Conformal Coatings Global Market Report 2024

The conformal coatings market size has grown strongly in recent years. It will grow from $13.49 billion in 2023 to $14.53 billion in 2024 at a compound annual growth rate (CAGR) of 7.7%. Historical growth can be attributed to several factors, including the increasing demand for electric vehicles (EVs), a rising need for conformal coatings in medical equipment, and growing demand within the aerospace industry.

The conformal coatings market size is expected to see strong growth in the next few years. It will grow to $19.75 billion in 2028 at a compound annual growth rate (CAGR) of 8.0%. The forecasted growth is expected due to factors such as government support, global population growth, urbanization, and increased investments in 5G technology and telecom infrastructure. Major trends in this period encompass continued government support, global population expansion, urbanization, and augmented investments in 5G technology and telecom infrastructure.

The conformal coatings market is anticipated to experience significant growth, driven by the increasing demand in the consumer electronics industry. This sector encompasses a wide range of electronic products such as smartphones, TVs, and personal computers. Conformal coatings play a crucial role in protecting consumer electronics from chemicals, hazardous conditions, and toxins commonly found in offices and residences. ClearSale, a US-based company, projects that the revenue generated by the consumer electronics sector will surpass $450 billion by 2024. This heightened demand for conformal coatings in the consumer electronics industry is poised to be a key driver for the overall growth of the conformal coatings market.

The growth trajectory of the conformal coatings market is further propelled by substantial investments in 5G technology and telecom infrastructure. With the emergence of 5G, printed circuit boards (PCBs) are engineered to offer optimal signal integrity, impedance control, and thermal management. The increased utilization of PCBs in 5G technologies and telecom infrastructure underscores the importance of conformal coatings in safeguarding circuit boards, components, and electronic devices from adverse environmental conditions. Notably, as of September 2022, the GSM Association reports that Indian telecom giants are anticipated to invest approximately $19.5 billion in advanced infrastructure for 5G by 2025. Additionally, Ernst and Young, a UK-based professional services firm, indicates that around 70% of surveyed enterprises plan to make substantial investments in 5G over the next three years compared to other emerging technologies. Consequently, the rising investments in 5G technology and telecom infrastructure are poised to drive the growth of the conformal coatings market in the forecast period.

Companies within the conformal coatings market are strategically investing in the development of UV-curable conformal coatings as a means to fortify their market positioning. UV-curable conformal coatings have proven efficacy in delivering exceptional protection for printed circuit boards (PCBs) and other electronic components. These coatings establish a robust protective barrier, safeguarding PCBs against various environmental factors, including moisture, dust, chemicals, and temperature fluctuations. In a notable example, Chase Corporation, a US-based specialty chemicals company, introduced the UV40 range within its HumiSeal brand in 2021. This series of UV-curable conformal coatings, specifically designed for medium- and high-volume PCB manufacturing applications, offers superior protection and value. The gel conformal coating materials in the UV40 series boast an application thickness of up to 1mm, representing a tenfold increase compared to conventional conformal coatings. The thermal properties of the HumiSeal UV40 conformal coating, conforming to military standard MIL-I-46058C, encompass a continuous operating range from -65°C (-85°F) to +135°C (275°F) and withstand thermal shock.

Strategic mergers and acquisitions have gained prominence as companies seek to augment their product portfolios and geographical reach. Major players are actively pursuing mergers and acquisitions to strengthen their market presence. For instance, in January 2022, Novaria Group, a prominent US-based manufacturer specializing in specialty hardware for the aerospace and defense industries, completed the acquisition of Advanced Coating. The latter, based in the US, is known for its contract services involving parylene conformal coatings for military and commercial electronic systems, as well as medical devices. This acquisition bolstered Novaria Group's standing in the aerospace and defense sectors, expanded its surface enhancement capabilities, and facilitated the growth of Parylene conformal coating services. Similarly, in March 2021, Specialty Coating Systems, Inc. (SCS), a US-based provider of parylene conformal coating services and technology, acquired Diamond-MT, Inc., another US-based firm offering Parylene and liquid conformal coating services. The collaboration between SCS and Diamond-MT enabled both entities to broaden their service offerings and technological solutions, providing customers with an extensive range of services while enhancing their global footprint and sustainability initiatives.

In May 2021, MacDermid Alpha Electronics Solutions, a US-based provider of specialty chemicals and materials catering to the semiconductor and PCB markets, acquired H.K. Wentworth Group for an undisclosed sum. This acquisition was intended to bolster MacDermid Alpha Electronics Solutions' capabilities and product offerings, enabling a broader array of services, technologies, and value-added solutions for customers in the global electronics industry. H.K. Wentworth Group, based in the UK, specializes in manufacturing high-specification chemical products serving the electronics and industrial manufacturing sectors.

Major companies operating in the conformal coatings market report are Dow Inc., Shin-Etsu Chemical Co. Ltd., Henkel AG & Co. KGaA, H.B. Fuller Company and ITW, Altana, Kisco Ltd., Chase Corp, Element Solutions Inc., Dymax, Hitachi Chemical Co. Ltd., Techspray, Electrolube, HumiSeal, Guangdong Sinpo New Materials Technology Co. Ltd., Shenzen Anlihui Electronic Technology Co. Ltd., Shenzhen Jitian Chemical Co. Ltd., Aalpha Conformal Coatings, ACC Silicones Ltd., pva tepla ag, Henkel AG and Co. KGaA, MG Chemicals Europe, Biesterfeld AG, Peters Corporation, ATE Electronics, CoolIT, Silent-Aire, AAON Inc., BasX, Corsair, NZXT, Swiftech, EVGA, Alphacool, Cytec Industries, VSi Parylene, Creative Materials, Axalta Coating Systems Brazil Ltda, Brazilian Color Industry Paints and Coatings, Componel, Lauquen Circuitos Impresos Ltda, Saudi Conduit Coating Company, Michmas Electronics Ltd., Jotun UAE Ltd L.L.C, Henkel Polybit Industries Limited, Anchor Allied Factory- LLC, Panol Industries Rmc Fze, Al Gurg Fosroc Co., Testerion, Test and Rework Solutions (Pty) Ltd., Zetech Surface Mount Technology, Bosco Printed Circuits, Summit Interconnect, WH Circuit Pty Ltd.

Asia-Pacific was the largest region in the conformal coatings market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the conformal coatings market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the conformal coatings market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of conformal coatings include acrylic, silicone, epoxy, urethane, and perylene. Acrylic coatings utilize a cross-linking system to ensure adhesion and are employed in various formulations such as organic solvent-borne, waterborne, powder, and radiation-curable types. They find applications in architectural finishes, industrial products, and decorative coatings. Technologies used in conformal coatings include water-based, solvent-based, and UV-cured methods, applied through techniques such as dip coating, brush coating, spray coating, and chemical vapor deposition. These coatings cater to various industries including automotive, consumer electronics, aerospace and defense, industrial sectors, among others.

The conformal coatings market research report is one of a series of new reports that provides conformal coatings market statistics, including conformal coatings industry global market size, regional shares, competitors with a conformal coatings market share, detailed conformal coatings market segments, market trends and opportunities, and any further data you may need to thrive in the conformal coatings industry. This conformal coatings market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The conformal coatings market consists of sales of selective coating and automated spraying methods of conformal coatings application techniques. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.