Optical Coatings Market Analysis

Optical coating is a deposition of thin layers of films that create interference effects, in order to enhance reflection and transmission properties of an optical system. Optical coatings enhance optical functions and provide protection to optic from harsh environmental conditions. These coatings are manufactured by using rare earth materials, oxides, and metals.

The global optical coatings market is estimated to reach around US$ 24202.12 million by the end of 2030, in terms of revenue, growing at CAGR of 6.8 % during the forecast period (2022-2030).

Drivers

The growing market of smartphones is a prime factor augmenting the market growth of the optical coatings. This is attributed to increasing penetration of the internet around the globe. For instance, International Telecommunication Union, estimates that at the end of 2030, 53.6% of the global population, or 4.1 billion people, were using internet. Thus, growing penetration of smartphones around the globe is expected to propel the market growth of optical coatings.

Technological advancements in the field of optical deposition techniques and fabrications are expected to offer potential opportunities to the market of optical coating. For instance, in March 2019, Precision Glass & Optics announced the installation of a new optical monitoring system, SL-2012A SpectraLock from Eddy Company. The advanced system provides in-situ optical monitoring and rate control to produce single and multi-layered thin films with ultra-precision and accuracy.

Coronavirus is expected to have a significant impact on infrastructure sector. Infrastructure are expected to vulnerable to delays due to supply chain disruptions and unavailability or shortage of workers. Governments across the world are devoting resources to address immediate needs, which in turn has made infrastructure projects take a back seat. This is expected to lower demand for optical coatings from infrastructure sector. The coronavirus is expected to have a short term impact on optical coatings market. According to Coherent Market Insights, optical coatings market is expected to grow at a lower CAGR 6.8 % between 2020 and 2021.

Figure 1. Global Optical Coatings Market  Share (%) in terms of Value, By Region , 2021

North America region dominated the global optical coatings market in 2021, accounting for 35.5% share in terms of value, followed by Asia Pacific and Europe, respectively.

Market Restraints

Increasing environmental concerns due to growing electronic waste such as desktops, smartphones, mobile phones, laptops, and other such optically coated devices are expected to hinder the market growth.

Optical Coatings Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 13456.00 Mn
Historical Data for:	2017-2020	Estimated Year:	2022
Forecast Period 2022 to 2030 CAGR:	6.8 %	Forecast Period:	2022-2030
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Africa
Segments covered:	By Product Type: Anti-reflective Coatings, Filter Coatings, Transparent Electrodes, Reflective Coatings, and Others By Application: Electronics, Defense/security, Infrastructure, Solar, and Others
Companies covered:	3M Precision Optics, Ophir Optronics, Ltd., PPG Industries, Janos Technology, Inc., Abrisa Technologies, Denton Vacuum, LLC, JDSU, Inrad Optics, Newport Corporation, and Optical Coatings Japan
Growth Drivers:	The growing market of smartphones is a prime factor augmenting the market growth Growing demand for reflective coatings in green buildings for heat retention and reducing consumption of energy
Restraints & Challenges:	The fluctuating price of raw materials used in the optical coatings

Market Trends

The rapid adoption of smart televisions among consumer is a major trend in the market. This is attributed to improving lifestyle and increasing disposable income of the consumers. The growing trend of wearing smart watches among young population is also expected to augment the market growth of optical coatings. Growth in the semiconductor industry, coupled with the technological advancements are further expected to bolster the market growth of optical coatings.

Collaborations, partnerships, and agreements among major players to expand presence on the global level is a major trend in the market. For instance, in March 2018, Helia Photonics (Livingston, Scotland), a company that specializes in coatings for laser optics and semiconductor laser facets, partnered with precision optical component supplier Brilliant Optics (Shenzhen, China) to advance optical coatings.

Figure 2. Global Optical Coating Market Share (%),  By Application, 2021

On the basis of application, in 2021, infrastructure segment accounted for the largest market share of 38.8% in terms of value, followed by electronics and defense/security segment respectively.

Recent Developments

• On Sept. 30, 2022 - Global optical coatings market is growing at a high CAGR because of the increasing demand for thin-film optical coating in semiconductor, scientific, solar, and military equipment. The market is also witnessing growth due to growing automotive and telecommunication sectors, which demands optical coatings.
• In April 2021, Newport Corporation acquired all the outstanding shares of Coherent, Inc. for USD 250 per share, USD 115 in shares, and composed of USD 135 in cash.
• In September 2020, DuPont Electronics and Imaging announced the completion of a new plant dedicated to liquid polyimide (P.I.) for flexible display substrates and also response to the flexible display market's rapidly growing consumer business needs.

Competitive Section

Major players operating in the global optical coatings market include 3M Precision Optics, Ophir Optronics, Ltd., PPG Industries, Janos Technology, Inc., Abrisa Technologies, Denton Vacuum, LLC, JDSU, Inrad Optics, Newport Corporation, and Optical Coatings Japan.