Optical Coatings Market

Report Overview

The global optical coating market was valued at USD 16.8 billion in 2021 and is forecast to expand at a CAGR of 8.7%, from 2023 to 2032. It is expected to reach USD 42.06 billion in the forecast period.

This market is expected to grow due to technological advancements in optical deposition and fabrication, along with a growing demand for more efficient optical devices in end-use applications. Several areas of application now use optical coatings, such as in architecture, automotive, consumer electronics (solar panels), telecommunication, medical, and military & defense.

Global Optical Coating Market

Product Analysis

On the basis of ‘Product’, the ‘Anti-Reflective Coatings’ segment accounted for the majority revenue share of more than 29.0% in 2021. Thin-film optical coatings that are anti-reflective include multiple layers of coatings, each with a different refractive Index. Every layer has a thickness that will cause light beams to be reflected off the surface. This makes it ideal for magnifying and display lenses, camera lenses, display screens, and eyeglasses, which are used on both glass and plastic substrates.

Over the forecast period, this market is expected to index a significant increase in the demand for antireflective coatings to be used for the construction of photovoltaic panels, automobile displays, windows, and GPS navigators. Because of the high use of solar panels, the ‘Conductive Coatings’ segment will register significant growth.

Over the next few years, there will be significant growth due to increased emphasis on alternate energy sources. This is in addition to large-scale investments in solar energy production by countries like India, the U.S., and China. This market is also expected to grow further due to the increased usage of solar panels, heaters, and display windows.

Application Analysis

In terms of ‘Application’, the ‘Consumer Electronics’ segment led this market, accounting for a revenue share greater than 31.0% in 2021. The forecast period will index segment growth due to rising disposable incomes and a rapidly growing demand for smartphones.

Over the forecast period, this market is expected to benefit from technological advancements in smart TVs and smart consumer devices such as smartphones and smartwatches. This market will also be influenced by the increased demand for optical coatings and a growing number of key players.

Due to their superior optical display and impact resistance, infrared and antireflective coatings are used extensively in electronics. This is due to technological advances and the growth of the semiconductor industry. The forecast period will register an increase in the demand for optical coatings.

However, the global reduction in discretionary spending due to COVID-19 is affecting the product demand for consumer electronics. This will further impact the demand for optical-coated consumer electronics products.

Because of its impact and abrasion resistance, it is commonly used in automotive speedometer displays. This market is expected to grow because of the increased use of optical coatings for many automotive components such as gear knob tops, windshields, and car windows. Additionally, components used in the automotive industry implement UV-resistant and scratch-resistant coatings.

Key Market Segments

Product

• Filter Coatings
• Anti-Reflective Coatings
• Conductive Coatings
• Reflective Coatings
• Electrochromic Coatings
• Others

Application

• Consumer Electronics
• Medical
• Solar
• Aerospace & Defense
• Architecture
• Telecommunication
• Automotive
• Others

Market Dynamics

Market growth for the next five years is expected to be driven primarily by the rapidly growing photovoltaic market. Reflective coatings can be used in construction, telecommunications, and other space applications.

Over the forecast period, reflective coatings will be in high demand due to their increasing use in green buildings for heat retention and energy conservation purposes. This market is expected to grow due to the increasing use of handheld consoles as well as a growing demand for consumer electronics.

One of the main factors that influence the end price of optical coatings is the volatility in raw material costs. It can lead to decreased profitability for manufacturers as well as higher market costs for optical coatings. This is expected to impede market growth prospects.

Even though metal prices have shown a decline in recent years, sudden price fluctuations can cause market growth to be adversely affected.

The demand for optical coatings is affected by changes in the prices of precious metals that are used for high-end applications (especially gold and platinum).

Due to global economic slowdown, reduced manufacturing activities, and supply and transportation restrictions, as well as a slowdown in manufacturing, optical coatings are not being used in several areas, such as automotive, telecommunication, aviation, solar, defense, and architecture, among others.

Regional Analysis

North America dominated the market for optical coatings and was responsible for 37.0% of this industry’s revenue share in 2021. The U.S. is developing its solar industry, and a greater level of focus on domestic industries are elements driving this market. Strong growth potential exists for reflective coatings in the aerospace/defense segment due to an increase in the U.S. defense budget.

North America is a major manufacturing center for small and medium-sized medical equipment, which in turn is expected to increase the demand for optical coatings over the forecast period. Additionally, there will be a strong demand for optical-coated products due to the presence of several industries, including instrumentation and microelectronics.

Additionally, due to COVID-19, existing patient populations are expected to grow. This will drive the demand for medical components and thereby increase the need for optical coatings in the U.S. Over the forecast period, the Asia Pacific market will also experience significant growth.

The regional market is expected to expand further due to the surging youth population and growing demand for electronic consumer products like mobiles, tablet cameras, LED screens, consoles, and personal computers.

Key Regions and Countries Covered іn This Rероrt:

• 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 Analysis

Several market players have integrated their raw material production and distribution to ensure product quality and greater regional reach. This gives companies a competitive advantage through cost savings and increases their given profit margins.

Companies invest in research and development initiatives to develop new products to address market competition and evolving customer requirements. This industry is expected to foster research activities that combine multiple properties in the future.

Key Market Players

Leading players in the optical coating market include:

• Alluxa Inc.
• Chroma Technology Corp.
• Cascade Optical Corporation
• Optical Coatings Japan
• Inrad Optics
• Schott AG
• Viavi Solutions
• PPG Industries Inc.
• Materion Corporation
• Artemis Optical Ltd.
• Other Key Players