As per a new study by ESOMAR-certified market research and consulting firm, the automotive electronics conformal coatings market is poised to surpass US$ 1 billion valuation by 2031, expanding at approximately 5% CAGR over the next ten years. Growth is likely to remain sustained due to the emergence of a strong electric vehicles market.
The market accrued significant gains until 2020, being valued at nearly US$ 790 million. According to the International Energy Agency’s Global EV Outlook 2021, a record 3 million new electric cars were registered in 2020, a 41% increase from 2019. By comparison, the global automobile market contracted 16% the same year. Moreover, this strong momentum of electric cars has spilled over to 2021, reaching almost 2.5X their level as against 2020.
Hence, key automotive manufacturers are incorporating highly advanced electronics to enable enhanced performance of EVs, prompting increased investments in conformal coatings for the same, opening up lucrative revenue prospects for the coming years. Manufacturers are highly likely to target the emerging economies across Asia, notably India and China, for better prospects.
Key Takeaways from Market Study
· Demand for acrylic automotive electronics conformal coatings to reach almost US$ 500 million by 2031
· Deployment of urethane conformal coatings to surge at a CAGR of nearly 5% across the forecast period
· Silicone-based automotive electronics conformal coatings to experience a CAGR of nearly 4% until 2031
· The U.S. to register inclining sales of automotive electronics conformal coatings, being valued at over US$ 200 million in 2020
· Surging EV sales to provide tailwinds to the Chinese market, likely to surpass US$ 220 million
· Australia, India, and South Korea are forecast to collectively reach nearly US$ 150 million by 2031
“Rising complexities in vehicular designs to offer streamlined driving experience has prompted increased investments in electronics solutions, thus inclining demand for conformal coatings to enhance longevity of equipment, “remarks a research analyst.
Prominent automotive electronics conformal coating manufacturers are majorly reliant on a slew of expansion strategies, including new product launches, capacity expansion through collaborations and acquisitions and establishment of new R&D or manufacturing facilities.
· In March 2019, H.B Fuller Company established the H.B Fuller Japan G.K, by virtue of which the company strengthened its Engineering Adhesives (EA) businesses across Japan by focusing on high performance additives, including reactive adhesive chemistries and applications.
· MG Chemicals is a prominent player offering acrylic, epoxy, polyurethane, silicone and UV conformal coatings, besides offering conformal coating sprays, strippers, and thinners.
These insights are based on a report on Automotive Electronics Conformal Coatings Market by Fact.MR.