The global optical coating market size was USD 12.01 billion in 2020. The market is expected to grow from USD 13.04 billion in 2021 to USD 22.57 billion in 2028 at a CAGR of 8.1% during the 2021-2028 period. This information is provided by Fortune Business Insights™ in its report titled, “Optical Coating Market, 2021-2028.” According to our researchers, the market is projected to inflate owing to the latest technological progressions in the field of optical deposition methods and fabrication, along with increasing demand for dominant optical products in end-use applications. Additionally, numerous industry players put in efforts on R&D to advance their coating procedures and supplies in order to deliver high-performance optical coverings, and this is estimated to drive the market growth in the near future.
COVID-19 Impact: Lockdown Hinders Global Trade and Declines Optical Coating Demand
The stringent government rules regarding lockdown infliction and travel ban resulted in a decrease in usage of vehicles and eventually a sudden drop in automobile purchasing. A sharp dip in tourism was observed as people were forced to stay at home during the COVID-19 pandemic, due to which the automotive sector plunged. Automobile deals in China are enduring to improve at a quick rate. For instance, in August 2020, vehicle deliveries were roughly about 2.2 million vehicles, which is on a higher side by 11.6% to that of last year.
On a year-over-year foundation, aggregate trades declined by 10% from January to August 2020. Specific sectors such as consumer electronics, medical, and telecommunication observed stable growth amid the pandemic. As per IEEE Consumer Electronics Magazine, in general customer technology procurements is estimated to be on a lower side in 2020 on account of the universal economic consequence on many customers. Nowadays, people are more dependent than ever on their user devices to interconnect with others and function from home.
The report presents an orderly study of the market segments and a thorough analysis of the market overview. A considerate assessment of the current market trends and the impending opportunities are offered in the report. Additionally, it grants a meticulous analysis of the regional dynamics and how they contribute to the market growth. The COVID-19 impacts have been discussed in the report to support stockholders and business owners with a clear understanding of the prevailing risks in the market. The report further discusses the key players and their noticeable strategies to stay in the leading position.
On the basis of product, the market is categorized into anti-reflective coatings, reflective coatings, filter coatings, conductive coatings, electrochromic coatings, and others. In terms of region, the market is further segregated into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Based on the end-use industry, the market is segmented into consumer electronics, telecommunication, medical, transportation, aerospace & defense, and others. Consumer electronics is predicted to be responsible for the chief optical coating market share and continue to steer the market during the given timeframe. It stood at 51.0% and 49.3% in terms of share globally and in the U.S., respectively.
Drivers and Restraints
Reinforced Growth of Telecommunication Industry to Push the Market Growth
The connectivity of the universal economy is grounded on speech and data broadcast. Association between continents has become more dynamic owing to the prompt growth of optical fiber systems. The drastic growth of the optical industry is also driven by the usage of the internet. The optical coating may be functional in various gadgets or an optical aspect to value-added products such as lenses. Several optical components can be bulk-produced and layered together, dropping costs and escalating profitable incomes for the coating industry.
Compound filters are utilized to observe the signal transmission of optical fiber links. Multi-layer thin-film piles also extended the bandwidth of optical fiber supply in the communications segment. The telecom industry is projected to be the quickest-growing market for coating usage. Numerous layers and very minute particles make up thin-film filters. Regardless of the restricted production capacity, they create high-profit market prices. The proficiency ideals for thin-film optical filters have augmented intensely in reply to the demands of the optical communications industry.
Surging Population and High Demand for Cell Phones to Boost Growth in Asia Pacific
The market size in Asia Pacific stood at USD 5.48 billion in 2020. The regional market is expected to be driven by an increasing population and rising demand for consumer electronics such as laptops, cameras, cell phones, video game consoles, LED TVs, and personal computers.
The need for non-toxic and environmentally friendly coatings materials in semiconductor and circuit assembly, sensor applications, laser systems, and aerospace applications has fuelled the optical coating market growth in North America.
In the telecommunications industry, Europe has the most liberalization, privatization, and competition. Because of the increasing use of these coatings in car windows, automobile displays, and headlamps, the region is expected to witness steady growth in the market.
Key Companies Focus on Introducing Novel Products to Gain Competitive Edge
Key players in the market for optical coatings are often seen launching products at mega-events in order to reach every user of the globe and extend their brand recognition. For example, in May 2019, PPG Industries, Inc. announced that they are participating in the SID Display Week 2019. They presented the complete series of advanced conductive and translucent operational coatings for display glass and plastic substrates at the event.
April 2020: Materion Corporation declared that it has engaged in a binding contract to purchase Optics Balzers, AG, which is a thin-film optical coating market forerunner.
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