London – – October 07, 2026 -- The global thermal spray coating market is set to expand from $10,581.2 million in 2023 to $16,414.9 million by 2032, a 5.00% compound annual growth rate, according to a new Credence Research Inc. report tracking demand for wear, corrosion and thermal protection across aerospace, automotive, energy, industrial and medical sectors.
Plasma spray dominates while HVOF gains ground
Plasma spray coating held roughly 35-40% of process share in 2023, the largest segment, while high-velocity oxy-fuel (HVOF) technology is positioned for faster growth as manufacturers seek denser, more wear-resistant coatings. Metallic coatings accounted for approximately 40-45% of the market, with ceramic coatings expanding in thermal and electrical insulation applications requiring high-temperature tolerance.
Aerospace and defense anchors demand at 35-38% share
Aerospace and defense remained the leading application category at roughly 35-38% of the market in 2023, driven by stringent coating requirements for turbine, propulsion and structural components operating under severe thermal and mechanical stress. North America led regional demand, supported by established aerospace, defense, automotive and industrial coating ecosystems.
Automation and robotic spray systems reshape production economics
Robotic manipulation and digitally controlled spray platforms are improving repeatability across complex part geometries, with automated systems controlling stand-off distance, traverse speed and deposition consistency while cutting operator exposure and material waste. Multi-process platforms combining automation, process monitoring and flexible part handling are expanding the range of components coating shops can service without sacrificing quality control.
Oerlikon Metco and Kymera International expand capacity
In July 2025, Oerlikon Metco launched Surface Two, an IIoT-enabled thermal spray platform supporting plasma spray, HVOF and combustion powder spray configurations for larger industrial parts. In December 2024, Kymera International acquired Coating Center Castrop GmbH in Germany, extending its European surface technologies footprint with additional thermal spray and precision machining capabilities. Other competitors tracked in the report include Höganäs AB, Castolin Eutectic, Wall Colmonoy Corp., Saint-Gobain Coating Solutions, Fujimi Inc. and Kennametal Stellite.
Feedstock costs and alternative coating methods pressure margins
Thermal spray operations remain exposed to volatility in powders, wires, gases and energy costs, with qualification requirements limiting how quickly suppliers can switch materials to manage input pricing. Competition from PVD, CVD and advanced powder coating technologies in select applications is pushing thermal spray suppliers to compete on lifecycle economics and process reliability rather than deposition cost alone.