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Multifunctional Smart Coatings and Surfaces 2016-2025

About n-tech Research

The rebrand of industry analyst firm NanoMarkets that was founded in

2004

Extensive experience in examining the commercial opportunities arising

from advances in materials and their application to industries and

applications

Special focus on the evolution of highly functional and smart materials and

their expansion into markets that dates back to 2010

Serve a global client base that values experienced analysis over factory

market research models of offshoring and outsourced businesses

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Multifunctional Smart Coatings and Surfaces: 2016-2025

n-tech believes that the coming decade will see substantial new business revenues generated

by smart surfaces that exhibit multiple functionalities: combinations of color shifting,

antimicrobial, self-cleaning, self-healing, self-dimming glass and photovoltaics.

In most cases, these surfaces will be created through multilayer coating approaches, but in

some instances, embedded sensors or special surface patterning will be used to achieve the

required functionality. There will also a growing number of smart coatings capable of delivering

multifunctionality in a single layer.

This report identifies the opportunities that these trends are creating in the construction,

automotive, aerospace, health care, textiles and consumer products sectors. It also assesses

which combinations of functionalities will be the most successful and quantify the revenues and

volume shipments of smart multifunctionals to each of the end users segments in a ten-year

forecast period, with further breakouts by material type and functionality.

Additional details about the report are available at:

http://ntechresearch.com/market_reports/multifunctional-smart-coatings-and-surfaces-2016-

2023

All n-tech reports and content at www.ntechresearch.com

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Topics for today

• Multifunctionality: Definitions and drivers

• Market forecast: Applications and technologies

• Analysis of smart materials markets: Focus on

construction

• Technology assessment

• Companies to watch

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What are multifunctional smart coatings and surfaces?

• Smart coatings are multifunctional if they provide complex functionality on a

single substrate. Example: A glass coating that enables both photovoltaics

capability and self-dimming capabilities. This might be provided through a

multilayer coating

• Another coating that might be considered both smart and multifunctional is

a multipurpose coating that can offer several different smart functionalities,

but not always at the same time. Example: Polyphenol coatings can be

deployed as antimicrobials/anti-inflammatories for medical implants, but

also tune optical properties of metallic nanoparticles for both medical

diagnostics and therapeutics.

• Today multifunctional smart materials are usually coatings. Multifunctional

smart surfaces can be created (1) by deeply embedding sensors in a

surface or (2) patterning the surface in a manner that provides it with

multifunctional intelligence.

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Five drivers for multifunctionals?

• New growth opportunity for the coatings industry: Coatings markets in the

industrial world growing slowly. Multifunctional coatings represent new avenue to

growth for the mature coatings industry.

• Gold plating against commoditization: Multifunctionality adds considerable value

to coatings, IP that can be strongly protected. Potential for high margins and “smart”

adds to these advantages.

• What’s next after multipurpose coatings: Multifunctional coatings can be

positioned as solving many different problems, so better to cope with fragmentation

of demand. Think of it as smart snake oil that works.

• Need to growth R&D funding: The multifunctional message is way to raise profile

of R&D projects in industry and academia. Higher profile equates to more funding

and investment $

• Fits well with the current technological zeitgeist: Smart coatings and surfaces

can be messaged as being in tune with IoT, etc. Multifunctionality enhances the

potential for effective marketing.

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Marketing vs demand

• “Multifunctionality” and “smartness” are “cool” and effective for messaging new

coatings and surface technologies. Important not to mistake this for proof of real

demand – especially not in a weak economy

• In the report we have assessed likely demand for smart multifunctionals through

determination of sellable combination of functions. n-tech has built a ten-year

revenue forecasting model based on this assessment

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

© n-tech Research 2016

Forecast of Smart Multifunctional Materials by End-User Sector ($ Millions)

Consumer products

Medical

Textiles

Aerospace

Automotive

Construction

2020 = $703 Mil

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2016 = $29 Mil

2024 =$7,800 Mil

Dominated by automotive and construction: • Many units with large surfaces• Almost 70 percent in 2020• Large existing demand for coatings

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Potential Multifunctional Smart Materials in Buildings

Pairings Part of

Building

Opportunities Challenges Current Status

SD +

CS

SC

SH

PV

Windows,

skylights

SD windows can provide enhanced

light control with CS functionality

and greater longevity/resilience with

SC and SH. Monolithic integration

of PV into windows is a long term

goal of BIPV; PV+SD may be highly

suitable to LEED buildings

Combining functionalities

at a price point and with

product lifetimes that are

acceptable to customers.

Technical issues

surrounding multilayer

coatings

Self-dimming windows are available today.

They occupy a very small share of the

windows market at present and no

commercial product appears to combine SD

with another functionality. However, SD is

a very well-funded technology and so may

have the resources to adopt other

functionalities as a value-added strategy

SC +

SH

SA

Interior walls

and surfaces;

high-use/ traffic

areas

There is a natural fit between SC

and SH and SA, since these

combinations make for a more

pristine environment. This

opportunity may present itself

especially in a healthcare or other

institutional environment

Current performance

levels of SC and SH may

not be up to what is

needed for practical

purposes. Longevity and

application technology

may also be an issue

This does not appears to be a product area

where there is much going on in terms of

product development or even R&D

SC +

SH

CS

Exterior walls,

supports,

roofing

SC and SH are a natural fit and

individually they are both fairly well

developed. CS is already used on

exterior walls of prestige buildings

and could be combined with SC

Coating application for

SC+ SH needs to

preserve performance.

Adding CS could prove

very challenging, but no

one really knows for sure

as yet

SC + SH receives a little attention in the

R&D space. For now CS seems to be

entirely unifunctional, but may fit into

combinations in a few years

SD: Self-dimming CS: Color-shifting SC: Self-cleaning SH: Self-healing SA: Smart antimicrobial PV: Photovoltaic

Source: n-Tech Research

Opportunities for multifunctionals in the

construction industry

• Huge addressable market: Total of all exterior and interior surfaces

• Familiarity with smart materials: Already using smart materials – smart

windows and color-shifting paints

• Evangelism needed: Winning over specifiers/architects is an issue

• Geography of opportunity: Main growth markets in the US, China, India and

the Middle East. But many economic and political uncertainties

• Green gone: “Green” drivers for smart materials not as powerful as in the past,

because of reduced subsidies and lower energy prices

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Some multifunctionals products for the

construction industry

• Smart windows are already deployed: Solid technology platform for

additional functionality – PV, self-cleaning and self-healing. Improved

price/performance and near-term revenues

• Self-cleaning and self-healing panels: Premium products exist. Strong

business case exists for combining self-cleaning and antimicrobial functionality.

Microban and others already working hard to get antimicrobial functionality onto

surfaces

• Smart concrete: Concrete is now a strong focus of smart materials R&D.

Combination of self-cleaning and self-healing seems to present opportunity.

But not much has happened yet.

• Multifunctional BIPV Implies the need for PV coatings, which exist (Heliatek

and Sunpartner). Power levels need to improve but combining with self-

cleaning increases efficiency

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Other multifunctional markets

• Automotive: Multifunctionals at R&D stage but have potential. German and

Japanese car makers are enthusiastic about “smartness.” Self-healing/self-

cleaning combos likely to grow out of today’s anti-scratch coatings. Smart

glass/mirrors can be leveraged for multifunctionality with embedded sensors and

self-healing/self-cleaning. Antimicrobials for public vehicles

• Aerospace: Similar to auto, but leading-edge tech will create spinoffs in other

industries. Smart material R&D funded by defense/aerospace. Constrained by

small number of aircraft shipped. SHM systems represent a good take off point for

multifunctionals – detection plus self-repair

• Medical/healthcare: Major drivers are hospital acquired infections and resistant

bugs. Need to move beyond multipurpose to combine antimicrobial, self-cleaning

and self-healing. Especially important for implants and surgical tools. Need for

trials in some cases

• Consumer products: Furniture already uses multilayer coatings and consumer

electronics is focused on coatings to improve quality and as a feature. But how

much will consumers pay for smart?

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Fabrication

• Multilayer coating:

• Dominant for multifunctionals

• Well understood and relatively inexpensive

• Widely used in auto industry

• Issues with interference between layers

• Single-layer multifunctional coatings

• Natural progression of product development

• Start-up opportunities?

• Embedded Sensor-based multifunctionals

• Growing availability of powerful low-cost sensors from IoT

• R&D interest

• Other

• Surface patterning

• Printing

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0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

© n-tech Research 2016

Forecast of Smart Multifunctional by Type of Materials ($ Millions)

Sensor assisted

Surface-patterndependent

Multifunctional single-layercoatings

Multilayer-coatings

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Multifunctionality Roadmap for Smart Materials

Type of material Current Status Future Evolution Timeframe for Evolution Opportunities

Multi-purpose functional

materials

In widespread use and has been for

some time. Often presented as

multifunctional

Will overlap increasingly

with smart multifunctional

surfaces

Transition to

multifunctionality happening

now and will play out over

the next three to five years

Using mature multipurpose

multifunctional materials as a

platform for true

multifunctionality

Multifunctional smart

coatings

Multilayer coatings are well

established technology but are not

necessarily smart.

Smart multilayer coatings

are beginning to emerge.

Single layer multifunctional

coatings are currently the

province of start- ups

Research program that will

transition to

commercialization in two to

three years

Novel synthesis and coating

methods for multifunctional

smart coatings. Creating of

stable long-lived multifunctional

smart coatings

Embedded sensors Use for multi-functional surfaces is

very immature

Unclear at the present time Commercialization likely to

occur in the next decade

Probably long-term stability and

longevity of multifunctional

smart surfaces easier to achieve

with sensors

Patterned surfaces Patterning is widely used as part of

the fabrication of multifunctional

smart surfaces. However, using

surface patterning as the primary

way of creating multifunctional

surfaces is immature

Unclear at the present time Commercialization likely to

occur in the next decade

For now the opportunity

probably lies in the ability to

create patterning technologies

that could create a smart

multifunctional surface. This

could prove quite difficult

Programmable matter Not yet addressing multifunctionality Multifunctionality will be

addressed

Unknown, but probably after

2020

Using smart composites and

metamaterials to address

multifunctionality

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Six Companies to Watch in the Multifunctional Surfaces Business

Company Reason to Watch Current Activity What to Watch ForBASF Strong in the auto coatings space where

smart multifunctionals seems to have

good prospects. Also history of early

investment in new technologies

Investment in SLIPS Technologies Further investment in smart materials and

smart coatings offerings

Heliatek Leading supplier of organic PV with an

interest in integrating into building

substrates

Still mostly trying to develop the basic

OPV product

Alliances with other firms capable of

supplying additional functionalities in a

multifunctional bundle.

Microban Leading supplier of antimicrobial

coatings for a wide variety of surfaces.

Likely to supply the antimicrobial

technology platform for future

multifunctionals

Offering a broad range of antimicrobials

for many different substrates

Saint-Gobain Innovative glass company with substantial investment in the smart glass sector

(Sage)

Signs that its glass coatings is moving

towards smarter functionalities

SLIPS Technologies Has a product that is apparently

inherently multifunctional. Has

investment from BASF and can tap into

BASF supply chain

In development/growth mode Alliances formed and especially early

customers will indicate likely future for

start-ups in this space

Yangfeng

Automotive

Interiors

YFAI is the former Johnson Controls

auto interiors which was both

innovative and had a strong presence in

the automotive industry

Working on techniques for disinfection and maintaining clean interiors through the

use of antimicrobial plastics with inherent protection or special coatings, and self-

healing polymer surfaces that repair minor scratches and dents. Under Johnson

Controls it developed technology to change the color of a car’s interior at the touch of

a button. Self-cleaning isn't as explicitly covered in YFAI’s work (at least publicly) but

historically Johnson Controls has included it as part of its efforts.

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