These are the slides from the NanoMarkets webinan on Smart Coatings that was held on February 11, 2015. Findings from the firm's recently released report were presented.

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Smart Coatings Market Opportunities –
A NanoMarkets Webinar
NanoMarkets
February 11, 2015
© 2015 NanoMarkets, LC
www.nanomarkets.net

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ABOUT NANOMARKETS
• NanoMarkets provides industry analysis of advanced materials markets in
the energy and electronics sectors. We have been covering these
activities for a decade
• Our work includes market, company and technology analysis, market
forecasting and due diligence. NanoMarkets provides forecasts of
major nanomaterials, smart materials and related markets
• Offerings include reports, custom consulting, seminars/webinars and in-
house training. NanoMarkets is based in U.S., with extensive
contacts all over the world
• NanoMarkets has issued many reports on the business opportunities for
“smart coatings and glass” technologies. This Webinar is based on
“Smart Coatings Markets 2015 – 2022.”
© 2015 NanoMarkets, LCwww.nanomarkets.net
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Current and Future Related Research
Released
• Electrochromic Glass & Film Markets
2014-2022
• Smart Windows Markets 2014-2022
• Smart Windows Materials Markets
2014-2022
• Smart Coatings Markets 2013-2021
• Smart Coatings In Photovoltaics
• Smart Coatings Markets
© 2015 NanoMarkets, LCwww.nanomarkets.net
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Planned Releases
• Smart Surfaces
• Self-healing coatings
• Self-cleaning coatings
• Multi-layer and Multi-Functional
Coatings
• Smart Antimicrobial Coatings and
Antifungals
• Smart Anticorrosion and Ant-Fouling
Coatings
• Privacy Glass

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About “Smart Coatings Markets 2015-2022”
This report assesses the latest technical developments in the smart coatings space. As in previous
NanoMarkets reports, this report analyzes both the relatively mature sectors of the smart coatings
market (e.g., self-cleaning coatings), but in or 2015 report we have also added coverage of newer
areas such as smart multi-layer coatings and smart coatings for air purification.
The report also includes our latest take on manufacturing; coating technology as it applies to smart
coatings specifically.
The report also includes highly granular eight-year forecasts for all of the main market sectors
where smart coatings are being – or will soon be – used.
The forecasts are in both volume (square meters) and value ($ millions) terms and for each end
user sector we include separate forecasts for all the main classes of smart coatings.
The report also contains a comprehensive analysis of product/market strategies and supply chain
issues in the smart coating space.
More Information: http://nanomarkets.net/market_reports/report/smart-coatings-markets-2015-
2022
© 2015 NanoMarkets, LCwww.nanomarkets.net
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5. OBJECTIVES AND SCOPE OF THIS WEBINAR
• Analyze how demand for smart coatings will shape up over the next five years in large
end-user sectors, especially building and construction, electronics, transportation and
the military. The webinar will discuss how megatrends such as the decline in energy
prices and the war on terrorism will generate new opportunities for smart coatings
makers
• Provide insight into how a new generation of self-healing, self-cleaning and self-
assembling coatings will bring more potential for higher margins and value-added
products to the coatings sector. We will examine the key R&D trends that will lead to the
next wave of smart coatings products
• Show how the coatings business will be able to use its smart coatings products tap into
the current wave of enthusiasm for the Internet-of-Things and wearable electronics. We
will show how this reboot of the coatings industry will result in new start-ups and M&A
activity in this space
• Share some of NanoMarkets' granular eight-year forecasts of crucial segments of the
smart coatings market indicating what these say about the direction of the market and
where the most profitable opportunities will be found
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Definitions: What makes a coating smart?
• The most functional of functional coatings at any given time. A coating that
might have been thought of as smart in the past is not considered as such
now. Over time, one generation of “smart coatings” becomes merely
“functional,” and a new generation of coatings takes over in the “smart
coatings” category
• Coatings made from smart materials
• Part of a broader class of smart/value-added materials and devices
including sensors, smart surfaces
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© 2015 NanoMarkets, LCwww.nanomarkets.net
Market Projections
0
2,000
4,000
6,000
8,000
10,000
12,000
2015 2016 2017 2018 2019 2020 2021 2022 © NanoMarkets 2015
Eight-Year Revenue Forecast for Smart Coatings
by Industry ($millions)
Military
Smart Textiles and Clothing
Consumer Electronics
Medical and Healthcare
Transportation
Energy Generation
Construction

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EMERGING MATERIALS IN THE SMART COATINGS MARKET
Self-healing
coatings
Self-assembling
coatings
Self-cleaning
coatings
Multilayer
multifunctional
coatings
Improvement in terms of the type/size of damage than can self-heal. Competition in this
space will not be just on what size of hole, but also on (1) how long the repair takes—some
self-healing coatings today can take many hours and (2) the longevity of the coatings
Potentially can play a role in advanced manufacturing. Today the best example is self-layering
paint, which can reduce the cost in automotive sector. The beginning of the nanotechnologist’s
dream?
New hydrophilic, hydrophobic, oleophobic, amphiphobic and multifunctional coatings are being
developed. Notable trends (1) nanotechnological approaches to textured hydrophobic
surfaces and (2) “super-hydrophobic coatings”
Multilayer coatings are the simplest way to develop coatings that are multifunctional. Imagine a
smart coating that provides PV energy generation with inherent self-repair and self-cleaning
capabilities. However, cost is a retarding factor
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Smart Coatings in Electronics
© 2015 NanoMarkets, LC
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TRENDS IN SMART MATERIALS FOR THE ELECTRONICS INDUSTRY
Using embedded sensors and processors buildings, appliances, machines and other objects will become more
responsive to human needs. Smart coatings and the IoT would be a perfect fit. For example, self-cleaning and self-
repairing coatings couldn’t be better suited to the IoT philosophy; what could be more convenient and save more time
than surfaces that clean and repair themselves?
Smart coatings may do more than just complement sensors in the IoT. They can compete with IoT sensors since some
stimuli-responsive coatings can act directly as a sensor. A smart coating that is also a sensor would likely be a more cost
effective way to create a wide-area sensing panel than a large array of sensing devices.
Protective smart coatings for smartphones can protect devices from yellowing, and chemical effects, as well as the
buildup of dirt, microbes and smudges. The smartphone/tablet market is so huge—about two billion units shipped
annually—that it seems inevitable that smart coatings makers will be incentivized to design coatings especially for this
market segment.
The recent unsuccessful attempt by Apple to coat phones with sapphire demonstrates how important this kind of
coating might be eventually and the markets that are opening up for protective coatings in this space.
Waterborne polyurethane dispersions have already been shown to conveniently realign themselves to fill in scratches.
We also expect that there is niche market here for smart antimicrobials.
Smart Materials in the IoT
From anti-scratch to self-healing
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Smart Coatings in Construction and Energy
© 2015 NanoMarkets, LC
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12. Need to reposition products for
energy price declines and end of
green subsidies
Developing new product for new energy
sources
Possibly (and literally) disruptive
technologies
# Smart windows becomes about
aesthetics and mood not energy
conservation
# Japan and LEED live seem like to
counter the slowing of the green trend
# Electric cars seem like good bet –
because batteries have extended the
range of such cars.
# Use of smart coatings in fuel cells is
also (a remote?) possibility
# Self-repairing concrete – currently
being developed. Could radically change
building technology and lifetime
#Practical self-cleaning surfaces
SMART COATINGS TRENDS IN THE CONSTRUCTION AND ENERGY
INDUSTRIES
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Other Interesting Opportunities for Smart Coatings
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# The U.S. military is the leading supporter of research on smart coatings and the largest military end user of smart
coatings. Military markets require smart coatings to extend the service life, reduce operational costs, and improve the
chemical resistance of metal structures. Also developing smart coatings with a self-signaling feature that can
camouflage personnel and equipment. The use of natural materials such as reflectin—a protein used by squid to change
color -- can provide infrared invisibility.
# The majority of smart coatings meant to trigger automatic drug release based on an external stimuli are still in the
research phase. New coatings of this type can plug into the demand from aging populations in the developed countries.
Among the developments we see in this area that appear to meet a real need are bio-adhesive coatings that offer
controlled drug release for the prevention of drug overdoses.
# Novel coatings for vehicles. Coatings that improve the effectiveness of braking and suspension systems are
important. Also, smart lubricant coatings that can either enhance the performance and effectiveness of automotive oils
or eliminate the use of automotive oils entirely.
OTHER OPPORTUNITIES FOR SMART LIGHTING: MILITARY,
LIGHTING AND TRANSPORTATION
Three revenue sources that matter
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Challenges
© 2015 NanoMarkets, LC
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Regulatory factors
Customer disinclination
to use
Technology gaps
The most interesting smart coatings are restricted to luxury
or military markets for this reason. It will take investment
by large companies to break through such Catch 22s
Environmental regulations impact copper, nanosilver,
chrome us. May open up new opportunities – Chrome VI
replaced by smart nanocomposite, for example
Coating manufacturers must convince OEMs of the potential
benefits of their products. For instance, oil-slick removal
coating manufacturers have found it difficult to convince the
large energy firms to try their coatings
BARRIERS TO GROWTH IN THE SMART COATINGS MARKET
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Many of the most commercially exciting smart coatings are
not out of the lab yet

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Parting thoughts . ..
• Newer, smarter materials –self-healing, self-cleaning, multifunctional. But
just emerging from the lab
• Electronics market offers new opportunities – self-healing coatings and
IoT. But will take a few more years for large revenues to appear
• Construction and energy – rethink and new products needed. Some
smart coatings in this space may be genuinely disruptive
• Challenges are lower cost and getting potential customers to actually use
© 2015 NanoMarkets, LCwww.nanomarkets.net
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18. LAWRENCE GASMAN
Mr. Gasman's consulting clients have included multinationals,
start-ups and investors and he has advised them on new product
introduction, market positioning and strategy, and sales potential.
He has also provided due diligence on mergers and acquisitions
for his financial clients and serves on the technology advisory
board of a major specialty chemicals firm.
Mr. Gasman has also spoken and written widely on the subject of
new materials markets. He has written extensively on functional
and conductive materials markets and related application spaces
including smart coatings, smart windows, transparent conductors
and conductive inks.
Mr. Gasman was educated at Manchester University, The London
School of Economics and London Business School.
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