Conformal coatings are used to isolate electronic components from the harsh environments, thereby reducing failure rates and improving reliability. The global adhesives & sealants market, along with its applications, has witnessed a high growth for the past few years and this growth is estimated to increase in the coming years. Asia Pacific is the largest consumer for adhesives and sealants in the global market. The growth of adhesives in this region is primarily driven by rapid industrialization, strong GDP growth, and rise in manufacturing and industrial output. Adhesives and sealants are vital products in many key industries. Key application areas of adhesives include automotive, packaging and pressure sensitive applications, while those of sealants are automotive, construction, assembly, packaging, pressure sensitive tapes, etc. Specialty adhesives and sealants designed for specific consumer needs in niche markets are also gaining wide traction.
Applications for consumer electronics are expected to continuing dominate the market, according to a report by market researcher BCC Research. Growth in the automotive segment will be driven by accelerated use of electronic monitoring, sensing and controlling devices, along with computer systems in cars. Aerospace applications are seen as the most highly developed segment of the industry, while medical and biomedical device applications of conformal coatings will register the move growth.
Global Market Overview
According to BCC Research, the conformal coating equipment and spares segment accounts for the largest share of the market, worth an estimated $5.1 billion in 2008. It was estimated to increase to $6.9 billion by 2013, @ of 6.2 percent. Conformal coating materials for electronics assembly represent the second largest segment, worth an estimated $1.5 billion. The Electronics conformal coating market was valued at USD 1.70 Billion in 2014, and it is expected to reach USD 2.41 Billion by 2020, at a CAGR of 5.99% during the forecast period. The base year used for this study is 2014 and the forecast period considered is between 2015 and 2020.
As researched by Markets and Markets, primary study illustrates the market of conformal coating as
- By Company Type: Tier 1 – 22 %, Tier 2 – 35% and Tier 3 – 43%
- By Designation: C level – 29%, Director level – 37%, Others – 34%
- By Region: North America – 39%, Europe – 31%, APAC – 21%, RoW – 9%
The automotive electronics application segment is expected to hold the largest share in the global conformal coating material market during the forecast period. Automotive manufacturers are working hard towards offering products of higher quality and reliability at a competitive price. The APAC region held the largest share of the Conformal Coating Material Market in 2014, and it is expected to grow at the highest growth rate during the forecast period. The rapid growth of the automotive industry in this region, in addition to the growth of consumer electronics, and aerospace & defense sectors has contributed to the growth of the conformal coating material in the APAC region.
The global market for automotive refinish coatings will be worth $11.3 billion by 2021, and will grow at a compound annual growth rate (CAGR) of 6.3% during 2015–2021, according to “World Automotive Refinish Coatings Market—Opportunities and Forecast, 2014-2020.” The solvent borne refinish coating technology segment currently accounts for about half of the revenue. However, the waterborne coating segment is expected to grow at the fastest rate, with waterborne refinish coating revenues matching the solvent borne segment by 2020. Within different product categories, the basecoat refinish coating segment is expected to remain the largest market, with about 33% revenue in 2014. Polyurethane will be the largest resin segment, both in terms of volume and revenue. The key factor driving the growth of the polyurethane segment is its characteristic as foam that assists manufacturers to make automotive seating, which can then be assembled, disassembled and recycled.
Indian Market trends
Indian conformal coating market is experiencing a quite interesting trend with the transforms in EMS and automotive industry. Influenced by Make in India and increasing foreign investments in segments like mobile manufacturing, India EMS industry in forecasting strong continual growth in next 5 years. The most prominent application area for conformal coating materials is Automotive in India. The electronics in the automobile are usually placed in the areas where they are subjected to harsh working conditions, chemical, moisture, dust, and vibration. These factors necessitate the use of conformal coating on automotive electronics so that a protective layer can be added on electronic components to protect them from harsh environment, and thus increasing the reliability of the product.
Continuous adoption of newer technologies, rising disposable income and growing consolidation of automotive market will reportedly be the prime factors for automotive coatings market growth. Increasing road accidents, vehicle customization, and a growing trend of recreational vehicles are also supplementing the overall market growth. However, environmental hazards related to toxic waste produced from solvent borne refinish coatings and price volatility of raw materials will reportedly hinder the growth of the automotive coatings market in India. India also leads the automotive refinish coatings market. The key driving factors of this growth are the increasing sales of pre-owned vehicles, growing cab services, and increasing vehicle repair and body shops in the region. As per a prediction, India is continuously reported to lead the market during the forecast period due to rising demand of vehicle customization.
2nd position is acquired by automation followed by EMS products. The increasing use of automation and adding as well as enhancing features of the end products by OEMs has resulted in the increase usage of electronic components which is one of the major drivers for the Electronics conformal coating market. Besides this the conformal coating helps manufacturers to provide end products with higher level of reliability by protecting the electronic components from moisture, chemicals, dirt, temperature extremes, and abrasion. This factor is also fueling the growth of the above said market. The acrylic conformal coating is expected to lead the global conformal coating material market during the forecast period. This is owing to the fact that among all the materials it is the easiest to re-work on the acrylic material. Besides this, acrylic material is also easy to apply, has low cost, takes less time to cure, and provides good resistance from chemical, moisture, and abrasion. Conformal coating solutions available in India by,
- Electrolube
- Henkel
- Dymax by Ellsworth Adhesives
- Humi Seal by Drive Technology
- And many more …
Business Expansion in India
HumiSeal announces expansion of operation into India
HumiSeal®, a leading conformal coating manufacturer and distributor, continues its globalization with the recent expansion of sales, support and manufacturing operations into Pune, India. This move further enhances the company’s ability to deliver a unified, robust supply to a growing global customer base. Commenting on this announcement, Chris Palin, EMEIA manager, said:
“This is an exciting time for us; India is a strategic market for HumiSeal. We have worked hard to implement a consistent manufacturing and distribution model across our entire Global customer base regardless of their location or requirements. By extending operations to India we are able to ensure that every customer is able to expect the same level of service and product quality.’
