Automotive Paints and Coatings Market size is forecast to reach $26.8 billion by 2025, after growing at a CAGR of 3.5% during 2020-2025. Rising vehicle production coupled with rising consumer preference towards dual color alternatives are driving the market share. Industry players are investing in technologies and finishes to give customers alternatives for customizing their vehicles. Additionally, scratch resistance along with improved gloss finishing and corrosion resistance are gaining significant traction in the market.
By Paint Type – Segment Analysis
The market is segmented into paint type which includes electrocoat, primer, basecoat, and clearcoat. Owning to its superior corrosion and scratch protection, primer coating is accounted with most significant share in automotive paints and coatings market. Additionally, these coatings also offer significant ultraviolet (UV) ray protection along with enhanced protection against stone chipping. Also, the development of advanced primers with the capability of applying in stainless steel, cold rolled steel, aluminum, and fiber glass further accelerates the segment share over the projected timeframe.
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By Technology Type – Segment Analysis
The growth in the waterborne automotive paints & coatings market share can be credited to the stringent rules and regulations pertaining to the reduction of VOCs in automotive paints and coatings. Additionally, the presence of minimum toxic materials along with lower flammability compared to solvent based paints further expands the segment size. Additionally, higher gloss polish along with durable finishing over long period further expands the segment growth from 2022 to 2025.
By Resin Type – Segment Analysis
Polyurethanes accounted for considerable share in the automotive paints and coatings market. Polyurethanes materials are widely used in paints owing the benefits offered including higher resistance to solvents along with superior mechanical and weathering damage resistance. Industry players are focusing on introducing environmentally friendly polyurethane coatings for improving their market share.
By Texture Type – Segment Analysis
Matte paint texture consists the highest share in texture type segment of automotive paints & coatings market, this is due its non-reflective appearance, rough and sandy texture. The characteristics of textures including prevention from discoloration and oxidation, makes them suitable for wider applications. The matte texture is widely used in high end automotive. The paint offers improved protection form finger prints and offers premium color finish compared to its counterparts. However, easier visibility of scratches or dents may limit its usage over the study timeframe.
By Vehicle Type – Segment Analysis
Passenger cars will grow considerably in the automotive paints & coatings market over the study timeframe. The growth can be attributed to the availability of a wide vehicle model range across diversified price range. The availability of easier vehicle financing alternatives along with discounts offered by vehicle manufacturers in festive seasons to increase their sales are further supporting the market demand.
Geography – Segment Analysis
APAC, due to its huge vehicle production and improving economy, leads the market share in 2019 and is expected to continue its dominance during the forecast period. The automotive paints industry has evolved along with the automotive industry. Both industries are continuously progressing to provide advanced technologies and eco-friendly products to their customers. Passenger cars hold the largest share of total vehicle production globally and also in APAC. Passenger cars are expected to be the largest market for automotive paints. APAC is estimated to be the largest market for electric and hybrid vehicles also. The hybrid vehicle is estimated to be the largest market for automotive paints due to the rapid acceptance of hybrid vehicle across the world.
Drivers – Automotive Paints and Coatings Market
The growing environmental concerns and stringent emission regulations for paints and coatings manufacturing process is enhancing the market growth of new innovative eco-friendly paints.
The demand for automotive paints is driven by the increasing demand for vehicles, whereas technologies and R&D investments are influenced by government regulations. Likewise, the future growth and advancements in the automotive paints market will be driven by stringent emission regulations and norms regarding paint products, manufacturing processes, and the industry’s CO2 footprint. Conventionally, chromate and phosphate conversion coatings (CC) were preferred for these pre-treatment activities. These types of coatings emit high VOC emission. However, owing to new non-VOC regulations, these coating chemicals are getting replaced with low- or non-VOC surface pre-treatments. In U.S, the federal rules governing the use of VOCs fall under the umbrella of the Environmental Protection Agency’s National Emission Standards for Hazardous Air Pollutants (NESHAP) guidelines. Due to such regulations, automotive paint technologies are changing to waterborne and powder coating technologies due to their low VOC emission as compared to solvent-borne technology.
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Challenges – Automotive Paints and Coatings Market
The growing technological advancements in automotive safety aspects to reduce accidents is somehow restrain the market growth.
The increase in the number of road accidents is one of the major concerns for automobile manufacturers and governments. As per the National Highway Traffic Safety Administration (NHTSA), total fatalities due to road accidents in the US only was 37,461 in 2016, which grew by 5.6% from 2015. However, the automotive industry is witnessing a rapid evolution of safety features. The demand for safety features is expected to increase exponentially in the coming years. Due to increasing concerns of vehicle and passenger safety, vehicles are now equipped with advanced and smart features. The growing technological advancements in order to reduce accidents have constrained the growth of the market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Automotive Paints and Coatings market. In 2019, the market of Automotive Paints and Coatings has been consolidated by the top five players accounting for xx% of the share. Automotive Paints and Coatings Market top 10 companies are Nippon Paint Holdings Co. Ltd, Covestro, Cabot Corp, Eastman, PPG industries Inc, Dupont, and BASF SE. Other notable players include Wanda Refinish, Axaltra Coating Systems, Donglai Coating Technology, KCC Corporation, Akzo Nobel NV, Clariant AG, and Valspar., among others.
The automotive 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. 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.
Shifting consumer preference for buying pre-owned and refurbished vehicles is showcasing strong growth prospects for automotive paints and coatings market size.
Increasing consumer inclination towards customization, repair, and maintenance of refurbished vehicles will significantly augment the utilization of automotive paints & coatings over the study timeframe.
The COVID-19 outbreak has exposed several challenges for the automotive sector. Governments globally are preparing for a broader spread of the virus. Consequently, 80 percent of automotive and related companies report that Coronavirus will have a direct impact on their 2020 revenues. 78 percent of companies do not have enough staff to run a full production line.
COVID-19 have become the biggest impact for automotive crisis globally, and thus restraining the market growth. And it is also been expected that the outbreak of COVID-19 will be seen in whole year of 2020, and few months in 2021.
A. Automotive Coatings Market
B. Automotive Paint Additives Market
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