Coatings World - June 2016

and higher solids formulations. Despite loss of market share, solvent-based products are expected to see near average demand increases, boosted by a rebounding construction sector and product reformulation efforts that improve their environmental profile.

The fastest annual growth through 2019 is expected for reactive adhesives and sealants, driven by rising demand in major markets, such as manufacturing, assembly and construction. Freedonia analysts predict, silicone and polyurethane adhesives and sealants will post the most rapid gains among reactive types, supported by their superior performance characteristics. Hot melt products will register near average advances, as their rapid cure rates continue to promote their use in markets such as packaging that require fast processing speeds. In addition, hot melt adhesives’ lack of VOC emissions will continue to benefit demand.

Among adhesives and sealants markets, the fastest annual gains are projected for construction, which will recover from the declines of the 2004-2014 period. Accelerated new building construction will fuel gains, as will increased improvement and repair activity and rising infrastructure spending. Faster gains will be prevented by the development of higher performance products with longer replacement cycles.

World Demand for Specialty
Silicas to Reach 3. 5 Million
Metric Tons

World demand for specialty silicas is
forecast to rise 5.0 percent per year to
3. 5 million metric tons in 2020, valued
at $8.8 billion. The tire rubber market
will grow the fastest and account for the
largest share of gains. Tire manufactur-
ers are increasingly incorporating precipi-
tated silica into their products in order to
improve fuel efficiency and performance.
Outside of the tire market, use of special-
ty silicas in most applications is mature,
and demand will be driven by broader
manufacturing trends. The fastest gains
for specialty silicas will occur in industri-
alizing countries in Asia. These and other
trends are presented in World Specialty
Silicas, a new study from The Freedonia
Group.
The Asia/Pacific region accounts for
the largest share of the global specialty
silicas market, representing 48 percent of
the total in 2015. China alone accounted
for over half of regional demand. “The
Asia/Pacific region dominates global rub-
ber production, and as a result many
countries in the region are major con-
sumers of specialty silicas,” notes analyst
Elliott Woo. Increased demand for silica
in tires will drive growth in demand in
developed nations like Japan and South
Korea. Broader manufacturing growth
will support strong gains in demand for
specialty silicas in developing countries
throughout the region.

Demand for specialty silicas in North America and Western Europe is projected to advance at below average rates through 2020. Sluggish manufacturing growth and market maturity will constrain advances for specialty silicas in many applications. However, the tire rubber market will provide some gains in these regions. Consumption of specialty silicas in Eastern Europe, Central and South America, and the Africa/Mideast region is modest, with these regions collectively accounting for 16 percent of the global total in 2015. Of these regions, the Africa/Mideast region is expected to post the fastest growth, but it will remain the smallest regional market.

Global Market Insights:
Intumescent Coatings
Market Worth $1.16 Billion
by 2022

The intumescent coatings market size is forecast to be worth $1.16 billion by 2022, as per a new research report by Global Market Insights, Inc. Increasing applications in the energy sector coupled with stringent government regulations pertaining to health and safety standardization is likely to drive demand over the forecast period. Features such as fireproofing and heat resistance are anticipated to be among key factors to drive intumescent coatings market growth. Strong shale gas production landscape is also likely to positively impact the industry.

Cellulosic intumescent coatings market size was over $400 million in 2014

with revenue expectation of over

$570 million by 2022. Growth in the construction sector and increasing demand for thin film coatings in the marine and automobile applications are expected to boost growth. Hydrocarbon coatings market size is likely to grow faster than the global average to exceed USD 580 million by 2022.

Oil and gas industry was the dominant end-use segment and accounted for over 50 percent of the global revenue share in 2014, it is further anticipated to gain at 4. 8 percent from 2015 to 2022. Stringent government regulations for safety & health and increasing exploration are expected to boost demand. Construction industry demand was estimated at over 35 kilo tons in 2014, and is expected to grow at CAGR of 5.2 percent from 2015 to 2022 owing to increasing construction industry in China and India.

Key report insights suggest:
•Intumescent coatings market size was
projected at 98.1 kilo tons in 2014 and is
forecast to reach 145.6 kilo tons by 2022.

• Asia Pacific was the dominant industry and accounted for over 30 percent of the global share in 2014.

• U.S. volume should grow at over 5.2 percent from 2015 to 2022. This can be attributed to increasing demand from aerospace industry and growth in residential construction.

•Cellulosic coatings applications market volume is projected to grow at a 5 percent rate from 2015 to 2022 due to growth in marine and automotive industry. Stringent fire safety standards and demand for fire resistant coatings in oil and gas industry will drive hydrocarbon coating demand.

• Demand from the automotive segment was estimated at over $65 million in 2014. Increasing need for thermal barrier and protection from high engine temperature in vehicles accompanied by focus to make vehicles safer is likely to drive growth.