Article provided courtesy of Global Market Insights, Inc.
According to a new research report by the market research and strategy consulting firm, Global Market Insights, Inc., the automotive paints and coatings market is expected to exhibit around 8% compound annual growth rate (CAGR) from 2019 to 2025.
Rising vehicle production coupled with rising consumer preference toward dual color alternatives are driving the automotive paints and coatings 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 automotive paints and coatings market.
Growing customer expectations primarily with respect to sustainability, durability and aesthetics of vehicles are enabling automobile OEMs to develop new color combinations and solutions. Paint manufacturers are collaborating with automobile OEMs to reduce toxic substances in paints. The development of water-borne products with reduced volatile organic compounds (VOC) emission eliminates the toxic gas emission during painting, thereby promoting worker safety. The development of such paints also contributes toward reducing the problems associated with waste disposal owing to the reduced usage of hazardous substances, thereby expanding the automotive paints and coatings market size.
Technological advancements in paint technologies play a major role in expanding the automotive paints and coatings market size over the projected timeframe. Proliferation of low-temperature paint systems enables superior paint finishes at around 100 degrees compared to around 150 degrees in the traditional paint systems. Additionally, the technology also maintains the color uniformity between various car body parts and allows automobile manufacturers to increase their base coats.
Light commercial vehicle (LCV) automotive paints and coatings market share will witness around 3% CAGR owing to increasing sales of light commercial vehicles across the globe. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), production of LCV in 2018 was 21,072,296 units accounting for an increase of around 4.2% as compared to 2017. The paint manufacturers are expanding their global presence by opening new facilities in several regions for catering to a rapidly growing LCV paint demand.
Primer coating will account for a significant share in the automotive paints and coatings market. This can be attributed to the superior corrosion and scratch protection offered by primers. Additionally, these coatings also offer significant UV protection along with enhanced protection against stone chipping. Moreover, the development of advanced primers with the capability of applying on stainless steel, cold rolled steel, aluminum and fiber glass further accelerates the segment share over the projected timeframe.
The growth in the waterborne automotive paints and 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 and durable finishing over long periods further expands the segment growth from 2019 to 2025.
Growing demand for metallic texture paints owing to unique gloss finishing are supporting the segment share over the study timeframe. The improved aesthetics offered by these paints along with superior finishing and the capability to hide scratches easily are providing a positive outlook for the automotive paints and coatings market expansion.
OEM is expected to hold dominance in automotive paints and coatings market size over the study timeframe. The dominance can be attributed to rising vehicle demand across the globe. Industry participants are collaboratively working with automotive manufacturers to minimize energy consumption and CO2 emission from paint application activities. These paints offer superior glossy finishes to the vehicle along with minimizing CO2 emissions significantly.
Polyurethanes accounted for considerable share in the automotive paints and coatings market. Polyurethane materials are widely used in paints owing to the benefits offered, including higher resistance to solvents and superior mechanical and weathering damage resistance. Industry players are focusing on introducing environmentally friendly polyurethane coatings for improving market share.
Asia Pacific automotive paints and coatings market will witness significant growth over the forecast timeframe. This can be attributed to the improving economic conditions, and rising disposable income along with higher requirements for personal mobility solutions. The increasing presence of automotive manufacturers across the region, as well as setting up of production facilities for ramping up of vehicle production, further expands the regional share over the study timeframe.
A few of the industry participants in the automotive paints and coatings market include 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. Strategic joint ventures and partnerships among industry players are among the strategies adopted in the industry for expanding their market share.
Global Market Insights Inc. is a global market research and management consulting company catering to leading corporations, nonprofit organizations, universities and government institutions. The company publishes in-depth market research studies, to help clients obtain granular level clarity on current business trends and expected future developments. For more information, visit www.gminsights.com.