Thermal Barrier Coatings Market - Forecast(2023 - 2028)

Thermal Barrier Coatings Market Overview

Thermal Barrier Coatings Market size is forecast to reach US$27.4 billion by 2027, after growing at a CAGR of 7.2% during 2022-2027. Thermal barrier coatings are advanced materials that are applied to metallic surfaces like metal turbine blades, aircraft engines, and industrial gas turbines which are operated at high temperatures, and this is used as a form of exhaust heat management for thermal conductivity. These coatings help the metal to guard them against the degradation processes like oxidation, and others then thereby reducing the strain and fatigue and increasing the lifespan of the metal. Yttria stabilized zirconia (YSZ) is one of the most commonly used materials in Thermal barrier coatings owing to its excellent shock resistance, low thermal conductivity, and relatively high coefficient of thermal expansion. High-Velocity Oxy-Fuel (HVOF) coating is a kind of thermal spray coating process, which is widely used as Thermal barrier coating because it is employed to enhance or restore a component's surface. Generally, a durable ceramic thermal barrier coating is directly applied to a smooth, highly oxidation-resistant intermetallic alloy in two layers. Expansion of the aviation industry and increasing demand for gas turbines is considered as the driving factor for the growth of the market. Technological advancements like air plasma spraying and chemical vapor decompositions for the coating application in the aviation and automotive industry and growing demand for other advanced coating technologies also fuel the growth of the market. However, fluctuations within the prices of raw materials are expected to restrain the expansion of the market. The thermal barrier coatings market within the Asia-Pacific region is anticipated to expand at a rapid pace during the forecast period thanks to growing industrialization and expansion of the energy and aviation industry in the region.

COVID-19 Impact

The outbreak of the COVID-19 pandemic has led to complete or partial lockdown in several countries. This hampered the market, owing to the pandemic scenario various end-user industries, such as aerospace and automotive, among others, were temporarily shut down across the world during the government-imposed lockdowns. Moreover, due to the COVID-19 outbreak, airplane manufacturers experienced severe disruptions in production, owing to the slowing demand due to suspended international flights. All the aforementioned factors had reduced the demand for thermal barrier coatings, which are used to protect aerospace turbines blades and other turbine engine parts from oxidation and corrosion due to high temperatures and to protect from melting and thermal cycling. However, the introduction of vaccines for COVID-19 and the reopening of production facilities gradually are anticipated to lead to the re-initiation of Thermal Barrier Coatings companies at their full-scale capacities.

Thermal Barrier Coatings Market Report Coverage

The report: “Thermal Barrier Coatings Market – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Thermal Barrier Coatings Industry.

By Product Type: Metallic bond coat, and Ceramic top coat
By Technology: High-Velocity Oxy-fuel (HVOF), Electron Beam-Physical Vapour Deposition, Chemical Vapor Deposition, and Air Plasma
By Application: Gas turbines, Engines, and Auto Components, Storage Containers, and Others.
By End-Use Industry: Power and energy, Aerospace, Automotive, Oil and Gas, Marine, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (the Middle East, and Africa)

Key Takeaways

• North America leads the thermal barrier coatings market because of the increasing product use in stationary power plants within this region.
• Asia-Pacific is expected to expand at a significant growth of over the forecast of 2022 to 2027 due to rapidly expanding end-use application sectors such as stationary power plants and automotive mainly in China within this particular region.
•  Over the short term, owing to the growth of vapor deposition technologies, the demand for the market studied is likely to rise in the coming years. Moreover, the shift from coal to natural gas-fired power generation and the development of new power plants infrastructure are also expected to enhance the demand for the thermal barrier coatings market, through the years to come.
• On the flipside, high raw material price volatility and unfavorable conditions arising due to the impact of COVID-19 are expected to restrain the demand for the market studied.
• The technological advancements in the end-user market and increasing applications in the aerospace sector are likely to act as an opportunity for the market studied.

Figure: North America Thermal Barrier Coatings Market Revenue, 2021-2027 (US$ Billion)

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Thermal Barrier Coatings Market Segment Analysis – By Product type

The Ceramic top coat segment held the largest share in the Thermal Barrier Coatings market in 2021 and is growing at a CAGR of 7.5% during 2022-2027, owing to its great thermal strength and multi-layer safety of high-temperature ceramic coatings. The low thermal conductivity and high thermal stability of ceramic topcoats have led to their dominance in the thermal barrier coatings market. A durable ceramic top coating is usually applied directly to a smooth and highly oxidation-resistant intermetallic alloy in two layers. A ceramic topcoat is a coating that is made of ceramic materials which are deposited on the surface of a high-temperature resistant metal or a superalloy. This kind of coating insulates the substrate material and lowers the temperature of the substrate as well. Automotive and aviation parts like engine turbine blades can operate at high temperatures and may increase the thermal efficiency of devices (engines, etc.) by quite 60%. Ceramic materials utilized in thermal barrier coatings got to have a coefficient of thermal expansion that matches the matrix material also resistant to high-temperature corrosion, low thermal conductivity, and phase stability. At present, the commonly used thermal barrier coating ceramic materials are mainly Al2O3, SiO2, ZrO2, wherein zirconia ceramics have a high melting point and low thermal conductivity, and the thermal expansion coefficient is on the brink of that of metal materials and is widely used as a ceramic material for thermal barrier coating. Also, the increasing demand for high-end and heat-resistant goods within the automotive and aerospace sectors will further boost the segment’s growth during the forecast period.

Thermal Barrier Coatings Market Segment Analysis – By Technology

The High-Velocity Oxy-fuel segment held the largest share in the Thermal Barrier Coatings market in 2021 and is growing at a CAGR of 6.3% during 2022-2027. High-Velocity Oxygen Fuel (HVOF) coating is a thermal spray process during which fuel and oxygen are mixed, passed into a combustion chamber, and ignited. During the process, in the combustion chamber, the gas is ejected through a nozzle at supersonic speeds that are produced inside has an extremely high temperature and high pressure. Followed by which a powder is induced into the high-velocity stream of gas and propelled at the substrate that is to be coated. The result is a coating that features a low porosity and a high bond strength to the substrate material, which provides it with wear and/or corrosion resistance. In the HVOF spraying process, the high velocity of the particles produces kinetic energy, which is more important than the temperature. One of the advantages of the HVOF spraying process is that it is extremely dense and hard coatings and often produced at relatively low temperatures. The technology used in thermal barrier coatings is surface engineering techniques, which better enables life extension of equipment by increasing erosion and wear resistance, and corrosion protection. This technique enables the utilization of varied materials which comprises of metals, ceramics, and alloys to supply coatings of outstanding hardness, for improved adhesion, and to prevent corrosion and wear resistance. The rising application scope of this technology in thermal coatings is additionally expected to drive its demand over the projected period. Cold spray technologies are expected to gain traction due to their increasing application scope in the automotive and semiconductor industries.

Thermal Barrier Coatings Market Segment Analysis – By Application

The Gas turbines segment occupied the largest share in the Thermal Barrier Coatings market in 2021 and is estimated to grow at a CAGR of 7.2% during 2022-2027. Thermal barrier coatings are commonly used to protect nickel-based superalloys from both melting and thermal cycling in aviation gas turbines. According to the American Society of Mechanical Engineers, in 2020, the aviation gas turbine sales accounted for $44.6 billion for the sales of 9,993 units, which went down from $74.7 billion in 2018. That decline was entirely due to reduced production in the civilian aviation market, a two-year decline of 46 percent. Combined with the cool airflow, Thermal barrier coatings increase the allowable gas temperature above that of the superalloy melting point. Furthermore, Thermal barrier coatings reduce the temperature of the blade alloy and protect against oxidation and hot corrosion from high-temperature gas, thus, increasing that turbine performance, life expectancy, and efficiency. For example, in a commercial jet engine, the fuel burns at up to 2,000°C in the combustion chamber. The turbine, which extracts energy from the heated gases and provides the engine power, is exposed to gases at between 850-1700°C. Yet increasing engine efficiency means increasing the temperature within the turbine inlet even further. The gas turbine blades need to be able to work and withstand long operating periods at these temperatures that are above their melting point. Hence, for this important advantage of Thermal barrier Coatings, the gas turbine segment is expected to drive the market growth during the forecast period 2022 - 2027. 

Thermal Barrier Coatings Market Segment Analysis – By End-Use Industry

The Aerospace segment held the largest share in the Thermal Barrier Coatings market in 2021 and is growing at a CAGR of 4.3% during 2022-2027. The increasing aircraft fleet and the rising defense expenditure increased the production of aircraft across the world, creating immense demand for thermal barrier coatings for the protection of engines and turbines. Moreover many countries are investing hugely in their respective defense sectors, with the motive of maintaining the peace and security of their country. Furthermore, every year, in their budgets, countries allocate a specific amount for the country’s defense sector. In countries like the United States, China, and India, the governments have been increasing the national defense budget regularly, which is expected to boost the market studied. The rise in China’s military spending has been widely reported, with a nearly twenty-five-fold increase over the past two decades, jumping from around USD 10 billion in 1999 to over USD 250 billion in 2020. Additionally, COVID-19 has a negative impact on the aviation sector across the world. According to International Air Transport Association (IATA), “Global air travel is recovering at a slower pace than expected, and it would take until 2024 for the aircraft sector to reach pre-pandemic levels.” The leading manufacturer of aerospace and defense in the world, Boeing, had a revenue of USD 58.16 billion in the year 2020, which is less compared to the previous year’s USD 76.56 billion. Overall, the market for thermal barrier coatings in the aerospace industry is expected to recover gradually through the forecast period and grow consistently.

Thermal Barrier Coatings Market Segment Analysis – By Geography

North America region held the largest share in the Thermal Barrier Coatings market in 2021 up to 43%. North America region is dominating the thermal barrier coatings market, due to the significant demand from the varied end-user industries like aerospace, automotive, power, oil and gas, and others. The United States also accounts for the most important manufacturers of the aerospace industry in the world. According to the Federal Aviation Administration (FAA), the entire commercial aircraft fleet is predicted to reach 8,270 by 2037, due to the expansion in air cargo. Also, the US mainliner carrier fleet is predicted to grow at a rate of 54 aircraft per annum, thanks to the prevailing fleet getting older. North America is additionally witnessing increasing gas production. As per records, In 2019, the United States produced around 99.17 billion cubic feet per day of natural gas, which is predicted to expand further. According to the International trade association, “Canada ranks first in civil flight simulation, third in civil engine production, and fourth in civil aircraft production”. It is the sole nationally ranked within the top five of all the key categories. The aerospace industry led the Canadian manufacturing sector in innovation-related investment such as R&D activities with an expenditure of over USD 1.4 billion annually (nearly a quarter of all manufacturing R&D). Hence, all the aforementioned factors are expected to be a significant impact on the demand for thermal barrier coatings market within the region over the forecast period.

Thermal Barrier Coatings Market Drivers

Increase in production activities in the automobile sector

Globalization, industrialization, digitalization, and increasing competition are pressing the face of the industry. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry have also contributed to the changes ahead. According to the Indian brand equity Foundation (IBEF), Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20. Two-wheelers made up 73.9% of the vehicles exported, followed by passenger vehicles at 14.2%, three-wheelers at 10.5%, and commercial vehicles at 1.3%. Showcasing increase in production activities in the automobile sector.

Increased demand for advanced heat resistant coating by a growing global economy

The thermal barrier coatings market is rising in demand thanks to the rapidly rising demand for thermal barrier coatings in various applications like the energy, automotive, and aerospace industries. Also, the rapid growth within the automotive and automobile production on account of the rapidly growing demand from emerging economies is additionally highly impacting the expansion of the thermal barrier coatings within the forecast period. The rising importance of air cargo delivery alongside the growing number of air passengers is additionally anticipated to flourish the demand of the thermal barrier coatings market due to the above-mentioned reasons and is additionally projected to grow substantially during the forecast period. Furthermore, the increasing worldwide demand for power, mostly within the emerging economies like in Asia and Africa, and therefore the increasing technological innovation also are expected to push the expansion of the thermal barrier coatings market in the above-mentioned forecast period.

Thermal Barrier Coatings Market Challenges

Degradation and other problems associated with thermal barrier coatings

The majorly used Yttria-stabilized zirconia (YSZ) as a material in the Thermal barrier coatings has challenges like limited operation temperature, despite being the present industry standard. Pyrochlores are suggested as a possible replacement for YSZ by a study published by Linköping Studies in Science and Technology. Additionally, improvements to the traditional YSZ within the sort of nanostructured YSZ were also explored. The requirement for the new deposition process comes from the very fact that the prevailing low-cost deposition processes, like atmospheric plasma spray (APS), generally exhibit lower strain tolerance. A relatively new technique, suspension plasma spray (SPS), known to be promising with better strain tolerance, has been identified. In the gas turbine operating environment and conditions, Thermal Barrier Coatings degrade and eventually break down. Common challenges observed in gas turbines are often because of corrosion, the thermal mismatch between the ceramic and the metallic layers, and “Bond coat oxidation during thermal cycling”. Suspension plasma sprayed (SPS) and Atmospheric plasma sprayed (APS) Thermal Barrier Coatings were subjected to different test conditions to know their corrosion behavior. A study on the multi-layered Suspension Plasma Sprayed – Thermal Barrier Coatings in the presence of V₂O₅ + Na₂SO₄ showed that YSZ based SPS coatings were less susceptible to corrosion damage compared to Gd₂Zr₂O₇ SPS TBCs.

Thermal Barrier Coatings Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Thermal Barrier Coatings top 10 companies include:

1. A & A Thermal Spray Coatings
2. Praxair Surface Technologies Inc.
3. H.C. Starck Inc.
4. ASB Industries Inc.
5. Air Products and Chemicals Inc.
6. Flame Spray Coating Co.
7. Thermion Inc.
8. Metallisation Ltd.
9. Metallizing Equipment Co. Pvt. Ltd.
10. The Fisher Barton Group

Acquisitions/Technology Launches

In March 2020, Praxair Surface Technologies signs a new contract with Siemens to strengthen their continuous relationship. The new contract covers a range of coating services across all Siemens products. Aerospace and industrial gas turbine components such as blades, vanes, casings, and discs will be coated by PST’s aluminizing, platinum aluminizing, slurry, and thermal spray processes. To offer the best possible technology and service, coatings will be completed at PST’s Germany, Italy, United Kingdom, & United States locations.

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