Global  Optical  Coating  Market  Research  Report:  By  Type,  By  Sputter  Deposition,  By Coating  Material,  By  End-use  Industry:  Forecast  to  2023

The global optical coating market, which was valued at USD 7.96 billion in 2017, is expected to reach an estimated evaluation of USD 11.78 billion by the end of 2023. The discovery of new applications and increasing demand from consumers for various products that use optical coatings are some of the key drivers that are affecting growth for the global market. The global optical coating market is poised to witness a CAGR of 7.07% during the forecast period of 2018 to 2023. This projection indicates steady growth for the market.

Optical coatings have a wide range of applications in end-use industries. Use of optical coatings in life sciences, military, and laser optics have increased demand for high precision and durable thin film production. Subsequently, major players have invested considerably in developing cutting-edge technology for the fabrication and the deposition process for optical coatings. The advancement of technology used in the above-mentioned sectors has had an added benefit which allows discovery of novel applications of optical coatings. Consumer electronics have witnessed strong penetration with most households using several personal electronic devices such as smartphones, tablets, and laptops. Additionally, the development of technology in this sector has brought about the adoption of smart electronics (Smart TV), and wearable electronic devices. The considerable growth of the consumer electronics industry and the extensive use of optical coatings in high-resolution display systems, protective coatings, and waterproof coating to meet the demand for highly durable, and cost-effective electronics is expected to facilitate notable growth for the global market during the assessment period. Other drivers of the global optical coating market include the rapid penetration of optical coatings in the automobile industry for protection and aesthetic applications, expanding population with a rising disposable income, and the growing trend toward adoption of smart technology.

Despite the growth of the market, stringent environmental regulations regarding materials used in the production of optical coatings are expected to hinder market growth during the forecast period. Chromium trioxide or chromic acid is a main ingredient in Cr6 plating solutions which are often commonly used in decorative, protective, and hard coatings. Cr6 coatings are hexavalent chromium which has been found to be carcinogenic and a hazardous air pollutant. As a result, government bodies are moving towards marking Cr6 as toxic chemicals. Growing environmental concerns are pushing market leaders to develop optical coatings using safer chemicals. Additionally, with the global healthcare sector revolutionizing with rapid technological advancements, use of optical coatings in the field of biomedical to provide medical devices with resistance to corrosion and wear. The growing demand for vacuum deposition in medical applications such as to improve the physical properties of medical equipment is expected to offer a significant scope of opportunity for further growth of the market in the coming years.

The global optical coating market is segmented on the basis of type, coating method, coating material, end-use industry, and region. By type, in the report, the market is segmented into anti-reflective coatings, beam-splitter coatings, electrochromic coatings, filter coatings, high-reflective coatings, transparent conductive coatings, partial reflective coatings, and others. Although anti-reflective coatings presently account for the most significant share due to their extensive use in electronics & telecommunication and solar energy industries, the filter coatings segment is expected to grow at the highest CAGR of 7.86% during the review period. Filter coatings are further subdivided into various types and have a variety of applications which are expected to be responsible for the projection mentioned above.

By coating method, the market is segmented into, vacuum deposition/evaporation deposition, sputter deposition, and others. Presently, vacuum deposition accounts for the largest segment of the total market due to the use of this method across various end-use industries including aerospace & defense, healthcare, solar industries, electronics & telecommunication, and automotive. However, the development of sputter deposition technology for the deposition of thin films are expected to be the fastest growing segment during the assessment period.

By coating material, the market is segmented into metallic materials and dielectric materials. Metallic materials account for the largest segment. However, the dielectric material segment is projected to witness high growth during the review period due to the increased demand for insulating materials in aerospace & defense, solar and electronic industries. The dielectric segment is poised to grow at the highest CAGR of 7.57% during the assessment period.

By end-use industry, the market is segmented into electronics & telecommunication, automotive, healthcare, aerospace & defense, solar, and others. The strong adoption of consumer electronics across the globe has poised the electronics & telecommunication segment to grow to value an estimated USD 2.80 billion by the end of 2023. Presently, the electronics & telecommunications segment accounts for more than a third of the total market.

Regional Analysis

The Asia-Pacific is the most significant region in the global market and is expected to grow at the highest CAGR during the assessment period. The region has a high concentration of emerging economies such as China, India, South Korea and Japan. These countries are rapidly urbanizing, and as such, there has been a noticeable change in lifestyles and consumption patterns. The region has a well-established and growing manufacturing sector due to the reduced overall operating costs in the region and the availability of educated, and comparatively cheap labor. The penetration of consumer electronic devices and growing purchases and demand for automobiles are other important factors in encouraging the growth of optical coatings.

North America & Europe make up the second and third largest markets respectively and have similar growth & consumption patterns. The presence of major market players in these regions and the development of the technology of optical coatings have contributed significantly to securing these regions market positions.

Competitive Tracking

Thorough research on the market has revealed several important market players who contribute significantly to the global competitive landscape of the optical coatings market. Prominent players included in the report are Thorlabs Inc., Angstrom Engineering Inc., Edmund Optics Inc., Abrisa Technologies, Inrad Optics, Carl Zeiss Jena GmbH, Optiforms Inc., MKS Instruments, Reynard Corporation, Optical Coatings Japan, AMETEK, PPG Industries, II-VI Incorporation, DowDuPont Inc., Optics Balzers AG, and Berliner Glas.

Global Optical coating Market: Competitive Landscape

The prominent players operating in the global optical coating market are Edmund Optics Inc, Thorlabs Inc., Angstrom Engineering Inc., Optiforms Inc, Abrisa Technologies, Carl Zeiss Jena GmbH, Inrad Optics, MKS Instruments, Reynard Corporation, PPG industries, Optics Balzers AG, AMETEK, II-VI Incorporation, DowDuPont Inc, Berliner Glas, Optical Coatings Japan among others.

Edmund Optics Inc, Thorlabs Inc, Inrad Optics, MKS Instruments, Optics Balzers AG, AMETEK, II-VI Incorporation and Berliner Glas are collectively holding a significant share of the global optical coating market. The global optical coating market is characterized by the healthy competition among these players on account of the huge growth potential. The market has a substantial number of the established tier-1 and tier-2 companies, along with a considerable presence of small and medium scale industries. The key players are focusing to gain substantial revenue and market share by adopting collective approaches and business tactics such as expansions, acquisitions, and new product launches.

Edmund Optics Inc is a U.S. based manufacturer and supplier of optics and optical components. It offers various optical coating products and equipment such as anti-reflection (AR), metallic mirror coating, filter coating; and a range of equipment such as e-beam deposition, ion-assisted deposition, magnetron sputtering, thermal evaporation, hard coatings for stringent environments and durability, and automated ultrasonic cleaning. The company serves various markets industries including pharmaceutical, military, life sciences, photovoltaic, semiconductor, biomedical, electronics, and semiconductors.

In February 2018, Edmund Optics Inc. acquired optical component manufacturer ITOC Gmbh in Maniz. ITOS Gmbh has been producing optical components since 1993, and this move is in line with the strategy of Edmund Optics Inc to further strengthen its foothold in the European market.

MKS Instruments is the U.S. based manufacturer, which operates in two business segment, namely light & motion, and vacuum & analysis. It offers a range of products such as bandpass filters, long pass filters, short pass filters, neutral density filters, dichroic filters, diffusers, fluorescence optical filters, and calibration filters. The company holds more than 600 patent with a team of over 500 scientists and engineers.

In February 2016, MKS Instruments acquired Newport Corporation for USD 23 per share, and the cash transaction was valued at USD 980 million. This acquisition served the common need of customer in optical coating business.

Berliner Glas, an integrated company, provides solution for electronics, mechanics, and optics. It offers optical design, mechanical design, coating design and others to various high-end industries including semiconductor industry, medical industry and aerospace industry. The company provides coating design to various substrates such as optical glass, colored glass, quartz and quartz glass, sapphire, semiconductor materials, glass fibers, crystals, ceramics, and MgF2.

In June 2016, Berliner Glas expanded the Berlin site to a customized APS system (advanced plasma source). This coating facility enables the production of highly sophisticated coatings consisting of edge filters, laser-resistant layers, and high reflective layers.

AMETEK Inc., founded in 1930, is the U.S. based company. It is a leading manufacturer of electromechanical, electronic devices and optical coatings, and related products. The company produces various types of optical coating such as anti-reflective coatings, high reflective coatings, and specialty coatings.  The company has more than 15,000 employees at more than 120 manufacturing locations across the globe.

In April 2015, AMTEK Inc. acquired Zygo Corporation for USD 19.5 per share in cash, which represents 31% premium to Zygo’s closing share price of 2014. The total transaction value was revealed at USD 280 million. This acquisition was in line with the company’s strategy to upgrade its technological aspect and enter the lucrative optical business segment.