Optical Coating Market Research Report – Forecast to 2027

Optical  Coating  Market  Research  Report:  By  Type,  By  Sputter  Deposition,  By Coating  Material,  By  End-use  Industry:  Forecast  to  2027

ID: MRFR/CnM/4588-CR | July 2018 | Region: Global | 100 pages

Optical Coatings Market- Overview


Optical Coating Market is anticipated to mature from USD 7,964.8 Mn to over USD 11,700 Mn by 2023, demonstrating a robust CAGR throughout the review period as per Market Research Future's estimate.

Optical coatings are consumed in several applications, involving UV resistance, and scratch & abrasion guard. Spectacle creators are progressively using optical coatings to improve their products' many qualities.


COVID-19 Analysis


The pandemic has disturbed the international economy as governments assume lockdown measures and limit their populations' progress. Industrial actions are being ceased. Global travel also had stopped to a halt in the middle of the year, and only indispensable industries such as pharmaceuticals and food are being permitted to function. These measures have had a significant toll on almost all manufacturing sectors as factories face supply chain cessations and labor scarcities. The optical coating industry also witnessed a weakening after March due to raw material and labor scarcities and government-mandated plant closures.


Competitive Landscape


The eminent contenders in the optical coating market 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,

  • Berliner Glas


Market Dynamics


Drivers


Growing Demand From Consumer Electronics


The extensive development of the consumer electronics industry is estimated to fuel the demand for exceptionally durable and profitable electronics which in turn expected to ease the growth of the global optical coating market in the assessment period.


Advanced Technology In Optical Coating Fabrication Process


The intensifying population base with access to a mounting disposable income and the escalating tendency concerning implementing smart technology is projected to alter the optical coating market size.


Speedy Use Of Optical Coating In The Automobile Industry


The prompt infiltration of optical coatings in the automobile industry for shielding applications is estimated to drive the optical coating market share in the near future.


Opportunities


Surging Requirement For Vacuum Deposition Technology In Medical Devices


The mounting requirement for vacuum deposition in medical purposes, such as development of the physical properties of medical equipment, is anticipated to provide a remarkable possibility for further development in the optical coating industry in the coming years.


Growing Demand From The Renewable Energy Sector


The surge in requirements from the renewable energy sector due to increased investment in the industry is estimated to benefit the optical coating market.


Challenges


Stringent Environmental Regulations


Rigorous environmental rules regarding optical coatings production resources are expected to hinder the market in the forecast period. Cr6 coatings are cancer-causing hexavalent chromium and a dangerous air pollutant.


Segment Overview


By Type


The filter coatings segment is foreseen to develop at a CAGR of 7.86% in the forecast period.


By Coating Method


The vacuum deposition segment reports for the principal market segment.


By Coating Material


The dielectric material segment is anticipated to witness high growth in the assessment period.


By End-Use Industry


The adoption of consumer electronics has controlled the electronics & telecommunication segment globally to reach a forecasted value of USD 2.80 billion by the end of 2023.


Regional Analysis


Augmenting Lifestyle Standards To Promote APAC


The Asia Pacific is the most vital region globally and has a raised concentration of developing that are quickly urbanizing, and as such, there has been an alteration in lifestyle patterns, which is benefitting the global optical coating market size. The region also has a growing manufacturing sector due to the abridged working costs, the accessibility to refined and moderately cheap labor.


North American Market To Consolidate Lead


North American regional markets make up the second major market and have comparable growth & use examples. The presence of strong market contenders in these regions and optical coatings technology growth has provided significantly to securing these regions' market positions.


Recent Developments


Jan 2021 Medical Technologies Innovation Facility (MTIF) and Quantum Design, UK and Ireland (QD) are have announced they have arrived into a joint agreement affording clienteles the capability to view and use the JA Woollam IR VASE II Spectroscopic Ellipsometer. Certainly, this is only one of two such gadgets in the UK and the only one now made accessible to customers in the UK in this way. Ellipsometry's nature (comparatively fast and non-destructive) makes it perfect for diagnostics in numerous sectors such as optical coating stacks, biological and medical coatings, photovoltaics, nano-photonics, semiconductor devices, flat panel displays, construction materials, protective layers as well as real-time quality expertise.


June 2020 Materion, an optical coatings creator, participated in a definitive agreement to obtain Optics Balzers (Balzers, Liechtenstein), which concentrates on optical thin-film coatings all-cash transaction expected to close in the third quarter of 2020. The two companies' structures match one another, as Optics Balzers will benefit from Materion's sales strength in the US, and Materion will profit from Optics Balzers' market spot in Europe. The present market expansion made clear that Optics Balzers could achieve its development targets with a supplementary location in the US—furthermore, the optics plant in Malaysia fits into Materion's roadmap.


July 2020 Berghof Fluoroplastic Technology, a holding of the Berghof Group, has declared it has taken over the business undertakings of OptoPolymer. The purchase, solemnized July 1, will allow Berghof Fluoroplastics to increase its portfolio to incorporate optical coatings with barium sulfate.  Since its establishment in 2003, OptoPolymer has advanced diffuse reflecting material with optical functions for many industrial operation areas. These consist of reflection standards, coating material for incorporating spheres, background illumination of displays, laser cavities, coating services, and optical measuring gears.

October 28, 2019  Intevac, Inc., a leading supplier of thin-film processing systems, launched its VERTEX Marathon system which is a high-productivity thin-film platform targeted for the display cover glass devices. Intevac also launched scratch-protection protective coating solution named DiamondClad which delivers enhanced scratch protection and durability, and has a high optical clarity. DiamondClad produces a multi-layer, diamond-like carbon film which is claimed to be superior to the standard anti-fingerprint (AF) coated display cover glass. Additionally, DiamondClad is also claimed to be better than AF-coated glass during testing with perspiration, denim, and abrasive sand.


Report Overview


By Type



  • Anti-Reflective Coatings

  • Beam-Splitter Coatings

  • Electrochromic Coatings

  • Filter Coatings

    • Short-Pass

    • Long-Pass

    • Notch Filters

    • Others



  • High Reflective Coatings

  • Transparent Conductive Coatings

  • Partial Reflective Coatings

  • Others


By Coating Method



  • Vacuum Deposition/ Evaporative Deposition

    • Thermal Evaporation

    • Electron Beam Deposition/ Electron Beam Evaporation



  • Sputter Deposition

    • Ion Beam Sputtering (IBS)

    • Ion Assisted Deposition (IAS)

    • Reactive Sputtering

    • Magnetron Sputtering

    • Plasma Sputtering

    • Gas Flow Sputtering




By Coating Materials



  • Metallic Materials

  • Dielectric Materials


By End-Use Industry



  • Electronics & Telecommunication

  • Automotive

  • Aerospace & Defense

  • Solar

  • Healthcare

  • Others



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2023: USD 11,700 Million
  • 2027: Significant Value
  •   CAGR   Substantial Value
      Base Year   2019
      Forecast Period   2020-2027
      Historical Data   2018
      Forecast Units   Value (USD Million)
      Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   Type, Sputter Deposition, Coating Material and End-use Industry
      Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   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, Berliner Glas
      Key Market Opportunities   Rigorous environmental rules regarding optical coatings production resources
      Key Market Drivers

  • The surge in requirements from the renewable energy sector due to increased investment in the industry
  • The prompt infiltration of optical coatings in the automobile industry for shielding applications


  • Frequently Asked Questions (FAQ) :


    The global optical coatings market size can surpass USD 11,700 million by 2023.

    The global optical coatings market stood at USD 7,964.8 million in 2017.

    The global optical coatings market can accumulate revenues at over 7% CAGR from 2018 to 2023.c

    The APAC region can showcase the highest growth rate till 2023 in the global optical coatings market.

    Carl Zeiss Jena GmbH, MKS Instruments, Optiforms Inc, DowDuPont Inc, Optics Balzers AG, Abrisa Technologies, Optical Coatings Japan, Berliner Glas, AMETEK, Inrad Optics, Reynard Corporation, Thorlabs inc, Angstrom Engineering Inc, Edmund Optics Inc, II-VI Incorporation, and PPG industries are the key players of the global optical coatings market.

    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.