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, 2019 – 2025
Published Date: Apr 2019 | Report ID: GMI3243 | Authors: Kiran Pulidindi, Hemant Pandey
Automotive Paints & Coatings Market size valued at over USD 16 billion in 2018 and is estimated to exhibit around 8% CAGR from 2019 to 2025.
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Shifting consumer preference towards improved aesthetic appearance and attractive paint textures for vehicles is augmenting the automotive paints & coatings market growth. Beneficial properties including coatings providing UV protection, easy to use and color retention capabilities are gaining higher visibility. Introduction of numerous vehicle exterior shades and coating solutions are providing potential growth prospects for the market. Industry participants are continuously engaged in developing latest processing technologies to provide cost effective products.
Increasing vehicle production of passenger and commercial vehicles is providing potential opportunities for automotive paints and coatings market expansion over the forecast timeframe. Proliferating consumer disposable income along with increasing urbanization is providing potential opportunities for vehicle adoption. Growing vehicle registrations in conjunction with higher color customization requirements from consumers is significantly bolstering the market size.
Recent advancements in automotive paint technologies are providing highly durable exterior surfaces exceeding customer expectations along with complying with environmental regulations. Development of paint chemistries and paint applying configurations are significantly enhancing the paint transfer efficiency and uniformity of paint layers by eliminating over spraying, thereby boosting the market growth.
Utilization of smart automotive paints & coatings offering multiple benefits including improved surface durability, super-hydrophobicity and vibration damping are prominently escalating the product adoption. Self-stratifying automotive coatings are providing potential economic benefits of applying dual coats in single operation, further reducing the risk of inter-coat adhesion failure.
Increasing requirements for repair, maintenance and restoration of vehicles is augmenting the automotive paints & coatings market demand. Growing inclination towards utilization of pre-owned cars owing to favorable financing options and lower prices is providing a positive outlook for refinishing paints and coatings. Moreover, industry participants are entering into strategic agreements and partnerships for strengthening their foothold in the market. For instance, in January 2018, BASF entered into a strategic agreement with Sirrus Inc for development of high-performance automotive coatings based on methylene malonate technology.
Stringent regulations pertaining with volatile organic compound (VOC) emission are formulated by environment protection agencies to promote the utilization of eco-friendly coatings. For instance, U.S. Environmental Protection Agency (EPA) has specified National VOC Emission Standards for limiting the environmental impacts from automotive refinishing coatings.
|Base Year:||2018||Market Size in 2018:||21 Billion (USD)|
|Historical Data for:||2014 to 2018||Forecast Period:||2019 to 2025|
|Forecast Period 2019 to 2025 CAGR:||8%||2025 Value Projection:||27.5 Billion (USD)|
|Pages:||300||Tables, Charts & Figures:||2011|
|Geographies covered (24):||U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Poland, Netherlands, China, India, Australia, Thailand, Japan, South Korea, Indonesia, Brazil, Mexico, Argentina, Saudi Arabia, UAE, Iran, South Africa|
|Segments covered:||Vehicle, Coating Type, Technology, Texture, Distribution Channel, Raw Material and Region|
|Companies covered (15):||Akzo Nobel NV, Axalta Coating Systems, BASF SE, Cabot Corp, Clariant AG, Covestro, Donglai Coating Technology, dupont, Eastman, Kansai Paint Co. Ltd, KCC Corporation, Nippon Paint Holdings Co. Ltd, PPG Industries, Inc., The Valspar Corporation., wanda refinish|
|Pitfalls & Challenges:|
Increasing adoption of heavy commercial vehicles is attributed towards surging freight transportation and trade activities. Industry players are offering specialized solutions for commercial vehicles with higher efficiency with faster curing rate. For instance, in March 2017, Axalta Coating Systems launched Imron 8460S clearcoat providing high quality appearance and superior durability. Business expansion of logistics and supply chain service providers are positively contributing towards enhancement of heavy commercial vehicle fleet size, further escalating the automotive paints & coatings market demand.
Surging production of passenger vehicles owing to rising disposable income coupled with availability of numerous car models is providing strong growth prospects for the market expansion. Growing inclination towards adoption of advanced car coatings for protecting paints against UV radiations, acid rains and extreme heat conditions. Growing emphasis of automobile manufacturers for increasing their production capabilities will further spur the segment growth.
By Coating Type
U.S. Automotive Paints and Coatings Market from PCV, By Coating Type, 2018, (Million Liters)
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Increasing requirement for appealing exterior appearance and superior gloss finish on high end vehicles is positively inducing the demand for automotive clearcoats. Additionally, long lasting protection from micro scratches and temperature fluctuations will further propel the market penetration in the automotive segment.
Electrocoats offering multiple benefits including higher corrosion resistance, superior throw power and lower curing temperature are gaining higher visibility. Lower VOC formulation along with HAP’s free properties are prominently contributing towards environmental protection. Industry players are opting for various electrocoats types such as Anodic epoxy, Anodic acrylic, cathodic epoxy and cathodic acrylic owing to their benefits and properties that makes the vehicle surfaces durable and resistance to diversified weather and environmental conditions.
Growing preference of auto manufacturers towards waterborne coatings owing to substantial cost reductions and ability to protect vehicles against severe weather conditions are expected to trigger the automotive paints & coatings market growth. Utilization of waterborne technology offers high chemical resistance, lower temperature processing and solvent free preparation of automotive coatings.
Powder coatings possess precise film thickness and enable simplified rectification of inappropriately coated areas, making them a preferred choice for various end-use applications. Features such as cost effectiveness, high quality, environment-friendly, swift paint applicability, and easy usability, coupled with the improvement of paint application processes are the key trends followed by industry participants.
Presence of aluminum flake pigments in metallic paints are providing distinctive finishing features along with change in appearance with viewing angles and illumination direction. Also, higher degree of flake orientation owing to utilization of special effect pigments and viscoelastic properties are helping to provide superior texture finishes. Growing consumer preference for utilizing metallic basecoats for customized and sports vehicles will further boost the market growth.
Rough textures and non-reflective appearances for car exterior surfaces are prominently highlighting the vehicle design details. Vehicle manufactures are offering matte finish options for newer edition car models. For instance, in February 2018, Lexus introduced special edition 2019 GS F and RC F featuring matte paint finish with ability to withstand multiple mechanized car wash frequencies.
By Distribution Channel
Proliferating vehicle sales owing to increasing consumer spending on comfort, aesthetic appearance and functionality is bolstering the demand for OEM automotive paints and coatings over the study timeframe. Industry participants are maintaining OEM approvals from vehicle manufacturers for gaining competitive edge in the market. Availability of long lasting, corrosion resistive paints and paint spraying technologies will further support the market growth.
Shifting consumer preference towards utilizing cost effective products delivering enhanced quality and durability will support the aftermarket automotive paints & coatings market demand over the study timeframe. Growing prominence of independent auto body shops and servicing centers incorporating numerous service bays for vehicle repair and refinishing services will significantly impact the product penetration.
By Raw Material
Automobile manufacturers are utilizing polyurethane-based coatings owing to their superior mechanical properties, solvent resistance, weatherability and acceptable cure rates at ambient temperatures. Shifting preference of refinishing service providers towards polyurethane-based paints is attributed to availability of numerous color shade and texture options.
Excellent adhesion with metals and improved wear resistance capabilities of epoxy resins is prominently increasing the applications in complicated cavities, under hood components, rims, and door handles. Industry players are strengthening their distribution networks for curing agents for increasing their revenue generation opportunities. For instance, in August 2018, BASF SE and Gustav Grolman GmbH & Co. KG extended their regional partnership for marketing amine-based curing agents in epoxy resins.
Europe Automotive Paints & Coatings Industry Size, By Country, 2025, (USD Million)
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Europe automotive paints & coatings market will showcase potential growth prospects owing to the strong presence of major manufacturers. Industry participants are engaged in mergers & acquisitions for enhancing their market position. For instance, in December 2016, BASF completed acquisition of Chemetall, resulting into expansion of coatings portfolio. Besides, expansion of vehicle manufacturing facilities in Germany, UK and France will further support the product penetration over the region.
Asia Pacific will witness substantial growth owing to the increasing vehicle affordability coupled with proliferating disposable income further augmenting vehicle adoption rate. Parallelly, the leading global players started shifting their production core to China. Key market players also started investing in China, thus supporting the regional growth. For instance, in August 2018, PPG announced their plans for establishing R&D center Tianjin, China to enhance their development capabilities for innovative product offerings.
Competitive Market Share
The automotive paints & coatings market share is highly competitive owing to the presence of major players including BASF SE, Axalta Group, KCC, Dupont and PPG Group. The other prominent participants in the industry includes Akzo Nobel N.V., Covestro AG, Nippon Paints, The Sherwin-Williams Company, Cabot Corp, Clariant AG, and Eastman. New product development and variations in color are the major focus areas of industry participants to improve their market share.
The industry is going to witness high competition owing to the adoption of new strategies including long term contracts, partnerships, and new product developments to gain high visibility in the market. For instance, in February 2018, BASF launched the Glasurit and R-M refinish paint brand in European market. The paints are certified according to biomass balance approach to reduce the CO2 emission.
The increasing demand for automotive paints & coatings can be attributed to the benefits offered including corrosion prevention, along with protection of base vehicle surface from degradation. The vehicles are made up of steel which tends to weaken throughout years, thus, a proper coating of the paint will prevent the steel components of the car from degradation and improve durability. Additionally, the color and texture of the vehicle are the major factors that influence the buying decision, thus resulting in increasing the market growth over a study timeframe.
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