Optical Coating Equipment Market Trends

Growth Drivers

• Worldwide Surge in the Production of Smartphones – With time, the global demand for smartphones and tablets has been surging as these telecommunication devices have become an integral part of our day-to-day life. Currently, several optical sensors are now included in smartphones to monitor light and color. Moreover, anti-reflective coatings are a necessary tool for optical developers to decrease undesirable reflections and ghost images in camera optics and produce the highest imaging quality possible. Thus, the increasing demand and production of smartphones and tablets are deriving the massive demand for optical coating equipment. For instance, the cumulative number of smartphone shipments worldwide reached around 1.25 billion units in 2022.

• Global Upsurge in the Adoption of Smart TVs - Smart TVs are engineered to be adaptable with a wide range of gadgets, allowing consumers to watch their favorite content on any gadget. The possibility to watch content other than standard TV channels is the most valuable feature of a Smart TV. A Smart TV provides access to favorite video-on-demand services such as Netflix, YouTube, and Amazon as well as music streaming services including Spotify, and a variety of games and sports content. These smart TVs also have specific optical coatings applied on their screen which can enhance the viewing experience. Thus the surge in the adoption of smart TVs is estimated to further drive market growth in the coming years. For instance, more than 250 million smart TV units were sold in 2019 across the globe. Further, this yearly total is estimated to potentially increase to around 290 million units by 2025.

• Worldwide Escalation in Fiber Optics Industry – Based on a report, by 2027, the global fiber optics industry is projected to have a worth of around USD 9 billion.

• Growing Investment in Telecommunication Sector – For instance, in the United States, the IT sector investment in telecommunication services augmented by around USD 1.40 trillion in 2022.

• Worldwide Surging Adoption of Household and Smart Kitchen Appliances – The deployment of cutting-edge technology in home appliances has been increasing day by day. Currently, a larger pool of technologically advanced appliances is available to make life simple. Additionally, technology-driven smart kitchen appliances are gaining more traction among people as of their energy efficiency, convenience, expert cooking features, and simplified cooking. Thus, the surge in the household, as well as smart kitchen appliances is also estimated to spur the market growth of optical coating equipment in the coming years. For instance, by 2026, worldwide demand for home appliances is estimated to rise by nearly USD 28 billion. Whereas, the household appliances retail sale surged by around 450 billion in 2021 throughout the world.

Challenges

• High Cost of Optical Coatings Equipment - The cost of optical coating equipment is usually very high and hence it is not possible for many small and medium-sized enterprises to purchase and install such costlier equipment. Such a factor is anticipated to hamper the market growth during the forecast period.
• Fluctuating Price of Raw Metals and Oxides
• Requirement of High Initial Investment