Automotive Electronics Conformal Coatings Market

Automotive Electronics Conformal Coatings Market Outlook

The automotive electronics conformal coatings market is anticipated to reach a value of over US$ 1 billion by 2031, growing at a rate of over 5% CAGR during the forecast period.

Due to the development of a robust market for electric vehicles, growth is projected to continue unabated. Allowing for recessionary pressured induced by the COVID-19 pandemic, the global market for automotive electronics conformal coatings was estimated at almost US$ 790 million as of 2020. 

Automotive Electronics Conformal Coating Demand from 2016-2020 Vs Future Growth Projections from 2021-2031

From 2016 to 2020, sales of automotive electronics conformal coatings expanded by around 5% in terms of value CAGR. Increasing vehicle ownership across all geographies has prompted heightened investments in automotive electronics such as sensors and other equipment, thereby accelerating growth.

A strong electric vehicle (EV) market shall majorly sustain future growth prospects, expanding at nearly 5% CAGR until 2031.

How are Technological Advancements in Automotive Electronics Conformal Coating Stimulating Demand?

Protecting automotive electronics has become significant over the years. Conformal coating is required to protect vital components against harsh operating conditions and to increase surface insulation resistance due to space reduction between tracks.

With advancements in technology, the coating methodology has undergone various changes. Materials like parylene are now applied via chemical vapor deposition in a slow and controlled process to ensure no loss in material thickness at the edges of the components, which would normally be an issue with wet coatings.

Will Rising Adoption of Electronic Components Act as a Growth Lever for Automotive Electronics Conformal Coatings?

As ownership of automobiles increases globally, so is investment in adequate electronics and electrical components. Moreover, technological advancements to streamline driving experience is prompting investments in equipping vehicles with advanced systems.

Components such as rain sensors, HVAC control systems, automatic dimming mirrors, airbag actuation systems, automotive electronic control units (ECUs) and printed circuit boards (PCBs) are being equipped across contemporary vehicles, thus inclining demand for solutions ensuring longevity of the same, inclining demand for conformal coatings.

What are the Key Challenges Associated with Applying Automotive Electronics Conformal Coatings?

While acrylic conformal coatings are relatively simple to remove from the surface, the challenge lies with removing polyurethane conformal coatings. Polyurethane conformal coatings are slightly difficult to remove due to their chemical resistance and can be removed through specifically designed stripping solutions.

However, silicone coatings can only be removed through abrasion which has high chances of damaging the electronics equipment as there is every possibility of contamination of the surface. Hence, key players are expected to experience limited sales of these conformal coatings, restraining growth.

Country-wise Analysis

What are the Prospects for the U.S Automotive Electronics Conformal Coatings Landscape?

The market for automotive electronics conformal coatings in the U.S. was valued at over US$ 200 million in 2020, and is likely to account for over 2 out of 5 sales until 2031. Growth is largely underpinned by significant developments across the automotive industry.

According to data published by Select USA, the U.S has one of the largest automotive markets in the world, with light vehicle sales reaching 17.2 million units. As of today, major companies have invested more than US$ 75 million in the economy, prompting an expansion of allied industries such as automotive electronics conformal coatings.

How Lucrative are Growth Prospects for Automotive Electronics Conformal Coatings in China?

Sales of automotive electronics conformal coatings across China are forecast to reach over US$ 220 million, expanding at over 7% CAGR until 2031. A surging EV market is anticipated to pivot most of the demand across the forecast period.

For instance, EV manufacturing giant NIO has registered a whopping 125% sales surge in the Chinese market in April 2021, delivering over 100,000 units. Its ES6 five seater SUV was the top-selling brand, recording 9% y-o-y growth. Such enhanced uptake is prompting manufacturers to invest in new technologies, paving way for enhanced growth.

Category-wise Insights

Which is Anticipated to be the Dominant Automotive Electronics Conformal Coating Material?

Based on material, demand for acrylic automotive electronics conformal coatings is likely to emerge as the dominant segment, forecast to expand at above 5% CAGR until 2031, reaching nearly US$ 500 million.

Acrylic conformal coatings have excellent physical properties, which are attained very quickly because of their rapid drying nature. They are fungus resistant, provide longer than average pot life, and have excellent moisture protection.

Competitive Landscape

Some notable developments in the global automotive electronics conformal coatings landscape are as follows:

• In March 2021, Electrolube Limited announced that its UV conformal coating is highly effectual in enhancing durability of electric vehicle management systems across India, providing high degree of protection for electronic circuitry at high production throughputs.
• CONINS Pune, a prominent Indian manufacturer, offers a broad range of PCB conformal coatings, including the G1/G2/G3 electronic coating, conformal coatings for LED lights, VOC-free moisture proof PCB conformal coating and PCB assembly conformal coating spray.
• In November 2019, Europlasma N.V launched PlasmaGuard, the first halogen-free PECVD conformal coating for PCBs and wearables.

*This list is indicative- full details about prominent market players is available upon request

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S. Canada Germany U.K. France Italy Spain Russia China Japan South Korea India Australia Brazil Argentina Mexico GCC South Africa
Key Segments Covered	Material Region
Key Companies Profiled	Aalpha Conformal Coatings ACC Silicones Ltd. ACL Inc. ALTANA AG Anabond Limited Avante International Technology Inc. Chase Corporation CONINS Creative Materials Inc. CSL Silicones Inc. DuPont Dymax Corporation Electro-Lite Corporation Electrolube Limited Europlasma NV H.B. Fuller Company Henkel AG & Co. 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.
Pricing	Available upon Request

Key Market Segments Covered

• By Material :

  • Acrylic Automotive Electronics Conformal Coatings
  • Silicone Automotive Electronics Conformal Coatings
  • Urethane Automotive Electronics Conformal Coatings
  • Epoxy Automotive Electronics Conformal Coatings
  • Paraxylene Automotive Electronics Conformal Coatings

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa