Market Trends of Physical Vapor Deposition (PVD) Coatings Industry
The Automotive Industry is Expected to Dominate the Market Studied
- PVD coatings have gained various advantages in the automotive industry. PVD coating reduces friction between moving parts in the engine, increasing its overall efficiency.
- Automotive parts with PVD coating improve the surface hardness and thus strengthen the material. In traditional combustion engines and electric motors, these coatings result in significant reductions in weight and operating costs.
- In recent times, there has been a rise in automotive manufacturing in countries across the globe. According to the data released by the International Organization of Motor Vehicle Manufacturers (OICA), the total number of vehicles manufactured in 2023 was around 93.54 million units, registering a 10.3% increase compared to the number of units manufactured in 2022.
- In 2023, 16.16 million vehicles were manufactured in North America, while 18.12 million vehicles were manufactured in Europe.
- In addition, there has been a rise in electric vehicle manufacturing in recent times owing to various environmental factors.
- According to the International Energy Agency (IEA), in 2023, the number of electric vehicles (EVs) sold reached close to 14 million, with China, Europe, and the United States making up 95% of these figures. EVs made up approximately 18% of the total car sales for the year, a significant increase from just 14% in 2022. This highlights that the expansion of the electric vehicle industry is steady as these markets continue to develop and stabilize.
- In the first six months of 2023, General Motors, a major manufacturer of electric vehicles in the United States, produced more than 50,000 electric vehicles in the country. Additionally, the company is planning to build a factory for EV manufacturing with a capacity of 1 million vehicles per year by the end of 2025.
- With the demand for automobiles increasing across the world, PVD coatings in the automotive industry are expected to have a positive impact during the forecast period.
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Asia-Pacific is Expected to Dominate the Market by Region
- Asia-Pacific was found to be the major market for the consumption of PVD coatings, owing to increasing consumption from countries such as China, India, and Japan.
- China is one of the largest aircraft manufacturers and one of the largest markets for domestic air passengers. Moreover, the country's aircraft parts and assembly manufacturing sector has been growing rapidly, with over 200 small aircraft parts manufacturers increasing the usage and demand of physical vapor deposition (PVD) coatings.
- According to the latest Boeing Commercial Outlook, China requires around 8,560 new commercial airplanes through 2042. A total of 8,700 new deliveries in China are expected to be made by 2040, with a market service value of USD 1,800 billion.
- In addition, Chinese airline companies are planning to purchase about 7,690 new aircraft in the next 20 years, valued at approximately USD 1.2 trillion, which is further expected to raise the market demand for PVD coatings. PVD coatings are hard and have minimal friction, making them an ideal functional metal coating in the aerospace industry.
- The automotive industry is another significant user of physical vapor deposition (PVD) coating. According to OICA, around 5.85 million vehicles were manufactured in India in 2023, compared to 5.45 million vehicles in 2022, an increase of 7.2%.
- In addition, in 2023, Mahindra & Mahindra Ltd announced an investment of INR 10,000 crore (USD 1,198,96 million) for electric vehicles that have been approved under the Maharashtra government’s industrial promotion scheme for electric vehicles. Through its subsidiary, the company will invest over 7-8 years to establish the manufacturing facility and develop and produce Mahindra’s upcoming Born electric vehicles (BEVs).
- Japan's electrical and electronics industry is one of the leading global industries. The country is a world leader in terms of the production of computers, gaming stations, cell phones, and various other key computer components. Consumer electronics account for one-third of the Japanese economic output.
- According to the data released by the Japanese Electronics and Information Technology Industries Association (JEITA), in 2023, the total production value of the electronics industry in Japan accounted for around USD 3,526.6 billion, showcasing a rise of nearly 3% from the previous year.
- The factors mentioned above are likely to increase the demand for PVD coatings across the application industries in Asia-Pacific.
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