Automotive Coatings Market Size By End-Use (Commercial OEM, Automotive Refinish, Light Vehicle OEM), By Application (Plastic, Metal), By Technology (Solventborne, Waterborne, UV-Cured, Powder Coatings), By Product (Electrocoat, Primer, Clearcoat, Basecoat), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2015 – 2022
Published Date: Mar 2016 | 155 Pages | Report ID: GMI107 | Authors: Kunal Ahuja, Shreya Deb Report Format: PDF
Automotive Coatings Market size exceeded USD 18 billion in 2014 and is expected to gain by over 5.0% up to 2022.
U.S. Automotive Coatings Market size, by technology, 2012 - 2022 (USD million)
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Rising vehicle production, supported by the economic development of the emerging countries including China, Japan, Indonesia, South Korea, and India, will drive the global automotive coatings market up to 2022. In China, volume grew from the sale of a little more than 18 million vehicles in 2010 to close to 23.5 million vehicles in 2014, with more than 6.5% CAGR. Japan registered a sale of over 5.5 million vehicles in 2014 and India automotive market crossed the sale of 3 million vehicles in the same year. With growing GDP, and enhancing lifestyle the trend will continue for automotive coatings market throughout the forecast timespan. In terms of manufacturing, China led the region with the production of over 23.7 million cars and commercial vehicles in 2014. Increasing luxury cars demand with lustrous and protective coatings, to protect the vehicles from corrosion due to UV rays, extreme temperature variations, and other foreign particles, will boost the global automotive coatings market in the next few years.
Growing powder coatings demand because of its superior characteristics such as high utilization efficiency, flexibility of color changes, and lower VOCs than solvent-based liquid coatings will also positively influence overall automotive coatings market in the near future. Increasing powder coatings usage in several automobile parts such as wheels, bumpers, mirror brackets, valve covers, wipers, steering wheels, etc. to provide the desirable finish will propel the global automotive coatings market in the forecast timeframe.
Inconsistent raw material costs may hinder the global automotive coatings market growth in the forecast period. Raw materials such as titanium oxide, pigments, binders, resins, and chemical additives are used in the automotive coatings production and their prices are highly dependent on the availability.
Automotive Coatings Market, By Technology
Technology landscape includes waterborne, solventborne, powder and UV-cured coatings based on the production technology. While solventborne variants in automotive coatings market still have a sizable revenue, these are in line to lose industry position, primarily due to high VOC content and environmental issues. Global solventborne automotive coatings market generated more than USD 7.9 billion in 2014, with under 4% growth anticipation.
Powder automotive coatings market will have the fastest growth owing to its superior qualities such as durability, easy application, easy customization, low VOC content, and good finishing. This segment registered more than USD 2 billion in 2014 and is expected to cross USD 3.5 billion by 2022.
Environmental concerns about the VOC content in solventborne automotive coatings and regulations pertaining to the same imposed by EPA and REACH, in North America and Europe respectively, may have a negative impact on overall automotive coatings market. However, substitution by UV and waterborne, and powder coating market will play a key role in demand evolution.
Automotive Coatings Market, By Product
Primer, basecoat, clearcoat, and electrocoat make up key products in automotive coatings market. While primer is the first layer of coating applied, basecoat is applied on it to provide the desired color and effects. Clearcoat is transparent and is applied on the basecoat to provide the desired amount of gloss.
Basecoat was the largest product segment with more than 40% of the global automotive coatings market size. It accounted for a revenue generation of over USD 8 billion in 2014. Electrocoat provides high corrosion resistance with low layer thickness and it accounted for over a fifth of the global market registering more than USD 4 billion in 2014.
Automotive Coatings Market, By Application
Based on application, global automotive coatings market is segmented into metallic and plastic applications. A typical passenger car consists of 60-70% of metallic parts including engine, fuel injector, radiator, etc. Global metallic automotive coating market recorded revenue of more than USD 13 billion in 2014.
Plastic based variants are used for non-metallic parts which includes most of the interior parts such as the dashboard, steering wheel, ashtrays, etc. With shifting focus towards carbon fiber and other specialty polymers in light weight automobile manufacturing, automotive coatings market for plastics will witness a significant growth in the forecast timeframe.
Automotive Coatings Market, By End-Use
Among the end-use segments, light vehicle OEMs accounted for over 40% of the automotive coatings market share and is projected to increase with increasing personal car demand in the upcoming years. With increasing consumer purchase parity in the emerging nations, global light vehicle demand, with sophisticated technologies including automatic lights, tracking device, and others, will grow healthily boosting the coatings demand for light vehicle OEMs. This end-use segment of automotive coatings market was valued over USD 7.5 billion in 2014.
Demand for automotive refinish was the second largest end-user segment accounting for more than 35% of the total share. Growing aftersales market and service and overhaul requirement for automobile maintenance will boost the market throughout the forecast timespan.
Automotive Coatings Market, By Region
Asia Pacific, led by China, Japan, and India, accounted for more than half of the global automotive coatings market share. Road network development in China and India, coupled with upgraded lifestyle is expected to fuel the growth. This regional automotive coatings market was valued at over USD 9.5 billion in 2014 and is anticipated to grow by over 5.5% CAGR up to 2022. Cost efficient labor and rapid industrialization will characterize the regional market throughout the forecast timespan.
North America and Europe will lose automotive coatings market share owing to stringent regulations along with market maturity. The regions generated more than USD 4 billion and USD 3.5 billion respectively in 2014 and will flourish at less than 5% CAGR up to 2022.
Competitive Market Share
Global automotive coatings market competitive landscape is consolidated with top four manufacturers accounting to more than half of the overall demand. The top companies are PPG Industries, AkzoNobel, Axalta Coatings, and BASF. Other key manufacturers include Kansai Paints, Nippon Paint, Sherwin-Williams, Berger Paints, KCC Paint, Arkema, Valspar Corp, Clariant, Beckers Group, Lord Corporation, Cabot Corporation, Eastman Chemical Company, DSM, and Solvay.
Automotive Coatings Industry Background
These products provide a protective layer over the automobile body to make it durable while providing aesthetic features to the vehicle. With changing preference towards long lasting products with superior appearance, automotive coatings market is expected to have a decent growth in the upcoming years. Growing automobile demand in Asia Pacific countries have influenced the market greatly and will hold sway throughout the forecast timeframe. The growing global automotive service industry will have a positive influence on the refinishing market and will boost the overall product demand in the next eight years.
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