Automotive Coatings Market Size By Technology (Solventborne, Waterborne, UV-Cured), By Product (Electrocoat, Primer, Clearcoat, Basecoat), By Application (Plastic, Metal), By End-Use (Commercial OEM, Automotive Refinish, Light Vehicle OEM), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2017 – 2024

Published Date: Mar 2016  |  Report ID: GMI107  |  Authors: Kunal Ahuja, Kritika Mamtani

Report Format: PDF   |   Pages: 180   |   Base Year: 2016

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Automotive Coatings Market size crossed USD 18 billion in 2016 and may expect gains at over 4.8% from 2017 to 2024. 

Automotive Coatings Market

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Rise in automotive industry owing to increasing inclination in millennials to purchase their own vehicle and easy availability of automotive loans should encourage automotive coatings market growth. Global passenger cars market demand surpassed 75 million vehicles in 2017 owing to rising disposable income and changing perceptions towards owning personal vehicles. Automobile manufacturers are improving vehicle appearance and focusing on manufacturing lightweight vehicles which may boost product demand. Rising adoption for luxury vehicles owing to increasing living standard along with well-equipped auto parts may foster market demand.

Changing consumer outlook on vehicle protection from environmental susceptibilities and rising inclination to lower maintenance costs should augment market share. They are applied on the metallic surface of automobiles to improve resistance & durability against environmental susceptibilities such as dust, acid rain, rusting, corrosion, and foreign particles. U.S. passenger cars market demand exceeded 6.5 million vehicles in 2016 owing to increasing technological trends in vehicle manufacturing to produce low cost & high-quality vehicles which indicates healthy growth potential. They are applied as electrocoat, clear coat, and primer to provide additional protection. Polyurethane is extensively utilised in manufacturing coatings as it inhibits the spread of corrosion & abrasion and can be applied as water-borne & solvent-borne formulations which may trigger automotive coatings market share.

Stringent industrialisation & urbanization accompanied with liberalization of public infrastructure and better road connectivity has revamped commercial road transport facilities in China, Thailand, India, and Indonesia. Favourable government initiatives such as investment in commercial road facilities along with changing outlook of vehicle manufacturer on enhancing the appearance of vehicles to maintain competitive advantage should encourage market growth. Rise in per capita passenger car ownership owing to growing individual inclination towards personal transportation will propel industry growth. Furthermore, increasing demand of automotive refinish for maintenance and repair of vehicle along with growing requirement for electric and hybrid vehicles considering carbon emissions will boost product demand.

The high complexity of coatings application process which is time consuming and requires a controlled environment should hinder market growth. Applying coatings to vehicles is expensive as it takes professionals to apply the coat and smoothen it. Companies are trying to develop more efficient manufacturing techniques to comply within stringent regulations to quicken the drying process with minimal risk and contamination from environmental susceptibilities which should fuel market growth.

Automotive Coatings Market Report Coverage
Report Coverage Details
Base Year: 2016 Market Size in 2016: 18 Billion (USD)
Historical Data for: 2013 to 2016 Forecast Period: 2017 to 2024
Forecast Period 2017 to 2024 CAGR: 4.8% 2024 Value Projection: 26.5 Billion (USD)
Pages: 180 Tables, Charts & Figures: 183
Geographies covered (6): U.S., Germany, China, India, Brazil, Middle East & Africa (MEA)
Segments covered: Technology, Product, Application, End-Use and Region
Companies covered (20): Axalta Coatings Systems LLC, BASF SE, PPG Industries, Inc., Kansai Paint Co. Ltd., Nippon Paint Holdings Co. Ltd., Bayer AG, KCC Corporation, The Valspar Corporation, AkzoNobel N.V., The Sherwin-Williams Company, Arkema SA, Becker Industrial Coatings Ltd., Berger Paints India Limited, Cabot Corporation, Clariant, Eastman Chemical Company, Jotun, Lord Corporation, DSM, Solvay S.A.
Growth Drivers:
  • Growing automotive industry in Asia Pacific
  • Increasing waterborne coatings demand in Europe
Pitfalls & Challenges:
  • Fluctuating raw material prices

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By Technology

Waterborne coatings market was valued at over USD 6.9 billion in 2016. Changing consumer perception on sustainable environment practices to reduce carbon footprint & enhance the performance of automobiles should accelerate automotive coatings market share. These coatings are economically feasible and do not require thinners, additives or hardeners. Waterborne coatings deliver excellent corrosion protection for the coated automotive parts and offers high abrasion resistance, maintaining the glossy finish for longer duration.

UV-cured coatings market revenue was valued at over USD 3.8 billion in 2017. Rising consumer awareness on global warming and changing outlook towards UV protection coatings may trigger market share. UV cured coatings protects the vehicle from photodegradation of paint.  Further, it protects against damages including oxidation & fading caused by UV radiation that impact vehicle’s gloss. UV cured coatings offer longevity, protects fiberglass, plastics, paints, steel & aluminium, and are chemical proof. UV cured coatings are compatible with scratch resistant layers which makes maintenance and repairs easier, thereby fostering market size. Changing outlook on rising maintenance costs and increasing inclination to purchase luxury vehicles may augment market share.

By Product

Automotive electrocoat market size was valued at over USD 4 billion in 2016. Increasing demand for high quality coatings with characteristics such as greater corrosion resistance, higher efficiency, and environmental friendliness may trigger market share for electrocoat coatings. Companies are providing various innovative technologies including cathodic epoxides, anodic epoxides, cathodic acrylics and anodic acrylics to offer competitive edge in the industry. Furthermore, electrocoat formulas have low concentration of hazardous air pollutants and volatile organic compounds which may accelerate market growth. Rising awareness on the potential benefits of electrocoat coatings and increasing concerns on green environmental initiatives may boost the automotive coatings market growth.

Automotive clearcoat market should surpass USD 5.5 billion by 2024. Rising demand for fuel efficient, low cost & maintenance electrical vehicles should augment market share. Increasing inclination in millennial population to own personal vehicles owing to easy availability of loans may foster automotive industry thus increasing the dependence on automotive coatings. Clear coatings are widely used to prevent damage from oxidation, and corrosion. It is also compatible with aluminium flakes which gives sparkling & grainy textures. Increasing consumer inclination for metallic paints on vehicles and rising concerns towards aesthetic features may promote product usage.

By Application

Metal application segment was valued at over USD 13 billion in 2016. They are applied on metal parts to protect them from corrosion and to enhance aesthetic appeal of the vehicle. Metal applied coatings has long term durability, flexibility, compatibility along with improving colour consistency, thereby stimulating automotive coatings market growth.  Automotive industry extensively uses metallic coatings for steering wheels, roof racks, handles, grills, wheel trims, exterior body refinishing and truck bed linings. Increasing usage from luxury car manufacturers to achieve higher gloss finish, scratch resistance, weatherability and longer shelf life should favour industry growth. Growing consumer expectation regarding extended vehicle warranties in international automotive industry should have positive impact on market size.

By End Use

Automotive coatings market demand from light vehicle OEM was valued at over USD 7.5 billion in 2016. Changing consumer outlook towards appearance, enhanced durability, and protection against environmental susceptibilities such as temperature, acid rain, UV radiations, and dirt may fuel product demand. Waterborne and solvent borne coatings are prominently used in light vehicle OEM. Stringent regulatory norms to limit VOC emission has promoted use of waterborne coatings due to low VOC emission risk thereby stimulating industry growth. Increasing investments in coatings sector to diversify product portfolio and increasing capacity to meet growing demand may trigger industry growth. Rising consumer awareness on improving fuel efficiency has led to novel methods of vehicle manufacturing which should have a positive impact on product demand.

Commercial OEM segment was valued at over USD 4 billion in 2016.  Increasing demand for high quality products may trigger the use of automotive coatings in manufacturing equipment for commercial OEM’s. Stringent competition and high consumer bargaining power has influenced manufacturers to produce equipment with various characteristics such as anti-corrosion and oxidation which may boost market share.

 By Region

North America, driven by U.S. automotive coatings market size should register significant growth over 3.5% up to 2024. Increasing demand for luxury automobiles owing to rising consumer inclination towards vehicle aesthetics and appearance may trigger industry growth. Increase in maintenance, repair, and refurbishing cost of old vehicles supported by stringent VOC emission regulations is likely to encourage product demand. Strong research & development expenditure to adopt new technologies and develop novel products supported by high investments should accelerate market growth. Growing trend of lightweight automobiles in this region has led to adoption of cost effective and efficient coatings solutions which should have positive impact on regional growth.

Europe driven by Germany automotive coatings market demand may surpass USD 3.65 billion by 2024. Changing consumer outlook on environmental concerns has forced automotive manufacturers to develop production solutions having low environmental impact and VOC emission which is likely to encourage product demand.  Rising automotive sales owing to increasing demand for better aesthetics & style should favour regional product demand. Shifting consumer inclination towards minimal maintenance & durability should fuel product demand.  Furthermore, European manufacturers are developing corrosion & UV protection technologies supported by new product development which is likely to encourage product demand.

Asia Pacific led by India, and China market was valued at over USD 9.5 billion in 2016 and may exceed in the foreseeable timeframe. Increasing automobile manufacturing owing to easy availability of loans and rising investment in automobile manufacturing to ensure lower costs and high quality should drive regional industry growth. Rising economic standards in India & China has led to increase in demand for luxury cars with better finish and appearance along with thermal & UV protection which likely to promote industry growth. Rise in accidents along with increasing consumer spending on automobile repair and maintenance has led to rise in product coatings demand thereby triggering regional market growth.

Competitive Market Share

Global automotive coatings market share is characterized by intense competition and is moderately consolidated with major industry players such as Nippon, BASF, PPG Industries, Sherwin-Williams, Axalta Coatings Systems, Valspar Corp , Kansai Paints, Nippon Paint, Clariant, Cabot Corporation, Berger Paints, Solvay, Arkema, KCC Paint, Beckers Group, Lord Corporation, Eastman Chemical Company, and AkzoNobel. Various manufacturers are widely engaged in new product development with advanced characteristics in order to enhance their product portfolio under stringent environmental regulations.

Industry Background  

Automotive coating is a paint used on automobiles for the purpose of protection and decoration. It enhances vehicles durability and protect from extreme temperature, UV radiation, acid rain and other harmful foreign particles. Automotive coatings is applied in several layers of around 0.1 mm thickness. The first layer is the primer, second is the basecoat, and third layer is clearcoat. Strict regulations to VOC emissions and hazardous air pollutants including xylene, toluene, methyl ethyl ketone, and ethylbenzene may impact overall industry growth. However, low toxicity and modified extraction of these products may create new opportunities in the near future and encourage industry growth.

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