The global conformal coatings market was valued at USD 807.2 million in 2020 and is expected to reach to grow at a CAGR of 6.1% during the forecast period. Conformal coatings are primarily applied to the printed circuit boards assembly. They are functionally used to prevent moisture content including salt, spray, contamination, and other factors caused by the unfavorable environment which cause damage to the electronic assembly.
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 product has inched its way into the domestic and mobile electronics industry.
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The COVID-19 crisis had hampered the performance of multiple market economies of several countries, compelling them to call for lockdowns and temporary closures of industries, including manufacturing and services, in the second quarter of 2020.
The COVID-19 has mainly affected the production and supply chain of the electronics, automobile, aerospace, and other industries by creating shortages of components, materials, and finished products due to the complete shutdown of economies coupled with cross-border trade restrictions.
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 the market.
Different types of resin materials are commonly used to formulate the product. Silicone-based products have been making a mark in the industry with the rapid pace of market developments. The products have a lower environmental footprint and provide superior reliability. Silicon-based coatings are costlier than expected but will slide down to the 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 an R&D directive that concerned protective and electronics coatings in 2017 for their felling facility in the UK.
The market is primarily segmented on the basis of material, application, and region.
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The acrylic market segment accounted for 39.1% of the global conformal coatings industry in terms of revenue in 2020. The demand for acrylic conformal coatings is expected to witness growth owing to the enhanced properties of the resins including adhesion and resistance of moisture. In addition, several regulations for solvent-based products are also likely to have a positive impact on the acrylic segment as it is water-based with minimal impact on the environment.
Parylene conformal coatings are expected to witness the fastest growth of 7.3% over the forecast period. Parylene is one of the best types of conformal coatings owing to its excellent resistive properties, which renders it highly desirable for complex electronics. However, the high cost of the material has restricted its application to specific industries.
The fluoropolymer coatings change the surface energy of the substrate so that water and oil do not damage the surface. There are several fluoropolymer products used in the electronics industry owing to their advanced protective characteristics. However, even though their adoption is increasing it is limited owing to the high price of the technology.
The electronics market segment accounted for 38.7% in terms of revenue in 2020. Conformal coatings are primarily utilized to protect circuit boards from corroding and heating. These circuit boards are widely utilized in the electronics industry for manufacturing mobiles, computers, television sets, and others.
Automotive electronics form a major part of a vehicle with technologically advanced GPS systems and the use of electronic devices for entertainment purposes. Furthermore, the need for advanced conformal coatings for complex electronics used in the automotive industry is expected to drive the product demand. Furthermore, the increasing use of electric vehicles is likely to have a positive impact on the market over the forecast period.
Conformal coatings are a viable dielectric layer option for electrical devices owing to their appropriate features, including excellent insulating properties, high dielectric permittivity, non-toxicity, low leakage current, low cost, easy processing, soluble in water, and good film-forming characteristics. These are some features that are expected to increase the market share of the electronic segment over the forecast period.
Industrial electronics is mostly concerned with electronic components and includes devices such as AC/DC drives, sensors, resistors, meters, semiconductors, and many more. Industrial electronics require greater volumes and a shorter production time. Furthermore, the atmosphere and circumstances wherein industrial electronics should function are usually more severe.
The North America market is expected to witness a growth of 4.7% over the forecast period in terms of revenue. The growing market demand for the automotive and medical industry is expected to drive the conformal coatings market demand in the region.
As the U.S. is a developed economy, the medical facilities and hospitals are well equipped with appropriate electronic devices and gadgets. The technological advancement in the industry is expected to aid demand for conformal coatings as the protective characteristics of the products help in improving the accuracy of the devices and gadgets.
The proliferation of increasingly smartphones & tablets, along with increasing applications for these devices and the widespread prevalence of mobile internet usage has led to an increase in consumer electronics sales across Spain. Furthermore, revitalization in the automotive industry coupled with the rise in demand for advanced in-car electronics is expected to drive the market demand for conformal coatings in the country.
India conformal coatings market is growing significantly on account of rising demand in the automotive sector. The increasing emphasis of the Government of India on infrastructural development in the manufacturing sector and initiatives including Make in India is expected to bolster the market demand for advanced technology and electronic devices. As a result, the market demand for conformal coatings is expected to grow substantially over the forecast period.
The global conformal coatings industry is highly fragmented with many established players including Shin-Etsu Chemical Company Ltd., Chemtronics, and Henkel AG & Company investing in R&D efforts to come up with unique environment-friendly products. The key market players operating in this market include H. B. Fuller, Electrolube, Chase Corporation, Chemtronics, Dymax Corporation, Henkel AG & KGaA, and Dow Corning.
Market size value in 2020
USD 807.2 million
Revenue forecast in 2028
USD 1.18 billion
6.1% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million, volume in tons, and CAGR from 2021 to 2028
Material, application, and region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
H. B. Fuller, Chemtronics, Dow, Dymax, Electrolube, Chase Corporation, Henkel AG, Shin-Etsu Chemical Company Ltd., Altana, and Europlasma NV