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Automotive Paints & Coatings Market Size By Vehicle (Light Commercial Vehicles, Heavy Commercial Vehicles, Passenger Cars), By Coating Type (Primer, Basecoat, Clearcoat, Electrocoat), By Technology (Waterborne, Solvent-borne, Powder, UV Curved), By Texture (Solid, Metallic, Matte), By Distribution Channel (OEM, Aftermarket), By Raw Material (Polyurethane, Epoxy, Acrylic, Other Resins) Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI3243
  • Published Date: Dec 2020
  • Report Format: PDF

Industry Trends

Automotive Paints & Coatings Market size was USD 14.33 billion in 2019 and is estimated to exhibit around 5.3% CAGR from 2020 to 2026. Changing customer preference towards attractive paint textures and improved aesthetic appearance for vehicle is boosting the market expansion.

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The demand for automotive paints and coatings is primarily driven by the increasing demand for automotive, whereas research and development investments are influenced by government regulations. The advancements in market led by stringent fuel emission regulations regarding manufacturing processes, paint products and the industry’s carbon footprint. For instance, surface pre-treatment of metal, which requires application of paint and coating on the surface to increase the adhesion of paint & coating along with corrosion resistance. Traditionally chromate and phosphate-based conversion coatings were used for pre-treatment activities. These types of coatings generally emit very high VOC emissions. However due to introduction of new non-VOC regulations, these coating chemicals are being replaced with non-VOC surface coatings.

Growing automobile production in Asia-Pacific and Latin America on account of rising population and income level is poised to spur automobile sector which will have a positive impact on the automotive paints & coatings market. Shifting customer demand towards improved aesthetics appearance and protection from rough environmental conditions like acid rain, UV radiation, foreign particles and extreme temperature will aid in revenue generation. The closure of several production sites across the world impelled by the coronavirus pandemic will negatively influence paints & coatings demand across various applications for the short-term. Despite a recent drop in the demand from the automobile sector owing to weakened economic conditions, automotive paints & coatings industry is likely to offer ample opportunities in the long run.

Passenger vehicle to augment the demand for automotive paints & coatings


The passenger cars segment in the automotive paints & coatings market will witness a growth rate of 5% till 2026 propelled by increasing vehicle adoption across the globe. Emerging vehicle financing market has encouraged the passenger vehicles industry to provide loans on the vehicle to their customers. Owning a passenger vehicle is usually observed as a status symbol in many developing countries, but nowadays they are being bought by middle class families. As income level rises in developing countries the demand for passenger vehicle will also continue to rise thereby driving the market revenue during the forecast period.


High demand for low VOC coatings to support electrocoat segment growth

Electrocoat is projected to reach USD 8 billion in 2026 due to its use in passenger cars, commercial vehicles and automotive parts. Electrocoat contains polymeric materials such as acrylic and epoxy that can are used for protective and decorative purposes. The resin component present in the formulation determines the end-use performance and processing of electrocoat. Electrocoats offer various benefits including corrosion resistance and lower curing temperature that will further enhance the segment expansion.

Waterborne technology will follow an upward trajectory

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Waterborne technology in the automotive paints & coatings market valued at USD 6.5 billion in 2019 owing to its low VOCs emission and superior performance. Waterborne paints are composed of pigments and synthetic resins that are kept dispersed in water by surfactants. Waterborne technology has various advantage like less odor in work environment and improved air quality without giving up on performance and color-matching capability. As developed economies in North America and Europe have already implemented VOC emission standards, OEMs and automotive paint suppliers are increasingly adopting waterborne technology.

Metallic paints to bank upon multiple industry use

Metallic paints segment is predicted to attain a CAGR of 5.5% CAGR through 2026. Metallic paints contain small quantity of powdered metal added to it. The type and size of metal added differs according to the manufacturer choices but is usually about 1 part in 50 of aluminum powder. The metal particles present in the paint reflect more incident light than the basic paint colors giving it a shiny look. It also hides minor damage from a distance in a much more effective way.

OEMs automotive paints & coatings will continue to dominate the market growth

OEMs segment dominated more than 70% of the automotive paints & coatings market share in 2019 impelled by growing automobile sales due to increasing consumer spending on aesthetic appearance, comfort and functionality. Availability of corrosion resistant and long-lasting paints will further support the industry expansion.

Polyurethane to foster the demand for automotive paints & coatings

Polyurethane held around 20% of revenue share in 2019 driven by its durability, high gloss, corrosion resistance and scratch resistance. Polyurethane coatings are also used to increase strength, glaze windshield and windows and to provide fog resistance. Changing preference of service provides towards the segment can be attributed to presence of different texture options and color shade.

Rising automotive production will create growth opportunity for APAC region


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Asia Pacific automotive paints & coatings market is poised to expand at more than 5.5% CAGR during 2020 to 2026 on account of huge automotive production and developing economies in the region. The industry is evolving along with the automotive industry. Both industries are working towards providing eco-friendly products and advanced technologies to their customers. Passenger vehicles are expected to be the biggest market for automotive paints & coatings. Moreover, the migration of manufacturing bases of companies like Volkswagen, Audi, Skoda, Fiat, Tesla towards Asia Pacific region owing to low labor cost and lenient labor laws is anticipated to drive the market demand. 

Growing strategic partnership in the industry

Some of the prominent participants operating in the market are Axalta Group, Dupont and PPG Group, BASF SE, Berger Paints, Akzo Nobel, Covestro AG, Clariant AG, The Sherwin-Williams Company and Eastman.

This market research report on automotive paints & coatings includes in-depth coverage of the industry with estimates & forecast in terms of volume in million liters and revenue in USD million from 2016 to 2026 for the following segments:

Market, By Vehicle

  • Light commercial vehicle
  • Heavy commercial vehicle
  • Passenger Cars

Market, By Coating Type

  • Primer
  • Basecoat
  • Clearcoat
  • Electrocoat

Market, By Technology

  • Waterborne
  • Solvent borne
  • Powder
  • UV Curved

Market, By Texture

  • Solid
  • Metallic
  • Matte

Market, By Distribution Channel

  • OEM
  • Aftermarket

Market, By Raw Material

  • Polyurethane
  • Epoxy
  • Acrylic
  • Other resins

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
    • Netherland
    • Poland
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Thailand
    • Indonesia
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
    • Iran
Authors: Kiran Pulidindi, Akshay Prakash

Frequently Asked Questions (FAQ) :

Global automotive paints & coatings industry size was valued at USD 14.33 billion in 2019 and is likely to grow at nearly 5.3% CAGR through 2026.
Automotive paints & coatings market share from the electrocoat segment is estimated to reach USD 8 billion by 2026 driven by its benefits like corrosion resistance and lower curing temperature.
The waterborne technology segment accounted for a revenue of USD 6.5 billion in 2019 and is set to witness exponential growth due to low VOCs emission and superior performance.
OEMs segment held over 70% of the overall automotive paints & coatings market share during 2019 and will grow with the increasing automobile sales and consumer spending on aesthetic appearance, functionality, and comfort.
In 2019, polyurethane captured nearly 20% of automotive paints & coatings industry revenue and is set to record constant growth attributed to its durability, high gloss, and scratch and corrosion resistance.

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Premium Report Details

  • Base Year: 2019
  • Companies covered: 17
  • Tables & Figures: 1032
  • Countries covered: 24
  • Pages: 550
  • Upcoming Report: Details can be customized to meet your information and data needs. Feel free to share your detailed research requirements via this form.

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