CONFORMAL COATINGS MARKET ANALYSIS

The global conformal coatings market size was valued at US$ 1256.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 6.04% from 2023 to 2030. The global conformal coatings industry is expected to register a strong growth rate during the forecast period owing to the increasing demand for electronic devices. Moreover, rise in end user industries such as automotive, aerospace, and electronic is again expected to drive market growth. Furthermore, advent of IoT and 5G technology is further projected to propel market growth.

Global Conformal Coatings Market: Regional Insights

Based on geography, the global conformal coatings market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is expected to dominate the global conformal coatings market and is expected to grow significantly over the forecast period. This region is the world's largest producer of semiconductors, and it is expected to experience a strong demand for electronics during the forecast period. This is the result of increased investment in manufacturing and rising consumer spending on smart electronics.

North America is another key market for the global conformal coatings industry. The region is expected to register a high revenue growth rate over the forecast period due to the increasing demand for electronic devices and automation platforms across end use industries. The region is also expected to experience a steady increase in the automotive industry. This is the result of the increasing demand for electronic devices in the automotive industry, such as navigation systems and GPS tracker.

Europe is also a growing region in the global conformal coatings market. The region is anticipated to witness a significant increase in demand for conformal coatings from the electronics industry due to technological innovations, such as IoT and 5G technologies. Furthermore, the rising investment in research and development activities by various companies are contributing to growth of the conformal coatings market in this region.

Figure 1. Global Conformal Coatings Market, By Region 2022

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Global Conformal Coatings Market Drivers:

Growing demand from high-end applications that require conformal coatings to foster market growth

Conformal coatings is a key polymeric film-forming product that provide protection to circuit component, board, and other electronic devices from harsh conditions. In addition to protecting circuit board and its components from environmental damage, conformal coatings can also improve their dielectric strength and operational integrity. This can increase product’s lifespan and reduce component failure rates, which lowers overall costs.

Technological advancement in cell phones and the growing production to augment market

Technological advancement in smartphone and the rising production around the globe to augment market growth. According to the statistics by the National Bureau of Statistics of China, almost 1.5 billion cell phones were produced in China in 2020, and in August 2021, the production volume of cellphones in China amounted to over 133 million units.

Global Conformal Coatings Market Opportunities:

Rise in end user industries to provide significant growth opportunities. One of the most significant advantages of conformal coatings is their ability to protect circuit boards from harsh environments, particularly when they are exposed to water, salt mist or a range of other elements. This helps to ensure long term reliability and extend the life of a product. This is especially important in B2B industrial applications such as the automotive, aerospace, and marine industries where these assemblies are exposed to a range of challenging conditions. These include the presence of airborne particles, extreme humidity, and varying temperatures which can all impact circuit performance.

Technological advancement in conformal coatings process is projected to create lucrative growth opportunities. Some of the latest conformal coating materials are designed to have a low VOC (Volatile Organic Compound) content and can be cured with an arc or microwave lamp or UV LED lamp. They have also been formulated to reduce the use of solvents, which can help to minimize emissions and the effects on the environment.

Global Conformal Coatings Market Trends:

Growing trend of wearable electronic devices to foster market growth

According to the Vicert, 722 was the number of connected wearable medical devices in 2019. This number more than doubled from 325 million in 2016 and is projected to grow to more than 1 billion post-2022. 533.6 million devices were shipped in 2021.

Increasing adoption across telecom industry

As the world continues to move towards miniaturization, conformal coatings are becoming an essential part of electronic circuit boards that will be used in a variety of consumer devices and IoT applications. They provide protective properties that reduce the failure rate of these electronics by reducing deterioration in performance due to exposure to harsh environments, such as salt spray, chemicals, and temperature extremes.

Global Conformal Coatings Market Restraints:

Decline in automotive sector to hinder market growth

According to the Automotive Component Manufacturers Association of India, the exports and sales of automotive components declined in 2020 because of the decline in production. In 2019-20, a decline of 3.2% was recorded in exports, as compared to the previous year. The automotive components production rose comparatively in 2021, owing to the increase in production.   

High cost of repair in case of coatings damage

High price associated with the replacement and repair in cases of conformal coatings damages is expected to hamper the market growth. However, growing technological advancement is expected to provide significant growth opportunities.  

Figure 2. Global Conformal Coatings Market, By Material Type 2022

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Global Conformal Coatings Market Segmentation:

The global conformal coatings market report is segmented into material type, end user industry, and geography

Based on material type, the market is segmented into Acrylic, Epoxy, Urethane, Silicone, and Other Types (Parylene and Fluorocarbon). Out of which, Acrylic is expected to dominate the global market over the forecast period and this is attributed to the growing demand from mild environments. They offer protection against high elements such as humidity and salt spray.

Epoxy segment is also expected to witness significant growth in the near future and this is owing to the growing demand from consumer electronics, aerospace, and automotive.

Based on end user industry, the market is segmented into Automotive, Aerospace and Defense, Medical, Consumer Electronics, and Other End user Industries (machinery applications). Out of which, Automotive is expected to dominate the global market over the forecast period and this is attributed to the growing demand for electronic device in the automotive sector such as GPS.

Aerospace and Defense segment is also expected to witness significant growth in the near future and this is owing to the growing demand from satellite electronics, radar/detection equipment, circuit card assemblies, power supplies, etc.

Global Conformal Coatings Market: Key Developments

In December 2020, Chase Corporation acquired Abchimie that expanded the company's electronics coatings product portfolio.

In April 2020, Dow introduced the first solventless silicone conformal coating with UV and moisture dual- cure for high-volume electronics manufacturing.

Global Conformal Coatings Market: Key Companies Insights

The global conformal coatings market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global conformal coatings market are Altana, Chase Corp., CHT Ltd, Dow, Dymax, HK Wentworth Ltd, H.B. Fuller Company, Henkel AG & Co. KGaA, ITW, Kisco Ltd, MG Chemicals, Panacol-Elosol GmbH, Shin-Etsu Chemical Co. Ltd, and Momentive

*Definition: Often called "surface-insulate-resist" (SIR) coatings, conformal coatings offer long-term protection for circuit boards and hardware pieces, in both military, aerospace and industrial applications. They are available in a variety of materials with specific chemical, mechanical and moisture resistance requirements.