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 Forecast to 2030
[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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|
Report Attribute |
Details |
|
Market size available for years |
2019–2030 |
|
Base year considered |
2023 |
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Market Growth forecast |
USD 3.5 Billion by 2030 from USD 2.0 Billion in 2024 at 10.0% CAGR |
|
Forecast period |
2024–2030 |
|
Forecast units |
Value (USD Million) and Volume (Thousand Liters) |
|
Segments Covered |
Material type, Component, Application method, Vehicle Type, EV type and region |
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Geographies covered |
Asia Oceania, Europe, North America, and RoW |
|
Top Players |
Dow (US), Henkel (Germany), Chase Corporation (US), H.B. Fuller (US), and Electrolube (UK). |
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).
Frequently Asked Questions (FAQ):
What is the current size of the automotive conformal coating market?
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
Which region is dominating in the automotive conformal coating market?
Asia Pacific is dominating the automotive conformal coating market. The region is home to leading vehicle production hubs such as China and Japan. Factors such as increasing electronics installation in vehicles to operate safely and strong base of electronic components manufacturers in China, South Korea, and Japan are expected to drive the Asia Pacific automotive conformal coatings market.
What are the trends in the automotive conformal coating market?
Technological advancement in conformal coating with the use of parylene in vaccum system using three stage, vapour deposition process.
What are the opportunities and challenges in the automotive conformal coating market?
Technological advancements in conformal coating and Innovation in autonomous and connected mobility are the opportunities in the automotive confromal coating. High price of conformal coating and Stringent government regulation are the major challenges in the market
Who are the top key players in the automotive conformal coating market?
The automotive conformal coating market is dominated by globally established players such as as Dow (US), Henkel AG & CO. KGAA (Germany), Chase Corporation (US), H.B. Fuller (US), and Shin-etsu Chemical Co. Ltd. (Japan). .
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The study involves 4 main activities to estimate the current size of the automotive conformal coatings market. Exhaustive secondary research was done to collect information on the market, such as the conformal material, upcoming technologies, and component coated with these coating. The next step was to validate these findings, assumptions, and market analysis with industry experts across value chains through primary research. A mix of bottom-up and top-down approach was employed to estimate the market size for different segments considered under this study.
Secondary Research
The secondary sources referred for this research study include automotive organizations such as the European Automobile Manufacturers’ Association, The Institute for Advanced Composites Manufacturing Innovation, corporate filings (such as annual reports, investor presentations, and financial statements), Factiva, CrunchBase, Bloomberg and trade, business, and automotive associations. Secondary data has been collected and analyzed to arrive at the overall market size, which is further validated by multiple industry experts.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the automotive conformal coatings market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (OEM) and supply-side (automotive conformal coating manufacturers and distributors) players across four major regions, namely, North America, Europe, Asia Pacific, and the Rest of the World. Approximately 20% of primary interviews from the demand side and 80% from the supply side were conducted. Primary data was collected through questionnaires, mails, and telephonic interviews.
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Market Size Estimation
A detailed market estimation approach was followed to estimate and validate the automotive conformal coatings market and other dependent submarkets, as mentioned below:
- Key players in the automotive conformal coatings market were identified through secondary research, and their global market shares were determined through primary and secondary research.
- The research methodology included the study of the annual and quarterly financial reports & regulatory filings of major market players as well as interviews with industry experts for detailed market insights.
- All application-level penetration rates, percentage shares, splits, and breakdowns for the automotive conformal coatings market were determined by using secondary sources and verified through primary sources.
- All key macro indicators affecting the revenue growth of the market segments and subsegments have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the validated and verified quantitative & qualitative data.
The gathered market data was consolidated and added with detailed inputs, analyzed, and presented in this report.
Bottom-Up Approach
The bottom-up approach was used to estimate and validate the size of the global market and various other dependent sub-markets of the overall automotive conformal coatings market. The research methodology used to estimate the market size includes the following details.
The bottom-up approach was used to estimate and validate the size of the automotive conformal coatings market, by component and vehicle type, at country and region levels. The country-level production of vehicles for each type (in units) was derived from secondary sources and paid databases and validated through primary interviews. The country-level production of vehicle types (passenger cars, light commercial vehicle, and heavy commercial vehicle) was multiplied by average number of quantity of components (ECU, PCB, sensors, battery casing, LED, and infotainment system), which was derived from secondary sources and validated through primary interviews. Then the average surface area of each component where the conformal coating is required was derived through secondary and primary validation. The average quantity of conformal coating per mm2 surface area for components was derived through secondary and primary validation. Multiplication of the coating quantity with average surface area derived conformal coating quantity per component. Multiplication of average quantity of conformal coating per component multiplied by the total number of components in each vehicle type provided the total quantity of conformal coating per component, and summation of quantities required for components per vehicle provides the quantity of conformal coating per vehicle in liters at country level. To derive the value market, for component and vehicle type segments, ASP of per ml/liter conformal coating has been derived through secondary and primary validation and multiplied with the total quantity per component, which provides conformal coating value by component, and summation of all component values provides conformal coating value by vehicle at country level. The summation of country-level markets led to the regional market, and further summation of the regional markets led to the global automotive conformal coatings market, by vehicle type and component.
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Top-Down Approach
For the material segment, the region-wise automotive conformal coatings market volume, by region (Asia Pacific, North America, Europe, and RoW), was derived from the global automotive conformal coatings market by application method. Further, the percentage share of each material type (silicone, acrylic, epoxy, polyurethane, and parylene) at the regional level was derived from secondary sources and validated through primary sources. This percentage share of each material type was multiplied by regional volume to get the automotive conformal coatings market volume ('000 liters) for each region. For the value market, the average selling price of each conformal coating (USD/liters) was derived at regional level from secondary sources and validated from primaries at the regional level. The automotive conformal coatings market, by material, was then multiplied by the average selling price of each material USD/liters. Through this, the automotive conformal coatings market, by material type, was derived in terms of value (USD million). Summation of all region-wise markets was done to derive the total automotive conformal coatings market, by material, in terms of value (USD million) and volume ('000 Liters).
Data Triangulation
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. All parameters that are said to affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data. The data has been consolidated, enhanced with detailed inputs and analysis from MarketsandMarkets, and presented in the report.
Market Definition
Automotive conformal coatings are specialized protective coatings applied to electronic components and circuitry within vehicles to safeguard them from environmental factors such as moisture, dust, chemicals, and temperature extremes. These coatings are typically thin layers of polymeric film that conform to the contours of the electronics, providing a barrier that enhances the durability and reliability of sensitive components. By preventing corrosion, electrical failures, and physical damage, conformal coatings ensure the optimal performance and longevity of automotive electronics, which are increasingly critical in modern vehicles due to the integration of advanced systems like infotainment, ADAS, and engine control units .
Stakeholders
- Automotive Conformal Coating Suppliers
- Automotive Electronics Manufacturers
- Original Equipment Manufacturers (OEMS)
- Raw Material Suppliers
- Regional Manufacturer Associations and Automobile Associations
- Automotive Conformal Coating Traders, Distributors, and Suppliers
- Automotive Industry as an End-Use Industry
Report Objectives
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To define, describe, segment, and forecast the size of the automotive conformal coatings market in terms of volume (thousand liters) and value (USD million/billion) from 2019 to 2030
- To define, describe, and forecast the size of the automotive conformal coatings market based on material, component, vehicle type, EV type, application method, and region
- To segment and forecast the size of the automotive conformal coatings market based on material (parylene, silicone, acrylic, epoxy, and polyurethane)
- To segment and forecast the size of the automotive conformal coatings market based on component (ECU, PCB, sensor, battery casing, LED, and infotainment system)
- To segment and forecast the size of the automotive conformal coatings market based on vehicle type (passenger car, light commercial vehicle, and heavy commercial vehicle)
- To segment and forecast the size of the automotive conformal coatings market based on EV type (BEV and HEV/PHEV)
- To segment and forecast the size of the automotive conformal coatings market based on application method (brush coating, dipping, spray coating, selective coating, and vapor deposition)
- To define, describe, and forecast the size of the automotive conformal coatings market based on region (Asia Pacific, Europe, North America, and Rest of the World)
- To understand the market dynamics (drivers, restraints, opportunities, and challenges) and conduct patent analysis, case study analysis, value chain analysis, regulatory analysis, and ecosystem analysis
- To strategically analyze markets with respect to individual growth trends, prospects, and contributions to the total market
- To strategically profile key players and comprehensively analyze their market share and core competencies
- To analyze recent developments, such as agreements/partnerships/collaborations, mergers and acquisitions, expansions, and product developments of key players in the automotive conformal coatings market
- To understand the dynamics of the key market players and distinguish them into stars, emerging leaders, pervasive players, and participants according to their product portfolio strength and business strategies
- To analyze the opportunities offered by various segments of the market to its stakeholders
Available Customizations
Along with the market data, MarketsandMarkets offers customizations in accordance with company-specific needs.
The following customization options are available for the report:
Country Information
- Application method segment at country level
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Automotive Conformal Coatings Market