Fire retardant coatings market size forecast to reach $6.1 billion by 2025

Fire retardant coatings market size is forecast to reach $6.1 billion by 2025 after growing at a CAGR of 6% during 2020-2025. Fire Retardant coatings are used to prevent and control the spread of fire. The fire retardant coatings are widely used in building & construction, marine and oil & gas industries.  The increasing awareness and stringent fire safety norms and regulations, the market of fire retardant coatings will witness high growth rate in forecast period.

Key Takeaways
  • Asia-Pacific dominates the fire retardant coatings market owing to increasing demand from growing construction industry.
  • The strong rise in gas production is likely to act as an opportunity for the market.
  • The absence of international regulatory body that can approve Fire Retardant coatings are anticipated to be the major restrain in the growth of the global fire retardant coatings market.
By Resin Type – Segment Analysis
The Epoxy segment held the largest share in the fire retardant coatings market in 2019 due to its high thermal resistance. Epoxy coatings are widely used due to their exceptional chemical resistance, low porosity, durability, and bond strength. Wood surfaces protected with coatings of epoxy cannot become saturated with water. Paint adheres better, with less cracking and lifting, than it does on substrates without the benefit of an epoxy coating. Epoxy coatings are often used in industrial and wood and timber coatings applications since they are more heat resistant than latex-based and alkyd-based Coating. Epoxy coating films are strongly resistant to most chemicals and make excellent anticorrosion coatings. They are one of the principal materials used to control corrosion in the marine environment.
By Coating Type – Segment Analysis
The water based coating held the largest share in the fire retardant coatings market in 2019.  According to the Paint Quality Institute, a paint advising and testing organization, Water-based coatings make up about 80 percent of household coatings sold today, whether it’s an interior house coatings tor heavy-duty protective coatings. Water based coating is typically a fluid composite used to protect a surface.  When dry, the coating leaves a continuous protective film over the treated surface which is thin, strong and elastic. The use of water-based coatings for exteriors is now well-established. The advantages of water based coating are reduction of solvent emissions into the atmosphere, short processing times, excellent elasticity, resistance of the coating film to temperature shift, ease of over coating, and no risk of spontaneous combustion of the overspray dust. Solvent based coating held the second largest share in the fire retardant coating market. Solvent-based coatings are made up of liquefying agents that are meant to evaporate via a chemical reaction with oxygen. Typically, moving air surrounding a solvent-based coating will help to speed up the reaction, reducing drying times. Solvent based coating are less susceptible to environmental conditions such as temperature and humidity during the curing phase.
By Application- Segment Analysis
Car body frame held the significant market share in the fire retardant coatings market in terms of application in automotive sector. It protects the car body from catching fire. The growth of the fire retardant coating market can be attributed to the rise in production of automobiles. It is expected that the amount fire retardant coating used in the production of automobiles will double in the next 15 years. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) globally in the year 2019 was 91,786,861 units compare to 96,869,020 units in 2018. While the total production of automobile (commercial as well as Personal) in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017. The increase in the global automobile production is a major factor leading to the growth of fire retardant coating in terms of volume across the globe. This will drive the growth of the market in the forecast period.
 
By End Use Industry- Segment Analysis
Construction sector held the largest share in the fire retardant coatings market and is growing at a CAGR of 7.5%. Fire Retardant coatings is use in the coating of Building, automotive parts, gas pipelines and others. Fire Retardant coatings are highly durable and weather able, and protect the materials and parts for thirty minutes to two hour from any fire incident.  Moreover, the coating can’t protect the wood material permanently. The growth of Fire Retardant coatings can be taken as directly proportional to the growth of construction industry. By 2020, construction output is estimated to grow by 70% to $12.7 trillion and will account for 14.6% of the world output with some of the larger emerging markets such as China, India, Russia, Brazil and Poland driving growth, along with U.S. Global GDP growth of 3.5% and 3.6% is expected in 2017 and 2018 respectively however the meteoric growth that outpaces global GDP will be concentrated in countries like China, India and U.S. India will overtake Japan as the third-largest construction market with annual growth averaging 7.4% annually in construction. Government buildings and public institutions are other major consumers of Fire Retardant coatings, which is further projected to boost the market of fire retardant coatings. The disruption of COVID-19 has almost certainly impact the prices of construction products and materials. The impact of COVID-19 on construction sector can be spotted till year 2020 followed by which the industry will have persistent growth during forecast period.
Geography – Segment Analysis
Asia-Pacific (APAC) dominated the fire retardant coatings market with share of 40% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in Building and Construction industry which ultimately beneficial for the fire retardant coating market. China was the leading regional market, due to the presence of Construction Industries. The increasing growth in Real estate (Building and Construction) sector especially in India, China, Japan and Indonesia is another key aspect to the growth of global fire retardant coatings market. According to data released by the National Bureau of Statistics (Government of China) the growth for the construction sector was around 6.2% in 2018. Whereas, the data provided by National Investment Promotion & Facilitation Agency of India the Construction industry in India expects a growth rate of 5.6% per annum over the next 10 years, which will directly benefits the fire retardant coatings market.
Drivers – Fire Retardant coatings market 
  • Increased in fire-related expenditure by Manufacturing and Construction companies
Enterprises across the globe are progressively spending on fire safety and security of infrastructure, thus reducing the damage caused by fire accidents. Asia-pacific region consist of many Oil & Gas industry. Therefore, fire safety is given utmost importance and cannot be ignored at these sites, which are usually labor-intensive. Hence, the maximum consumption of fire retardant coatings goes into these Oil & Gas Industry. Secondly, countries like China and India has already established a set of fire safety regulations, from policy-based regulations about fire prevention and reduction, to specific standards related to the requirements for fire safety facilities and monitoring processes. These factors are driving the fire retardant coatings market near future.
  • Stringent Fire Safety Norms 
Fire pose a major threat to various occupancies globally. Almost every day some fire incident are reported by global media. These fire incident not only resulted in the loss of many precious life and injuries to many but also inflicted heavy property loss. Therefore, certain norms are imposed by the government of countries like U.S, Germany and U.K to prevent fire incident. This factor will also drive the market of fire retardant coatings market near future.
Challenges – Fire Retardant coatings market 
  • Fire Retardant coatings have been found to be toxic to environment 
Fire Retardant coatings being phased out because they persist and accumulate in the environment. Also they have been found to be toxic to humans, and are associated with neurodevelopmental problems in children and altered thyroid function in pregnant women. These factors can restrain the market growth of fire retardant coatings.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the fire retardant coatings market. In 2019, the market of fire retardant coatings has been consolidated by the top five players accounting for xx% of the share. Major players in the fire retardant coatings market are, RPM international Inc., 3M, Akzo Nobel NV, PPG Industries, The Sherwin-Williams Company and others.
Acquisitions/Technology Launches
  • In March 2020, Akzo Nobel N.V. has acquired the remaining 25% stake in Akzo Nobel Boya Sanayi ve Ticaret A.S., a leading powder coatings joint venture in Turkey. The joint venture will manufactures and distributes powder coatings in Eastern Europe and central Asia.