Conformal Coatings Market Estimated To Witness High Growth Owing To Increasing Demand From Electronics Industry

Paragraph: The conformal coatings market is estimated to be valued at US$ 1332.71 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Conformal coatings are thin protective coatings or films which are applied on printed circuit boards and other electronic components to protect them from environmental hazards such as moisture, dust, chemicals and corrosion. Conformal coatings provide protection to electronic assemblies during product lifetime under multiple operating conditions. The key use cases of conformal coatings include protecting circuit boards and components from harsh environmental conditions, shielding electric components from moisture, dust and corrosion and extending product lifetime.

Market Dynamics:
The conformal coatings market is expected to witness significant growth owing to increasing demand from electronics industry. Growing consumption of electronic appliances and gadgets globally is augmenting the demand for PCBs and semiconductors, which in turn is fueling the growth of conformal coatings market. According to Coherent Market Insights analysis, global demand for electronic products exceeded US$ 2 trillion in 2020. Additionally, key drivers such as growing adoption of 5G technology and increasing penetration of IoT based devices are further propelling the production of circuit boards and creating high demand for conformal coatings. Expanding electronics and automotive industries in Asia Pacific is creating new revenue opportunities for conformal coatings market players in the region. Continuous innovations by manufacturers to develop coatings with improved properties is also estimated to positively impact the market growth over the forecast period.

SWOT Analysis

Strength: Conformal coatings provide protection against water, chemicals, dust, corrosion and other environmental factors for printed circuit boards and other electronic components. They help increase product life and reliability. Conformal coatings offer uniform coverage and bonding over complex component shapes and circuits.
Weakness: Application of conformal coatings requires specialized equipment and skilled labor which increases costs. Certain conformal coating materials are not compatible with all substrates which limits their usage.
Opportunity: Growing demand for miniaturized and compact electronic devices will drive the need for conformal coatings that provide protection without adding bulk. Expanding automotive and renewable energy sectors present an opportunity for conformal coating manufacturers.
Threats: Stringent environmental regulations around the use of volatile organic compounds (VOCs) in coatings pose challenges. Alternatives like non-conformal encapsulation methods threaten the demand.

Key Takeaways:

The global conformal coatings market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing demand for protection of electronics from moisture, dust, chemicals and mechanical stresses. Miniaturization of devices and need for higher reliability is driving the demand for conformal coatings.

Regional analysis Asia Pacific dominates the global conformal coatings market and is expected to grow at the fastest rate owing to rapid industrialization and growing electronics sector in China, India, Taiwan, Japan and South Korea. China is the largest producer and consumer of electronic equipment in the world. Presence of numerous electronic manufacturing facilities makes APAC highly lucrative for conformal coating manufacturers.

Key players operating in the conformal coatings market are Altana, Chase Corp., CHT Ltd, Dow, Dymax, HK Wentworth Ltd, H.B. Fuller Company, Henkel AG & Co. KGaA, ITW, Kisco Ltd, MG Chemicals, Panacol-Elosol GmbH, Shin-Etsu Chemical Co. Ltd, and Momentive. Leading players are focusing on developing newer grades with lower VOC content and faster curing properties to meet stringent regulations and customer demands.

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