Anti-Reflective Coatings Market Size, Share & Trends Analysis Report By Deposition Method (Chemical Vapor Deposition, Electronic Beam Deposition, Sputtering, Other Deposition Methods), By Applications (Semiconductors, Electronic Devices, Eyewear, Solar Panels, Automotive Displays, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2031

Market Overview

The global anti-reflective coatings market was valued at USD 4.97 billion in 2023. It is expected to reach USD 8.41 billion in 2032, growing at a CAGR of 6.02 % over the forecast period (2024-32). Anti-reflective coatings are used in automotive displays, mirrors, and windshields to reduce glare and improve visibility, contributing to driver safety and comfort. The expanding automotive industry and technological advancements in vehicle displays support market growth.

An anti-reflective, anti-glare, or anti-reflection (AR) coating is applied to the lens's surface, other optical elements, and photovoltaic cells to lessen the reflection. Conventional imaging techniques perform better because less light is lost to reflection. Removing stray light from complicated devices like cameras, binoculars, telescopes, and microscopes improves contrast by lowering reflections. It is very important for planetary astronomy. Some applications focus solely on removing the reflection, such as a coating for eyeglass lenses that causes the wearer's eyes more visible to others or a coating to lessen the shine from a hidden viewer's binoculars or telescopic sight.

In many coatings, transparent thin film structures with alternating layers of different refractive indices are used. Layer thicknesses are selected to produce constructive interference in the corresponding transmitted beams and destructive interference in the beams reflected from the interfaces. As a result, color effects frequently manifest at oblique angles since the structure's performance varies with wavelength and incidence angle. Such coatings must have a wavelength range specified when made or purchased. However, adequate performance may frequently be obtained for a wide range of frequencies: typically, a choice of IR, visible, or UV is offered.

Highlights

• Chemical vapor deposition dominates the deposition method segment
• Electronic devices dominate the application segment
• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Market Drivers

Increasing Demand from Eyewear Applications

Anti-reflective coatings enhance vision, reduce eye strain, and offer an attractive look to eyeglasses. Specifically, eye lenses with anti-reflective coatings offer sharper vision with less glare during driving at night and provide comfort during prolonged computer or other display screen uses, compared with eyeglass lenses without anti-reflective coatings. In addition, increasing numbers of people suffer from presbyopia, in which the eye lens stiffens with age, making it challenging to read at close range.

According to the US Department of Health and Human Services, nearsightedness affects approximately 23.9% of the population over 40, or approximately 34 million Americans. Additionally, according to the International Myopia Institute, Myopia affected nearly 30% of the world population in 2020 and is expected to rise to 50% by 2050, thereby likely driving the demand for eyeglasses, which are used for addressing myopia. The rising number of eyeglasses will further enhance the demand for the market.

Growing Demand from Solar Power Industry

The coatings market is anticipated to be driven primarily by the solar power generation and telecommunications industries. Anti-reflective coatings are thin film optical coatings that reduce reflections from various surfaces. These coatings enhance transmission by decreasing light loss due to reflectance. Further, almost 4% of the light falling perpendicularly onto glass is deflected away at the point where glass and air come together. The proportion of light lost in such situations increases as altitude increases in light's incidence angle.

Reflected light is a wasteful source of energy, particularly for solar panels. Solar panel lenses with anti-reflective coatings transmit more light since there is less light reflection. Companies in the market are accelerating product development and exploiting revenue opportunities to gain a competitive advantage. Market participants are overcoming obstacles and expanding their service divisions to obtain a competitive advantage, thereby driving market expansion.

Market Restraint

Dearth of Awareness

Despite the various advantages of anti-reflective coatings in different end-user sectors, there is a lack of consumer awareness about the benefits of anti-reflective coating in a few applications, including eyewear and others. Anti-reflective coatings used to have more drawbacks than advantages. Some of the past problems related to anti-reflective coatings in eyewear applications include a constant need to be cleaned, a peeling coating, and frequent scratching. Numerous people reject these eyeglasses goods as a result of these prior issues. Therefore, a lack of awareness regarding anti-reflective coatings will likely hamper market growth.

Market Opportunities

Increasing Usage of Electronics and Telecommunications Applications

Anti-reflection (AR) coatings are widely used in various electronic applications such as display panels, mobile phones, tablet screens, optical lenses, etc. Moreover, correctional lenses, photolithographic equipment, and many more devices make increasing use of anti-reflective and high RI materials to optimize light attenuation or various other visible properties. In addition, anti-reflection (AR) coatings are applied to the optical surfaces of telecommunication devices to improve system throughput and lessen risks brought on by reflections that travel backward through the system.

Globally, the demand for smartphones is increasing, thereby driving the market. According to Telefonaktiebolaget LM Ericsson, the number of smartphone subscriptions accounted for 6,259 million in 2021 globally, compared to 5,924 million in 2020. Further, according to ZVEI, in 2021, the global electric industry production was estimated at ~EUR 5 trillion, with a growth rate of 9% year on year (YoY), compared to EUR 4.6 trillion in 2020. Therefore, this growth in the electric industry is likely to create opportunities for the coatings market.

Regional Analysis

Based on region, the global anti-reflective coatings market is bifurcated into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global coatings market shareholder and is anticipated to exhibit a CAGR of 7.59% during the forecast period. The Asia-Pacific region led the global market due to the rising demand for semiconductors, electronics, and other manufacturing operations. One of the world's top producers of solar cells is China. According to the most recent five-year plan published in 2020, solar power generation capacity installations should increase annually by nearly 85 GW, which is roughly twice the country's present rate. China has lofty plans to achieve carbon neutrality by 2060. Similarly, most solar cells sold worldwide are produced in China or by Chinese businesses. In addition, the greatest electronics manufacturing base is located in China, which also had the highest growth in the electronics market. This base produces products, including wires, cables, portable computer devices, gaming systems, and other electronic gadgets. The nation produces electronics to meet domestic demand and exports them to other nations. Therefore, China is anticipated to control the market in the Asia-Pacific region due to the factors above.

North America is estimated to exhibit a CAGR of 5.27% over the forecast period. North America comprises the U.S., Canada, and Mexico. The U.S. dominates the North American regional market. Regarding volume, the US electronics market is the most significant globally and one of the most promising future markets. It is also projected that this market will maintain its leadership during the projection period due to the usage of cutting-edge technology, a surge in the number of R&D facilities, and rising consumer demand. In the U.S., the number of smartphone users marked 269 million in 2019, which is expected to grow rapidly to reach 290 million by 2024, thereby increasing the sales of smartphones, creating a major market in the region where the application of PFCBs, LCDs, and other applications and thereby driving the market. In addition, the U.S. is among the largest semiconductor manufacturers in the world. The semiconductor sector is the second largest in the country, after the pharmaceutical and biotechnology industry. The United States semiconductor sales account for 47% of global sales. Therefore, the growing semiconductor demand is estimated to propel the regional market.

The European market is further fragmented into Germany, the U.K., France, Italy, and the Rest of Europe. Germany is the leading revenue contributor in the region. Germany is a major force in the microelectronics industry and is the leading semiconductor producer in Europe, with one of every three chips being Germany-made. The country also accounts for over half of European microelectronics production and has established itself as an international leader in sensor systems, chip-based security devices, and energy-efficient electronics. In addition, the increasing level of automation in passenger vehicles and the ongoing digitization of the sector is generating increased demand for sensor technologies and advanced electronics. Various research institutes (such as the Fraunhofer Group) and Germany-based multinational companies are currently focusing on developing future-relevant technologies, including compound semiconductors, silicon-based technologies, and special substrates. This is expected to fuel the demand for anti-reflective coating technology during the forecast period.

The South American region is bifurcated into Brazil, Argentina, and the rest of South America. Major vehicle manufacturers have set up their facilities in Brazil owing to resource availability and skilled labor. Moreover, increasing demand for passenger vehicles and mini trucks, coupled with the rising popularity of electric vehicles, is expected to impact the automobile industry in the country positively. Therefore, it is likely to support the market over the forecast period. Additionally, Argentina's capabilities in electrical and electronics manufacturing are limited. Although the electronic appliances market declined after the devaluation of the ARS (Argentine peso), it is expected to regain its market position during the forecast period. The expansion of the electronics sector is predicted to slow the market's expansion during the forecast period.

Segmental Analysis

The global anti-reflective coatings market is segmented by deposition method and application.

Based on the deposition method, the global market is bifurcated into chemical vapor deposition, electronic beam deposition, sputtering, and other deposition methods. 

The chemical vapor deposition segment is the highest contributor to the market and is anticipated to exhibit a CAGR of 5.49% over the forecast period. A coating process called chemical vapor deposition uses gaseous reagents to supply thermally triggered chemical reactions at the surface of a heated substrate. Although they frequently do not, these reactions can involve the substrate material itself. CVD coatings are widely used in business and various consumer goods. They are regarded as stable and resilient thin film surfaces. The fact that the reactants in the CVD process are gases allows it to benefit from many of their properties, which is one of its main advantages. As a result, CVD can be used to coat surfaces with restricted access because it is not a line-of-sight procedure like most other coating methods. In addition, chemical vapor deposition is used for the anti-reflective (AR) coatings market to get precise thin film deposition. Due to its various applications and low price, chemical vapor deposition is anticipated to hold the highest share in the anti-reflective coatings market.

Sputtering is a thin film deposition technique widely recognized for producing high-quality optical coatings. The authors describe a scalable high throughput CFM reactive sputtering process for an anti-reflection coating that any size laboratory may use in this research. The CFM technique does not require an extra ion or plasma source, making it significantly simpler and less expensive than earlier strategies. It also creates AR coatings with exceptional optical characteristics and long-term endurance. The coatings are denser and more robust since the technique employs more energy than conventional electron beam evaporation. In addition, sputtering technologies for small batches, quick turnaround AR coating for retail opticians, and small laboratories have already been offered to the industry. Lens producers also use massive, industrial-scale sputtering devices to cover AR stock lenses in large quantities.

Based on application, the global market is segmented into semiconductors, electronic devices, eyewear, solar panels, automotive displays, and others. 

The electronic devices segment owns the highest market share and is anticipated to exhibit a CAGR of 7.13% during the forecast period. The glare reflected from computer screens, televisions, flat panels, and other electronic displays and devices can be reduced with anti-reflective eyewear, a cost-effective solution. The lenses for cameras also frequently use them. In addition, glare is minimized and reflection is reduced thanks to anti-reflective coatings. Displays are consequently simpler to read, causing less eye fatigue and more visual awareness. Due to the superior properties of anti-reflective coatings, such as scratch resistance, smudge-proof, and high durability, they are widely used in electronics industries.

Moreover, as anti-reflective coatings are so thin, they provide better vision and clarity for electronic devices, such as camera lenses. Major electronics manufacturers worldwide, like Sony and iPhone, are focusing on manufacturing mobile phones and camera lenses to provide better vision and image quality. The need for anti-reflective coatings in camera lenses is fueling the market demand worldwide. The electronics manufacturing market in Asia-Pacific is estimated to grow quickly during the upcoming years due to many regional OEMs. Low cost, the availability of raw materials, and cheap labor are driving the sector's growth.

Eyewear glass lenses also highly contribute to the demand for the optical coatings market. Anti-reflective coatings are some of the common coatings which are used in the eyewear glass lens application. Anti-reflective coating is used on the lens to eliminate reflections and glare from your lenses' front and back surfaces. In addition, the need for anti-reflective coatings is anticipated to increase due to the need for prescription eyeglasses and contact lenses due to age-related impairments such as presbyopia. WHO estimates that more than 2.2 billion individuals worldwide have some vision impairment, up from 1.3 billion in 2019. The increasing geriatric population as a consequence of improved life expectancy at birth and developed healthcare systems will have a favorable impact on the market for anti-reflective coatings.

Recent Developments

• April 2024 - The iPhone 16 Pro is speculated to feature anti-reflective optical coating technology. This coating aims to reduce glare and reflections on the smartphone's display, thereby improving visibility and readability, especially in bright environments or under direct sunlight.
• February 2024 - An innovative anti-reflective covering for solar cells made of silicon. The innovative anti-reflective coating was created by a team of researchers from around the world and is based on SiO2 and ZrO2. It may improve the light absorption capabilities of solar cells while reducing their reflection loss.