Jan 23, 2021   SOURCE: BusinessWire

Automotive Conformal Coatings Market by Material, Component, Application Method, Vehicle Type, EV and Region - Global Forecast to 2025 - ResearchAndMarkets.com

The "Automotive Conformal Coatings Market by Material (Acrylic, Silicone, Epoxy, Polyurethane, Parylene), Component (ECU, PCB, Sensor, Battery Casing, LED and Infotainment System), Application Method, Vehicle Type, EV, Region - Global 2025" report has been added to ResearchAndMarkets.com's offering.

The global automotive conformal coatings market is projected to reach USD 2.7 billion by 2025 from USD 1.8 billion in 2020, at a CAGR of 8.7%.

The growth of this market is primarily driven by the increasing automotive electronics in vehicles and various technological advancements in the application method of conformal coating.

With progression in time, the COVID-19 impact has severely disrupted the supply chain for the entire automotive ecosystem. This has halted production facilities across the globe resulting in a disruption in the exports of automotive components. This scenario is expected to affect the automotive conformal coatings market, as the growth of the market is directly related to the production of the vehicles. The global production of vehicles pre-COVID-19 was expected to reach from ~90-95 million units in 2020 to ~110-115 million units by 2025. According to OICA, though global vehicle production declined by 5.2% between 2018-2019, the production outlook was supposed to showcase significant growth from 2021-2022 owing to multiple steps taken by OEMs, as well as some governments, to attract customers.

Battery Electric Vehicle (BEV) is the fastest-growing market, by EV type.

Stringent emission norms across the globe have led to an increased focus by governments on promoting and investing in BEVs. This is expected to create a favorable environment for BEV sales and drive its demand. Electric vehicles have a higher installation of electronics than traditional vehicles, and the increasing sales of BEVs are expected to fuel the demand for conformal coatings to protect these vital components. These factors are expected to drive the market growth for the BEV segment in near future.

The Asia Pacific is estimated to be the fastest-growing market for the automotive conformal coatings market.

The regional growth can be attributed to the higher production of vehicles in countries such as China, Japan, and South Korea. Governments across the Asia Pacific region have formulated stringent safety and emission norms that are expected to increase the installation of automotive electronics. Moreover, modern features, such as power windows, automatic rain wiper, rear parking sensors, and LED DRL, are penetrating in entry to mid-level cars due to consumer demand. These features will require more electronic installations, which, in turn, is expected to drive the automotive conformal coatings market.

Market Dynamics

Drivers
  • Increasing Adoption of Electronics in Vehicles
  • Growing Popularity of Electric Vehicles

Restraints

  • Costly Removal and Rework in Case of Damage
  • Size Reduction and Consolidation of Components

Opportunities

  • Technological Advancements in Conformal Coating
  • Advancements in Autonomous and Connected Mobility

Challenges

  • High Price of Conformal Coatings

Companies Mentioned

  • Altana Ag
  • Chase Corporation
  • CHT Group
  • Comelec SA
  • Conins Pune
  • CSL Silicones Inc
  • Dawn Tech
  • Dow
  • Dymax
  • Electrolube
  • H.B. Fuller
  • Henkel
  • HZO
  • Para Tech Coating
  • Paratronix
  • Peters Group
  • Shin-Etsu Chemical
  • VSI Parylene (Vertical Solutions)

For more information about this report visit https://www.researchandmarkets.com/r/kzutri