Automotive Conformal Coatings Market

[229 Pages Report] The automotive conformal coating market is projected to reach USD 3.5 billion by 2030, from an estimated USD 2.0 billion in 2024, at a CAGR of 10.0% during the forecast period. The growth of this market is primarily driven by the increasing automotive electronics in vehicles and various technology advancement in application method of conformal coating.

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Market Dynamics

DRIVER: Increasing adoption of electronics in vehicles.

In recent years, the demand for safety and comfort features in automobiles has seen an upward trend. These features require efficient operation of ECUs, PCBs, and sensors, among other components. New vehicles are equipped with in-vehicle air quality systems that use sensors to detect harmful gases entering the vehicle cabin and, if detected, close the inlet air cabin automatically. Sensors also find applications in ABS, HVAC control, automatic dimming mirrors, and airbag actuation. According to experts, the number of sensors is projected to exceed 250 per car in the coming years. These sensors require protective conformal coatings to operate at extreme temperatures, subsequently driving the market.

In automotive applications, ECUs have broad functionality, from basic ECUs that control the engine and electrical movement of passenger seats to complex ECUs that ensure optimal engine performance based on input from sensors. They incorporate microprocessors and can control electronic brakes, transmission, valve timing, and anti-theft systems. ECUs are coated with conformal coatings to protect them from harsh operating environments. Additionally, protecting these ECUs in EVs is more significant because they have a higher selling price than ICEs due to their complexity. This will further drive the market for automotive conformal coating.

RESTRAINT: Size reduction and consolidation of component

Advancements in automotive electronics have pushed manufacturers to reduce the size and price of electronic components. The trend of compact and lightweight electronic devices and end-use components has subsequently driven the need for miniaturization in PCBs. Smaller PCBs require limited materials, reduced space, and less recycling. For instance, the development of high-density interconnect (HDI), a PCB with more interconnections and minimal occupying space, enables PCB manufacturers to miniaturize the circuit board. The components in HDI are placed closer, and the board space is significantly reduced without compromising the functionality. Though these trends enable the manufacturing of efficient electronic devices, miniaturization has resulted in a reduction in coating volumes per PCB.

Furthermore, the increasing use of ECUs in vehicles poses challenges for manufacturers due to their complexity and the need for ample space for installation. To counter this, companies such as Visteon (US), Continental AG (Germany), and Delphi (UK) are consolidating different ECUs into a single unit and making it a cloud-based platform. The cloud application will resolve the problem of updating and adding applications. Moreover, a consolidated ECU will require only one high-powered PCB compared to several medium and low-density PCBs that occupy more space. Hence, size reduction and consolidation of these vital components will require comparatively fewer conformal coating materials and can act as a restraining factor for the automotive conformal coatings market

OPPORTUNITY: Innovation in autonomous and connected mobility

According to industry experts, in the late 1970s, the cost of electronics comprised around 5% of a vehicle’s total cost, but by 2030, it is expected to be 50%. The reliance of the automotive industry on electronics is expected to grow in the near future. Connected cars are equipped with various sensors that sense the environment around the vehicle and exchange signals with entities outside the vehicle by interacting through a cellular network. These cars provide drivers with several smart options, along with internet access. The primary benefits include safety alerts, automatic crash notifications, and enhanced engine controls. Leading OEMs are now focusing on autonomous vehicles with advancements in automotive technologies. These cars can alert drivers when conditions are no longer suitable for self-driving, and they must take over. Such functionality will require advanced electronics, providing a potential market for automotive conformal coatings. Several automakers have already manufactured vehicles capable of Level 3 autonomy, but few countries have legal frameworks for their sale and use. Hence, connected cars are an initial stage of the beginning of an era of autonomous vehicles. The operation of these cars requires advanced electronics, which is expected to surge the demand for automotive conformal coatings.

CHALLENGES: Lack of technical knowledge

Conformal coatings protect electronic circuit boards from moisture, heat, corrosion, fungus, dust, chemicals, temperature extremes, and dielectric failures. However, these coatings could best serve their purpose if the suitable coating material is selected based on the application. In automotive applications, electronics generally face high temperatures; exposure to moisture is also high. Therefore, silicone would be a more appropriate conformal coating material for automotive electronic applications than acrylic. The acrylic coating has a low glass transition temperature and softens under high temperatures. Additionally, silicone has a higher resistance to moisture than acrylic.

Knowledge about the conformal coating application process is also required to get the desired results. For instance, if a conformal coating is applied on a PCB without properly cleaning the flux, it may lead to the failure of the PCB because of corrosion. Insufficient coating thickness, bubbles trapped in the coating, or insufficient coating coverage over sharp edges can also lead to failure of conformal coating to protect the PCBs.

Automotive Conformal coating Market Ecosystem.

The automotive conformal coating market have the latest technologies, diversified portfolios, and strong distribution networks globally. The major players in the automotive conformal coating market include Dow (US), Henkel  AG & CO. KGAA (Germany), Chase Corporation (US), H.B. Fuller (US), and Shin-etsu Chemical Co. Ltd. (Japan).

The ECU segment, by component type, holds the largest market share.

Electronic control units (ECUs) within an automobile have increased in number, as well as in software and hardware complexity. A modern vehicle may contain over 100 ECUs, controlling functions ranging from engine and power steering control to comfort features such as power windows, seats, and HVAC. Protection of these ECUs is crucial as they are placed under the hood and subjected to high temperatures throughout the vehicle’s operation. Hence, most standard OEMs coat ECUs with conformal coatings to enhance vehicle performance, fueling the ECU conformal coatings market.

The rise of electric and autonomous vehicles is further driving the demand for ECU conformal coatings in the automotive industry. EVs contain a higher density of electronic components, including ECUs for battery management, powertrain control, and vehicle connectivity. Conformal coatings protect these sensitive electronic components from harsh operating conditions, such as temperature extremes and moisture ingress. Similarly, autonomous vehicles rely heavily on electronic systems for navigation, sensor fusion, and decision-making. Conformal coatings help ensure the reliability and robustness of these systems, supporting the safe and efficient operation of autonomous vehicles.

The Silicone is the fastest-growing segment in material type for the automotive conformal coating market.

With an operating range of -55°C to 200°C, silicone conformal coatings can withstand extreme differences in temperature. These coatings are widely used in under-the-hood automotive components. Special formulations can coat LED lights without color shift or reduction of intensity. They can also be used in printed circuit boards (PCBs) to protect against damage and provide electrical insulation in hot and cold environments. Silicone conformal coatings are manufactured as single-component compounds and offer excellent humidity, corrosion, and chemical resistance. However, the removal of silicone can be challenging because it involves specialized solvents, long soak time, and agitation from a brush or an ultrasonic bath. Additionally, compared to other conformal coatings, silicone requires thicker layers, which restricts its use for IoT and MEMS applications.

Asia Pacific is estimated to be the largest market for automotive conformal coatings market

Asia Pacific covers China, India, Japan, and South Korea for market analysis. It is the largest vehicle producer worldwide, with improved government focus on mandating safety and a high demand for comfort features. This leads to the growing installation of electronic control units (ECUs), printed circuit boards (PCBs), sensors, and LEDs in vehicles. The high growth rate of these components will likely attract new investments from regional and global conformal coating suppliers to cater to the rising demand. Furthermore, modern features such as power windows, automatic rain wipers, rear parking sensors, and LED DRL are penetrating mid-level cars. These features will require more electronic installations, driving the automotive conformal coatings market.

The automotive industry’s growth potential, manufacturers such as Volkswagen AG (Germany), Mercedes-Benz (Germany), and General Motors (US) have established their manufacturing facilities in Asia Pacific. This will significantly increase the demand for conformal coatings during the forecast period. Additionally, Asia Pacific is the biggest market for conformal coatings, and this dominance is expected to continue till 2030. China is the key market in this region, consuming more than half of the demand for conformal coatings, followed by Japan and South Korea..

Key Market Players

The automotive conformal coating market is consolidated with players such as Dow (US), Henkel  AG & CO. KGAA (Germany), Chase Corporation (US), H.B. Fuller (US), and Shin-etsu Chemical Co. Ltd. (Japan) are the key companies operating in the market. These companies adopted new product launches, expansion, partnership, investments and agreements to gain traction in the market.

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Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company’s specific needs.

The study segments the automotive conformal coating market:

Automotive Conformal Coatings Market, By Material

• Acrylic
• Silicone
• Parylene
• Epoxy
• Polyurethane

Automotive Conformal Coatings Market, By Component

• ECU
• PCB
• Sensors
• Battery Casing
• LED
• Infotainment System

Automotive Conformal Coatings Market, By Vehicle Type

• Passenger Car
• Light Commercial Vehicle
• Heavy Commercial Vehicle

Automotive Conformal Coatings Market, By EV type

• BEV
• PHEV/HEV

Automotive Conformal Coatings Market, By Application Method

• Brush Coating
• Dipping
• Spray Coating
• Selective Coating
• Vapor Deposition

Automotive Conformal Coatings Market, By Region

• Asia Pacific
• Europe
• North America
• RoW

Recent Developments

• In Feb 2024, Henkel AG & CO. KGaA signed an agreement to acquire US-based Seal for Life Industries, a provider of innovative coating and sealing products. This includes visco-elastic coatings, epoxy & urethane coatings, and fire protection. It also offers heat-shrink sleeves, insulation, and sound-dampening coatings.
• In Feb 2024, Henkel AG & CO. KGaA announced the launch of Loctite Stycast CC 8555, a conformal coating designed to protect electronics in extreme environments. It can be used on PCBs and sensitive component protection in challenging, high-power applications such as motor drives, PLCs, EV charging infrastructure, AC/DC power supplies, and other high-voltage electronics.
• In March 2023, Dow introduced the DOWSIL PV product line, which consists of six silicone-based sealants and adhesive solutions designed to provide long-lasting durability and established performance for applications such as frame sealing, rail bonding, junction box bonding, and potting, as well as materials for the installation of building integrated photovoltaics (BIPV).

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