Thermal spray Market Analysis

Thermal Spray Market (Global, 2024)

Introduction

Industry is gaining a greater understanding of the value of surface engineering. This is a diverse field, covering applications in the fields of aircraft, automobiles, energy and industry, where the need for a longer life, increased resistance to wear and improved protection against heat is paramount. In the process of improving the performance and the life of components, the use of thermal spray processes such as flame spraying, plasma spraying and HVOF is becoming more widespread. There is also a strong drive to develop new materials and processes, with a view to minimising the impact on the environment while ensuring maximum efficiency. Also, the use of automation and digital technology is expected to make the process more precise and efficient, and to broaden the appeal of thermal spraying to a wider group of users. As the field develops, the key to success for companies in the thermal spray market will be to navigate successfully between the challenges of regulation, material costs and technological development.

PESTLE Analysis

Political

In 2024, the thermal spray market will be influenced by various political factors, such as the regulations and policies of the state and the market. In the United States, for example, the government has allocated a total of $ 1.2 billion for advanced manufacturing, including surface engineering technology. The European Union has also set stricter emissions standards, which will increase the demand for thermal spray coatings that improve the performance and life of industrial components and contribute to the goal of sustainable development.

Economic

The 2024 market for thermal spraying will be shaped by the fluctuating cost of raw materials and the complexities of the global supply chain. Titanium, which is used in thermal spraying, has risen by 15% in the past year, to around $6,500 per tonne. The cost of raw materials is having an effect on manufacturers’ selling prices and profits. The manufacturing industry is expected to employ 400 million people by 2024. This is expected to drive the demand for thermal spraying in a number of industries, such as aerospace and the automobile industry.

Social

In the year 2024 the social trends are pushing the market for thermal sprays in the direction of a more sustainable approach. A study has shown that 78% of consumers are willing to pay more for products that are good for the environment. This has led to a shift towards the use of thermal sprays to reduce waste and increase product life. Furthermore, the workforce in the thermal spray industry is becoming increasingly diverse. The percentage of women in technical positions is rising, which is in line with the growing trend towards a more inclusive approach in the STEM disciplines.

Technological

In the year 2024, technological developments were rapidly changing the thermal spray industry. Robotics had increased productivity and some systems were now able to coat up to 10 meters per minute. Artificial intelligence in quality control had improved defect detection by a quarter, resulting in a better quality of output. In an industry that was looking to increase productivity and reduce costs, these innovations were essential.

Legal

Legal factors that will affect the 2024 thermal spray market include compliance with international standards and regulations for health and safety. Approximately half of all thermal spray companies have adopted ISO 9001, which is a certification of quality management systems. The OSHA has also recently issued new regulations requiring stricter safety measures, which will result in increased operating costs for compliance but will improve worker safety.

Environmental

In the year 2024, the market for thermal spray is influenced increasingly by the environment. Carbon neutrality is a driving force behind the development of eco-friendly materials, and 40 percent of the new products launched in the last year were based on sustainable practices. Rules in the European Union require that by 2030 the carbon footprint of the industry be reduced by 30 percent. This drives the industry to adopt greener technology in order to meet these requirements.

Porter's Five Forces

Threat of New Entrants

The market for arc welding is characterised by a medium degree of entry difficulty, owing to the specialized nature of the technology and the skill required to operate it. However, the growing demand for high-quality coatings across a number of industries could attract new entrants. The market is dominated by established companies, with strong brand awareness and customer loyalty.

Bargaining Power of Suppliers

The bargaining power of the suppliers in the market for fusion-sprayed products is relatively low. There are many suppliers of raw materials and equipment, which makes the market highly competitive. It is easy for the manufacturers to change suppliers, and this makes it difficult for any one supplier to impose his terms on the market.

Bargaining Power of Buyers

The buyers of thermal spraying have high bargaining power due to the many suppliers and alternatives available. Using this power, customers can seek out the best quality products and the best prices. This forces suppliers to remain competitive in terms of price and innovation.

Threat of Substitutes

“The threat of substitutes on the thermal spray market is moderate. There are some other coatings, like chrome or chromium, but compared to thermal spray, they are inferior in terms of performance and cost. But if the substitutes improve, the market share of thermal spray could be at risk.”

Competitive Rivalry

Competition in the market for thermal spraying is intense, with many companies vying for market share. In order to stand out, companies are constantly improving and innovating. The increasing number of established and new companies is leading to price wars and marketing campaigns to win customers.

SWOT Analysis

Strengths

• Diverse applications across various industries including aerospace, automotive, and energy.
• Ability to enhance surface properties such as wear resistance, corrosion resistance, and thermal insulation.
• Technological advancements leading to improved efficiency and quality of thermal spray processes.

Weaknesses

• High initial investment costs for equipment and technology.
• Limited awareness and understanding of thermal spray technologies among potential users.
• Dependence on skilled labor for effective application and operation.

Opportunities

• Growing demand for advanced coatings in emerging markets.
• Increasing focus on sustainability and eco-friendly coating solutions.
• Potential for innovation in materials and processes to enhance performance and reduce costs.

Threats

• Intense competition from alternative coating technologies.
• Economic fluctuations affecting industrial spending and investment.
• Regulatory challenges related to environmental and safety standards.

Summary

The main characteristics of the global thermal spray market in 2024 are its strong application versatility and technological advancements, which make it more appealing to various industries. But the market is facing challenges such as high initial costs and the lack of skilled labor. Opportunities for growth lie in emerging markets and the demand for sustainable solutions, while competition and regulatory pressure may have an adverse impact on market dynamics. Strategically, innovation and education can be used to counteract weaknesses and exploit growth opportunities.