Global Optical Coatings Market was valued at US$ 14.15 Billion in 2022, exhibiting a CAGR of 6.1% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 22.75 Billion by 2030.
Optical Coatings Market, By Product Type (Anti-reflective Coatings, Filter Coatings, Transparent Electrodes, Reflective Coatings, and Others), By Application (Electronics, Defence/Security, Infrastructure, Solar, and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) as published by Coherent Market Insights.
Global Optical Coatings Market- Driver
Rise in use of optical coatings for semiconductors
Optical coatings are used in semiconductor applications. These coatings are applied to the facets of the semiconductor diode lasers. Rising demand for semiconductors, owing to increasing penetration of IoT in many industries like automotive, military/aerospace etc. is expected to boost demand for the optical coatings.
For instance, in December 2021 release, according to the Japan Electronics and Information Technology Industries Association (JEITA), the global electronics and IT industry was estimated at US$ 3,360.2 billion in 2021, registering a growth rate of 11% Y-o-Y compared to US$ 3,033.7 billion in 2020. Moreover, the industry is expected to reach US$ 3,536.6 billion, with a growth rate of 5% Y-o-Y by 2022.
Global Optical Coatings Market- Opportunities
Increasing usage in electronics applications
Optical coatings are used in various electronic applications, where light pass through optical surfaces. In cell phones and tablet screens, optical anti-reflective coatings are used for various effects such as making it easier to read under sunlight.
According to the ZVEI, Zentralverband Elektrotechnik- und Elektronikindustrie eV, the electronic and digital industry in Germany accounted for US$ 217.5 billion in 2021, witnessing growth rate of 9.8% as compared to 2020. Furthermore, in terms of production, the electro and digital industry exhibited a growth rate of 8.8% in 2021 as compared to 2020.
Global Optical Coatings Market- Restraints
High cost and affects the production time
The evaporation deposition process is cheap and suitable for a wide range of materials, but it is prone to errors that might limit market growth. It is an ineffective production method because it relies heavily on operator feedback and is vulnerable to random and intentional failures. Changes in process variables lead to higher layer-to-layer errors, resulting in inconsistent spectral efficiency. Evaporation deposition process take longer time and consume less material as compared to advanced plasma sputtering methods, and thus, impacting the overall cost and production cycle time.
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https://www.coherentmarketinsights.com/market-insight/optical-coatings-market-4071
Key Takeaways:
On the basis of region, North America region dominated the global optical coatings market in 2023 with a 36% of market share in terms of value, followed by Europe and Asia Pacific respectively.
On the basis of product type, anti-reflective coatings segment dominated the global optical coatings market in 2023 with a 31.1% of market share in terms of value, followed by filter coatings and transparent electrodes segment respectively.
Global Optical Coatings Market- Trends
Increase in use of transparent conductive coatings
Transparent conductive coatings are used in electronic display. Rising demand for consumer electronics is expected to drive the market growth. Manufacturing of cellular phones, portable computing devices, gaming systems, and other personal electronic devices is expected to boost demand for semiconductors, displays, and other electronic components.
According to the World Semiconductor Trade Statistics, the global semiconductor market was valued at US$ 89 billion in 2021, indicating increase by 26.23%, as compared to US$ 440.39 billion in 2020. Moreover, the global semiconductor market witnessed growth by 13.9% in 2022 that is estimated to reach US$ 633 billion in same year. In 2023, the global semiconductor market is projected to grow by 4.6% to reach US$ 662 billion.
Global Optical Coatings Market - Impact of Coronavirus (COVID-19) Pandemic
Global trade has been disrupted by COVID-19, which has also had devastating effects on households, businesses, financial institutions, industrial establishments, and infrastructure firms. It is anticipated that the market's short-term demand will be constrained by restrictions on international trade and lockdown regulations on the operations of the chemicals sector. Due to social norms of social distance, business shutdown requirements, and reduced local and state government office activities, optical coating manufacturers were impacted in 2020. One of the biggest end-users of optical coatings, the aerospace & defence sector, was significantly impacted by COVID-19. The consumption of optical coatings has decreased in 2020 as a result of the lack of operations during the COVID-19 timeframe.
