Smart or intelligent coatings are fast gaining traction with the emergence of new technologies further enhancing their functionalities. Some such technologies are nanotechnology, conductive materials, microencapsulation, self-healing and self-assembling systems. They are expanding the capabilities of coatings well beyond aesthetics and protection. Constant thrust on research and development, for example, has helped create lightweight, eco-friendly smart coatings, thereby further boosting the market.
A booming electronics industry, especially the proliferating handheld devices and smartphones, is at the forefront of driving demand in the market since they need self-cleaning and self-healing coatings. Besides, the automotive, military, building and construction, and medical and healthcare sectors are also majorly boosting their demand.
Despite high cost, smart coatings are seeing soaring demand because of their multiple benefits. As a result, their market will likely expand at a supercharged pace by clocking a CAGR of 29.8% from 2017 to 2025, finds a report by Transparency Market Research. Rising at this rate, the market which was worth US$1.1 bn in 2016 is expected to reach US$9.82 bn by 2025.
Military Sector Emerges as Major Driver of Demand
Application-wise, the key segments of the global smart coatings market are building and construction, automotive, electronics, military, medical, etc. Of them, the military segment dominated the market with a substantial share in it in 2016. This is primarily on account of the demand for smart coatings for military purpose in regions of North America and Europe. Smart coatings are also seeing rapid uptake in the automotive industry as they help enhance asset life by limiting damage caused by corrosion and also serve to bring down maintenance costs. The booming building and construction segment is another major application segment. Market share of the segment is anticipated to rise by 2.3% by 2025.
The different types of products purveyed in the global smart coatings market can be categorized into self-cleaning, self-healing, anti-corrosion, anti-microbial, self-dimming, etc. At present, the anti-corrosion coatings segment accounts for a leading share in the market on the back of solid demand from North America, Europe, and Asia Pacific. They find applications in end-use industries such as automotive, electronics, and military, among others.
Development of Infrastructure Makes North America Dominant Region
From a geographical standpoint, North America leads the market with maximum share in the revenue. Serving to catalyze growth in the market in the region is the increasing thrust on infrastructure development activities and industries such as automotive, military, healthcare, and consumer electronics. The market in the region is however expected to lose some of its share by rising at a CAGR of 25.8% in the forecast period. Europe trails North America in terms of market share. By registering a CAGR of 22.2%, the market in the region is also expected to trim some its revenue share. The TMR report predicts the market to account for a share of 26.2% by 2025.
Vis-à-vis growth rate, on the other hand, Asia Pacific is expected to surpass all other regions by clocking a CAGR of 38.6% from 2017 to 2025. Rising at this pace, the region is predicted to increase its share to 33.3% by 2025-end. The supercharged growth in the region is being brought by fast-paced infrastructure development and the burgeoning manufacturing sector in China and India.
Some of the key players operating in the global smart coatings market are 3M, PPG Protective & Marine Coatings, BASF SE, Inducoat, Dow Corning, Royal DSM, and NEI Corporation.