GLOBAL THERMAL INSULATION COATING MARKET OVERVIEW AND DEFINITION

The global thermal insulation coating market was valued at 10.45 Bn. USD in 2024 is expected to reach 17.17 Bn. USD by 2032, reflecting a CAGR of 6.4% over the forecast period (2025-2032)

The global thermal insulation coating market is growing rapidly, driven by the increasing need for energy efficiency, safety, and sustainability across sectors. Industries and governments are focusing on reducing energy consumption and emissions, positioning thermal coatings as a key solution for buildings, industrial equipment, and electric vehicles. In construction, rising energy costs and strict environmental regulations are pushing the adoption of coatings that reflect heat, insulate structures, and contribute to net-zero goals. Industrial sectors such as oil & gas, power, and chemicals are using these coatings to minimize thermal loss and prevent corrosion under insulation (CUI).

Electric vehicles represent a fast-growing application area, where thermal coatings provide essential fire resistance, electrical insulation, and lightweight heat shielding for battery systems. Technological advances like intumescent and nanomaterial-based coatings are expanding the scope and feasibility of these applications. Regionally, North America leads due to strong industrial demand and energy policies, followed by Europe, driven by its automotive and green building sectors. However, Asia Pacific is the fastest-growing region, fueled by infrastructure growth, manufacturing initiatives, and urbanization in countries like China and India. On the product side, epoxy-based coatings are the most widely used due to their durability and chemical resistance.

Ceramic coatings are favoured for high-temperature environments, while aerogel-based coatings are gaining traction for their ultra-low thermal conductivity and lightweight profile. Ongoing innovations in nanotechnology, self-healing additives, and scalable formulations are further strengthening the market. As industries prioritise energy-conscious operations, thermal insulation coatings are becoming a strategic investment for performance, cost savings, and long-term resilience.

MARKET DYNAMICS

Market Drivers

Thermal management needs in EV batteries

Electric vehicle (EV) batteries heat up quite a bit during normal use and especially while fast charging. To keep them working well and safely, their temperature needs to stay between about 15°C and 35°C. If they get too hot, there’s a higher chance of serious issues like overheating or even fire. To prevent this, modern EVs use advanced cooling systems. These often include liquid cooling plates, insulating layers, and special fire-resistant coatings to manage heat and stop flames from spreading in case of an issue. These coatings need to be lightweight, heat-resistant, and safe for electronics, all without making manufacturing more difficult. For example, at the 2024 Battery Show in North America, PPG showcased its CORACHAR coating. When exposed to high heat, this coating expands into a protective layer that helps shield the battery cells and reduces the risk of fire spreading. These kinds of coatings are not just about safety, they also help car makers build batteries that charge faster and store more energy, which is key to making EVs more popular.

Growing demand for energy-efficient solutions

Energy costs around the world keep going up, driven by things like unstable fuel prices, outdated power grids, and extreme weather. This has pushed factories, businesses, and even households to find smarter ways to use energy and cut costs. The International Energy Agency reports that global energy demand rose by 2.2% in 2024, faster than usual, which puts more pressure on both energy providers and users to avoid waste. In response, many companies are locking in renewable energy deals to keep costs steady and lower their carbon footprint. Governments are also stepping up. For example, the European Commission’s Clean Industrial Deal (launched in February 2025) connects economic strength with energy efficiency. It encourages buying low-carbon products and aims to save Europe €260 billion a year by 2040. All of this, rising costs, stricter rules, and growing sustainability goals, is pushing rapid innovation in energy-saving solutions, from advanced thermal coatings to smart building systems. Today, being energy-efficient isn’t just a nice-to-have, it’s essential for staying competitive and future-ready.

Market Restraint

High initial application costs and the volatility of raw‑material prices

One of the biggest hurdles to using thermal insulation coatings more widely is the high upfront cost. Applying these coatings often requires special spray equipment, like heated airless rigs or powerful spray-foam systems, which can cost anywhere from $10,000 to over $100,000. On top of that, there are ongoing costs for maintenance and training people to use the equipment properly. The materials used in these coatings, like epoxy resins, polyurethane, acrylics, and ceramic fillers, come from petrochemicals. This means their prices can be affected by things like oil price changes or supply chain issues. If there’s a sudden disruption, like a political conflict or a natural disaster, material costs can shoot up quickly. That puts pressure on contractors and makes it harder to plan large or long-term projects. Because of all this, smaller contractors and businesses often stick with cheaper traditional insulation methods or wait until prices become more stable before investing in advanced coatings.

Market Opportunity

Aerogel-based coatings

Aerogel-based coatings make use of silica aerogels, super-light, sponge-like materials that are over 90% air, to provide excellent insulation. These coatings have extremely low thermal conductivity (as low as 0.015–0.026 W/m·K), making them much more effective than traditional ceramic or plastic-based insulators. A 2023 study showed that adding silica aerogel to coatings not only improved insulation but also kept the material strong enough for industrial use. These coatings are very lightweight too, less than half the weight of typical coatings, which makes them easier to apply and less bulky. Earlier research in 2019 found that using aerogel in epoxy coatings could reduce the dry weight by about 50% without affecting how well the coating sticks or how long it lasts. That’s especially useful for coating pipelines, storage tanks, and steel structures during retrofits. Now, this tech is moving from labs to real-world use. In March 2024, Hempel launched its Hempatherm IC insulation system based on aerogel to help prevent corrosion and reduce energy loss in steel infrastructure. This shows that the industry is starting to trust and invest in aerogel coatings at scale.

Rapid industrialisation in emerging markets

As many emerging markets rapidly industrialize, the need for advanced thermal insulation coatings is growing fast, especially in new factories, pipelines, and power plants. In 2019 alone, private companies invested nearly $97 billion into energy, transport, telecom, water, and city infrastructure projects in lower- and middle-income countries. These kinds of developments need high-performance insulation to keep operations efficient and equipment lasting longer. Government programs like India’s PLI (Production-Linked Incentive) scheme have poured money into key sectors like electronics, pharma, and automotive. As a result, exports to the U.S. rose by 25% between 2019 and 2023, and manufacturers are now more likely to choose long-lasting, low-conductivity coatings to better control temperatures and protect their equipment.

Market Trends

Nanomaterials and self-healing additives

New thermal insulation coatings are getting smarter thanks to nanomaterials like graphene, nanosilica, and carbon nanotubes. These materials help block heat flow and make the coatings tougher, especially at high temperatures. When added to ceramic or polymer-based coatings, tiny fillers like graphene sheets or boron nitride can cut thermal conductivity by up to 30%, while also improving how well the coating sticks to surfaces and resists wear and tear. Some coatings now include self-healing additives, tiny capsules filled with special liquids or alloys. When cracks form due to heating and cooling, these capsules break open and release substances that fill in the cracks and harden. This helps the coating heal itself and keep working properly. The combination of nanomaterials and self-healing technology is paving the way for a new kind of “smart” insulation. These coatings don’t just keep things cool, they also fix themselves and last longer, making them ideal for tough environments like factories and vehicles.

SEGMENTATION ANALYSIS

By Product Type

In the thermal insulation coating market, epoxy-based coatings are the most widely used. That’s because they stick well to surfaces, resist chemicals, and are relatively affordable to produce. For example, Carboline’s Carbotherm 551 is a water-based epoxy coating that provides both heat insulation and corrosion protection, making it a popular choice in industries like oil & gas, petrochemicals, and power plants.

Ceramic-based coatings, such as yttria-stabilised zirconia (YSZ) and gadolinium zirconate (GZO), are used in very high-temperature settings. These can handle heat up to 1400°C and are built to survive repeated heating and cooling. That makes them ideal for things like turbine blades and industrial furnaces.

Although they make up a smaller share of the market right now, aerogel-based coatings are growing the fastest. These coatings are extremely light and porous, which allows them to provide exceptional insulation without adding much weight.

By Application

Right now, the building and construction sector is the biggest user of thermal insulation coatings. That’s because buildings use about 30% of the world’s total energy and over half of all electricity. So, coatings that help keep heat out, especially on roofs and walls, are key to hitting energy-saving goals and net-zero emissions targets. For example, in May 2025, AkzoNobel launched a new “sunscreen” thermal coating in China, designed to reflect heat and reduce cooling needs in buildings with strict energy codes.

Industrial use is the next largest segment, where coatings are applied to equipment like storage tanks, pipes, and reactors. These settings need coatings that both insulate and protect against corrosion under insulation (CUI). Carboline’s Carbotherm 551 is a good example; it does both jobs well even in tough environments.

Lastly, the automotive and transport industry, especially electric vehicles, is seeing fast growth. Here, coatings are used in battery enclosures and exhaust systems. Companies like Zircotec are developing advanced ceramic coatings like ElectroHold that not only manage heat but also prevent electrical issues and slow down fire spread, which is vital for modern EV safety.

REGIONAL INSIGHTS

North America leads the global thermal insulation coatings market, thanks to its strong industrial base, high energy use, and strict energy-efficiency rules. In the U.S., the Department of Energy’s Industrial Assessment Centres often recommend insulation as a top way to save energy, especially in industries like petrochemicals, power generation, and food processing. Building codes like ASHRAE 90.1 and the International Energy Conservation Code (IECC) also encourage the use of low-conductivity, eco-friendly coatings on rooftops, walls, and HVAC systems. Plus, many older industrial sites are being upgraded, which is boosting demand for epoxy and ceramic coatings that insulate and protect against corrosion.

Europe holds the second-largest market share, driven by strong climate goals and government support for sustainable building and industry. The updated Energy Efficiency Directive (2023) requires EU countries to cut energy use and renovate public buildings to meet near-zero energy standards by 2030. Countries like Germany and the Netherlands have adopted green building rules that promote high-performance coatings for temperature control and passive cooling. Europe’s well-developed automotive and aerospace industries also use advanced coatings, especially those made with ceramics and nanomaterials, helping the market stay mature and innovative.

Asia Pacific is the fastest-growing region for thermal insulation coatings, fueled by rapid industrial growth, urban expansion, and a booming construction sector in countries like China, India, Vietnam, and Indonesia. National programs like “Make in India” and China’s Belt and Road Initiative are increasing demand for energy-efficient materials in factories, warehouses, and power plants. China leads in industries like steel, cement, and chemicals, where coatings are used to cut heat loss and meet environmental standards. Domestic innovation is rising too, for example, AkzoNobel recently launched a “sunscreen” insulation coating tailored for China’s hot urban areas.

Latin America is seeing steady growth, with countries like Brazil, Mexico, and Chile building more homes and commercial spaces. The region’s hot, tropical climate is pushing a shift toward energy-saving buildings. While manufacturing isn’t as strong here as in North America or Asia, upgrades to oil & gas facilities, especially offshore and midstream projects, are driving use of corrosion-resistant insulation coatings.

MEA is an emerging market, particularly in energy-rich countries like Saudi Arabia, the UAE, and Qatar. These nations are investing heavily in pipelines, LNG terminals, and petrochemical plants, projects that need tough thermal coatings to handle extreme heat and harsh conditions. In Africa, growing industries in South Africa, Nigeria, and Egypt are starting to adopt energy-saving technologies in both public and private sectors. Despite challenges with funding and infrastructure, the region is slowly seeing more use of high-performance coatings, especially in large urban developments and smart city projects.

KEY INDUSTRY DEVELOPMENTS

In May 2025, AkzoNobel introduced a new thermal insulation coating in China designed to work like sunscreen for buildings. The system includes a reflective top layer that bounces off sunlight and a middle layer with aerogel insulation to stop heat from passing through. According to AkzoNobel, this coating can lower building surface temperatures by up to 10% during hot summer months, helping reduce energy use and making indoor spaces more comfortable in cities.

In March 2024, Hempel launched Hempatherm IC, a water-based insulation coating that uses aerogel technology. Known for its high film thickness in a single coat, the system is designed to prevent corrosion under insulation (CUI), maintain thermal performance up to 177 °C, and last longer with fewer inspections. It also creates less waste and offers a more efficient alternative to traditional mechanical insulation.

GLOBAL THERMAL INSULATION COATING MARKET REPORT SCOPE AND SEGMENTATION

MARKET REGIONAL COVERAGE

North America (United States, Canada)

Europe (France, Germany, United Kingdom)

Asia-Pacific (China, South Korea, India, Japan)

Middle-East & Africa (South Africa, Israel, UAE, Iran, Saudi Arabia, Qatar, Rest of Middle East and Africa)

Latin America (Brazil, Mexico, Colombia)

MARKET ACTIVE PLAYERS

AkzoNobel
Hempel
PPG Industries
Sherwin-Williams
Carboline
Mascoat
Jotun
Kansai Paint
Nippon Paint
BASF
Axalta Coating Systems
Techno Coatings
Rust-Oleum (RPM International)
Syneffex Inc.
Thermo-Shield (INI Worldwide)