Passive Fire Protection Coatings Market size is forecast to reach $4.2 billion by 2025, after growing at a CAGR of 6.7% during 2020-2025. The use of passive fire protection coatings has increased due to stringent government regulations regarding the usage of passive fire protection coatings and fire safety standards. Furthermore, the rapidly-growing building & construction industry is expected to increase the demand for passive fire protection coatings. These coatings are applied so that a building’s steel structure withstands fire and prevents it from exceeding the critical temperature at which it may collapse. These are used in high-rise buildings, sports stadiums, and other applications. The growing use of passive fire protection coatings in equipment protection and various offshore and onshore applications in the oil and gas industry is driving the market growth.
Type – Segment Analysis
Intumescent coatings held the largest share in the passive fire protection coatings market in 2019, owning to its wide usage across various applications, such as commercial buildings, hospitals, skyscrapers, colleges, restaurants, residential buildings, offices, oil & gas industry, and others. The demand for intumescent coatings is higher as compared to cementitious coatings as, intumescent coatings are used in combination with cladding materials. Intumescent paint requires lower maintenance, improves durability, thermal insulation, provides longer shelf-life, and also provides corrosion protection for steel structures in buildings. These properties of intumescent coatings are therefore expected to stimulate the growth of these types of coatings in the market for passive fire protection coatings.
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Technology – Segment Analysis
The water-based technology segment held the largest share in the passive fire protection coatings market in 2019. Water-based fire protection coatings are extremely safe as they do not contain toxic solvents, are low odor and have low VOC emissions. These are designed to enable customers to meet the strict emission standards set by various agencies, such as the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and the Environmental Protection Agency (EPA). These water-based coatings, also, can withstand high levels of humidity during application. The above factors fuel the demand for the water-based technology in the market of passive fire protection coatings.
End Use Industry – Segment Analysis
The building & construction industry held the largest share in the passive fire protection coatings market in 2019 and is growing at a CAGR of 6.4% during the forecast period. Fire protection coatings are used in buildings owing to the various benefits that these coatings provide. These coatings prolong the duration of damage that could be done, providing ample time for the evacuation of building in the case of fire. In addition, these also help protect firefighters when managing the fire, and thereby help to minimize damage to a structure and loss of assets. The demand for passive fire protection coatings is also increasing from oil & gas industry because of the prevalence of high-risk environment owing to the presence of flammable and explosive compounds at the facilities. These coatings help to prevent structural damages.
Geography – Segment Analysis
The Asia-Pacific held the largest share in the passive fire protection coatings market in 2019 up to 41%. This growth is attributed to the increasing number of residential and commercial construction projects along with rising consumer awareness regarding fire safety in the region. In India, the government has initiated projects, such as ‘100 smart cities’ and ‘Housing for All by 2022,’ which are expected to drive the Indian residential construction market over the forecast period. In addition, according to India Brand Equity Foundation (IBEF), India plans to spend US$ 1.4 trillion on infrastructure in the next five years. In 2019, China approved to invest $142 billion in 26 infrastructure projects. Therefore, the increasing construction projects and stringent regulations about fire safety have mandated the product usage, in the region which is driving its market growth in the Asia Pacific region.
Drivers – Passive Fire Protection Coatings Market
Growth in construction projects and oil & gas exploration activities
Major factors driving the passive fire protection coatings market are increasing construction activities across the globe, and growth in oil & gas exploration activities. According to the US Census Bureau, in February 2020 total construction was at a seasonally adjusted annual rate of 1,366,697 which is 6.0 percent above the February 2019 rate of 1,288,951. According to European Commission, the total construction investment in Germany increased by 9.5% over 2008-2015. Also, the European Construction 2020 Action Plan aimed at stimulating favorable investment conditions. The building and construction activities are also increasing owing to the various government initiatives such as Foreign Direct Investments (FDI). In addition, according to International Monetary Fund, by 2023, oil demand will reach 104.7 mb/d, up by 6.9 mb/d from 2017. As passive fire protection coatings are extensively used in these industries to reduce the risk from fire, the growth in these industry is driving its demand.
Challenges – Passive Fire Protection Coatings Market
Fluctuation in raw materials prices
Price and availability of raw materials are major factors that affect the price of the end products. The major challenge for the global passive fire protection coatings market is the oscillating price trends of raw materials, which are fluctuating due to volatile energy prices, as most of the raw materials are petroleum-based. According to BP statistics, in 2018, average crude oil price increased to $71/ bbl from $54/bbl in 2017. Fluctuations in crude oil prices impact the cost of raw materials which are used in the production of passive fire protection coatings, thus limiting the market growth.
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Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Passive Fire Protection Coatings Market. Major players in the Passive Fire Protection Coatings market are Akzo Nobel, PPG Industries, The Sherwin-Williams Company, Promat International, Carboline, Hempel A/S, KANSAI PAINT, Nullifire, Jotun, and Teknos Group., among others.
In November 2019, Hempel launched “Hempafire Optima” a new generation passive fire protection coatings.
In December 2018, Hempel launched “Hempafire Pro 315” a new passive fire protection coating.
In November 2018, PPG launched “PPG PITT-CHAR NX”, its most advanced passive fire protection coating.
Asia-Pacific dominates the global passive fire protection coatings market, owing to extensive usage of passive fire protection coatings in aerospace, oil & gas, warehousing, and manufacturing industries in the region. In addition, government initiatives such as 100 smart cities and Housing for all by 2022 are further supporting market growth.
The demand for passive fire protection coatings is increasing due to rising cases of fire accidents in the manufacturing, power, and steel industries.
Currently, COVID-19 is having a massive impact on various industries such as oil & gas, aerospace, construction and others, as most countries have issued “stay at home guidance” i.e., lockdown. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021. Therefore, this factor is limiting passive fire protection coatings market growth.
Related Reports :
A. Fire Retardant Coatings Market
B. Fire Resistant Glass Market
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