Optical Coatings Market
Optical Coatings Market Global Industry Assessment & Forecast
- By Product Type Anti-Reflective Coatings, Filter Coatings, Beam-splitter Coatings, High-Reflective Coatings, Transparent Conductive Coatings, Electrochromic Coatings, Other Product Types
- By Technology Sputtering Process, E-Beam Evaporation, Ion-Assisted Deposition, Vacuum Deposition, Other Technologies
- By Application Electronics & Semiconductor, Aerospace & Defense, Telecommunications, Automotive & Transportation, Solar Power, Construction & Infrastructure, Healthcare, Other Applications
- By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
|Forecast Years:||2022 - 2028|
|Historical Years:||2016 - 2021|
|Revenue 2021:||USD 12.1 Billion|
|Revenue 2028:||USD 20.0 Billion|
|Revenue CAGR (2022 - 2028):||8.8%|
|Fastest Growing Region (2022 - 2028)||Asia Pacific|
|Largest Region (2021):||North America|
- Cross-segment Market Size and Analysis for Mentioned Segments
- Additional Company Profiles (Upto 5 With No Cost)
- Additional Countries (Apart From Mentioned Countries)
- Country/Region-specific Report
- Go To Market Strategy
- Region Specific Market Dynamics
- Region Level Market Share
- Import Export Analysis
- Production Analysis
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Global Optical Coatings Market is valued at USD 12.1 Billion in 2021 and is projected to reach a value of USD 20.0 Billion by 2028 at a CAGR of 8.8% over the forecast period.
The electronics market is a huge driver of the Optical Coatings Market. This is because the demand for things like cell phone screens and computer monitors has grown exponentially in recent years. As a result, companies that make Optical Coatings have seen their business grow as well. There are a few reasons why the electronics market has such a big impact on Optical Coatings. First, electronic devices generally require higher-quality coatings than other products. This is because they need to be able to withstand constant use and abuse. Second, the trend in the electronics market is toward smaller and thinner devices. This means that there is less room for error when it comes to applying the coating, which puts even more pressure on manufacturers to get it right. 2018 was on track to be another strong year for the electronics market. In the first quarter of 2018, electronic product sales totaled $86 billion. This was a 12% increase from the first quarter of 2017. In 2021 Germany's electronic and digital sector turnover amounted to EUR 199.8 billion, an increase of 9.8 percent from the previous year. Additionally, in 2021 the electrical and digital industry saw a production growth rate of 8.8 percent over the previous year.
As the use of optoelectronic devices such as smartphones, tablets, and laptops continues to rise, it is anticipated that the need for Optical Coatings will increase at a high rate for the next several years. Another significant reason that is likely to drive the expansion of the Optical Coatings Market is the growing need for lighting solutions that have a low impact on the environment's ability to conserve energy. Because of the rising demand in China and India, it is anticipated that the Asia-Pacific region will be the market for Optical Coatings that will expand at the quickest rate. It is anticipated that countries in the Middle East and Africa, like Saudi Arabia and the United Arab Emirates, will make major investments in optoelectronic projects over the next several years, which will lead to significant growth in these regions. The semiconductor industry is one of the major end-use industries of Optical Coatings. The automotive sector is one of the major end-users of semiconductors, as they are essential components in advanced driver assistance systems (ADAS) and autonomous vehicles (AVs). The automotive semiconductor market is expected to grow at a CAGR of 11.1% from 2019 to 2025. The Asia-Pacific region is the largest market for semiconductors, accounting for more than 50% of the global market in 2019. In 2017, the sales of electronic products totaled $351 billion. This was a 9% increase from 2016 when electronic product sales totaled $322 billion. In addition, sales in the worldwide semiconductor industry are projected to reach $633 billion in 2022, an increase of 13.9% from 2017. The worldwide semiconductor market is anticipated to increase by 4.6% in 2023, reaching USD 662 billion in value.
Optical Coatings Market Size, 2021 To 2028 (USD Billion)
The expansion of the Optical Coatings Market is currently being hampered by several factors that can be classified as restraints. In the first place, the cost of the raw materials that are utilized in the production of Optical Coatings is going up because of the increased demand from other types of businesses. Because of this, it is becoming increasingly challenging for manufacturers to both keep up with the competition and keep their profit margins stable. Second, the slowdown in the world economy has resulted in a decrease in demand from important end sectors, such as the automobile and consumer electronics industries. Because of this, the industry of Optical Coatings is now experiencing overcapacity, which has put upward pressure on costs. Last but not least, stringent rules concerning the environment are making it impossible for manufacturers to utilize particular chemicals and materials in the methods by which they produce their goods. This is causing expenses to rise, which in turn is preventing the industry as a whole from expanding.Impact on Other Industries
In a variety of different ways, the expansion of other sectors has been influenced by the demand for Optical Coatings. One method is to supply those industries with brand-new and ground-breaking coating materials, which have significantly improved the products' overall performance. The invention of low-emissivity, or low-E, coatings for use on energy-efficient windows, for instance, has been a driving force behind the expansion of the window business. Another way that the market for Optical Coatings has impacted the growth of other sectors is by enabling new applications that were previously impossible to accomplish. For instance, the development of reflecting coatings for solar panels has helped to accelerate expansion in the solar power industry. This has played a role in driving down the cost of solar power. In conclusion, the market for Optical Coatings has contributed to the establishment of brand-new sectors in their entirety. For instance, the introduction of anti-reflective (AR) coatings for spectacles and sunglasses led to the establishment of a whole new industry centered on the production and distribution of products of this kind.Top Market Trends
● Window coatings are expected to witness the highest growth during the forecast period owing to their energy-saving properties. These coatings help in reducing the solar heat gain coefficient (SHGC) of windows, which in turn helps in reducing the overall energy consumption of buildings. Optical Coatings find applications in various automotive parts such as headlamps, tail lamps, and mirrors. The rising demand for luxury and sports cars is expected to drive the growth of this market segment.
● The Asia-Pacific region is expected to be the largest market for Optical Coatings, due to the growing construction industry in China and India. North America is expected to be the second largest market owing to high demand from the automotive and aerospace industries.
● Jabil announced a joint venture with Optics to develop advanced micro-optics solutions for 5G applications. The demand for low-emissivity (Low-E) coatings is expected to increase significantly during the forecast period. Low-e coatings are widely used in energy-efficient windows to reduce heat loss and improve comfort levels in buildings.
● The water-repellent coatings segment is expected to witness significant growth during the forecast period due to the growing use of these coatings in various applications such as eyeglasses, solar panels, automotive windshields, and architectural glass.
● Optical Coatings are also used in a variety of medical applications such as ophthalmic lenses, contact lenses, intraocular lenses, and antireflective coatings on biomedical devices. The growing demand for these products from the healthcare industry is expected to drive market growth in the coming years.
● New coating materials are being developed that can offer better performance and better resistance to environmental conditions. Optics Balzers acquired German company Schott coating materials GmbH, giving it a significant boost in the high-end optics coating space.
● Abrisa Technologies expanded its capabilities with the acquisition of UK-based AccuCoat Ltd., a leading provider of thin-film Optical Coatings. Ultra-thin coatings are gaining popularity as they offer better performance and improved durability.
● The US DoD awarded a $7 million contract to Abrisa Technologies for the development of next-generation anti-reflection coatings for military applications.Market Segmentation
The Global Optical Coatings Market is segmented based on Product Type, Technology, Application, and Region. Based on Product Type, the market is classified into Anti-Reflective coatings, Filter Coatings, Beam-splitter Coatings, High-Reflective Coatings, Transparent Conductive Coatings, Electrochromic Coatings, and Other Product Types. Based on Technology, the market is segmented into the Sputtering Process, E-Beam Evaporation, Ion-Assisted Deposition, Vacuum Deposition, and Other Technologies. Based on Application, the Optical Coatings Market has been segmented into Electronics & Semiconductors, Aerospace & Defense, Telecommunications, Automotive & Transportation, Solar power, Construction & Infrastructure, Healthcare, and Other Applications. Region-wise, the Global Optical Coatings Market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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There are different types of Optical Coatings, each with its own set of benefits. Some common types of Optical Coatings include Anti-Reflection (AR) coatings: These coatings help to reduce the amount of light that is reflected off of a surface. AR coatings are often used on eyeglasses, sunglasses, and camera lenses. Anti-reflective coatings (ARC) are applied to reduce surface reflectance. Filter coatings are designed to absorb or reflect specific wavelengths of light. Beamsplitter coatings are used to split a beam of light into two separate beams. High-reflective coatings (HRC) are applied to increase the reflection of light from a surface. Transparent conductive coatings (TCC) allow visible light to pass through while conducting electricity. Electrochromic coatings change their optical properties in response to an electric current. Other types of Optical Coatings include those that are used for scratch-resistant, anti-fog, and UV protection. UV-resistant coatings: These coatings help to protect surfaces from damage caused by ultraviolet (UV) light. UV-resistant coatings are often used on outdoor signs and car windshields; scratch-resistant coatings: These coatings help to prevent scratches from happening on surfaces. Scratch-resistant coatings are often used on eyeglasses, sunglasses, and car windshields.Based on Technology
Sputtering is a process in which a solid material is vaporized by bombarding it with ions. The vaporized material then condenses on a surface to form a thin film. E-beam evaporation is a process in which a solid material is vaporized by bombarding it with electrons. The vaporized material then condenses on a surface to form a thin film. An ion-assisted deposition is a process in which ions are used to help deposit a thin film of material onto a surface. Vacuum deposition is a process in which a material is deposited onto a surface in a vacuum. Other methods of creating thin films include chemical vapor deposition, physical vapor deposition, and spin coating.Based on Application
Electronics & Semiconductor is the largest application segment for Optical Coatings and is expected to grow at a CAGR of over 6% from 2019 to 2025. This growth can be attributed to the increasing use of Optical Coatings in optoelectronic devices such as lasers, detectors, sensors, and fiber optics. Aerospace & Defense is the second-largest application segment for Optical Coatings and is expected to grow at a CAGR of over 5% from 2019 to 2025. This growth can be attributed to the increasing demand for high-performance Optical Coatings in military applications such as night vision goggles, targeting systems, and imaging systems. Telecommunications is the third-largest application segment for Optical Coatings and is expected to grow at a CAGR of over 4% from 2019 to 2025. This growth can be attributed to the increasing demand for Optical Coatings in telecom applications such as fiber optic cables, connectors, switches, and routers. Automotive and transportation is the fourth-largest application segment for Optical Coatings and is expected to grow at a CAGR of over 3% from 2019 to 2025. This growth can be attributed to the increasing use of Optical Coatings in automotive applications such as head-up displays. The solar power sector is expected to grow at a significant rate owing to the rising demand for solar panels with higher efficiency to reduce dependency on traditional sources of energy. The construction and infrastructure sector is projected to grow at a considerable rate due to the increase in construction activities globally. The healthcare sector is also expected to grow at a significant rate due to the rising demand for diagnostic equipment with higher accuracy.
In terms of volume, the Electronics & Semiconductor industry accounted for the largest share of the overall market in 2016. The Automotive industry is the largest market for Optical Coatings, due to the need for high-quality coatings that can withstand the rigors of driving. Automotive coatings must be able to resist scratches and other damage from road debris, as well as protect against UV rays. Aerospace coatings are used on aircraft windshields and windows to protect against UV damage and improve visibility. They must also be durable enough to withstand the extreme temperatures and vibrations experienced during flight. Medical Optical Coatings are used on devices such as endoscopes and microscopes. These coatings must provide high levels of clarity and durability, as well as be resistant to bacteria and other contaminants. Industrial Optical Coatings are used in a variety of applications, including machine vision systems and laser optics. These coatings must be able to withstand high temperatures and heavy use.Based on Region
North America is expected to be the largest market for Optical Coatings during the forecast period owing to the growing demand from end-use industries such as automotive, aerospace & defense, and electrical & electronics. The US and Canada are expected to be the major contributors to the growth of the Optical Coatings Market in North America. Europe is anticipated to be the second-largest market for Optical Coatings during the forecast period due to the presence of major manufacturers in this region. Germany, France, Italy, and the UK are expected to drive the growth of this market in Europe. Asia Pacific is expected to witness the fastest growth during the forecast period due to growing demand from end-use industries such as medical devices, solar energy systems, and LCD/LED displays. China and India are projected to be the major contributors to the growth of this market in the Asia Pacific. The growing demand for smart devices and solar cells in countries such as China, India, Japan, and South Korea is fuelling the growth of the Asia Pacific Optical Coatings Market. Latin America and Middle East & Africa are expected to witness significant growth during the forecast period due to the growing construction industry in these regions.Competitive Landscape
The key players in the Global Optical Coatings Market include- JENOPTIK (Germany), SCHOTT (Germany), Gelest Inc. (US), Optimax Systems Inc. (US), Materion Corporation (US), DuPont (US), Nippon Electric Glass Co. Ltd. (Japan), PPG Industries Inc. (US), Inrad Optics (US), VIAVI Solutions Inc. (US) and others.
In recent years, there have been significant advancements in the field of Optical Coatings.
● One of the most notable advancements has been the development of nanotechnology-based coatings. Nanotechnology-based coatings can provide superior performance in a variety of applications, including solar energy conversion, light emission enhancement, and antibacterial properties.
● The automotive industry is one of the major consumers of Optical Coatings due to the growing demand for head-up displays (HUDs) and infotainment systems in vehicles. The HUDs are used in high-end luxury cars and are becoming increasingly popular in mid-segment cars due to the falling prices of display components. The aerospace & defense industry is another major consumer of Optical Coatings due to the growing demand for night vision goggles (NVGs), helmet-mounted displays (HMDs), and Heads Up Displays (HUDs).
● Advanced computer simulations are now being used to design Optical Coatings with improved properties. A variety of new materials are being explored for use in Optical Coatings, including graphene and other nanomaterials.
● Another noteworthy advancement in Optical Coatings has been the development of thin-film deposition techniques. The thin-film deposition is a process in which a very thin layer of material is deposited onto a substrate. This method can be used to create extremely precise and uniform coatings that are just a few nanometers thick.
● The U.S. Department of Defense has awarded a $7 million contract to a consortium of companies led by Optics Balzers for the development of nanoscale Optical Coatings. This is in addition to the $5 million contract that was awarded to the same consortium last year.
● A team of researchers at Stanford University has developed a new type of optical coating that can be applied to any surface, including curved surfaces. The coating is made from a material known as graphene, which is extremely thin and strong.
● Researchers at the University of Central Florida have developed a new method for applying Optical Coatings to 3D objects. The technique, known as "plug and play" nanoclusters, enables the deposition of coatings with nanometer-scale precision.
● A team of international researchers has developed a new type of optical coating that can be applied to glass without the need for high temperatures or vacuum conditions. The coating, which is made from zinc oxide, could be used in a variety of applications, including solar cells and windows.
Segmentation of the Global Optical Coatings Market
|Regions & Countries Covered||
|Report Coverage||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis|
Frequently Asked Question
The global Optical Coatings valued at USD 12.1 Billion in 2020 and is expected to reach USD 20.0 Billion in 2028 growing at a CAGR of 8.8%.
The prominent players in the market are JENOPTIK (Germany), SCHOTT (Germany), Gelest Inc. (US), Optimax Systems Inc. (US), Materion Corporation (US), DuPont (US), Nippon Electric Glass Co. Ltd. (Japan), PPG Industries Inc. (US), Inrad Optics (US), VIAVI Solutions Inc. (US).
The market is project to grow at a CAGR of 8.8% between 2021 and 2028.
The driving factors of the Optical Coatings include
- Increasing Demand For Optical Coating From The Growing Consumer Electronics Industry 33
North America was the leading regional segment of the Optical Coatings in 2020.