Conformal Coatings Market To Generate $1,953.8 Million Revenue by 2030
- Published: February 2024
The global conformal coatings market revenue is expected to reach USD 1,953.8 million by 2030, exhibiting a CAGR of 5.6% during 2024–2030.
The key factors contributing in the sector’s growth include the technological advancements in a number of sectors, such as automotive and electronics, surge in the adoption of the internet of things and 5G, and booming trend of autonomous vehicles.
Additionally, many sectors are moving toward digitalization to change their business models and generate new income streams and opportunities for themselves. Moreover, governments of many countries are supporting the concept of digitalization. For instance, the Government of India has launched the Digital India program to make sure that digital technologies improve the lives of Indian citizens, enlarge the digital economy of the nation, and create employment opportunities.
North America To Dominate Industry throughout Forecast Period
North America led the industry in 2023 with a share of 40%, and it is set to maintain its dominance throughout the prediction period. This is because the region is observing an increasing demand for modern electronic systems, such as GPS, advanced driving assistant systems, infotainment systems, chassis electronics, advanced interiors, and advanced passive safety systems, in the automotive sector. Additionally, the growth of the e-commerce sector has resulted in the rising sales of commercial automobiles, which, in turn, is boosting the market growth.
Further, the Global Outlook for Air Transport: Times of Turbulence report published by the IATA in 2022 says that North American carriers have displayed a speedy recovery since the beginning of the vaccination drive and the amended government rules that enable vaccinated individuals in the region to travel domestically and internationally. The recovery in commuter traffic has motivated airlines to purchase new aircraft or refurbish the existing ones. These coatings are utilized to safeguard electrical components from extreme temperature fluctuations, shocks, and vibrations. Therefore, the increasing aircraft orders in the region are likely to boost the demand for conformal coatings.
The U.S. holds the larger market share in the region, credited to the existence of well-settled consumer electronics, defense, automotive, and aerospace sectors. Moreover, the ever-growing need for tough coatings with strong anti-corrosive properties is predicted to drive future demand in the industry.
The home electronics industry has also been a major driving force for the market growth in the U.S. Wireless connectivity in home electronics as well as wearable electronics are the emerging trends in the consumer electronics sector. Additionally, the lockdowns implemented in light of the coronavirus outbreak in 2020 put a temporary end to social gatherings as well as physical gaming events. This, in turn, rapidly increased the demand for video games, such as fortnite, designed by U.S.-based company Epic Games Inc.
Further, the U.S. aerospace industry is the biggest across the globe. Bilateral Aviation Safety Agreements (BASAs) have been established by the Federal Aviation Administration in 47 nations in order to facilitate the trade of U.S.-manufactured aerospace products. Such measures encourage other countries to order aerospace-related products from the U.S., thus boosting the demand for such coatings among the aerospace companies based in the country.
Moreover, the European region held a significant share in 2023. This is credited to the fact that the automobile industry is one of the leading contributors to the region’s economic prosperity. The region has a number of well-established automotive companies with many commercial and passenger vehicle plants here. As per Association des Constructeurs Européens d’Automobiles (ACEA), in August 2023, there were 322 automobile engine, assembly, and battery production plants in the region, an increase from 301 in 2021.
Key players in the market include Chase Corporation, Electrolube Limited, Europlasma NV, MG Chemicals, Kisco Ltd., Dymax Corporation, ELANTAS GmbH, CHT Group, CSL Silicones Inc. and Shin-Etsu Chemical Co. Ltd.