Conformal Coating Market

The rising number of electronics in safety-critical and high-reliability industries is driving the conformal coating market. Today’s manufacturing technologies are including more electronic devices, sensors, controllers, and communications modules in products where product failure is unacceptable. In the automobile industry, for example, advanced driver assistance systems (ADAS), electric vehicles, battery management systems, and autonomous driving technologies depend on highly reliable printed circuit boards (PCBs) that need to operate in conditions of extreme temperatures, vibration, moisture, and exposure to corrosive chemicals. The same conditions apply to aerospace and defense technology as well as medical devices, industrial automation, telecommunications infrastructure, and renewable energy resources; all require continuous electronic operations in harsh environments. As electronic assemblies (combination of multiple electronics in one assembly) get smaller and more complicated, they also become more likely to suffer from moisture ingress, corrosion, dust contamination, thermal expansion and contraction, and electrical leaks. Conformal coatings act as a barrier to protect sensitive circuit boards from these types of environmental hazards while providing electrical insulation and reliability over long periods. Manufacturers are also investing in advanced conformal coatings to increase the reliability of their products through the growing use of electronics for mission-critical applications within connected devices (including industrial IoT), 5G networks, and advanced medical devices.

The growing costs of reworking, repairing and removing advanced conformal coatings (AC) are a significant impediment to the expansion of the conformal coatings industry. Generally considered very durable and able to withstand harsh environmental conditions for extended periods, modern coating materials (e.g. parylene, silicone, polyurethane, and high-performance fluorinated coatings) also create challenges when inspected, diagnosed, repaired and replaced. Due to the nature of coating processes, reworking a defective component of a coated electronic assembly typically requires specialized removal methods, equipment and skilled labour in order to gain access to the defective component without causing other related components on the circuit board to be damaged or the functionality of the board to be impaired. The increased difficulty of obtaining access to defective components increases in proportion to the density of an electronic assembly and, therefore, is more significant in automotive electronics, aerospace systems, telecommunications (telecom) infrastructure, medical devices and industrial automation equipment. High-density electronic assemblies contain miniaturized electronic components as well as more complex circuit designs, which add further complications to the rework process. If the coating removal process is improperly implemented, there is a strong likelihood that sensitive electronic components will be damaged, the product rejection rate will be increased and, subsequently, there will be an increase in manufacturing costs. In addition, advanced coating materials generally require longer processing times and may necessitate the use of specialized solvents, thermal treatment or mechanical means to remove them, thereby raising the cost of maintenance throughout the lifecycle of the product. As a result, these factors will deter cost-sensitive manufacturers from utilizing advanced conformal coating (AC) solutions when producing high-volume electrical/electronic (E/Es) products where efficient repairability and low operating costs are essential. Thus, the overall penetration of advanced conformal coating (AC) solutions into the market will be restricted due to low adoption of advanced OC solutions by manufacturers that produce high-volume E/Es.

With the growing use of electronics to create the necessary infrastructure for 5G networks; edge computing; and data centers, there is a large potential for the conformal coating market to grow. As the world has an ever-increasing need for high-speed connectivity; real-time data processing; cloud services; AI; and IoT applications, investments in advanced telecommunications and digital infrastructure will continue to grow quickly. These systems use very advanced electronic assemblies like printed circuit boards (PCBs), power management units (PMUs), communication modules, and networking equipment and must be able to work around the clock, with very little downtime, and provide maximum reliability. Due to the nature of 5G base stations, edge computing facilities, and data centers, they are constantly exposed to environmental factors such as humidity, dust, temperature variations, airborne contaminants, and electrical stress; that can negatively affect the performance of electronics. Having a conformal coating on these electronics will provide an important layer of protection from moisture ingress, corrosion, chemical exposure, and electrical leakage to assist in the long-term reliability of the system and optimum operational efficiency. As operators of the above-mentioned infrastructures continue to focus on getting the most out of their equipment and reducing maintenance costs, having maximum reliability from their equipment, the opportunities for conformal coating manufacturers to provide custom solutions for next-generation digital and communications infrastructures will be limitless.

Regulatory scrutiny of VOC emissions and hazardous chemicals is growing, making it difficult for the conformal coatings market to meet these compliance challenges. Conventional conformal coatings often contain solvent-based materials. When used in coatings, solvents will cause VOC emissions during the application and curing processes. These VOC emissions contribute to environmental pollution and pose risks to occupational health and safety. With increasing pressure to comply with governmental and regulatory requirements around environmental protection and workplace safety initiatives, manufacturers are being forced to reduce emissions, eliminate hazardous materials from their products, and produce more sustainable conformal coatings. The evolving regulatory landscape is requiring manufacturers to invest significantly in research & development, reformulation efforts, testing requirements, certifications, and facility upgrades in order to comply. Additionally, transitioning from traditional solvent-based coatings to low- or no-VOC, waterborne or environmentally friendly ones increases the complexity of production, along with the associated costs of developing and manufacturing these coatings. Further, regulatory limits on using hazardous substances in specialty-coating formulations may restrict material options for manufacturers and require them to find alternative chemistries while maintaining performance (reliable adhesion), dielectric capability, and environmental resistance. Technical challenges posed by these regulatory pressures can place considerable strain on MSME manufacturers, who typically operate with relatively few resources. Because of these factors, manufacturers face increasing compliance costs, which can negatively affect profitability, slow the cycle time for developing new products, and create market-entry barriers.