Key Market Overview:
Optical Coatings Market size was valued at USD 16.55 Billion in 2022, registering a CAGR growth of 8.3% during the forecast period (2023-2030), and the market is projected to be valued at USD 29.04 Billion by 2030.
Optical coatings are thin film deposits that are used to improve the transmission, change reflective properties, or change the polarization of light transmitted through an optical component. The optical coating can be a single film made of metals or can be dielectric coating formed of multiple thin layers of material, where the composition, thickness, and number of layers are carefully controlled for a precise result. Moreover, these coatings have various applications including headlight lens systems, rain sensors, rearview mirrors, lighting reflectors, motion detectors, and camera systems among others. They are widely used in automotive and architectural glazing.
Moreover, key manufacturers in the optical coatings market engaged in investing in research and development and expansion activities for optical coating materials-based products, which impact enhancing the market demand. For instance, Newport Corporation acquired Coherent Inc. in the year 2021. The acquisition supports the development in the production of laser systems by enhancing scientific instrumentation and improvements in the coatings sector. Moreover, reflective coatings are used to minimize the loss while reflecting light sources, and lasers. On the basis of regions, Asia Pacific is expected to be the fastest-growing region in the optical coatings market during the forecast period owing to the rapidly growing industries such as electronics and semiconductors, solar and automotive.
Optical Coatings Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||29.04 Billion|
|CAGR (2023-2030)||8.3 %|
|By Type||Anti-Reflection (AR) Coatings, High Reflective (Mirror) Coatings, Filter Coatings, Beam splitter Coatings, Dielectric Coatings, Conductive Coatings, and Others.|
|By Technology||Vacuum Deposition Technology, E Beam Evaporation Technology, Sputtering Technology, Ion-assist deposition Technology, and Others.|
|By End-Use Industry||Aerospace and Defense, Industrial, Medical, Solar, Electronics and Semiconductors, Automotive, Construction and Architecture, and Others.|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||DuPont de Nemours, Inc., Gaggione, Nippon Sheet Glass Co., Ltd., Abrisa Technologies, Newport Corporation, Inrad Optical, Inc., Artemis Optical Ltd., PPG Industries Inc., REYNARD CORP., II-VI Aerospace and Defense, Alluxa, Inc. (Enpro Industries), Edmund Optics Inc.|
• Optical coatings are increasingly used in solar cells and green buildings. Hence, the growing demand for solar cells along with the adoption of green buildings is increasing the growth of the optical coatings market.
• The rise in automotive applications including rain sensors, and lighting reflectors led to increased demand for optical coatings that are supported by safety considerations imposed by industry standards.
Optical coatings can be easily scratched and are expensive to replace. Furthermore, the fingerprints and water might affect the anti-reflective properties of the optical coatings. The glare occurs more whenever there is an excess presence of water on the coating. Additionally, the prices for this have gradually increased over the years. Therefore, the above-mentioned factors are likely to hamper factors hamper the growth of the market.
The growing awareness of the impact of coatings in the automotive industries presents an opportunity for manufacturers to develop sustainable and efficient optical coatings. Hence, by developing optical coatings using sustainable materials and processes, market players can cater to this demand and offer significant products such as automotive reflectors. In addition to this, materials have greater potential applications in the construction sector as these coatings can be applied for glazing and sun roofing solutions, in turn, propelling the market growth.
The type segment is categorized into Anti-Reflection (AR) Coatings, High Reflective (Mirror) Coatings, Filter Coatings, Beam splitter Coatings, Dielectric Coatings, Conductive Coatings, and Others. Anti-reflection coated lenses significantly improve night vision. Moreover, the contrast of bright lights from oncoming cars against the darkness of night increases the incidence of noticeable reflections, which can greatly affect visual acuity. In 2022, the anti-reflection (AR) coatings segment accounted for the highest market share due to its widespread use in various applications in the automotive and construction industries. Furthermore, the high reflective (mirror) coatings segment is anticipated to be the fastest-growing segment in the optical coatings market as it has advanced functionalities such as reasonable durability and high reflectance over a broad range and can be easily designed to perform well for various applications. Thus, all of the above-mentioned factors are contributing to the dominance of the segment.
The application segment is divided into vacuum deposition technology, e-beam evaporation technology, sputtering technology, ion-assist deposition technology, and others. The ion-assist deposition technology segment accounted for the highest share of the optical coatings market. This is due to the significant properties exhibited by the ion-assist deposition technology. Furthermore, the increasing demand for adhesiveness and improved internal stresses are also contributing to the growth of the segment.
However, the sputtering technology is expected to be the fastest-growing segment in the optical coatings market during the forecast period as it is used in ultrafast systems that have demanding coating requirements to meet stringent tolerances on the phase change over a broad band of wavelengths. Hence, the increasing demand for sputtering technology is expected to drive the growth of the segment.
By End-Use Industry
The end-use industry segment is divided into aerospace and defense, industrial, medical, solar, electronics and semiconductors, automotive, construction and architecture, and others. The electronics and semiconductors segment accounted for the highest share of the optical coatings market. This is attributed to the use of optical coatings in various electronics and semiconductors enhancing the transmission and reflection properties. Furthermore, the increasing demand for electronics and semiconductors is also contributing to the growth of the segment.
However, the rising demand for telecommunication, sensors, and security devices is also contributing to the growth of the segment. The advancements in solutions regarding the range-finding target designation and IR countermeasures in military applications are expected to drive the growth of the market.
By region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America accounted for the highest market share in 2022, due to the presence of key players operating in the optical coatings industry, including DuPont de Nemours, Inc., Newport Corporation, and others. Further, technological advancements and early adoption of optical coatings in various industries such as aerospace and defense, industrial and automotive are additionally contributing to the dominance of the region.
However, Asia Pacific is expected to be the fastest-growing region in the optical coatings market during the forecast period as the region holds a strong manufacturing base and has governmental support for the development of optical coatings.
Optical Coatings Market Competitive Landscape:
The market is highly competitive, with a large number of players operating at the global and regional levels. The players compete on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve their products and expand their market share. Mergers, acquisitions, and partnerships are also common strategies employed by companies to enhance their market position and expand their product portfolio. Key players in the market include-
• DuPont de Nemours, Inc.
• Nippon Sheet Glass Co., Ltd.
• Abrisa Technologies
• Newport Corporation
• Inrad Optical, Inc.
• Artemis Optical Ltd.
• PPG Industries Inc.
• REYNARD CORP.
• II-VI Aerospace and Defense
• Alluxa, Inc. (Enpro Industries)
• Edmund Optics Inc.
• In January 2022, Alluxa Inc. launched the next-generation Sirrus plasma physical vapor deposition (PVD) platform that leads to significant capability in extending the spectral optical coating performance. The proprietary process allows optical filters with the highest transmission, steepest edges, and deepest blocking available while maintaining precision wavelength control, high performance, and extremely uniform coatings.
• In June 2020, Edmund Optics Inc. launched new ultrafast enhanced silver coatings and it is suitable for low-to-medium power ultrafast lasers and features an average reflectivity > 99% from 600-1000nm. It is highly customizable and can be used for build-to-printing ultrafast components.