Automotive Conformal Coatings Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[221+ Pages Report] According to Facts & Factors, the global automotive conformal coatings market size was worth around USD 2.03 billion in 2023 and is predicted to grow to around USD 4.36 billion by 2032, with a compound annual growth rate (CAGR) of roughly 8.90% between 2024 and 2032.

Market Overview

Automotive conformal coatings are the shielding layers used for electronic components in automobiles to protect them from dust, moisture, and chemicals. These coatings improve the reliability and durability of electronic systems and prevent electrical shorts, corrosion, and signal interference, making them vital for new automobiles.

The global automotive conformal coatings market is projected to witness substantial growth over the estimated period, owing to the rising adoption of enhanced vehicle electronics, the rise of EVs, and improved automobile safety standards. Incorporating more developed electronics like infotainment, ADAS, and sensors in the new vehicle models has notably increased the need for shielding coatings that protect from chemicals, moisture, and dust.

As electric vehicles are gaining popularity, they are increasingly embedded with electronic components comprising electric drivetrains and battery management systems. These parts need guarding from various external factors, thus driving the demand for conformal coatings.

Also, there is an increasing emphasis on enhancing vehicle safety with more modernized electric systems, such as airbag sensors, lane-keeping assist, and ABS.

Nevertheless, the global market is projected to be constrained by the significant cost of application processes, costings, and difficulties in coating applications. The price of improved conformal coatings and application techniques like dip, spray, and selective coating may be costly. This may prevent SMEs from adopting the standards, thus adversely impacting market growth.

Furthermore, the application procedure for these coatings needs accuracy for their practical and uniform application, mainly on delicate and complex parts. This may increase production costs and time. Still, the global automotive conformal coatings industry will capture momentous growth in the coming years, owing to the growing demand for self-driving vehicles and the incorporation of innovative manufacturing solutions.

Self-driving automobiles depend on electronic systems for safety, navigation, and communication. The rising demand for these coatings in these components offers an opportunity for industry expansion. Also, incorporating Industry 4.0 technologies in vehicle manufacturing will improve the application process's precision and efficacy, thus enhancing performance and reducing costs.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive conformal coatings market is estimated to grow annually at a CAGR of around 8.90% over the forecast period (2024-2032)
• In terms of revenue, the global automotive conformal coatings market size was valued at around USD 2.03 billion in 2023 and is projected to reach USD 4.36 billion by 2032.
• The automotive conformal coatings market is projected to grow significantly, owing to the rising integration of modernized electronics, the rise of electric vehicles, and the rising trend of the miniaturization of components.
• Based on type, the acrylic segment is expected to lead the market, while the silicone segment is expected to grow considerably.
• Based on component, the PCB segment is the dominating segment among others, while the ECU segment is projected to witness sizeable revenue over the forecast period.
• Based on vehicle type, the passenger cars segment is expected to lead the market compared to the electric vehicles segment.
• Based on region, Asia Pacific is projected to dominate the global market during the estimated period, followed by North America.

Growth Drivers

• Miniaturization of automobile components drives the automotive conformal coatings market growth

As vehicles become more advanced, the trend and shift towards the miniaturization of automotive components is rising. Smaller parts mean that protective coatings should be thinner and precise. Conformal coatings like acrylic, silicone, and polyurethane are highly suitable since they offer durable and thin protection without affecting the performance of electric components.

Henkel has been leading the field for years in offering high-performing coatings and is dedicated to defending miniaturized automotive parts. In 2023, Henkel launched a next-generation polyurethane conformal coating that is more resistant and thinner to temperature variations.

• Improvements in application methods and coating materials propel the market growth

Constant improvements in coating application technologies and materials enhance the performance of conformal coatings for automobiles. Modernizations like perylene coatings, robotic spray systems, and automated coating applications are increasing the cost-efficiency and effectiveness of the coating process. These improvements allow automotive producers to satisfy the rising demand for durable and high-quality protective coatings.

Parylene coatings have gained prominence owing to their high-resistance and thin-film coating characteristics. In 2024, Paraxy Coatings launched a fresh line of high-performing perylene coatings specially designed for the automobile industry.

Restraints

• Low awareness in the developing regions hampers the progress of the automotive conformal coatings market.

While the use of conformal coatings in developed regions is rising, awareness and adoption are constrained in the developing markets, where automotive manufacturing is speedily increasing. Several producers in such areas partially understand the significance of protective coatings for electric systems or lack the need for funding and investment.

Lack of education and awareness of the long-term advantages of using conformal coatings may significantly restrict the growth of the automotive conformal coatings market in such regions.

Opportunities

• Growing emphasis on regulatory compliance and safety to fuel the automotive conformal coatings market growth

Since global safety standards are becoming stricter, there is a rising demand for automotive coatings that satisfy these transforming needs. Protective coatings ensure that braking control systems, ADAS, and airbag sensors perform aptly in diverse environmental scenarios. Automotive producers should ensure that these systems are defended to comply with the safety regulations, thus fueling the demand for conformal coatings.

The European Union's protocols on safety have become stricter, with novel rules requiring stability control systems and enhanced crash sensors. Producers should use superior-quality coatings to protect these systems.

Challenges

• Adhesion and compatibility issues with substrates restrict the growth of the automotive conformal coatings market

One of the key technical issues in the conformal coatings industry is the promising adhesion and compatibility of the coatings with a broader range of substrates like metals, plastics, and ceramics. Different components need coatings that are well-suited to the materials they are made of.

Obtaining durable adhesion on challenging substrates like high-temperature plastic or aluminum may be complex, resulting in performance issues and decreased product consistency.

3M introduced an improved adhesion primer, mainly for ceramic and aluminum substrates, resolving these compatibility problems. Nonetheless, the complexity of promising adhesion in different substrates raises the intricacy of production, leading to added costs and possible failures in reliability.

Report Scope

Segmentation Analysis

The global automotive conformal coatings market is segmented based on type, component, vehicle type, and region.

Based on type, the global automotive conformal coatings industry is divided into acrylic, silicone, epoxy, polyurethane, and perylene. The acrylic segment held a majority market share in 2023 and will continue to lead over the forecast period as well. Acrylic coatings are the most prominently used coatings among others, owing to their ease of application, moisture resistance, and cost-efficiency. They offer ideal protection against diverse external factors like dust and humidity, which makes them the best for vehicle electronics. These costs are majorly preferred for automotive electronic systems since they are easily applied and can be easily removed if modifications and repairs are required.

On the other hand, the silicone segment will register a leading share in the coming years owing to their rising use in applications needing flexibility and extreme temperature stability.

Based on component, the global industry is segmented as ECU, PCB, sensors, battery, and LED. The PCB or Printed Circuit Board segment will register a dominating market share in the forthcoming years due to its vital role in electronic systems. PCBs house the complex electronic circuits that control and power different systems in a car, comprising ADAS, ECUs, and BMS in electric vehicles. Conformal coatings on printed circuit boards defend the parts from dust, moisture, vibration, and corrosion, promising longevity and reliability in the extreme automotive environment.

However, the ECU is the second leading segment in the global market since they control a broader range of vehicle functions like braking systems, engine management, and safety systems like stability control and airbags.

Based on vehicle type, the global automotive conformal coatings market is segmented as passenger cars, commercial vehicles, and electric vehicles. The passenger cars segment will hold a remarkable market share over the estimated period, owing to the increasing volume of passenger cars produced on a global scale. These automobiles are embedded with various electronic systems like ADAS, ECUs, and sensors that need shielding via conformal coatings.

However, the electric vehicles segment will hold a considerable market share in the future, owing to the growth of EVs that demand improved electronic systems and conformal coatings.

Regional Analysis

• Asia Pacific to witness significant growth over the forecast period

Asia Pacific registered a considerable share of the global automotive conformal coatings market in 2023 and is projected to dominate over the forecast years. This growth is attributed to high automotive production, cost-efficient manufacturing, and the presence of major industry players. Asia Pacific, mainly nations like Japan, China, and South Korea, are the leading hubs for vehicle production. Among others, China holds a dominating market, registering a majority share of global vehicle production.

Moreover, China and India offer cost-efficient raw materials and production, thus increasing the popularity of global automotive manufacturers adopting conformal coatings in manufacturing. Several leading coating manufacturers, including Dow Chemicals, Henkel, and Momentive, have the leading production and research and development facilities in the Asia Pacific region, thus driving the industry growth.

North America is expected to progress strikingly as the second leading region in the automotive conformal coatings industry, owing to a strong automotive market, technological improvements, and a rise in electric vehicle production. The U.S. is a leading hub for prominent automotive producers like General Motors, Ford, and Tesla, contributing to heavy demand for conformal coatings. The region also has a high automobile production volume and supply chain.

Furthermore, the region is leading in adopting ADAS, vehicle connectivity, and autonomous driving, all of which are dependent on electronic components that need these coatings for protection. The rise of EVs in North America is another prominent driver for the demand for conformal coatings. These vehicles demand high-performance coatings for sensitive components like power electronics, electric drive, and battery management systems.

Competitive Analysis

The global automotive conformal coatings market is led by players like:

• Henkel AG & Co. KGaA
• Dow Chemical Company
• Momentive Performance Materials Inc.
• 3M Company
• Kisco Conformal Coating
• ACL Staticide Inc.
• H.B. Fuller Company
• MacDermid Alpha Electronics Solutions
• Chemtronics
• Cybershield Inc.
• BASF SE
• Shin-Etsu Chemical Co. Ltd.
• Huitian New Materials Co. Ltd.
• Electrolube
• APEX Materials

Key Market Trends

• Inclination towards eco-friendly coatings:

There is a rising demand for eco-friendly coatings like low-VOC and water-based coatings. Stringent protocols on chemical emissions and pressure for sustainability in the automobile industry fuel this trend.

• Rising usage of silicone coatings:

Silicone coatings are gaining prominence owing to their durability, flexibility, and high-temperature resistance. These coatings are mainly essential for components at high temperatures like the ones in battery systems and electric vehicle engines.

The global automotive conformal coatings market is segmented as follows:

By Type Segment Analysis

• Acrylic
• Silicone
• Epoxy
• Polyurethane
• Parylene

By Component Segment Analysis

• ECU
• PCB
• Sensors
• Battery
• LED

By Vehicle Type Segment Analysis

• Passenger Cars
• Commercial Vehicles
• Electric Vehicles

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America