Optical Coating Market Size, Share & Industry Analysis, By Type (Anti-Reflective Coatings, Reflective Coatings, Filter Coatings, Conductive Coatings, Electrochromic Coatings, and Others), By End-use Industry (Consumer Electronics, Telecommunication, Medical, Transportation, Aerospace & Defense, and Others), and Regional Forecast, 2024-2032

The global optical coating market size was valued at USD 15.38 billion in 2023 and is projected to grow from USD 16.66 billion in 2024 to USD 30.62 billion by 2032, exhibiting a CAGR of 8.0% during the forecast period. Asia Pacific dominated the optical coatings market with a market share of 47.53% in 2023. Moreover, the optical coatings market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 3.37 billion by 2032, driven by the rising usage of optical coating in the automotive industry.

The increased use of thin-film optical coating in semiconductor technologies, scientific equipment, solar energy, and military equipment has fueled the market. Besides, several industry companies' R&D efforts to improve their coating procedures and materials to produce high-performance optical coats. The demand for eyewear, such as spectacles and sunglasses, increases as the population grows. These coatings are used in both industries. Due to recent technological breakthroughs in the realm of optical deposition processes and manufacturing, as well as increased demand for powerful optical products in end-use applications, the market is predicted to grow.

The COVID-19 pandemic identified a number of issues in the paints and coatings sector, impeding the expansion of the market. Transportation, manufacturing, oil and gas, automobiles, and energy industries saw a prolonged shutdown and a dramatic decline in growth rates. The pandemic reduced demand for optical coating across these industries. Paint demand in the automobile sector fell due to a decline in travel as individuals spent more time at home during the COVID-19 outbreak. However, according to Marklines Information Portal, automobile sales in China recovered at a breakneck pace. Vehicle shipments in February 2024 were up 18.7% year-over-year. Furthermore, some industries, such as consumer electronics, medicine, and telecommunications, saw consistent growth during the pandemic.

Optical Coating Market Trends

Increasing Demand for Transparent Conductive Coatings to Support the Market

The market for transparent conductive coatings is booming due to the rising demand and manufacturing of touchscreen panels, thin-film solar cells, and light-emitting goods. Flexible devices with larger touch screens are becoming more popular. It is worth mentioning that transparent conductive coatings mainly use indium tin oxide (ITO). Due to its expensive nature, brittleness, high temperature essential to deposit films, and yellow hue when deposited at specific thicknesses, a reliable substitute is being developed. Alternative materials, ranging from carbon nanotubes to graphene to conductive polymers, have been investigated, but achieving equivalent efficiency to ITO has been difficult. Silver nanowires (AgNW) have lately emerged as an attractive alternative due to their excellent conductivity and clarity, resistance to splitting, low-cost deposition, optical transmittance, and high DC conductivity. TBA Electro Conductive Products, situated in the U.K., has developed a spray-able translucent conductive coating comprising a hybrid CNT and graphene platelets (GNP) material. TBA is interested in entering the electronics, food, petrochemicals, and medicines industries.

Transparent conductive coatings are employed in a wide range of industries, including agricultural electronics and touch screens. The electrically conductive coatings market is driven by consumer demand for electronic displays such as LCDs in TVs and mobile devices. Furthermore, the debut of nanotube technology and the enormous consumer base for electronics and optical wear are expected to bolster the optical coating market growth.

Emergence of Nanostructured Coatings to Change the Dynamics of the Industry

The emergence of nanostructured coatings was one of the most interesting developments in the field of optical coatings. Engineered at the nanoscale, these optical coatings allow accurate control over their optical properties, enabling their use in groundbreaking applications. By controlling the composition and structure of the coating at the nanoscale, researchers can attain improved light absorption, reduced reflections, and enhanced spectral selectivity. Nanostructured coatings find widespread use in solar cells, optical filters, and anti-reflective coatings. For example, in solar cell technology, nanostructured coatings can augment light trapping, allowing more efficient energy conversion. Researchers at the Massachusetts Institute of Technology (MIT) have made noteworthy advances in this area, employing nanostructured coatings to enhance the competence of perovskite solar cells by capturing a broader spectrum of sunlight.

Optical Coating Market Growth Factors

Rising Usage of Optical Coating in Automotive Industry to Support the Market

The use of optical coating in automobile glazing has a long history of increasing the value and versatility of the vehicle. Veiling glare is the reflection of the interior from the windscreen back to the observer, which reduces a driver's visual insight. Furthermore, the newfound popularity of high-installation-angle windscreen structures aggravates the problem of glare veiling. Adding optical antireflection (AR) coatings to the windscreen reduces reflectivity and eliminates glare. Compared to uncoated glass, the inboard reflectance of a laminated windscreen at a 60-degree installation angle is reduced from 13.6% to 9.7% due to a revolutionary three-layer AR structure generated by this approach. When AR films are applied to both the inboard and outboard surfaces of the windscreen laminate, the structure's reflectance drops to 7.3%. Aside from the reduced reflections, the mirrored hue of the AR windscreens is more neutral than normal AR designs, resulting in a more aesthetically pleasing completed product.

Anti-reflection coatings are used on several refractive lenses to boost productivity and reduce ghosting. The simplest and most effective anti-reflective type of coating is a solitary layer of Magnesium Fluoride (MgF2), whose refractive index is extremely low (approx. 1.38 at 550 nm). In October 2020, Panasonic's Industrial Solutions Company launched a type

anti-reflection material for automotive displays. A wet technique was used to create the low reflection film with the model number MUAG8 (G200N), which has great cost-efficiency. The company started shipping prototypes and aimed to start mass production in April 2021.

Vigorous Growth of the Telecommunication Industry to Drive the Market

The global economy's interconnectivity is based on the transfer of speech and data. Owing to the increasing growth of optical fiber networks, connections across continents have grown more active. The use of the internet is also fueling the exponential growth of the optical industry. These coatings can be applied to a wide range of devices or used as an optical feature on value-added items like lenses. Many optical elements might be mass-produced and coated at the same time, cutting costs and increasing commercial revenue for the coating business. The signal transmission of optical fiber networks is monitored using complex filters. In the communications sector, multi-layer thin film stacks increase the bandwidth of optical fiber distribution. The fastest-growing market for these coating applications will be the telecommunications industry. Thin-film filters are made up of multiple layers and very small particles. They generate high benefit market rates despite their modest production volume. Many manufacturers would be at the forefront of this field if they could process coating technology in high-end industries. In response to the demands of the optical communications industry, the efficiency standards for thin-film optical filters have risen considerably.

RESTRAINING FACTORS

Errors Triggered by Evaporation Deposition Process to Hamper Market Growth

Evaporation deposition is a low-cost technique that can be utilized on various materials, including metals and dielectrics. The chamber's design also provides a large gap between the substrate source and the optical bits. As a result, good coating uniformity is attained even for complexly shaped and steeply curved optical components. Regardless, it is often an inefficient production method that relies heavily on operator feedback and is more susceptible to random and systematic failures than other systems. Changes in process variables such as rate of deposition, vapor distribution, temperature, vacuum pressure, and others are the primary reason.

As a result of these changes, layer-to-layer errors are higher, resulting in spectral efficiency inconsistency. In an evaporation chamber, a full coating run also takes a longer time and consumes less material. It can take up to twice as long as alternative advanced plasma reactive sputtering (APRS) procedures, depending on the specifications. The end cost of an evaporation-produced component is usually less than required as power, yield, and production-cycle time are all major cost variables.

Optical Coating Market Segmentation Analysis

By Type Analysis

Anti-reflective Coatings Segment to Dominate the Market Due to Demand from Automotive Sector

Based on product, the market is classified into electrochromic coatings, anti-reflective coatings, filter coatings, reflective coatings, conductive coatings, and others.

Liquid Crystal Displays (LCDs), Light Emitting Diodes (LEDs), and solar cells, for instance, need high transmittance while excessive light reflects from the surface. Applying AR coatings to the substrate is one way to make anti-reflective surfaces. Increase in the demand for anti-reflective coatings in the construction of automotive displays, solar panels, windows, and GPS navigation systems could fuel the industry growth.

Filter coatings are likely to grow at a significant rate in the next few years. Filter coatings' potential for high-performance and ecologically friendly coatings in end-use industries such as healthcare, aerospace, defense, solar, and sensors are fueling demand.

By End-use Industry Analysis

Consumer Electronics Industry Accounted Major Optical Coating Market Share in 2023 with Rising Demand for Touchscreens

By end-use industry, the market segments include telecommunication, consumer electronics, aerospace & defense, medical, transportation, and others.

The consumer electronics segment is estimated to account for the major share during the forecast period. Consumer electronics is expected to drive demand for the market. Smartphone saturation is increasing, and demand for touchscreens, optical add-on packages, monitors, and product technologies are driving consumer electronics demand.

Coatings are used on mirrors, panels, and dashboards in the automotive industry. Both car makers make the most money in the sector, and automotive manufacturers are still looking for price cuts as much as conceivable. Electrochromic coatings, used in high-end and luxury car anti-glare rearview mirrors, are the most profitable form of paint.

REGIONAL INSIGHTS

In 2023, the market in Asia Pacific was valued at USD 7.31 billion. Increased population and increased demand for consumer electronics, such as laptops, cell phones, cameras, video game consoles, personal computers, and LED TVs, are expected to fuel the regional market. Consumer electronics have grown in popularity in the region as a result of a number of causes, including improving economic conditions and increasing middle-income countries' high discretionary incomes. China, India, and South Korea have emerged as major revenue drivers for the consumer electronics industry in Asia Pacific. The market in the region is likely to be driven by the region's strong consumer electronics growth.

The demand for non-toxic and environmentally friendly coatings has boosted the use of coatings materials in semiconductor and circuit assembly, laser systems, sensor applications, and aerospace applications which further has propelled the market in North America to new heights. The market is expected to grow due to increased investment in the military and defense industries for applications such as vision cameras, beam attenuators, and range finding. The demand in the North American region is being fueled by a strong focus on domestic production and the growing solar industry in the United States.

Europe has the highest liberalization, privatization, and competition in the telecommunications business. The region is predicted to rise steadily due to the rising use of these coatings in car windows, automobile displays, and headlamps. Furthermore, the market is expected to be driven by the expanding middle class demographic, as well as the growing demand for low-cost vehicles over the optical coating market forecast period.

The percentage of persons who own a smartphone has increased from 39.1% to 43.2%. However, smartphone purchases are assisting in the growth of the Latin America consumer electronics market. Attributed to the rise of the middle class in several Middle Eastern and African countries, particularly Egypt and South Africa, the market is projected to be driven by the fact that millions of individuals can now afford to buy expensive and sophisticated consumer devices.

List of Key Companies in Optical Coating Market

Strategic Planning Adopted by Companies to Strengthen Their Market Share

Most corporations have consolidated their raw material manufacturing and delivery processes to maintain product consistency and expand their geographic presence. This provides a strategic advantage in cost reductions, allowing enterprises to boost their profit margin. Companies frequently place a high priority on R&D to develop new technologies in order to remain competitive and fulfill changing end-user expectations. Research on novel materials that combine various qualities is expected to gain widespread market acceptance in the future years. The key players in the market are PPG Industries, ZEISS International, Inc., Nippon Sheet Glass Co., DuPont, Ltd, and Newport Corporation.

LIST OF KEY COMPANIES PROFILED:

• Jenoptik (Germany)


• SCHOTT (Germany)


• Optimax Systems, Inc. (U.S.)


• Surface Optics Corporation (U.S.)


• GELEST, INC. (U.S.)


• Materion Corporation (U.S.)


• VAMPIRE OPTICAL COATING (U.S.)


• Reynard Corporation (U.S.)


• VIAVI Solutions Inc. (U.S.)


• PPG Industries, Inc. (U.S.)


• DuPont (U.S.)


• ZEISS International (Germany)


• Nippon Electric Glass Co., Ltd. (Japan)


• Newport Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Jenoptik announced plans to increase its manufacturing capacities and invest in a new office complex at its Dresden, Germany in response to rising demand for sensors for the semiconductor sector and optics.


• March 2021 –Surface Optics Corporation was awarded a Phase II NAVAIR Small Business Innovation Research (SBIR) contract to develop antireflection coatings for aerodynamic missile domes.

REPORT COVERAGE

The study report offers a thorough examination of key factors such as major firms, goods, and services. It also provides market trends and highlights important industry advancements. The study includes different variables that have contributed to the market's growth in recent years, in addition to the factors listed above. It examines the industry's newest market dynamics and opportunities, as well as historical data and revenue growth estimates at the global, regional, and country levels.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 8.0% over 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Type Anti-Reflective Coatings Reflective Coatings Filter Coatings Conductive Coatings Electrochromic Coatings Others
By End-use Industry Consumer Electronics Telecommunication Medical Transportation Aerospace & Defense Others
By Region North America (By Type, End-Use Industry) U.S. (By End-Use Industry) Canada (By End-Use Industry) Europe (By Type, End-Use Industry) Germany (By End-Use Industry) U.K. (By End-Use Industry) France (By End-Use Industry) Italy (By End-Use Industry) Spain (By End-Use Industry) Russia & CIS (By End-Use Industry) Rest of Europe (By End-Use Industry) Asia Pacific (By Type, End-Use Industry) China (By End-Use Industry) Japan (By End-Use Industry) India (By End-Use Industry) South Korea (By End-Use Industry) Rest of Asia Pacific (By End-Use Industry) Latin America (By Type, End-Use Industry) Brazil (By End-Use Industry) Mexico (By End-Use Industry) Rest of Latin America (By End-Use Industry) Middle East & Africa (By Type, End-Use Industry) GCC (By End-Use Industry) South Africa (By End-Use Industry) Rest of the Middle East & Africa (By End-Use Industry)