Optical coatings are used across a wide range of applications such as UV resistance, anti-glare chemical resistance, and scratch & abrasion protection. Optical coatings are basically used to enhance the transmission and reflection properties of the optical system. Automotive, electronics, medicals, and telecommunication are some of the major end-user of the optical coatings.
Global optical coatings market is estimated to account for around US$ 10,392.3 million in terms of value in the year 2019 and it predicted to grow at a CAGR of 7.2% during the forecast period (2020-2027).
Increasing demand for renewable energy is fueling demand for solar power and the optical coating is widely used on solar panel module in order to enhance efficiency is expected to spur the market growth. Growing energy crises due to growing energy cost is one of the major factor increasing demand for renewable sources of energy. Moreover, growing environmental concerns such as global warming associated with conventional energy sources is further creating demand for solar power which in turn accelerating the market growth.
Boosting demand for cost-effective film coatings in defense, biomedical, and laser industries is projected to open new market avenues in the near future. Growth in the healthcare and packaging industry is also projected to foster the market growth of the optical coatings over the forecast period. Moreover, growing demand for thermally-controlled coatings especially for sensitive detectors is again anticipated to augment the market growth of optical coatings in the near future.
The high cost of production owing to expensive application techniques is expected to restrict the market growth of optical coatings. Also, health hazard associated with the production of optical coatings have severe effects on human health such as diarrhea, skin irritation, asthma, and other respiratory diseases.
On the basis of region, North America region dominated the global optical coatings market in 2019 with a 35.5% of market share in terms of value, followed by Asia Pacific and Europe respectively.
On the basis of product type, anti-reflective coatings segment dominated the global optical coatings market in 2019 with a 31.1% of market share in terms of value, followed by filter coatings and transparent electrodes segment respectively.
Anti-reflecting coatings are gaining popularity across various applications. These are thin-film optical coatings that consist of several layers with various refractive indexes between each layer. Anti-reflecting coatings are ideal for producing camera lenses, display screens, magnifying lenses, and eyeglasses. Moreover, anti-reflecting coatings are also gaining demand from photovoltaic solar panels, thereby fueling the market growth of optical coatings over the forecast timeframe.
An increase in the defense and aerospace budget by the government is a major trend in the market. The growing use of vacuum deposition across transportation, packaging healthcare, and the defense sector due to its various advantages offer are expected to augment the market growth. Moreover, increasing penetration of new market player in the field is further expected to foster the market growth of the optical coatings over the forecast period.
Global Optical Coatings Market - Impact of Coronavirus (Covid-19) Pandemic
The coronavirus outbreak is expected to disrupt supply chains causing shipment delays for electronic manufacturers. These delays are expected to last for at least few months. Ripple effects will increase as the virus continues globally, causing more countries to restrict border access and raw materials. According to Coherent Market Insights, consumer electronics will be worst hit by these restrictions, which will impact demand of optical coatings from electronics sector.
Few Recent Developments
In June 2020, Denton Vacuum has purchased the assets of Isoflux relating to its cylindrical cathode technology. This includes both equipment intellectual property and patents on the cylindrical cathode and process patents for its application to several biomedical applications.