Market Definition
A conformal coating is a thin polymeric film that is applied to a Printed Circuit Board (PCB) to protect the board & its components from the environment & corrosion. It is mainly used to prevent electronic circuits from severe environmental conditions such as high humidity, a range of aerial contaminants, and varying temperatures. The conformal coating has major applications in various industries such as military, automotive, aerospace, and energy. Additionally, the rising expansion of the electronic industries across the Asia-Pacific region is expected to escalate the demand for conformal coating in the coming years.
Market Insights
The Asia-Pacific Conformal Coating Market is projected to grow at a CAGR of around 6.25% during the forecast period, 2022-27. The factors responsible for the market growth are the rising manufacturing of consumer electronics to cater to the global demand, burgeoning initiatives led by the government & private players to manufacture printed circuit boards, and the constant R&D investments towards coating technology that have augmented the demand for conformal coatings in the region. Moreover, the conformal coatings can be applied directly to the printed circuit boards (PCBs), as it acts as a shield to the board & also protects its components from corrosion & environmental damage. Therefore, there has been a constant incline in demand for conformal coatings. Furthermore, Asian countries, such as China, South Korea, Vietnam, India, etc., have robust manufacturing bases for consumer electronics, medical devices, automotive, and telecommunications, among others.
Notably, the government of countries, especially India, has taken significant steps toward creating an ecosystem for semiconductor manufacturing, which is further expected to cement the market growth in the forthcoming years. Additionally, the major global electronic manufacturing players source PCBs from Asia, owing to the large availability of low-cost raw materials, resulting in cost reduction of the final product. Due to this, there has been an enormous production of PCBs in the region. Subsequently, the application of conformal coatings in PCBs has widened its scope over the historical years.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 6.25% |
| Country Covered | China, India, Japan, South Korea, Singapore, Taiwan, Rest of Asia Pacific |
| Key Companies Profiled | Shin-Etsu Chemical Co., Ltd., Chase Corporation, M.G. Chemicals, The Dow Chemical Company (Dow Corning Ltd.), Illinois Tool Works Inc., Henkel AG & Company |
| Unit Denominations | USD Million/Billion |
In this regard, the conformal coating manufacturers have also been involved in the continuous Research & Development (R&D) to bring innovation to the conformal coatings industry & develop cutting-edge materials, such as Nano-materials, etc., for conformal coatings. Hence, this has proliferated the demand for conformal coatings in the region & is expected to present lucrative opportunities in the upcoming years.
Impact of COVID-19 on the Asia-Pacific Conformal Coatings Market
During 2020, the Asia-Pacific Conformal Coatings market declined significantly as a result of the COVID-19 pandemic. The automotive & aerospace industry was the worst-hit industries, among others. Additionally, the automotive sector faced a significant decline in the sales of passenger & commercial vehicles across the region, owing to low demand from the consumer & disruption in the supply chain & the shortage of the semiconductor chips globally. As a result, the vehicle production was put on hold. However, the supply crisis & chip shortage forced vehicle manufacturers to reduce their production targets, lowering the requirement for conformal coatings used on the chips. Furthermore, semiconductors are an important component of consumer electronics such as smartphones, cameras, and computers. As a result of the chip shortage in 2020, consumer electronics sales fell, resulting in a decline in the growth of conformal coatings. Further, the demand for conformal coatings is expected to recover gradually in the upcoming years as the supply of semiconductor chips is resumed.
