The global optical coatings market size is expected to reach USD 25.6 billion by 2025, exhibiting at a CAGR of 9.1% over the forecast period, according to a new study by Grand View Research, Inc. The market is estimated to be driven by the growing smart consumer electronics industry across the globe. Rising focus on electricity generation through clean sources is also expected to drive product demand.
Consumer electronic devices include smartphones, tablets, phablets, smartwatches, and smart televisions. Rapid urbanization resulting in changes in consumer lifestyles is expected to create lucrative opportunities for smart consumer electronic devices. This is projected to lead to an increase in the utilization of optical coatings as they have superior optical display and impact resistance properties. Asia Pacific is a major market for consumer electronics owing to the presence of a large number of key players. India is the second-largest user of smartphones after China, with 220 billion users as of 2016. The demand in the region has shifted toward Southeast Asian countries, a trend that is likely to continue over the forecast period.
Reflective coatings formed the second-largest product segment in terms of revenue in 2018, expanding at a CAGR of 10.2% from 2018 to 2025. Rise in the use of this product for roofing applications in the construction industry owing to factors such as prevention of direct exposure of sunlight on the roof and reduction in cooling cost is anticipated to propel the market growth over the forecast period.
There has been rising demand for both commercial and passenger automobiles in emerging economies like South Africa, Mexico, Brazil, India, and China in light of improving standards of living and population growth. This is projected to benefit the automotive coatings industry, which in turn, is expected to propel demand for optical coatings. Furthermore, increasing requirement for protection against dust, dirt, UV radiation, and harsh climate is anticipated to drive the market growth in the coming years.
Companies in the market experience fluctuating prices of raw materials, which are driven by factors such as changes in supplier feedstock costs, inventories, demand and supply factors, and government regulations. Therefore, manufacturers have been focusing on developing technologies for efficient coating at a low cost. In addition, key players are continuously engaged in diversification of their existing product portfolio in order to cater to a large customer base, which ultimately enables a strong foothold in the global market.
Further key findings from the report suggest:
- North America dominated the market in 2018 in terms of revenue owing to increasing application of optical coatings in the medical equipment industry
- Anti-reflective was the largest product segment in 2018 with a market share of over 29.0%. Growing demand for this product from the solar industry is expected to fuel the growth of the market over the forecast period
- Solar is expected to be one of the fastest-growing application segments in term of revenue. Rising demand for solar photo voltaic cells and emphasis on solar energy production in Asia Pacific, especially in China, India, and Japan, is anticipated to augment demand for this product for solar applications in the region
- Some of the key optical coatings market players are PPG Industries, Inc.; Cascade Optical Corporation; Alluxa; Chroma Technology Corp; Optical Coatings Japan; Inrad Optics; VIAVI Solutions Inc.; and Abrisa Technologies.