Global Optical Coatings Market By Type (Anti-Reflective Coatings, Transparent Electrodes, and Filter Coatings), By Application (Consumer electronics, Architecture, Solar power, Military and defense), By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2019-2028

Optical Coating Market Overview

The global optical coating market size was valued at US$ 14.23 billion in 2021. It is projected to expand at a CAGR, of more than 8.2%, between 2023 to 2032. This market is expected to be driven by technological advances in optical deposition techniques and manufacturing, as well as a greater demand for high-quality optical devices in end-use markets. Optical coatings are increasingly being used in many applications, including architecture, consumer electronics, and in solar panels. They also play a significant role in medical, military, and telecommunications solutions.

Global Optical Coating Market Scope:

Product Analysis

The anti-reflective products segment dominated this market, accounting for more than 29.7% of total revenues in 2021. These anti-reflection coatings consist of multiple layers with different refractive indexes. Each layer’s thickness is chosen to create a self-extinguishing interference with light beams reflected from the surface. It is suitable for magnifying lenses and display screens, as well as eyeglasses that are mounted on glass or plastic substrates.

This market is expected to grow due to increasing demand for anti-reflective paints that can be used in the construction of solar panels, windows, and automotive displays, as well as in GPS navigation systems. Due to the widespread use of solar panels, the conductive coatings segment is expected to index significant growth over the forecast period. The growth of conductive coatings will be driven by the increasing emphasis on alternative energy sources and larger investments made towards solar energy generation by countries like India, the U.S., and China. Optical Coating Market growth in demand is expected to be complemented by the increased use of display windows, solar panels and heaters, LCD fabrication, heads-up display shielding for radiofrequency interference, LED displays, and instrument display windows.

Application Analysis

This market’s largest segment, the consumer electronics applications segment, accounted for more than 32.1% of total revenues in 2021. This segment’s growth is expected to be driven by a swelling consumer base and increasing disposable incomes. This market is slated to be positively impacted by technological advances in smart televisions, and even in smart consumer gadgets such as smartwatches, and smartphones. Optical coatings are expected to be in high demand due to the increasing number of industry players and a greater demand for multipurpose devices.

The electronics industry is awash in anti-reflective and infrared coatings. This is due to the increasing demand for better optical displays and the need for greater impact resistance. These optical coatings are anticipated to be in high demand due to the growing semiconductor industry as well as various technological advancements. The demand for consumer electronics products is being affected by a decrease in discretionary spending on COVID-19 around the world. This is expected to further reduce the demand for optical coatings in consumer electronic products. It is used in speedometer displays by the automotive industry due to its excellent impact resistance and abrasion resistance. Over the forecast period, this market is slated to grow due to the increasing use of optical coatings in numerous automobile components, including car windows, windshields, and gear knob tops. Components in the automotive industry are also coated with UV-resistant or abrasion-resistant coatings.

Key Market Segments:

By Product

• Anti-Reflective Coatings

• Filter Coatings

• Reflective Coatings

• Electrochromic Coatings

• Conductive Coatings

• Other Products

By Application

• Consumer Electronics

• Medical

• Solar

• Architecture

• Automotive

• Aerospace & Defense

• Telecommunication

• Other Applications

Market Dynamics:

Market growth is expected to be driven by the rapid growth of the solar PV market. This growth is anticipated to be driven by a growing focus on clean energy and the greater demand for electronic products. Reflective coatings are used mainly in construction, telecommunications, and space applications. It is expected that green buildings will increase the use of reflective coatings to reduce energy consumption and heat retention. Market growth is also expected to be driven by the surging use of handheld consoles and the increasing demand for portable electronic devices.

The price volatility of raw materials is a major factor that affects the prices of optical coatings. This results in a profitability decrease for manufacturers and raises the market prices of optical coatings. It also restricts market growth prospects. While metal prices have declined over the last few years, sudden price fluctuations can have a negative influence on this market’s growth trajectory.

Drivers

Optical coatings are now being used more in the automotive industry. Optical coatings have a long history of increasing a vehicle’s value and versatility. Veiling glare refers to the reflection of interior light from the windshield back to the driver, which can reduce a driver’s ability to see clearly. Furthermore, the issue of glare veiling is made worse by a recent rise in the popularity of high-installation-angle windshield constructions. Windscreens can be coated with optical antireflection (AR), which reduces reflection and eliminates glare. The revolutionary three-layer AR structure created by this method reduces the inboard reflection of laminated windscreens at 60 degrees. This is compared to uncoated glass. The structure’s reflectance falls to 7.3% when AR films are applied on both the inboard and outboard surfaces. AR windscreens have a mirrored hue that is less reflective than other AR designs. This makes them more attractive and pleasing to the eye. To increase productivity and decrease ghosting, anti-reflective coatings can be applied to several refractive lenses. A single layer of Magnesium fluoride (MgF2) is the most effective and simple anti-reflective coating. Low reflection film was created using a wet process. It is very cost-efficient. The company began shipping prototypes and planned to begin mass production last year.

A booming telecommunication Industry is expected to continue to drive this market. Global economic interconnectivity depends on the exchange of data and speech. Increasingly active optical fiber networks have made connections between continents easier. The exponential growth of the optical industry is also being driven by the increasing use of the internet. These coatings can either be applied to a variety of devices or used on optical component features such as lenses. Complex filters are used to monitor signal transmission in optical fiber networks. Multi-layer thin film stacks in the communications sector increase optical fiber distribution’s bandwidth. These coating applications are expected to grow rapidly in the telecommunications sector. Thin-film filters consist of layers made up of very small particles and multiple layers. They have a low production volume but generate high market rates. If they were able to process coating technology in high-end markets, many manufacturers would be leading the way in this area. The efficiency standards for thin-film optical filters have been greatly increased in response to the needs of the optical communications industry.

Restraints

Volatility in raw material prices. There are many raw materials involved in the manufacturing of optical coatings. These include oxides (aluminum zirconium and titanium, as well as selenium), fluorides (“strontium and calcium”), metals (copper and gold), and fluorides “strontium,” which can be used to make strontium and magnesium. The price fluctuations of metals and oxides such as silver, TiO2, indium, gold, and copper are highly volatile. Prices and the availability of raw materials, particularly metals and oxides can fluctuate and adversely impact manufacturing costs. Transparent conductive coatings are made with indium as the main component.

Opportunities

The increasing adoption of advanced automotive electronics, due to surging income levels, the need for safer and more convenient driving, the emergence of intelligent transport systems, growing concerns about environmental pollution, and the demand for automotive electronics is on the rise in the transportation industry. Advanced automotive electronics systems and devices require optical coatings. The optical coatings market is also being impacted by the emergence of advanced driver assist, as well as communication technology and entertainment system features. The optical coating improves optics and protects optics from harsh environmental conditions.

Challenges

Maintaining the environmental durability of optical coatings. The optical system designers define the coating characteristics and functional requirements. Coating specifications include optical mode (e.g. reflection or transmission), environmental durability requirements, laser-induced damage thresholds (LIDT/LDT), as well as windscreen wiper testing.

A coating’s environmental durability is tested according to American military specifications, and occasionally according to civilian standards {the International Organization of Standardization (ISO), American National Standards Institute (ANSI)}. These standards or specifications connote the requirements and conditions to ensure that optical coatings are durable in harsh environments. This is a problem for optical coatings manufacturers as they must adhere to environmental durability standards.

COVID-19 Impacts

Price fluctuations for precious metals, particularly gold and platinum, have a significant impact on the overall cost of applications. This has a direct impact on the demand for optical coats. The recent COVID-19 outbreak also affected the demand for optical coats in many applications, including automotive, telecommunications, reynard corporation, solar power, aerospace, Military & defense industry, and architecture, among others. This is due to stalled manufacturing activity, transportation restrictions, and a general slowdown of industries around the world.

A dip in the manufacturing sector impeded market growth factors opportunities. COVID-19  identified several issues in the paints-and-coatings industry, which prevented this market from expanding further. This pandemic had a negative impact on major players in economies and caused a slowdown in operations in those industries that use such coatings. The demand for optical coatings declined across many sectors due to the onset of this pandemic. It caused a long-term shutdown in transportation, manufacturing, oil and natural gas, and energy industries, which resulted in a sharp decline in the annual growth rate and disruptions to other sectors such as manufacturing and automobiles. Some parts of the world have seen their manufacturing industry operations halted for several months because of temporary facility closings. A decline in travel during the COVID-19 pandemic caused a drop in paint demand in the automotive sector. Mark lines Information Portal reports that automobile sales in China have been recovering at an incredible pace. In 2022 vehicle shipments increased 18.7% year-on-year.

Between January and August 2020, total exports decreased by 10%, as compared to the previous year. Some industries like telecommunications and medicine indexed steady growth during the pandemic. According to IEEE Consumer Electronics Magazine in 2020, consumer technology sales were expected to decline due to the general economic impacts on many customers.

However, it also stated that consumers are more dependent on their electronics to communicate with others and work from home. COVID-19 has had a significant impact on both the consumer electronics retail market and the supply chain supporting consumer electronics manufacturing. As time passes, end-users will increasingly rely on online education and web-based resources. This will boost the need for cloud services and consumer applications businesses.

Regional Analysis

The largest market in North America was the dominant force for the optical coatings industry in 2021, accounting for more than 38.3% of total revenues. This region is driven by the US’s growing solar industry and its focus on domestic manufacturing. The US defense budget increased, creating strong growth opportunities for reflective coating products in both the aerospace and defense segments. North America is a key manufacturing center for small- and mid-sized medical equipment companies. This is expected to drive the demand for optical coatings in the future. During this projected period, the demand for optical coatings is slated to rise as a result of the significant presence of sectors including instrumentation, electronics assemblies, microelectronics, biotechnology, and other optoelectronic devices. These are useful in a wide range of hybrid high-quality coatings of sectors.

Surging patient populations due to the spread of COVID-19 at a community level is expected to boost the demand for medical components. This will lead to an increase in the demand for optical coatings in America.

The largest Market in the Asia Pacific is expected to experience significant growth during the forecast period. Over the forecast period, this market will be driven by a growing youth population as well as the increasing demand for consumer electronics such as mobiles, tablets, cameras, LED screens, video game consoles, and personal computers.

Key Regions and Countries Covered in the Report:

• North America

  • US

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Italy

  • Russia

  • Spain

  • Rest of Europe

• APAC

  • China

  • Japan

  • South Korea

  • India

  • Rest of Asia-Pacific

• South America

  • Brazil

  • Argentina

  • Rest of South America

• MEA

  • GCC

  • South Africa

  • Israel

  • Rest of MEA

Market Share & Key Players Analysis:

To maintain product quality and increase regional reach, many major players have merged their raw material production with distribution capabilities. Major Companies gain a competitive edge through cost savings, which increases their profit margins. Research and development centers activities are the key activities of companies to create new products that can withstand market competition and adapt to changing end-user needs. Over the next few years, this industry will adopt new materials with multiple properties. These may lead to hampering major key factors in the growth of the market.

Market Key Players:

• Alluxa Inc.

• Cascade Optical Corporation

• Chroma Technology Corp.

• Inrad Optics

• Optical Coatings Japan

• PPG Industries Inc.

• Viavi Solutions

• Schott AG

• Abrisa Technologies

• Other Key Players

For the Optical Coatings Market research study, the following years have been considered to estimate the market size: