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Global Automotive Refinish Coatings: Strict Regulations Force Manufacturers to Shift from Solvent-based Coatings to Water-based Coatings, finds TMR

Posted on Mar 30, 2017

With the top five players accounting for over 65% share in the global market for automotive refinish coatings, the competitive landscape looks consolidated. Among the top five players, the two most dominant ones, namely PPG Industries and Axalta Coatings Systems, LLC, held about 40% share in the market in 2015. 

A noticeable trend in the global automotive refinish coatings market is the shift from solvent-based to water-based coatings. This has been primarily brought about by stringent regulatory reforms of environmental bodies. Solvent-based automotive refinish coatings have majorly contributed to the market so far in terms of revenue, and regulations framed against it by authorities will likely negatively impact the market. As of now, manufacturers are focusing on developing efficient water-based automotive refinish coatings. This would have an impact on the market’s contours in the upcoming years. 

A report by Transparency Market Research predicts the global market for automotive refinish coatings to rise at a healthy CAGR of 5.7% from 2016 to 2024. Expanding at this pace, the market is forecasted to reach a value of US$10.8 bn by 2024 from US$6.6 bn in 2015. 

automotive-refinish-coatings-market

High Disposable Incomes Make North America Market Leader 

Depending upon the different types of products, the global market for automotive refinish coatings has been segmented into base coats, primers, clean coats, fillers, and activators. Among them, the base coat segment held the leading share of over 30% in the market in 2015. The swift uptake of used vehicles and rising numbers of road accidents have propelled the segment substantially in the past couple of years. Going forward, however, the segment will trim some of its shares because of the availability of internal substitutes such as additives with primer. 

Geographically, the key segments of the global market for automotive refinish coatings are North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Of them, North America leads the overall market and is trailed by Asia Pacific and Europe. Factors driving the market in North America are high disposable incomes and timely repairs carried out by owners of vehicles, along with the growth in the market for used vehicles.  Strict regulations, on the contrary, is negatively impacting the market in the region. 

India, China, Brazil, and South America Power Growth in Global Market 

Automotive markets in the fast-expanding economies of the world such as India, Brazil, China, and South Africa are forecasted to grow at a healthy clip from 2016 and 2021. The soaring automobile sales in the region will likely be fuelled by factors such as increasing disposable incomes and robust growth in GDPs. “Rise in sales of automobiles across these countries is expected to lead to a sizeable expansion of the pool of vehicles and have a direct positive impact on the overall demand for automotive refinished coatings,” explains the lead analyst of the report. 

Raw Material Price Volatility Crimps Growth 

Strict emission-related reforms regulating the use of certain chemicals and elements in automotive refinish coatings is majorly countering the sales of solvent-based products. Such solvent-based coatings containing higher levels of VOCs compared to water-based products were the main growth drivers in the market. This coupled with the volatility in prices of important raw materials needed in the manufacture of automotive refinish coatings is also expected to act as a barrier to the market’s growth. The price volatility of raw materials result from fluctuating crude oil and natural gas prices from which they are derived. 

This review is based on the findings of a TMR report titled “Automotive Refinish Coatings Market (Product Type - Primer, Base Coat, Clear Coat, Activator, Filler; By Technology - Solvent Borne Coatings, Water Borne Coatings) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.” 

This report segments the global automotive refinish coatings market as follows:

  • Automotive Refinish Coatings Market  – Product Analysis
    • Primer
    • Base coat
    • Clear coat
    • Activator
    • Filler
    • Others
  • Automotive Refinish Coatings Market  – Technology Analysis
    • Solvent Borne
    • Water Borne
    • Others
  • Automotive Refinish Coatings Market – Regional Analysis
    • North America
      • U.S.
      • Canada
    • Europe
      • U.K.
      • Spain
      • France      
      • Germany
      • Italy
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan & Korea
      • ASEAN
      • Rest of Asia Pacific
    • Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
    • Middle East & Africa (MEA)
      • GCC
      • Egypt
      • South Africa
      • Rest of MEA

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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge.

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