OPTICAL COATINGS MARKET ANALYSIS

Global optical coatings market is projected to reach US$ 22.75 Billion by 2030, in terms of revenue, exhibiting a CAGR of 6.1% during the forecast period (2023-2030).

Global Optical Coatings Market: Growth Drivers

Increasing demand for smartphones

Growing smartphones market is expected to drive the market growth of optical fibers due to increasing penetration of the internet across the globe. For instance, in 2022, International Telecommunication Union, stated that, 66% of the global population or 5.3 billion people are using internet. Thus, growing penetration of smartphones around the globe is expected to propel the market growth of optical coatings as it is used in display coating of smartphones.

Continuous technological advancements and expansion

Technological advancements in the field of optical deposition techniques and fabrications is expected to drive the market growth. For instance, in April 2023, Abrisa Industrial Glass (AIG), a division of Abrisa Technologies, now has the largest U.S.-based technical glass inventory after the major advancement, making it possible for the company to respond quickly, select the best materials to meet the growing demand for U.S.-based manufacturing, reduce logistical costs, and manage unstable global glass supply chains without stress.

Global Optical Coatings Market: Restraints

Growing environmental concerns and not meeting durability standards

Increasing environmental concerns due to growing electronic waste such as desktops, smartphones, mobile phones, laptops, and other optically coated devices are expected to hinder the market growth.

Some of the requirements for a coating include the windscreen wiper test, environmental durability requirements, the laser-induced damage threshold (LIDT), and the laser damage threshold (LDT). Specifications for the optical coatings' environmental durability are also included in these specifications, along with test conditions. Manufacturer of optical coatings find it challenging to adhere to environmental durability standards because of these factors.

 Global Optical Coatings Market: Opportunity

Consumer adopting smart televisions

Increasing adoption of smart televisions among consumer due to the improving lifestyle and increasing disposable income of the consumers. The growing trend of wearing smart watches among young population is also expected to drive the market growth. Growing semiconductor industry, coupled with the technological advancements are further expected to drive the market growth of optical coatings.

 Global Optical Coatings Market: Trends

Increase in strategic collaboration

Collaborations, partnerships, and agreements among major market players to expand presence on the global level is a major trend in the market. For instance, in January 2021, Abrisa Technologies announced  that HEF Group, a France-based company that specializes in metallurgical surface treatments, coatings, and PVD vacuum deposition technology, acquired 100% of the stock of Abrisa Technologies, a U.S.-based company that specializes in optical thin film coatings and manufactures technical glass solutions for photonics and other applications.

Global Optical Coatings Market: Recent Developments

In February 2023, 3M a vertically integrated optics manufacturer, collaborated Svante Technologies, Inc. (Svante), a leading carbon capture and removal solutions provider, for extending 3M’s ongoing commitment to materials science-based climate tech solutions. The goal is to create materials that can capture and permanently remove atmospheric carbon dioxide (CO₂).

In April 2023, Edmund Optics®, a leading provider of optical components for a wide range of applications, has partnered up with ISP Optics to provide global access to their extensive range of recognized high-quality optical components in over 15 infrared (IR) materials.

In October 2022, Edmund Optics® and SCHOTT have advanced their strategic alliance to make premium optical glass filters more easily available to customers in Asia.

In April 2021, Newport Corporation acquired all the outstanding shares of Coherent, Inc. for US$ 250 per share, US$ 115 in shares, and composed of US$ 135 in cash.

Global Optical Coatings Market: Regional Analysis

The North America region accounted highest market share, followed by Europe and Asia Pacific. The high adoption of optical coating products in the region is expected to continue to bolster the optical coating market size, due to the presence of huge population base, increased investment in the infrastructure, and presence of many developing countries in this region.

Figure 1. Global Optical Coatings Market Share (%) in terms of Value, By Region, 2022

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On the basis of region, North America dominated the global optical coating market in 2022, accounting for 36% market share, in terms of revenue, followed by Europe and Asia Pacific, respectively.

Global Optical Coatings Market: Segmentation

On the basis of application, the global optical coating market on basis of application is segmented into infrastructure, electronics, Solar, Defense/Security and others. In 2022, infrastructure segment accounted for 37% of the revenue share, followed by electronics and defense/security.

Figure 2. Optical Coatings Market Share (%), By Application, 2022

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Global Optical Coatings Market-Impact of Coronavirus (COVID-19) Pandemic

Safety regulations and governmental directives issued at the international, national, and local levels had a negative impact on optical coating manufacturers and suppliers in 2020. The COVID-19 pandemic has had an effect on every industry in the world. Shelter-in-Place Businesses have been forced to modify or change their typical business operations due to state and local government orders, as well as government advice to stop the virus's spread. In 2020, the production of optical coatings was impacted by contractual obligations to close businesses, distance-based social norms, and decreased local and state government office activity. It is anticipated that COVID-19 will have a significant impact on the aerospace and defense industry, one of the largest end-users of optical coatings. The consumption of optical coatings has decreased in 2020 as a result of the lack of operations during the COVID-19 timeframe.

Global Optical Coatings Market: Key Companies

Key companies operating in global optical coatings market are 3M Precision Optics, Ophir Optronics, Ltd., PPG Industries, Janos Technology, Inc., Abrisa Technologies, Denton Vacuum, LLC, JDS Uniphase Corporation, Inrad Optics, Newport Corporation, and Optical Coatings Japan.

*Definition: Optical coating is deposition of thin layers of films that create interference effects, in order to enhance reflection and transmission properties of an optical system. Optical coatings enhances optical functions, and provide protection to eye from harsh environmental conditions. These coatings are manufactured by using rare earth materials, oxides, and metals.