Automotive Conformal Coatings Market: Description

Conformal Coatings, also known as polymeric coatings, are applied in thin layers on printed circuit boards to protect and electrically insulate the components from environmental stresses. The coatings can either be sprayed, brushed, or flow-coated. Providing protective conformal coating for sensitive electronic assemblies and complex components in automobiles have become necessary. The Parylene coatings have provided enhanced protection for all kinds of electronic circuits which the automotive industry has turned to.

Companies operating in the global automotive conformal coatings industry are also significantly propelling the market growth. For instance, In 2021, Electrolube announced the launch of a new conformal coating for automotive electronics, the DCA-E range. The coating is designed to offer enhanced protection against the harsh environments encountered in automotive applications. In 2020, Specialty Coating Systems, a leading provider of conformal coating solutions for automotive and other industries, announced a USD 5 million investment from Summit Park, a private equity firm. The funding is intended to support the company's growth and expansion in the automotive and electronics markets.

Automotive Conformal Coatings Market: Overview

The total global Automotive Conformal Coatings Market is estimated to reach USD 2,064 Million by 2033 from USD 1,133 Million in 2022 at a compound annual growth rate (CAGR) of 6.1%.

Conformal coating is a protective coating that matches the surface of assembled printed circuit boards and electronic components. The coating can protect the user from moisture, dust and corrosion that can be caused by extreme environmental conditions and improves assembly service life. The resulting coating can be applied to the surface of the assembled circuit board manually or by a robot and it forms a polymer film with a thickness of 25-100 µm. The Conformal coating also provides the greatest degree of protection for electronic circuits from the corrosive environment, such as moisture, dust, chemical pollutants, salt, Fog etc. Due to electrical isolation, it maintains and ensures the reliability of electronic equipment for a long time.

Automotive Conformal Coating Market: Key Trends

·         Increasing demand from high-end applications require conformal coating

Conformal coating is highly preferred in PCBs that are used in high-end applications in aerospace & defense and automotive industries. The aerospace & defense industry uses conformal coatings in space shuttle controls & systems, aircraft communications & controls, satellite systems, lightening protection chassis, and other similar technologies. For the aerospace & defense industry, the reliability on conformal coatings performance is the overriding issue. As the PCBs used in the aerospace & defense sector have the tolerance levels of ±0.0005 on etched features. Whereas, Conformal coatings should also meet specific aerospace standards in order to get reliability tag from end users. These factors prove the increased operational parameters for electronic components in the aerospace & defense industry.

·         Miniaturization of PCBs affected the usage of conformal coating

This trend has compact and lighter electronic devices and end-use components and is driving the need for miniaturization in PCBs. The PCB industry plays an important role in the development of electronic gadgets. The use of PCBs results in lower material requirements, reduce space requirements, and fewer recycling requirements. In the development of High-Density Interconnect (HDI), a PCB with a greater number of interconnections and occupying minimal space, which enables PCB manufacturers in miniaturization of the circuit board. The components in these PCBs are placed closer, and the board space is significantly reduced. These trends enable the manufacturing of efficient electronics devices. Miniaturization has resulted in a reduction in the use of coating volumes per PCBs.

Automotive Conformal Coating Market: COVID-19 Impact

The COVID-19 has resulted in lockdown in several countries, which compelled the shutting down of several manufacturing facilities. The end-use industries, such as automotive & transportation and consumer electronics have declined and the pandemic has resulted in a gush in demand for medical and food packaging. Because of this increasing demand, medical device and their component manufacturers are being operated at maximum capacities. Conformal coated PCBs are used in medical applications as they are effective in protecting electronic devices from erosion and external chemical attack. With healthcare facilities battling the COVID-19 crisis, demand for medical devices and equipment is high, and machinery to manufacture this equipment is also in high demand. Thus, creating opportunities for conformal coating manufacturers.

Automotive Conformal Coating Market: Segmentation Analysis

Key Players:

·         ACC Silicones Ltd.

·         ACL, Inc.

·         ALTANA AG

·         Anabond Limited

·         Avante International Technology, Inc.

·         Chase Corporation, ConinsPune

·         Creative Materials, Inc.

·         CSL Silicones Inc.

·         DowDupont Inc.

·         Dymax Corporation

·         Electro-Lite Corporation

·         Electrolube, Europlasma NV

·         H.B. Fuller Company

·         Henkel AG & Co. KGaA

·         Illinois Tool Works, Inc.

·         John C. Dolph Company

·         Master Bond, Inc.

·         MG Chemicals

·         Peters Group

·         Protech Powder Coating Company LLC

·         Shin-Etsu Chemical Co., Ltd

·         PPG Industries

·         Others

Automotive Conformal Coating Market by type:

·         Acrylic

·         Silicone

·         Epoxy

·         Urethanes

·         Paralyene

·         Others

Acrylic conformal coating is recognized for its high dielectric strength and fair moisture and the abrasion level. This type provides a primary level of protection at an economical cost as compared to other automotive conformal coating materials. It is key type which drives the growth of the market.

Automotive Conformal Coating Market by component:

·         ECU

·         PCB

·         Sensor

·         Battery Casing

·         LED

·         Infotainment System

The sensor segment is anticipated to expand notably over the forecast duration owing to increasing government emphasis on the installation of sensors in vehicles as road safety measure.

Automotive Conformal Coating Market by Vehicle Type:

·         Passenger vehicle

o   Hatchback

o   Sedan

o   Utility Vehicles

·         Light Duty Vehicle

·         Two-Wheeler

·         Medium & Heavy Trucks

·         Buses & Coaches

Passenger type conformal coating market is expected to drive by increase in electronic components. China and India has the highest rate of passenger cars which will drive the growth of this market. Standard features, such as reverse parking assist, airbags, are expected to increase the installation of PCBs, ECUs and sensors in passenger cars.

Automotive Conformal Coating Market by Application:

·         C In-cabin Electronics

·         Under the hood Electronics

·         Exterior Electronics

Automotive Conformal Coating Market: Regional Analysis

The market has shown a decline because of COVID- 19 which has resulted in a decline in vehicle production. Asia Pacific is expected to account for the largest market share as the region is home to China and Japan which are the leading vehicle production hubs. China, Japan, and South Korea are expected to rise the market in the Asia Pacific region. Other regions include North America, Europe and LAMEA.

Automotive conformal coating market- Competitive landscape

The prominent companies operating in the marketplace are ACC Silicones Ltd., ACL, Inc., ALTANA AG, Anabond Limited, Avante International Technology, Inc., Chase Corporation, ConinsPune, Creative Materials, Inc., CSL Silicones Inc., DowDupont Inc., Dymax Corporation, Electro-Lite Corporation, Electrolube, Europlasma NV, H.B. Fuller Company, Henkel AG & Co. KGaA, Illinois Tool Works, Inc., John C. Dolph Company, Master Bond, Inc., MG Chemicals, Peters Group, Protech Powder Coating Company LLC, Shin-Etsu Chemical Co., Ltd, PPG Industries, and Others.