Conformal Coatings Market for Automotive Electronics: Top 3 Drivers by Technavio

Technavio market research analysts forecast the global conformal coatings market for automotive electronics to grow at a CAGR of more than 6% during the forecast period, according to their latest report.

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Technavio has published a new report on the global conformal coatings market for automotive electron ...

Technavio has published a new report on the global conformal coatings market for automotive electronics from 2017-2021. (Graphic: Business Wire)

The market study covers the present scenario and growth prospects of the global conformal coatings market for automotive electronics for 2017-2021. The report also lists acrylic, silicon, urethane, epoxy, and paraxyleneas the five major product segments, of which the acrylic segment accounted for close to 41% of the market share in 2016.

According to Kshama Upadhyay, a lead analyst at Technavio for paints, coatings, and pigments research “The global conformal coatings market for automotive electronics will grow at a significant pace during the forecast period. The market is driven by other factors such as increased R&D investments and high demand for fuel-efficient vehicles. There will be high demand for UV-curable coatings and nano fluoropolymer conformal coatings in the automotive electronics segment.”

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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global conformal coatings market for automotive electronics:

  • Growing demand for fuel-efficient automobiles
  • Increasing investments in R&D by major industry players
  • Growing demand for EVs in China

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Growing demand for fuel-efficient automobiles

There is an increased demand for lightweight materials by various end-user industries. The use of lightweight material reduces the overall weight of the vehicle, which further reduces carbon dioxide emissions. Governments across the world are formulating policies and implementing regulations to improve fuel efficiency and reduce carbon emissions. For instance, according to the regulations set by the Corporate Average Fuel Economy (CAFE), the automakers must improve fuel economy from the current 38 miles/gallon to 54.52 miles/gallon by 2025. Also, the EU aims at reducing carbon dioxide emissions to 95 grams/km by 2020.

“The growing trend of manufacturing lightweight automobiles and has increased the use of electronic components in automobiles. This has led established vendors to offer a range of conformal coating products to the automobile industry. These products meet key performance parameters such as unique coating and offer durability, abrasion resistance, superior adhesion, and UV resistance,” says Kshama.

Increasing investments in R&D by major industry players

Increasing investments in R&D by established vendors will drive the global conformal coatings market. End-user industries, such as automotive electronics, aerospace electronics, and medical and consumer electronics will also drive the demand for conformal coatings.

In 2015, HumiSeal introduced 1B51 NSLU, which is an air-drying single component and synthetic rubber conformal coating that has methylcyclohexane solvent (an environment-friendly product). It has a unique polymer base that causes low moisture permeability. It is flexible, can be easily repaired, and resists thermal shock and UV. The product complies with the RoHS Directive 2002/95/EC. Another product HumiSeal UV500 is a high solid UV dual-cure elastomeric acrylate conformal coating. This coating exhibits excellent properties compared with other conventional coatings. Thus, the increasing focus on R&D activities undertaken for developing conformal coatings products will drive market growth.

Growing demand for EVs in China

In 2016, China was the largest EV market, followed by the US. The EV market in China will grow at a CAGR of more than 27% during the forecast period. The high demand for EVs will drive the demand for conformal coatings in the automotive industry.

The government of China offers a subsidy of USD 3,800-USD 8,400 per unit of EV. The subsidy drives the demand for these vehicles in the country. Commercial EVs are benefited more by government subsidies than electric passenger vehicles. Thus, the growth of the EV market will boost the global conformal coatings market for automotive electronics.

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