Conductive Coatings Market size is forecast to reach $25.6 billion by 2025, after growing at a CAGR of 8.2% during 2020-2025. With rise in demand for consumer electronics, the demand for conductive coatings is also increasing. Conductive coatings are being widely used in the EMC-related applications such as communications equipment, medical monitors & analyzers, mobile phones, consumer electronics, network/satellite systems, computer equipment, military & weapons systems, laptops, industrial & automated control systems, and aerospace systems. Thus, the increasing application of conductive coatings due to its extensive set of properties such as low VOC content, non-flammable, noxious vapors, and durability is anticipated to drive the conductive coatings market substantially during the forecast period.
- Asia Pacific dominates the conductive coatings market, owing to the expansion of electronics and information technology industries in the region. The increasing population coupled with increasing demand for electronic appliances is the major reason for the expansion of electronics and information technology industries in the region.
- The carbon nanomaterials are extensively replacing the conductive pigments such as conventional carbon black or metallic particles to increase the conductivity of coatings. Also, conductive coatings are being widely used in manufacturing photovoltaic cells to improve its electrical conductivity.
- Conductive coatings are often used to solve a variety of electromagnetic compatibilities (EMC) issues such as specific absorption ration protection, electrostatic discharge, ground plane, electromagnetic shielding, and lightning strike protection, due to which the demand conductive coatings are increasing.
- Epoxy Conductive Coatings are being widely used as a conductive base for electroplating, for creating durable grounded surfaces, or for any process where it is necessary to create a mar-resistant conductive surface. Thus, the increasing usage of epoxy conductive coatings will further drive the conductive coatings market.
- Due to the COVID-19 Pandemic, most of the countries have gone under lockdown, due to which operations of various industries such as electrical and electronics has been negatively affected, which is hampering the conductive coatings market growth.
By Resin – Segment Analysis
Epoxy resin held the largest share in the conductive coatings market in 2019, owing to its superior characteristics such as durability, scratch resistance, abrasion resistance, impact resistance, strong chemical resistance, and weatherability. On applying epoxy-based conductive coatings the surface becomes hard and durable, which makes it highly resistant to things like chemicals, abrasions, impact, oil and grease, and stains. Acrylic also holds a significant share in the market due to its low cost, excellent weatherability, good conductivity, and moisture resistance. The demand for epoxy conductive coatings is increasing due to its low cost and extensive physical characteristics, which is anticipated to boost the demand for epoxy resins during the forecast period.
By Pigment – Segment Analysis
The silver pigment held the largest share in the conductive coatings market in 2019, as silver offers the best shielding and corrosion resistance and can be applied very thinly. It is often used in the board level shielding and mission-critical applications. Silver has attracted attention due to its electrical, optical, and thermal properties. Among other pigments, silver has the highest electrical conductivity (6.3×107 S/m) and is considered to be a promising candidate for use in highly conductive, transparent, and ﬂexible electronic coatings. Moreover, the easy deposition method of silver pigment from the liquid phase is anticipated to drive silver pigment in the conductive coatings market during the forecast period.
By Application – Segment Analysis
The EMI/RFI shielding application held the largest share in the conductive coatings market in 2019 and is growing at a CAGR of 8.5%, as EMI/RFI conductive coatings completely discourage radio frequency and electromagnetic interference due to which is being widely used in several applications such as control systems, electronic office equipment, data processing, and computers, telecommunication, cable, radio and more. EMI/RFI shielding is being widely used because of its extensive properties such as abrasion resistance, uniform coating, thick coating, point-to-point resistivity, price flexibility, and pigment options. EMI/RFI Shielding is being widely used in end-use industries as they are often used for multiple functional design flexibility in molded plastic parts, high volume production, and cost-effectiveness. Thus, the increasing demand for EMI/RFI shielding for various applications is anticipated to propel the conductive coatings market during the forecast period.
By Geography – Segment Analysis
Asia Pacific region held the largest share in the conductive coatings market in 2019 up to 30%, owing to the thriving electronics industry, economic growth, increasing population and per capita income in the region. With the rise in population, the demand for electronic gadgets and consumer goods is also increasing significantly in the region. Also, due to the increasing demand for electronic and information technology the production rate is increasing in the various Asia Pacific regions such as India, China, and Japan. According to the Electronic Industries Association Of India (ELCINA), the total production of the electronics sector in India was Rs.3,87,525 crore in 2017-18, compared to Rs.3,17,331 crore in 2016-17, exhibiting a growth of about 22%. According to Invest India, by 2025, India could create a digital economy of $800 billion to $1 trillion, and India’s digital economy could fuel 18–23% of overall economic activity by 2025. According to Japan Electronics and Information Technology Industries Association, in 2019 Japan produced a total of 509,264 million yen consumer electronic equipment. Thus, the increasing expansion of electrical and electronics appliances in the region is anticipated to drive the conductive coatings market in the Asia Pacific during the forecast period.
Drivers – Conductive Coatings Market
- Increasing Demand from the Medical Industries
In the medical industry, there is a tendency toward more automation to monitor patients and help perform diagnosis using new communications technologies such as Bluetooth, Wi-Fi, and other various wireless links. With all of these advancements in existing technologies, lies some unforeseen troubles, as wireless technologies face challenges if coexisting in the same space, such as the interactions between other sensitive medical devices and the product emitting the electromagnetic energy. So, to overcome this challenge there is an increasing demand for conductive coatings from the medical industries. In 2018, the Australian Government announced to drive a new era of better health care in Australia it will invest $1.3 billion in the Health and Medical Industry Growth Plan. According to the Thailand Board of Investment Thailand is now becoming a key player in the $2.3 trillion global medical industry. In 2014, China spent approximately 5.6 percent of its GDP i.e. USD992 billion on health care. Thus, the increasing investments in the medical industry coupled with the increasing demand for conductive coatings from the medical industry acts as a driver for the conductive coatings market during the forecast period.
Challenges – Conductive Coatings Market
- High Cost of Conductive Coatings
The limited supply of pigments and fillers, coupled with the rapidly increasing demand for pigments and fillers, make it difficult to fabricate cost-effective, large-scale conductive coatings. Moreover, the most common technique used to manufacture conductive coatings is a sputtering method which is a very expensive method and requires vacuum conditions and high temperatures. Moreover, depositing an expensive material such as ITO on the substrate via this method wastes 70% of the coating materials due to ejection from the target substrate. Due to which there is an upsurge in the price of the conductive coating. Therefore, the high cost of conductive coatings acts as a hindrance to the conductive coatings market during the forecast period.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the conductive coatings market. In 2019, the market of conductive coatings has been consolidated by the top five players accounting for xx% of the share. Major players in the conductive coatings market are PPG Industries Inc., Henkel, Akzonobel N. V., Axalta Coating Systems, 3M Company, Dai Nippon Printing, Abrisa Technologies, Acree Technologies Inc., Carclo PLC., and Cima Nanotech.
- In September 2017, Henkel Adhesive Technologies’ Electronics introduced two conformal coating metal inks LOCTITE ABLESTIK EMI 8660S and LOCTITE ABLESTIK EMI 8880S for semiconductor package-level electromagnetic interference (EMI) shielding.