Optical Coatings are material coatings on optical components like lenses and glasses that change the way light interacts with that optical component to our liking.
Covid-19 Impact & Market Status
Optical coating manufacturers and suppliers were heavily impacted by safety and regulatory mandates made at the federal, state, and municipal levels across the world in 2020. The COVID-19 epidemic has impacted every industry in the planet. Companies have been obliged to adapt or change their everyday business activities as a result of US federal government guidelines to prevent the spread of the virus, as well as Shelter-in-Place Orders issued at the state and municipal levels in the US. Due to company closure laws, social distance conventions, and reduced municipal and state government office activity, optical coating businesses were impacted in 2020.
The aerospace and military industry, which is one of the leading end-users of optical coatings, is likely to be a key beneficiary of COVID-19. Optical coatings usage in 2020 will be lower due to a lack of activities during the COVID-19 timeframe. COVID-19's outbreak is expected to have a number of short- and long-term effects in a variety of industries, including electronics, telecommunications, aerospace, solar, and others, all of which might have an impact on the optical coating business. COVID-19 will have a significant impact on the aerospace and military industries, which is one of the largest end-users of optical coatings.
Because of the pandemic's impact, the commercial aerospace market's activity may take many years to restore to levels observed in early 2020. Some aircraft manufacturers, such as Boeing and Rolls-Royce, have even declared output reductions. As a result, there is a great deal of ambiguity in the near future, which might have a negative impact on the optical coating market throughout the projected period. Growing demand from the solar power industry and technical developments in the optical coatings production process are two important drivers driving the market examined in the long run.
Electric vehicle demand is expected to grow in the next years, providing prospects for the industry. The Asia-Pacific region dominated the worldwide market, with China and India accounting for the majority of sales. Since the global outbreak of the COVID-19 pandemic began, various sectors have been disrupted throughout the world. This market was no exception, and neither was it spared. Transportation was harmed as a result of the strict government controls implemented in various locations, causing a substantial disruption in the supply-chain demand cycle. People avoided buying any new and expensive purchases during the epidemic due to dwindling income sources. This included gadgets, autos, and a variety of other items.
Because optical coatings are often used in mirrors, sunglasses, and eyeglasses, the lockout regulations limited travel, result in lower eyewear sales. Renovations in the building sector were suspended, and as a result, new mirror installations were cancelled. This is projected to stifle market growth both now and in the future as a result of the epidemic.
The market will be dominated by anti-reflective (AR) coatings
Approximately 4% of the light energy that travels through an uncoated glass substrate is reflected at each contact. In many industrial applications, this decreases overall transmission to less than 92 percent, which is exceedingly unfavorable. In some laser applications, too much reflected light might cause laser-induced damage. Antireflection coatings are optical coatings that are used to reduce the reflectivity of an item. Anti-reflective coatings minimize the reflectivity of the glass surface, increasing efficiency and reducing risks created by reflections that travel backward through the system, creating ghost pictures.
Demand for optical coatings in the electronics and semiconductor industries is on the rise
Semiconductors, high-temperature lamp tubing, communications and optics, and microelectronics sectors all employ optical coatings. Optical coatings used in the electronics and semiconductor industries must endure high-temperature gradients and high rates of heat transfer in fast thermal processing, which is often used to change the characteristics of printed circuit boards (PCBs), integrated circuits (ICs), and wafers. Optical coatings allow semiconductor components to resist the high temperatures of wafer manufacturing. Furthermore, the electronics and semiconductor industries' continuing expansion has expanded the usage of new-generation wafers in semiconductors, which is likely to fuel demand for high purity optical coatings. As a result, it is the material of choice for improving product performance. As a result, the application of high purity optical coatings in the electronics and semiconductor industries would increase.
Volatile raw material prices are a source of restraint
Various raw materials, such as oxides (aluminum, zirconium, titanium, and selenium), fluorides (strontium, calcium, and magnesium), and metals, are used in the optical coating production process (copper, gold, and silver). The optical coatings raw material market is extremely volatile, having a significant influence on the price changes of metals and oxides such as TiO2, indium, gold, copper, and silver. Raw material availability and pricing, particularly metals and oxides, vary, and a spike in their prices can have a negative impact on production costs. Indium is a critical component in the production of transparent conductive coatings.
Increased use of modern car electronics is an opportunity
The rise in global income levels, the growing desire for a safe and convenient drive, the introduction of intelligent transportation systems, and the growing need to reduce environmental pollution are all driving up demand for automotive electronics in the transportation end-use industry. Optical coatings are an important component of modern vehicle electronics systems and gadgets. The optical coatings market is also benefiting from the development of sophisticated driver assistance, as well as communication and entertainment system features.
Environmental durability of optical coatings is a challenge
Optical system designers develop coating properties and functionality requirements, which are stated in the applicable drawing or coating specification. Optical mode (e.g., transmission or reflection), environmental durability requirements, laser-induced damage threshold (LIDT)/laser damage threshold (LDT), and the windscreen wiper test are all included in the coating specifications. The coating's environmental durability is normally defined and tested in accordance with American military specifications, but it may also be defined and tested in accordance with civilian standards [International Organization of Standardization (ISO) and American National Standards Institute (ANSI)]. These specifications or standards provide criteria and test conditions for optical coatings' environmental resilience. This aspect makes it difficult for optical coatings makers to meet environmental durability criteria.
The optical coatings market's largest technological sector is vacuum deposition
The optical coatings market is divided into vacuum deposition, E-beam evaporation, sputtering method, and ion-assisted deposition based on technology (IAD). Because of its ability to cure at ambient temperatures, enhanced dependability, and greater thermal and mechanical robustness of electronic devices, vacuum deposition dominates the entire optical coatings business.
The largest type section of the optical coatings market is AR Coatings
AR coatings, high reflective coatings, transparent conductive coatings, filter coatings, beam splitter coatings, EC coatings, and others are the several types of optical coatings available. Because of its ability to provide high-quality coatings with high transmission power and low reflection power on components such as lenses, mirrors, and display screens used in various industrial and consumer applications, the AR coatings type segment holds a significant market share of the overall optical coating market. AR coatings are gaining traction in the worldwide optical coatings market as a result of these considerations.
The greatest market for optical coatings is North America
During the projection period, North America will be the largest market for optical coatings. This expansion may be due to rising demand from the electronics and semiconductor industries, as well as increased government and major player contributions to the commercialization of optical coatings in the region. Furthermore, stringent environmental and government regulations, such as the Architectural and Industrial Maintenance (AIM) Coatings for Volatile Organic Compounds (VOCs) content limits and the United States Munitions List (USML), which regulate optical technology as well as coating exports under the International Traffic in Arms Regulations (ITAR), drive market growth in the region for optical coatings.
The coatings are generally densely layered, with over 200 layers. Coating materials are created by combining a variety of ingredients in a solvent base and applying them to the required substrates.
The worldwide optical coatings market is expected to grow at an annual rate of 8.5% from USD 12.6 billion in 2021 to USD 22.0 billion in 2028. It's also worth noting that the substrate must be appropriate for this purpose. Thermal evaporation, electron beam deposition, ion and plasma aided techniques, dip and spin processes, ion beam sputtering, and a variety of other methods are utilized to apply these optical coating materials on surfaces.
The Global Optical Coating Market has grown rapidly as a result of increased demand for efficient optical devices and their expanding application in numerous sectors, as well as the growing use of reflective coatings in green structures for heat retention and reduced energy consumption. The Global Optical Coating Market study offers a comprehensive analysis of the industry.
The study examines main market segments, trends, drivers, limitations, the competitive landscape, and other key market factors in depth. The technique of mixing a thin layer of films on optical components such as lenses and mirrors to enhance the optical system's reflection and transmission properties is known as optical coating.
Optical coatings are often made up of many layers of metallic and dielectric materials such as titanium dioxide, silicon dioxide, aluminum, and other compounds that are heaped together according to the end-use application. Antireflection coatings, high reflection coatings, and transparent conductive coatings can all benefit from it.
Optical coatings are widely used in consumer electronics, the automobile industry, solar panels, and a variety of other industries. To increase light transmissivity and minimize reflection, optical coatings can be applied to a variety of surfaces including plastic, metal, polymers, and glass.
In eyeglass and photography lenses, antireflection coatings are employed to reduce undesired reflections from lens surfaces. When less reflection is necessary, anti-reflective (AR) coating is one of the most often utilized coatings on lenses. By reducing Fresnel reflections off the glass or on an applied item, anti-reflective coatings increase transmission performance.
The optical coatings market is dominated by Dupont (US), PPG Industries Ohio, Inc. (US), Nippon Sheet Glass Co., Ltd. (Japan), ZEISS International (Germany), Newport Corporation (US), Inrad Optics (US), Inc., Artemis Optical Limited (UK), Abrisa Technologies (US), Reynard Corporation (US), and II-VI Aerospace & Defense (US).
Latest Innovations in the Optical Coatings Market: a Snapshot
- In April 2021, Newport Corporation paid USD 250 per share for all outstanding shares of Coherent, Inc., consisting of USD 135 in cash and USD 115 in stock.
- PPG Industries Ohio, Inc., Inc. struck a deal to buy Tikkurila, a Nordic Paint and Coatings Company, in December 2020. The purchase would strengthen the company's position in northern and Eastern Europe, while also expanding its formulation and manufacturing capabilities.
- ZEISS International and Vivo will collaborate starting in December 2020. Vivo and ZEISS will work on an image technology for Vivo's premium smartphones beginning with the forthcoming Vivo X60 series.
- Nippon Sheet Glass Co., Ltd. will open a new 500,000-square-foot glass production plant in November 2020. TCO (transparent conductive oxide) coated glass for solar panels was created at this plant.
- DuPont Electronics & Imaging announced the completion of a new facility specialised to liquid polyimide (PI) for flexible display substrates in September 2020, in response to the rapidly growing consumer business demands of the flexible display industry.
Optical Coating Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 22.0 billion|
|Segment Covered||Product, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Central & South America, Middle East & Africa|
|Key Players Profiled||Dupont (US), PPG Industries Ohio, Inc. (US), Nippon Sheet Glass Co., Ltd. (Japan), ZEISS International (Germany), Newport Corporation (US), Inrad Optics (US), Inc., Artemis Optical Limited (UK), Abrisa Technologies (US), Reynard Corporation (US), and II-VI Aerospace & Defense (US).|
Key Segments of the Optical Coatings Market
Product Outlook (Volume, Tons; Revenue, USD Billion, 2016 - 2028)
- Electro chromic
Application Outlook (Volume, Tons; Revenue, USD Billion, 2016 - 2028)
- Consumer Electronics
- Aerospace & Defense
Regional Outlook (Volume, Tons; Revenue, USD Billion, 2016 - 2028)
- North America
- The Netherlands
- Asia Pacific
- South Korea
- New Zealand
- Central & South America
- Middle East & Africa
- Saudi Arabia
- South Africa