Hydrophilic Coating Market

The global hydrophilic coating market size is projected to grow from USD 16.8 billion in 2022 to USD 22.5 billion by 2027, at a CAGR of 6.0%. Prime manufacturers of hydrophilic coating concentrate more on new product development, which caters to various end-use industries. Companies are investing heavily in R&D to build a new product that enhances their market share in the overall hydrophilic coating market. Biocoat incorporated a new product in a hydrophilic coating called HYDAK in 2020. HYDAK hydrophilic coating technology provides industry-leading performance in the three coating effectiveness criteria (lubricity, durability, and particles). The high-performance characteristics of HYDAK are due to the utilization of a bi-laminar coating platform, which covalently bonds the coating to the substrate. The base coat from HYDAK is used to "normalize" the substrate material and prepare it for chemical attachment to the lubricious topcoat. This cross-linked chemistry is responsible for HYDAK's durability and lubricity throughout the operation.

Attractive Opportunities in Hydrophilic Coating Market

Source: Interviews with Experts, Secondary Research, and MarketsandMarkets Analysis

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Market Dynamics

Driver: Growing automobile and medical devices production

According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle sales have increased from 78.7 million units in 2020 to 82.6 million units in 2021. Of these, the sales of passenger cars were 53.9 million units in 2020, which increased to 56.3 million units in 2021. This demand increased at an annual average growth rate (AAGR) of about 4.4% from 2020 to 2021. Similar trends are witnessed with increasing population, purchasing power, improving lifestyles & living standards, and developing infrastructure across the globe, boosting the automotive industry.

According to OICA, global vehicle production increased from 91.7 million units in 2019 to 77.6 million units in 2020 to 80.1 million units in 2021. 2020 did not see a significant increase in overall new internal combustion engine automobile registrations. The global market for all kinds of automobiles was affected due to the COVID-19 pandemic and the subsequent economic collapse. Amid the pandemic, worldwide EV sales were extremely uncertain at the start of the year. However, as time passed, 2020 proved to be a surprisingly good year, with worldwide EV sales increasing by 43% from 2019 and the global electric car industry share reaching a record 4,6%. In 2021, the number of electric vehicles (EVs) sold in September exceeded those sold in 2012. EVs are expected to play a key part in the goal of zero-emission objectives set for 2050, for which the industry is preparing.

In the clean energy world, few areas are as dynamic as the electric car market. In 2012, about 130,000 electric cars were sold worldwide, which are sold in a single week. Growth has been particularly impressive over the last three years, even as the market for conventional cars shrank due to the pandemic and as manufacturers started grappling with supply chain bottlenecks. Around 2.2 million electric cars were sold in 2019, representing just 2.5% of global car sales. In 2020, the overall car market contracted, but electric car sales bucked the trend, rising to 3 million and representing 4.1% of total car sales. In 2021, electric car sales more than doubled to 6.6 million, representing close to 9% of the global car market and more than tripling their market share from two years earlier. All the net growth in global car sales in 2021 came from electric cars.

Emerging markets in Asia Pacific, such as China, India, South Korea, and Southeast Asian countries, are attracting global players to set up their manufacturing bases in this region. The increased investments in various technological, infrastructural, and R&D sectors have necessitated coating manufacturers to supply qualitative products to these end users to capitalize on the increased demand in the region. These markets are also propelled by economic growth and subsequent increase in consumption from end-use industries. The Asia Pacific region expects heavy Foreign Direct Investment (FDI) in China, Indonesia, Vietnam, the Philippines, Myanmar, Malaysia, Thailand, India, Sri Lanka, and Bangladesh. Hence, the automotive production is expected to boost during the forecast period. To sustain the demands of these automobile manufacturers, the coating manufacturers have also started focusing on expansions in these regions.

The development of new technologies and techniques and an aging population have fueled the rapid expansion of the medical device industry, resulting in fierce rivalry among producers. The worldwide medical device business has been under pressure to keep prices under control while maintaining product quality. Original equipment manufacturers (OEMs) can cut operational costs, minimize regulatory violations, expedite time to market, and boost return on investment by outsourcing some services. Offering regulatory services is an important aspect of medical device contract manufacturing. Due to regulatory constraints in various countries, many smaller players and some established players have outsourced a significant portion of their manufacturing operations to capable contract manufacturing organizations. Although medical device contract manufacturing has faced challenges due to the pandemic, the underlying demand remains strong. The pandemic adversely affected the medical device industry as elective surgical procedures were abruptly halted worldwide. Medical device contract manufacturing experienced similar trends due to the lower predictability of demand. Supply chain disruptions also challenged CMOs at the pandemic’s onset.

Restraint: High initial cost and lack of skilled workforce

Manufacturing automation inhibits creativity owing to the availability of automation/machinery and a shortage of workers within the manufacturing plant. To build specific products to cater to established end users in the market, companies require a skilled workforce that gives accuracy to their final product. Many manufacturers are intrigued by the cost-reduction benefits of implementing automation and technology within their manufacturing facilities. While the benefits can help cut costs and ultimately increase profits, high initial investment costs can be involved. It is important to adequately evaluate the long-term benefits of adding various types of technology within operations to determine whether the initial implementation cost will be worth it.

Opportunity: Increasing public-private partnerships in operational markets of end-use industries

The COVID-19 pandemic has created much uncertainty for stakeholders in the automotive and infrastructure development industries. To survive in such a situation, businesses can form a public-private partnership which will enable them to win new contracts, generating huge demand for new vehicles and propelling the hydrophilic coating market forward. This method is widely used in several countries, and it is gaining popularity in the US as a result of its application in large-scale projects. Furthermore, coordination between government and business sector partners can save millions of dollars, and this is being followed in developing countries such as India. In the previous decade and a half, India has seen a significant increase in PPPs. Due to many policies and institutional measures implemented by central and state governments, it has emerged as one of the world’s major PPP markets. This trickles down to hydrophilic coating demand growth as well, as they find application in almost all major end-use industries, namely automotive, aerospace, medical devices, optics, and marine. For instance, Surmodics and Abbott have a partnership for hydrophilic coatings and Abbott pays royalties on that right Mitsui Chemicals Group is the primary manufacturer and supplier of value-added specialty chemicals, plastics, and performance materials for a wide range of sectors, including agricultural, automotive, construction, civil engineering, electronics, energy, healthcare, and packaging. To provide end-to-end hydrophilic coating services to its clients, Mitsui Chemicals, Inc acquired FSI Coating Technologies in 2010. This also enhances the company's product portfolio and expands its operations in different geographies.

Challenge: Challenges in supply chain

Following the COVID-19 pandemic, the medical device supply chain has faced new issues. From a lack of raw materials needed to manufacture medical equipment to the absence of commodities critical to the medical device supply chain sector, the load on the supply chain may be higher than ever. The accumulation of issues is placing strain on the supply chain. The management of Med-Tech enterprises will confront some critical decisions in terms of planning, considering existing supply chain difficulties and employing predictive analytics. Their judgments will be critical in eventually relieving strain on the medical device supply chain and in rebuilding a robust and trustworthy supply chain. Medical device contract manufacturers must participate as well, concentrating on discovering new, inventive solutions to these difficulties; in the present context, proactive supply chain solutions will be a priority for medical device makers. Making plans around extremely long lead times, locating replacement components, and even redesigning device parts to meet supply availability need more visibility and agility. It is critical to swiftly identify which parts are most vulnerable and pivot where feasible to ensure the required supply to bring key healthcare equipment to the people whose lives depend on them.

The glass/ceramics segment is expected to register the highest CAGR during the forecast period.

The glass/ceramics substrate type segment is expected to register the highest CAGR during the forecast period. Optical devices are prone to fogging (formation of tiny water droplets that distract the optical transmittance) when their surface temperature is approaching or below the dew point of the surrounding atmosphere, leading to substantial performance detriments or even disastrous consequences in health and safety. For instance, fog formed on the camera lens makes images blurred and distorted; drivers’ vision may be impaired by fog on the vehicle windscreen or rearview mirrors, which is one of the main causes of traffic accidents. In addition, fog on optical sensors or instruments often reduces the precision of spectrographs. Therefore, effective antifogging strategies for optical devices are highly demanded.

The antifogging coating is regarded as the most promising approach to avoid fog formation on optical devices and hydrophilic coating plays a crucial role in anti-fogging. Hydrophilic coating is almost the opposite of hydrophobic coating, in which the water is attracted to the coating and spreads out. Similar to hydrophobic coating, hydrophilic coating plays a part in the self-cleaning aspect, but rather than preventing substances from adhering to the glass, the hydrophilic coating breaks down organic matter when exposed to UV light. After a day in the sun, dirt and organic matter can be washed away when rain or other water applied to the surface runs flat and quickly across the surface of the glass.

The optics segment is expected to be the fastest-growing segment, by end user, in the hydrophilic coating market during the forecast period.

The eyeglasses industry is more complicated than it looks. In reality, the whole market may be segmented by product, yielding four categories: prescription frames (without lenses), sunglasses, ophthalmic lenses, and contact lenses. According to National Association of Optical Goods Manufacturer, from 2017 to 2019, the CAGR for total revenues was 2.4%. The sunglasses segment recorded the highest growth, with an annual growth rate of 2.9% for the same years, although the lens segment led the total revenue for the three-year period with 49%.

The global eyewear market, which is made up of spectacles, contact lenses, sunglasses, and other eyewear products, was estimated to be worth around USD 170 billion in 2022 and was forecast to reach a value of roughly USD 323.8 billion by 2030. The US was the leading eyewear market in the world as of 2021. Eyewear revenues in the country were more than double the size of those in China, which was the next biggest market. Luxottica is not only one of the largest eyewear companies in the US, but worldwide. The eyewear brands Ray-Ban, Persol, and Oakley are part of Luxottica’s brand portfolio.

The hydrophilic coating market in Asia Pacific is expected to register the highest CAGR during the forecast period.

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Asia Pacific is a rapidly developing region that offers opportunities for various industry players. Most of the leading players in North America and Europe are planning to move their production bases to this region because of inexpensive raw materials, low production costs, and the need to serve the local markets better. The demand for premium products is increasing in the region due to the growth of the middle-class population. Government initiatives are also helping the growth of the automotive industry. These factors are expected to play an important role in driving the hydrophilic coating market.

Asia's robust economic resurgence from earlier this year is losing steam due to a weaker-than-expected second quarter. The IMF has reduced its predictions for growth for Asia Pacific to 4% this year and 4.3% next year, significantly below the 5.5% average over the previous two decades. Despite this, Asia remains a relatively bright light in an otherwise gloomy global economy. A rapid tightening of financial conditions is boosting government borrowing costs that are projected to become much more constructive as central banks in major advanced economies continue to raise interest rates to contain the fastest-growing inflation in decades. Rapid currency depreciation may exacerbate policy issues. China’s strict zero-COVID-19 policy and the related lockdowns, coupled with a deepening turmoil in the real estate sector, led to an uncharacteristic and sharp slowdown in growth, which, in turn, is weakening momentum in connected economies.

North America shows tremendous growth during the forecast period.

North America is a diversified market and has many hydrophilic coating manufacturing companies. These companies primarily focus on new product developments to cater to the increasing demand from end users. The North American hydrophilic coating market is driven by technological advancements in manufacturing and high-quality end product.

Today's economies are undergoing tremendous transformations due to emerging market expansion, the rapid introduction of new technology, environmental legislation, and shifting consumer ownership choices. Other sectors have been transformed by digitization and new business models, and the car industry will be no different. These pressures are giving rise to four disruptive technology-driven developments in the automobile sector: diversified mobility, autonomous driving, electrification, and connectivity. Most industry participants and analysts believe that these four technology-driven trends will reinforce and accelerate one another, and the sector is ready for upheaval. Despite popular belief that game-changing disruption is already on the horizon, there is no comprehensive view of how the automobile industry will look in 10 to 15 years due to these developments.

Key Market Players

Hydromer, Inc (US), Harland Medical Systems, Inc (US), Surmodics, Inc (US), Koninklijke DSM NV (Netherlands), Biocoat, Inc (US), Aculon, Inc (US), AST Products, Inc (US), AdvanSource Biomaterials Corporation (US), Surface Solutions Group, LLC (US), Teleflex, Inc (US) are the key players operating in the global market.

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Scope of the Report

This research report categorizes the hydrophilic coating market based on substrate, end user, and region.

Based on substrate, the hydrophilic coatings market has been segmented as follows:

• Polymers
• Glass/Ceramics
• Metals
• Nanoparticles
• Others

Based on end user, the hydrophilic coating market has been segmented as follows:

• Medical Devices
• Optics
• Automotive
• Aerospace
• Marine
• Others

Based on the region, the hydrophilic coating market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In September 2022, Harland Medical Systems, Inc. announced the opening of its European headquarters in Cork, Ireland. This will serve the customer’s needs better by providing access to equipment, materials, and coating expertise.
• In April 2020, Hydromer signed a new commercial agreement with multiple clients. The company will provide its custom coating equipment, hydrophilic coatings formulations, and complete technical support to its clients.
• In February 2020, Biocoat, Inc. launched Hydak UV. The new version of its original HYDAK coating is designed to be cured using ultraviolet (UV) light, allowing for flexible integration with industry-standard UV coating systems. The innovative coating is built on the proven bi-laminar platform used in Biocoat existing thermal heat cure coating technology.

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