CONFORMAL COATINGS MARKET ANALYSIS

Market Challenges And Opportunities

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 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.