The Global Conformal Coatings Market Size Was Valued At USD 899.1 Million In 2021. The Market Is Projected To Grow From USD 940.8 Million In 2022 To USD 1,392.8 Million By 2030, Exhibiting a CAGR Of 5.8% During The Forecast Period.

Conformal Coatings Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for conformal coatings is lower than expected in all regions compared to what it was before the pandemic. Based on our research, the world market was 6.0% smaller in 2020 than it was in 2019.

Conformal coatings are thin layers of polymer-based materials put on a Printed Circuit Board (PCB). Some examples of polymers are acrylic, epoxy, silicone, and urethane. Most of the time, these coatings stick to the rough surface of the PCB and make a layer of insulation between the different electronic parts. The high dielectric strength makes it possible for devices to have small PCB designs. This helps the growing trend of making electronic circuits smaller. Conformal coatings not only make it possible to design small, high-voltage electronic circuits, but they also protect the exposed metal parts of a PCB from things like humidity, temperature changes, dust, and other airborne contaminants. To keep electronic parts from corroding, it's important to protect them from these outside forces. This can make electronic devices last much longer.

Market Dynamics:

Latest Trends:

Market growth will be driven by rising demand from electric vehicle segments

Over the past few years, the global automotive industry has been remaking itself by moving toward electric cars. There are many more electronic systems than ever before in these new types of electric vehicles. Basically, a bunch of microcontrollers and processors are in charge of running every other part of the car. Some of the most important electronic systems that are becoming new standards in the auto industry are the chassis electronics, driver assistance, engine electronics, entertainment systems, integrated cockpit systems, passenger comfort, passive safety, transmission electronics, and other things.

PCB is at the heart of all of these electronic systems and devices. It gives all of the electronic parts a place to be put together. Conformal coatings can extend the life of electronics in cars and make them more reliable overall, which is of the utmost importance in the car business. The product is a key part of making sure that electronic systems in cars are strong enough to withstand harsh conditions outside the car for the whole time it is in use. During the forecast period, the use of PCBs in cars is expected to go up a lot because more autonomous and electric cars will use them. So, growth in the market is likely to be driven by rising demand from the electric car industry.

Driving Factors:

Market growth will be driven by rising demand from the consumer electronics industry.

In the past, conformal coatings were only used to protect circuit boards in the aviation industry. Due to improvements in material and manufacturing technologies, these coatings are now widely used in the consumer electronics industry. They are used on white goods, mobile electronics like cell phones, tablets, and wearable electronics. New technologies like artificial intelligence and machine learning are being used to make smart home electronics even smarter. These electronic devices can not only connect to each other, but they can also talk to each other, giving the user a unique and highly customised experience.

Big tech companies are putting a lot of money into developing new technologies for smart homes. They are also working together to make a growth-friendly environment. For example, big tech companies like Apple, Google, and Amazon have been working together since 2019 to create a standard operating ecosystem for smart home devices that work on multiple platforms. As electronic devices become more affordable and new technologies like 5G and IoT come out to support them, the demand for consumer electronics is likely to go up. The product is very important for making these electronic devices last longer. So, market growth is likely to be helped by and be driven by the growing demand for consumer electronics.

Restraining Factors:

Adopting stricter rules about the environment will slow down market growth.

The Greenhouse Gases (GHG) that are given off by conformal coatings are called Volatile Organic Compounds (VOCs), and they are bad for the environment. The solvent vapours that are released during the manufacturing process are let out into the air by coating plants that don't have the right equipment to catch them. When these volatile organic compounds (VOCs) come in contact with nitrogen oxides, which are released when fuels are burned too quickly in cars and factories, they react to make tropospheric ozone. This also causes fine particulate matter to form, which leads to a situation called ground-level smog. The ozone layer that forms at ground level could cause trouble by making harmful chemicals that can stop plants from growing.

Also, these synthetic carbon-based coatings tend to break down chemically and release toxins when exposed to heat, sunlight, corrosive chemicals, and many other environmental conditions. As people become more worried about the environment and public health, governments around the world are putting in place stricter rules to limit the amount of toxic VOCs that can be released into the air. For example, in March 2020, China made four national VOC standards for paints, glues, inks, and cleaning products that had to be followed. Companies in the electronics and electrical industries that use these products may be affected by these new rules. So, stricter rules about health and the environment are likely to slow down market growth.

Segmentation Analysis:

By Product Analysis:

Based on the product, the market is divided into acrylic, epoxy, urethane, silicone, parylene, and other groups.

In 2021, acrylic was the biggest part of the market. A rise in demand from the electronics manufacturing sector is driving growth in the acrylic segment. Coatings like these are used a lot in many different end-use industries, such as the automotive, consumer electronics, and other industries. It's easy to put on the acrylic coating, and the process isn't too complicated. But it doesn't stand up well to alcohols and solvents made from petroleum. Because of this, it's not too hard to fix. Acrylic is resistant to water in the same way that polyurethane and silicone are. They work well both mechanically and electrically. These types of coatings can be used in temperatures from about -59°C to 132°C, which is a wide range. They have a dielectric strength of about 1,500 volts/mil, which is very good. It is relatively inexpensive, which makes it a good choice for many industries.

By End-use Industry Analysis:

By end-use industry, the market is divided into automotive, aerospace and defence, medical, consumer electronics, and others.

A big chunk of the market was made up of the consumer electronics segment. Over the past few years, there has been a trend toward making electronic components smaller. If the dielectric strength between components is low, smaller PCBs and electronics that have been shrunk down can cause damage to the circuit. When applied to these miniaturised PCBs, conformal coatings can significantly increase the dielectric strength between electronic components. This makes it possible to make electronic circuits that are much smaller. Due to improvements in IoT and 5G technology, the demand for small, light electronic devices is expected to grow significantly over the next few years. These things are making the industry grow as a whole.

Regional Insights:

Asia-Pacific made up a big part of the market in 2021. Due to rising demand from its electronics manufacturing sector, the region is likely to keep its position over the next few years. Most of the world's consumption happens in Asia, with China being the biggest consumer. The country has a strong electronics manufacturing industry, and in 2021, it will account for about 40% of the world's total consumption. Also, most of the countries in the area are just starting to develop their economies, so they have a huge amount of untapped market growth potential. People in these developing countries now have a better standard of living and can buy more things than they could a few years ago. If this trend keeps going, the demand for consumer electronics is likely to go up.

In North America, people want electric cars more than they did a few years ago. The International Energy Association says that by 2021, the number of electric cars sold in the U.S. will have passed 500,000, bringing their share of all car sales to 4.5%. In the last ten years, the number of electronics in a typical new car has grown by several times. A lot more electronics are used in an electric or hybrid vehicle than in a traditional car that runs on gas. Consumers' choices are affected by how well the electronics in cars work. So, automakers are coming up with new ways to protect the fragile electronic parts and paths on a PCB without making the car heavier. The product protects the sensitive electronic system from the harsh environment while adding very little weight compared to solutions like enclosures that take up a lot of space. So, the market is likely to be driven by the growing demand from the auto industry.

The European automotive industry is a big part of the continent's strong economy. About 13.8 million people work in the automotive industry in the region, which is more than 6.0% of all jobs in the EU. Several well-known global automakers with manufacturing facilities in the area are based in this area. The European Automobile Manufacturers' Association says that as of April 2022, there are about 301 plants in Europe that put together cars and make engines. The auto industry is already making changes to take advantage of the wave of electric vehicles. As the average number of electronic parts per vehicle goes up, the number of conformal coatings used in the automotive industry is also likely to go up.

During the forecast period, Latin America is likely to become a centre for manufacturing. The fact that countries like the U.S. and Canada are close by helps the local industries in terms of logistics. Because of this, foreign investment has grown in many countries in the region over the past 10 years. As the manufacturing sector in the area grows, more industrial electronics will be needed to support and keep up with the growth. The coatings make sure that industrial electronic equipment and systems are durable and will last a long time. Market growth is likely to be driven by the growing industrial sector in the area.

During the next few years, the market in the Middle East and Africa is expected to grow a lot. Countries like South Africa have a strong agro-processing industry that makes things like food and drinks, textiles, clothing, leather and shoes, and wood and wood products. The food and drinks division is an important part of the country's manufacturing sector. As most of these industries move toward automation, the demand for electronic systems with PCBs, sensors, and other electronic parts is expected to rise during the forecast period. This will lead to a rise in demand, which is important for protecting these sensitive electronic parts from outside forces and making them last longer.

Scope Analysis

Recent Development:

• March 2022 – HumiSeal introduced UV500-2, a conformal coating that provides PCB protection. Designed to provide additional performance in thermal and mechanical cycling tests commonly used in the automotive and white goods industries.
• April 2022 – Japan-based Shin-Etsu Chemical Co. Ltd.'s US subsidiary, Shin-Etsu Silicones of America, Inc. (SESA), has launched the MR-COAT-01F and 02F conformal coating series. It features high hardness and very high elongation, which increases wear resistance and reduces stress on PCB components.
• October 2021 – To increase the reliability of electronics in the harshest environments, Electrolube, part of MacDermid Alpha Electronics Solutions, introduces a new generation of conformal coatings and thermal gap fillers from Productronica.
• October 2021 – Electrolube launched the new UV Cure Coating Xtra (UVCLX), a bio-based conformal coating. This new bio-coating is made using organic matter obtained primarily from renewable resources. The new product is made using solvent-free technology. The company claims that its new product is unique to the industry and offers a high level of protection while maintaining fast turnaround times.
• October 2020 – Henkel Adhesive Technologies has decided to invest in Actnano to expand its portfolio of functional coatings products. Actnano is a US-based start-up that produces advanced materials, including nanotechnology-based coatings that can be customized according to customer requirements to protect printed circuit boards in a variety of applications.

Market Segmentation

By Product:

• Epoxy
• Acrylic
• Urethane
• Parylene
• Silicone
• Others

By End-use Industry:

• Automotive
• Medical
• Aerospace & Defense
• Consumer Electronics
• Others

By Companies:

• Chemtronics (South Korea)
• Henkel AG & Company (Germany)
• Shin-Etsu Chemical Co., Ltd (Japan)
• Dow (U.S.)
• Chase Corporation (U.S.)
• Dymax Corporation (U.S.)
• Specialty Coating Systems (U.S.)
• Electrolube (U.K.)
• B. Fuller (U.S.)
• G. Chemicals (Canada)
• Others