The Asia-Pacific Conformal Coatings Market is expected to grow at a CAGR of around 6.25% during the forecast period, 2022-27, says MarkNtel Advisors in their recent research report. The factors responsible for the market growth are the increasing number of printed circuit board (PCB) manufacturers in the APAC region & the growing demand for high-end applications that require conformal coatings. Furthermore, these coatings act as protection to the board & protect various components from corrosion & environmental damage. Moreover, Asian countries, such as China, South Korea, Vietnam, India, etc., have robust manufacturing bases for consumer electronics, medical devices, automotive, and telecommunications, among others.
This further resulted in increased demand for conformal coatings in the region. However, the supply crisis & chip shortage forced vehicle manufacturers to reduce their production targets, lowering the requirement for conformal coatings used on the chips. In addition, semiconductors are an essential component of consumer electronics such as smartphones, cameras, and computers. As a result of the chip shortage, the market further witnessed a decline in the growth of conformal coatings.
Additionally, the easy availability of the low-cost raw material in the countries such as India & China resulted in providing the raw materials for global electronic manufacturing players, thereby reducing the cost of the overall product. Consequently, the rising application of conformal coatings in PCBs has expanded its scope over the historical years. This has resulted in escalating the demand for conformal coatings in the region, further states the research report, "Asia-Pacific Conformal Coatings Market, 2022-2027".
Consumer Electronics Segment to Hold a Significant Share in the Asia-Pacific Conformal Coatings Market
Based on end-users, the market is divided into Automotive, Consumer Electronics, Medical, Telecommunications, Aerospace & Defense, and Others. Among them, Consumer Electronics witnessed a considerable share in the Asia-Pacific Conformal Coatings market. As a center for electronics manufacturing, the Asia-Pacific region lies at the forefront of manufacturing smartphones, tablets, computers, etc. In addition, regional countries such as India, China, and Japan, among others, have huge manufacturing facilities that export a large number of products worldwide.
Therefore, the large manufacturing & export of consumer goods across the region resulted in increased market growth. Furthermore, according to the Allianz Trade, in 2020, Taiwan was one of the world’s largest exporters of electronic integrated circuits, with about a 20% share of global flows. Consequently, these consumer electronics needed conformal coatings to make them robust & rugged so that they could withstand damage and remain functional for a long period of time.
India to Witness Substantial Growth in the Years to Come
Geographically, the India Conformal Coatings market witnessed considerable growth during 2017-19. Some crucial factors responsible for market growth are the increasing manufacturing of consumer electronics, such as smartphones & other white goods. India has a large manufacturing & industrial environment and is a major buyer of consumer electronics. Furthermore, the country's growing electronics industry is poised to provide major growth possibilities for industry players. As a result, major electronic manufacturing companies have set up production sites in India in order to cut costs and serve the regional market as well. Furthermore, the expanding government initiatives, including the Production-Linked Incentive (PLI) plan, Make in India, Digital India, and others, to develop a solid foundation for the electronic manufacturing base in India would stimulate the demand for conformal coatings in the future years.
In addition, the country is working to establish sophisticated local semiconductor manufacturing, which would present numerous opportunities for the application of conformal coatings in the region. Some notable global electronic giants, such as Apple, Xiaomi, Sony, LG, Samsung, etc., have their manufacturing & assembly bases in the country. As a result, the country is expected to produce more semiconductors due to the increasing demand for consumer electronics globally. In the aftermath, the demand for conformal coatings would witness a positive growth outlook during 2022-27, reveals MarkNtel Advisors in their research report, "The Asia-Pacific Conformal Coatings Market Analysis, 2027."
Key Market Competitors
According to MarkNtel Advisors, the leading players in the Asia-Pacific Conformal Coatings Market are Shin-Etsu Chemical Co., Ltd., Chase Corporation, M.G. Chemicals, The Dow Chemical Company (Dow Corning Ltd.), Illinois Tool Works Inc., Henkel AG & Company, KGaA, Dymax Corporation, H.B. Fuller Company, Electrolube, KISKO Ltd., Others
Key Questions Answered in the Study