Global Physical Vapor Deposition (PVD) Coating System Market 2022-2028

Global Physical Vapor Deposition (PVD) Coating System Market 2022-2028

Global PVD Coating Systems Market Size, Share, & Analysis by Substrates (Nylon, Metal, Plastic, Glass, and Ceramics), by Material (Titanium, Zirconium, Aluminum, Stainless Steel, and Copper), and by Application (Electronics and Panel Display, Optics and Glass, Automotive, Tools and Hardware, and Others) Forecast Period (2022-2028)

The global physical vapor deposition (PVD) coating systems market is projected to reach $1.1 billion in 2028 from $668.6 million in 2021, growing at a CAGR of 7.5% during the forecast period (2022-2028). The primary factor attributing to the growth of the market includes the rising industrial manufacturing activities across the globe. PVD is used to coat the surfaces of the tools and components in order to improve durability, functionality, and aesthetics. According to the United Nations Industrial Development Organization (UNIDO), manufacturing production increased by 9.4% in 2021, after a COVID-19-related drop of 4.2% in 2021. In addition, the rapidly growing demand and production of the electronics industry across the globe is another factor propelling the growth of the market. Normally, PVD coatings are used to improve hardness, increase wear resistance, and prevent oxidation on electronic equipment and devices.

Market Segment Outlook

Based on substrates, the PVD coating system market is sub-segmented into nylon, metal, plastic, glass, and ceramics. Among these, the ceramics sub-segment held the largest market share of 34.2% in 2021, accounting for $228.3 million, and is estimated to reach $393.9 million in 2028. The segment is projected to grow at the highest CAGR of 8.1% during the forecast period (2022-2028). The primary factor supporting segmental growth includes the presence of several benefits and advantages in the automotive industry. Ceramic PVD coating for cars is offers enhanced protection for the paint surface. Further, it also increases the life of the paint while providing a glossy appearance. Thus, the increasing demand for aesthetics appearing automotive vehicles is the major driving he growth of the market.

Based on material, the PVD coating systems market is sub-segmented into titanium, zirconium, aluminum, stainless steel, and copper. Among these, the titanium sub-segment held the largest market share of 31.1% in 2021, accounting for $207.6 million, and is estimated to reach $357.0 million in 2028. The segment is projected to grow at the highest CAGR of 8.0% during the forecast period (2022-2028). Titanium coating offers several benefits such as vandal-resistant, enhanced durability, resistance from corrosion and oxidation, no discolouration, and others. The titanium-based coating is impervious to hard sunlight, salt water, and humidity while preventing tarnishing and peeling of the material under normal conditions.

Based on application, the PVD coating systems market is sub-segmented into electronics and panel display, optics and glass, automotive, tools and hardware, and others. Among these, the electronics and panel display sub-segment held the largest market share of 31.0% in 2021, accounting for $207.5 million, and is estimated to reach $372.1 million in 2028. The segment is projected to grow at the highest CAGR of 8.7% during the forecast period (2022-2028). The primary factor contributing to the segmental growth includes the rising application of PVD coatings in consumer electronics, home appliances, and others. Furthermore, there has been an exponential increase in the demand for and spending on electronics products among consumers globally, which in turn has bolstered market growth. According to the Ministry of Electronics and Information Technology of India, the electronics industry is driven by the manufacturing of mobile phones, TVs, LED lighting, laptops, and tablets, which drives the demand for PVD services. Additionally, over the past few years, PVD coating has been widely used in the mobile industry. For instance, in January 2021, IKS PVD cooperated with the Foxconn group and supplied more than four sets of PVD vacuum coating systems to make the iPhone mobile phone series.

Regional Outlook

Based on region, the global PVD coating systems market is segmented into North America, Europe, Asia-Pacific, and the rest of the world. Among these, the Asia-Pacific region held the largest market share of 36.0% in 2021, accounting for $240.7 million. The number is further estimated to reach $417.8 million, growing at a CAGR of 8.2% during the forecast period (2022-2028). The primary factor contributing to the growth of the market includes the strong presence of manufacturing companies in aerospace, electronics, tools, and hardware, among others. China is the largest aircraft manufacturer and the key market for domestic air passengers. Moreover, in 2021, as per government data, China's aircraft parts and assembly manufacturing sector has grown with over 200 small aircraft parts manufacturers compared to 2021, which in turn is increasing the usage and demand of physical vapor deposition (PVD) coatings. Apart from this, according to OICA, around 4,399,112 vehicles were manufactured in 2021, which increased by 30% compared to the 3,381,819 units manufactured in India, in 2021. Thus, the rising use of automobiles is another factor propelling the market’s growth.

Key Players Outlook

Prominent players in the global PVD coating systems market include Angstrom Engineering Inc., Impact Coatings AB, Nissin Electric Co., Ltd., KOBELCO Advanced Coating, and Advanced Coating Service (ACS), among others. These market players are adopting various strategies to sustain themselves in a competitive market. These companies are embarking on aggressive strategies such as partnerships and product launches in the PVD coating market to gain a leading position across the globe. For instance, in April 2021, IHI Hauzer Techno Coating B.V. launched a new batch coating machine for PVD. The Hauzer Flexicoat 1250 builds on the existing Flexicoat platform and has 33% more loading capacity compared to the Flexicoat 1200.