The global conformal coatings market size was valued at USD 11,137.3 million in 2018 and is estimated to grow at a CAGR of 5.8% from 2019 to 2026. Conformal Coatings are a class of coatings characterized with being protective, chemically formulated, non-conducive and dielectric. They are primarily applied onto the printed circuit boards assembly. They are functionally used to prevent moisture content including salt, spray, contamination and other factors caused by bad environment which cause damage to the electronic assembly.
Growing product demand from consumer electronics industry to protect PCB’s from dust, moisture, heat and other harsh environmental factors will augment market growth over forecast period. The drivers for conformal coating are its end-use industries such as electrical and electronics, automotive, semiconductor and medical. Due to the rapidly expanding consumer electronic industry in most corners of the world, the conformal coatings have inched their way into domestic and mobile electronics industry.
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Restraints to the product include numerous regulations from Federal and Government agencies, US Occupational and Health Administration (OSHA) and National Institute for Occupational Safety and Health (NIOSH) have drafted legislations and regulations regarding VOC emissions into the environment which act as deterrents to the growth by industry participants.
These products have wide applications in electronic equipment as they conform to high reliability and performance. Automotive, aerospace and defense have also singly contributed to this growth. Manufacturing of aircrafts has increased globally due to recovery in GDP, stability in prices of crude oil and growth of passenger traffic especially in Asia pacific, Latin America and the Middle East.
Technological finesse in material engineering has enabled a wide range of items to be coated that include a wide mass of consumer electronic products. Furthermore, conformal coatings have risen abreast with emerging technologies and with new equipment and processes in place, it adds growth to market.
Different types of resin materials are commonly used to formulate conformal coatings. Silicone based conformal costings have been making a mark in the industry with rapid pace of developments. The coatings have lower environmental footprint and provide superior reliability. Silicon based coatings are costlier than expected but will slide down to price of common conformal coatings with advancements in material technology.
The global conformal coating manufacturing industry is highly competitive owing to a large pool of esteemed manufacturers and suppliers and new market entrants. Manufacturers invest and bring about numerous R&D activities with custom formulations for every end use market. For instance, AkzoNobel NV announced a R& D directive that concerned protective and electronics coatings in 2017 for their felling facility in UK.
By Material Type
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Conformal coatings are largely used in electronics, automotive, aircrafts, military and defense and medical equipment. Electronics and semiconductor industries are among the most attractive segments of conformal coatings and are market leaders holding larger market share. Automotive is by far the fast-growing segment in conformal coatings market and it proves itself with emergence of smart vehicle and elimination of periodic maintenance of such electronic assembly systems placing importance on satisfactory performance of these products. Conformal coatings are used in manufacture of automotive electronics as they help in reducing vibrations and mechanical stress.
An increasing market for automotive and an immersive driving experience will likely fuel conformal coatings market over the forecast period. Medical applications will grow at a high CAGR over forecast period. Growing demand for durable coatings with very high corrosion resistance is expected to drive market growth.
On the basis of materials, the market is segmented into acrylic, epoxy, urethane, parylene, silicon and others. Acrylic is the largest material segment owing to its low cost, availability and handling ease.
Acrylic will progress at a high CAGR with progress attributed to properties such as moisture resistance, easy application and removal access. This makes acrylic preferred choice for use in material segment.
Epoxy conformal coatings are solvent resistant and possess dielectric properties that makes it suitable for use in PCB’s. These coatings are rigid and resistant to wear and tear that make it the choice for home appliances and circuit boards.
Asia pacific is expected to be the most prolific market growing at a considerable CAGR over forecast period. High investments in the electronic industry in Taiwan, Japan, China and South Korea gave the product high growth in the market. Furthermore, intensive growth of automotive and consumer electronics manufacturing base in India is likely to bolster the market growth in this region.
North America is witnessing brisk growth in the product market over the forecast period because of a thriving demand for advanced electronics and GPS systems in particular.
High market growth in US is attributed to a well-established automotive, aerospace and defense and electronics industry. Furthermore, North America and Europe are growth markets only next to Asia pacific owing to high defense spending in U.S and looming security threats. North American defense industry stands to gain with it being a major end-user in the industry. Other end-use industries have witnessed high growth in these regions. Key players have adopted mergers and acquisition strategy to gain an upper hand in market dynamics as well as industry share.
The global conformal coatings market is highly fragmented with many established players including Shin-Etsu Chemical Company Ltd., Chemtronics, KGaA. Henkel AG & Company investing in R&D efforts to come up with unique environment-friendly coatings. The key players operating in this market include Electrolube, Kisco Conformal Coatings, HB Fuller, Chase Corporation, Henkel AG&KGaA, Illinois Tool Works and Dow Corning.