The array of formulations for improving the troika of durability, resistance to environmental degradation, and aesthetics is a key driver for product expansion in the automotive coatings market. Rise in purchasing power has spurred the demand in the automotive sector, thereby attracting investments by original equipment manufacturers on various automotive coatings. The underlying positive consumer segment in emerging economies such as in Asia Pacific has boosted the expansion of opportunities in the automotive coatings market.
Extensive Demand for Automotive Coatings in Vehicles Propels Market Valuation
Coatings find widespread use in automotive industry to protect the surfaces against corrosion and abrasion. Over the past few decades, the choice of coatings in the automotive coatings market has also been shaped by the aesthetic concerns. Advances in the equipment used in applying coating and progress made in the chemistries of coatings are key underpinnings for the expansion of avenues in the automotive coatings market. They are widely used in topcoats, mild coats, and basecoats.
Some of the key product types in the automotive coatings market are polyurethane, epoxy, and acrylic-based formulations. Of these, polyurethane has been highly lucrative segment. Epoxy-based coatings have also gathered steam among automotive OEMs. Epoxy coatings for different substrates have been developed, particularly in terms of their ability to prevent corrosion.
OEMs and End Users Keenly Adopting Automotive Coatings with Low-VOC Content
Apart from aesthetics and durability, the choice of automotive coatings among end users and automotive OEMs hinges on environmental suitability of the coatings. The environmental safety of coating formulations, during both their production and application, is a key pivot for fueling the use of new chemistries in automotive coatings. In this regard, volatile organic compounds (VOCs) content of the currently available products in the automotive coatings market are under the scanner of automotive manufacturers and brands in the automobile industry. This is one of the key motivations for propelling the preference of acrylic automotive coatings. Automotive OEMs are likely to generate sizable revenue streams for producers and manufacturers of automotive coatings.
Autobody shop operators around the world are fervently implementing norms on regulating the VOC emissions from paints and coatings. Stridently, this has spurred the shift of users from traditional solvent-based paints to water-borne automotive coatings, shaping the contours of the automotive coatings market. Apart from rapid pace of penetration of these coatings as environmentally friendly products, powder and UV-cured coatings are also expected to offer lucrative gains to market players.
Among the various types of coats where automotive coatings are used, clear coat is expected to be the dominant segment during the forecast period of 2018 – 2026.
Asia Pacific and Latin America to be at Forefront of Driving Market Valuation
The presence of vast manufacturing hubs in some of the emerging economies such as China has pushed Asia Pacific to the forefront for automotive OEMs. This in turn has spurred vast revenue streams for automotive coating manufacturers. Strides made in the automobile and automotive industry in Asia Pacific over the past few decades have fueled massive opportunities for players, thus making the region potentially lucrative in recent years, finds a study by TMR. Latin America is also considered a highly promising market for companies in the automotive coatings market.
Intense Competition Shapes Competitive Landscape of Automotive Coatings Market
The presence of several small- and medium-sized players has raised the ante for large incumbent players. This has also rendered the marketplace increasingly competitive. However, despite the onslaught by small players, big players continue to retain their lead in the global automotive coatings market.
Some of the well-entrenches players in the market are Jotun, Nippon Paint Holding, KCC Corporation, The Sherwin-Williams Company, BASF SE, Valspar Corporation, and Axalta Coatings.
The global automotive coatings market is segmented into:
- Clear Coat
- Automotive OEM
- Automotive Refinish
- North America
- Rest of the Europe
- Asia Pacific
- Australia & New Zealand
- Rest of Asia Pacific
- Latin America (LATAM)
- Rest of LATAM
- Middle East & Africa
- South Africa
- Rest of MEA
- GCC Countries
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