The global market for automotive refinish coatings is on the brink of a key transformation – shift from solvent-based to water-based coatings. Strict regulatory reforms related to VOC emissions, especially across developed economies such as North America and Europe, have led to a decline in the global consumption of solvent-based coatings in the past few years. Solvent-based coatings being the dominant revenue-generator of the global automotive refinish coatings market, this trend has dealt a huge blow to the market’s overall growth prospects. Nevertheless, it has also led to an increased focus on the development of water-borne products, which are known to have lesser negative impact on the environment.
Transparency Market Research estimates that the global automotive refinish coatings market will exhibit a healthy 5.7% CAGR over the period between 2016 and 2024. At this pace, the market, which had a valuation of US$6.6 bn in 2015, holds the prospects of rising to US$10.8 bn by 2024.
Activators to Emerge Most Promising Product Variety in Market
On the basis of product varieties, the automotive refinish coatings market has been examined in the report for primers, clean coats, base coats, fillers, and activators. Of these, the segment of base coat accounted for a dominant share of over 30% of the overall market 2015. A significant rise in the used vehicle market and rising numbers of road accidents have resulted in growth of the base coat market in the past few years. The market share of this product segment is, however, expected to decline moderately across the forecasting horizon owing to the increasing availability of internal substitutes such as additives with primer.
The segment of activators is expected to witness the most prominent growth in the global automotive refinish coatings market in the next few years, due to its property of drying the coatings faster. The expansion of car parc in emerging economies is expected to augment the usage of activators in the global market, allowing it to witness a rise in its share from 12.6% in 2016 to 14% in the global market by 2024.
Rise in Repair and Maintenance Activities in Emerging Economies to Grant Traction to Asia Pacific Market
From a geographic perspective, North America accounted for a dominant share of the global automotive refinish coatings market followed by Asia Pacific and Europe in 2015. High disposable incomes and propensity of owners to undertake timely repairs of their vehicles are amongst the key factors influencing the growth of the market in North America. The growing market for used vehicles is also one of the key factors influencing the market’s growth in the region. Strict regulatory reforms in North America are expected to have a negative impact on the demand for certain varieties of solvent-based automotive refinish coatings in the region over the forecast period.
The market for automotive refinish coatings in Asia Pacific is expected to exhibit growth at the most promising pace in the next few years owing to high demand for a variety of automotive refinish coatings across emerging economies such as China and India in the region. The significant rise in the population of affluent consumers in the region has boosted the frequency of vehicle repair and maintenance activities, which, in turn, is contributing to the high demand for automotive refinish coatings in Asia Pacific. China holds a dominant position in the used vehicle market and has high expansion rate of car parc, owing to which the automotive refinish coatings market has flourished in the country. Rising numbers of road accidents and the overall growth in the automobile sector are also stimulating the demand for automotive refinish coatings in China.
Some of the key vendors operating in the global automotive refinish coatings market are 3M., Akzo Nobel N.V., Axalta Coating Systems, BASF SE, KANSAI PAINT CO., LTD, Donglai Coating Technology, Nippon Paint Holdings Co. Ltd, PPG Industries, The Sherwin-Williams Company, and The Valspar Corporation.
Coatings which are generally used for pre-owned cars for timely repair and maintenance of appearance are called automotive refinish coatings. Automotive refinish coatings are applied to prevent deterioration of vehicle body parts and components from stone chips, rust, and debris. Automotive refinish coatings are used to maintain the durability and appearance of the vehicle. By product type, automotive refinish coatings are segmented into primer, base coat, clear coat, activator, and filler. On the basis of technology, they are segmented into solvent borne coatings and waterborne coatings.
The report provides in-depth analysis and forecast of the automotive refinish coatings market on the global as well as regional level. The report includes forecast for the period from 2016 to 2024 in terms of volume (kilo tons) and revenue (US$ Mn). Quantitative data has been derived through extensive secondary research of the global automotive refinish coatings market. Secondary sources typically include company websites, relevant magazines, government documents, and press releases. The top-down approach has been adopted to derive the regional numbers from global revenue and volume figures. Furthermore, the bottom-up approach has been employed to derive data for various source segments based on demand for automotive refinish coatings in each geographic segment. A combination of top-down and bottom-up approaches helps in validation of the quantitative data of the market. The data was further validated with the help of primary research with industry experts to ensure accuracy of derived numbers.
Detailed analysis of various factors driving the global automotive refinish coatings market has been included for astute decision making. Impact of these drivers during the forecast period has been included with data to substantiate research findings. Furthermore, factors restraining market growth have been included for better understanding of the market. Impact of these restraints has been analyzed over the forecast period. The report also comprises various opportunities available for market growth over the next eight years. Opportunities entail untapped or recently explored factors that are anticipated to drive the automotive refinish coatings market during the forecast period.
The report includes value chain analysis to help understand the industry thoroughly. Value chain analysis comprises detailed evaluation of the roles of various entities involved in the automotive refinish coatings industry, from raw material suppliers to end-users. Various processes employed in the manufacture of automotive refinish coatings have been included in the value chain analysis. Porter’s Five Forces model has been included to determine the degree of competition in the market during the forecast period. Company market share analysis offers a better understanding of the competitive landscape. Company market share analysis includes the market share of dominant players in 2015, based on their production capacities and other factors. Furthermore, market attractiveness analysis has been conducted to analyze source segments that are expected to be lucrative during the forecast period. This is based on various factors such as market size, growth rate, profitability, raw material procurement, and competition in each source segment.
Based on product type, the automotive refinish coatings market has been segmented into primer, base coat, clear coat, activator, and filler. Based on technology type, the market has been segmented into solvent borne coatings and water borne coatings. The report comprises detailed analysis of all the segments in the regional and global markets and forecast based on current and future trends in the industry in terms of volume (kilo tons) and revenue (US$ Mn). In terms of region, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Demand for automotive refinish coatings in each product segment and technology type has been analyzed and forecast for a period of eight years.
The report also comprises profiles of leading companies in the automotive refinish coatings market. These include BASF SE, Axalta Coating Systems, PPG Industries, and The Sherwin-Williams Company. Various attributes of these companies such as company overview, business strategies, and recent developments form the core of the company profiles section.
This report segments the global automotive refinish coatings market as follows:
- Automotive Refinish Coatings Market – Product Analysis
- Base coat
- Clear coat
- Automotive Refinish Coatings Market – Technology Analysis
- Solvent Borne
- Water Borne
- Automotive Refinish Coatings Market – Regional Analysis
- North America
- Rest of Europe
- Asia Pacific
- Japan & Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA
- North America