Optical Coatings Market to reach USD 24.7 billion in 2030, at a CAGR of 7.8%

The Optical Coatings Market stood at USD 15.7 billion in 2023-e, and is projected to grow at a CAGR of 8.5% through 2030 to reach USD 27.8 billion. An optical coating is made up of a mixture of metals, oxides, and rare earth elements layered thinly. Optical coatings are thin-film deposits that are applied to optical components to modify their polarization, improve transmission, and alter their reflecting qualities. Optical coatings enhance diagnostic precision, improve biocompatibility, and reduce glare and reflections in medical devices. These coatings also increase durability, minimize light scattering, and contribute to technological innovations in minimally invasive procedures.

Key players in the market focus to develop and launch innovative coatings for medical applications. For instance, in September 2023, Surface Solutions Group, a USD-based company that develops optical coatings for medical applications, launched GlideMed, a medical device coating. The coating offers strong adhesion and permanent bond, reduced friction characteristics, providing a viable alternative to conventional PTFE coatings.

Ion-Beam Puttering Segment is Expected to Expand at a Steady Pace

The demand for ion-beam puttering is being driven by the many benefits offered by ion-assisted electron-beam evaporative deposition, including a lower cost of ownership, a longer mean time between maintenance, and improved quality. It offers control over the beam's energy and current with homogeneous substrate coverage. Market players are acquiring other small companies to enhance their product portfolio and strengthen their position in the market.

For instance, in November 2021, Denton Vacuum LLC announced that it had concluded an ion beam deposition technology acquisition agreement with 4Wave Incorporated. This covers all machinery, patents, and intellectual property, as well as all process patents. This acquisition helps Denton increase their product portfolio range and expand their presence across the globe in optical coatings.

Transparent Conductive Coatings are Projected to Witness Significant Growth

The transparent conductive coating segment is expected to grow at a significant pace owing to its use in various applications, including solar cells, display panels, touch screens, and other devices that employ these coatings in a multitude of ways. Growing demand for transparent conductive coatings, including flexible displays, wearable electronics, and electric cars, is also contributing to segment growth.

Major market players are concentrating their efforts on the development of innovative technologies to reduce energy consumption. For instance, in March 2023, HeiQ, a Switzerland-based material innovation company, announced the development of HeiQ ECOS technology. HeiQ ECOS coating on silver wires enables energy efficiency through photovoltaic, paving the way for indoor energy harvesting for sensors that run off no batteries, among other applications.

Increasing Demand for Optical Coatings in Asia-Pacific is Fueling the Market Growth

The increasing use of optical coatings in automobiles and consumer electronics such as smartphones, tablets, cameras, LED screens, gaming consoles, and laptops is the major factor contributing to the market growth. The main reason for rising sales of automobiles in Asia is that optical coatings are used mainly for coating rearview mirrors, headlights, body surfaces, to enhance safety, visibility, and vehicle performance. For instance, in October 2023, according to statistics published by Asia Automobile Analysis, the first half of 2023 saw a 4.5% year-over-year growth in automobile sales in Asia, totaling 5,378,704 units, up 13.3% over the previous year.

Optical Coatings Market is Highly Competitive with the Presence of a Large Number of Global and Regional Players

The market is characterized by intense competition due to the presence of numerous international and domestic players. The optical coatings market, in particular, is dominated by key players such as Abrisa Technologies (HEF), Alluxa, Beneq, Carl Zeiss, Coherent, DuPont, G&H Technologies, Inrad Optics, Newport, Reynard, Schott, SunDensity, Viavi Solutions, and VSP among others. These industry leaders are primarily focused on acquiring smaller players and innovating their product lines to cater to changing consumer preferences and needs.