The global conformal coatings market size was estimated at USD 10.2 billion in 2016, growing at a CAGR of 5.6% over the forecast period. Growing product demand from consumer electronics industry, in order to protect printed circuit boards from dust, moisture, heating, and other environmental impacts is expected to propel the market growth over the forecast period.
Major industry players are focusing on integrating their operations by venturing into raw material manufacturing and distribution sectors to gain a competitive edge in the market. Companies such as Dow Corning Corporation and Shin Etsu Chemical Company, have entered into distribution sector in order to cut down costs spent on third-party intermediaries.
The product demand in the U.S. in valued at USD 2.15 billion in 2016. The high market share of the country is attributed to the presence of well-established automotive, aerospace & defense and electronics industry. Growing demand for durable coatings with superior corrosion resistance is expected to drive industry growth.
H.B. Fuller, Chase Corporation, MG Chemicals, Dow Corning are some of the leading companies involved in the manufacturing and supply of conformal coatings. Most of these key players procure the raw materials from established players in the chemicals market including BASF SE, and Aditya Birla Chemicals through short term partnerships.
The market is highly competitive owing to the presence of a large number of established manufacturers and suppliers and new entrants in the market. The rapid growth of the industry has led many key players such as Henkel AG & Company, KGaA, Chemtronics, and others to adopt the merger & acquisition strategy to strengthen their presence and expand industry share.
Acrylic is anticipated to be the fastest growing product segment, progressing at a CAGR of 6.0%. The high growth rate of the segment is attributed to its superior properties such as moisture resistance, easy application and removal for reworking, which make acrylic the preferred choice for employment in end-use applications.
Epoxy conformal coatings are highly resistant to solvents and possess dielectric properties, which are suitable for applications in electronic devices on printed circuit boards. These coatings are rigid and resistant to abrasion owing to which they are utilized in the manufacturing of home appliances and circuit boards.
Conformal coatings are utilized in the manufacturing of automotive electronics, as they assist in alleviating the vibrations and mechanical stress. Growing automotive sector especially in Asia Pacific and rising consumer demand for enhanced driving experience is likely to augment the product demand for automotive electronic devices over the forecast period.
The product demand in medical application is anticipated to ascend at an estimated CAGR of 5.7% over the forecast period. The segment is expected to be benefitted by the rising demand conformal coatings based devices such as therapeutics, respiratory care, and imaging systems.
Asia Pacific is anticipated to be the fastest growing regional market, progressing at a CAGR of 7.2% over the forecast period. High investments in the electronics sector in the Taiwan, China, Japan and South Korea is expected to propel product demand. Furthermore, rapid growth of automotive and consumer electronics manufacturing sector in India is likely to drive product growth in the region.
North America accounted for 26% of the global conformal coatings industry in 2016 and is likely to grow at a CAGR of 3.5% over the forecast period. The growing demand for advanced electronics including GPS systems and other related products in the automotive industry is expected to augment product demand over the forecast period.
The global conformal coating market is highly fragmented with the presence of numerous manufacturers. Major participants in the industry including, Henkel AG & Company, KGaA, Chemtronics, and Shin-Etsu Chemical Co., Ltd., are investing in R&D activities to come up with innovative environment-friendly coatings.
Several government and federal agencies including, U.S. Environmental Protection Agency, U.S. Occupational and Health Administration (OSHA), and The National Institute for Occupational Safety and Health (NIOSH) have implemented legislations and regulations regarding VOC emissions into the environment. These stringent regulations are expected to pose as a challenge for industry participants.
This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the global conformal coatings market on the basis of product, application, and region.
Product Outlook (Revenue, USD Million; 2013 - 2024)
Application Outlook (Revenue, USD Million; 2013 - 2024)
Aerospace & Defense
Regional Outlook (Revenue, USD Million; 2013 - 2024)
The Middle East & Africa
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