and abrasion.

Recent Developments

• In June 2023, Applied Materials, Inc collaborated with IIT Ropar to conduct R&D for thermal spray coating industry to cater to the semiconductor industry.

• In June 2023, OC Oerlikon Management AG announced significant advancements in thermal spray equipment by incorporating digitalization and introducing Metco IIoT, the first-ever Industry 4.0 platform for the thermal spray industry.

• In May 2023, Kymera International announced acquisition of Thermal Spray Solutions, Inc. (TSS), a leading provider of thermal spray coatings for wear and corrosion resistance to U.S. Navy and shipbuilding sector. This is to boost the company’s strategy to expand its business special coating segment.

Thermal Spray Coatings Market