International. Rapid urbanization in Asia-Pacific and increasing investments in residential and commercial construction in North America are creating a vast market for fire coatings, especially water-based cellulosic intumescent coatings.
According to the Frost & Sullivan study, while cement coatings are inherently fire-resistant and provide adequate fire insulation for a period, intumescent coatings are proving to be more reliable and efficient. Their superior protection and aesthetic properties, along with the increasing adoption of international fire standards by governments and insurance companies in the Middle East and Asia-Pacific, are accelerating the adoption of the higher-priced intumescent coatings.
In addition, the continued increase in the use of exposed steel in commercial architecture in developed countries of North America and Europe, preferably protected by cellulosic intumescent coatings, contributes significantly to the growth prospects of these products.
"There is a huge demand for aqueous coatings in the cellulosic fire protection market with environmental bodies such as the U.S. Environmental Protection Agency and the European Union's Chemical Registration, Evaluation, Authorization and Restriction (REACH) requiring the use of low-volatility organic compound coatings. However, solvent-based or aqueous coatings are susceptible to moisture and variable weather conditions and are therefore relatively ineffective in external applications compared to high-solids epoxy coatings," said Christeena Thomas, visionary research analyst at Frost & Sullivan. Manufacturers are responding to this product defect with hybrid intumescent coatings that are solvent and epoxy-based. This new generation of coatings can not only withstand climate changes, but also provide effective fire protection to substrates.
The study further indicates that the fire protection coatings market is highly competitive, forcing manufacturers to set attractive prices on their products. This is an important strategy in the price-sensitive developing countries of Asia-Pacific, which is the largest market for the overall fire coatings industry. Companies will also do well to deliver value through demonstrations, testing and validation at customers' facilities. These value additions will improve coating adoption without compromising margins.
