Slides from our webinar presenting findings from our report, Multifunctional Smart Coatings and Surfaces Markets that was issued in late January 2016.

1. ww.ntechresearch.com
Multifunctional Smart Coatings and
Surfaces 2016-2025

2. 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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3. 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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4. 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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5. 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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6. 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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7. 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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8. 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

9. 8
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

10. 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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11. 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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12. 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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13. 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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14. 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-pattern
dependent
Multifunctional single-layer
coatings
Multilayer-coatings
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15. 14
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

16. 15
Six Companies to Watch in the Multifunctional Surfaces Business
Company Reason to Watch Current Activity What to Watch For
BASF 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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804 938-0030
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Email / Web
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