Global automotive coatings market is expected to witness significant growth due to increasing consumer preference as it enhances durability and appearance of vehicles and protect it from UV radiation, extreme temperature, acid rain and foreign particles. Increasing vehicle production in countries including China, Mexico, Indonesia, Japan, U.S., South Korea, Germany, and India along with the ageing of vehicles is a major driver for market growth. Accelerated demand for eco-friendly coatings including waterborne coatings, powder coatings and UV-cured coatings in emerging economies including China and Brazil is expected to propel automotive coating industry growth. Also, rapid economic growth, increasing government spending, advancements in road infrastructure coupled with increasing the inclination of consumers towards personal conveyance are expected to propel market growth.
Asia-Pacific is expected to lead automotive coatings market over the next seven years on account of increasing joint ventures among various key participants and local manufacturers in the region. Stringent environmental regulations in North America and Europe is expected to drive demand for waterborne coating and powder coatings which is further anticipated to augment market growth over the forecast period. Favorable economic and political scenario in Latin America has encouraged coating manufacturers to invest in these regions, which is anticipated to propel market growth over the projected period. However, fluctuation in prices of raw materials including pigments, resins, titanium oxides and additives is expected to restrain market growth. In addition, harmful environmental effects by conventional solvent borne coatings coupled with the inability of industry participants to meet OEMs’ expectations in terms of environment durability and sustainability of the coating is expected to serve as a key market challenge over the forecast period. However, increasing R&D investments along with ongoing product development to improve the performance of coatings is expected to augment market growth over the next seven years.
Global automotive coatings market, by technology, 2012 - 2022 (USD Million)
Solvent borne dominated the global market in terms of revenue within the technology segment and is expected to lose its market share drastically over the next seven years as it emits a high level of VOCs and Hazardous Air Pollutants (HAP) including xylene, toluene, ethyl benzene and methyl ethyl ketone. Waterborne coatings are expected to witness rapid growth as a result of its excellent adhesion, heat resistance and abrasion properties. Moreover, its advantage over solvent borne coatings including less flammability, less toxicity along with the reduction of air emissions is expected to increase demand over the forecast period. Powder coatings, being environment-friendly, are expected to witness the fastest growth owing to its exceptional properties including high resistance to corrosion, high-quality finish, chipping and abrasion and protection from chemicals, moisture, and heat. In addition, these coatings emit a negligible amount of VOCs.
The basecoat was the largest product segment within the global automotive coatings market and is expected to witness significant growth over the forecast period as it provides color, decorative effects and exterior aesthetic to vehicles. Electrocoat is anticipated to drive the global market as it serves to be an anti-rust and anti-corrosion agent. Demand for clearcoat is expected to grow as it offers protection against sun and ultraviolet rays.
Automotive coatings are used to coat metal and plastic parts of an automobile. Metal was the largest application segment and is expected to witness significant growth over the forecast period owing to increasing vehicle production in China, Mexico, and U.S. Plastic coatings are expected to witness fastest growth over the next seven years on account of accelerating usage of plastic parts in car manufacturing owing to its lightweight, design flexibility, corrosion resistance, cost reduction, greater durability and recyclability. In addition, increasing usage of plastics in exterior applications including bumpers, doors, headlight and windows is expected to fuel its demand over the forecast period.
Light vehicle OEM was the largest end-use segment of automotive coatings market in 2014 and is expected to witness substantial growth over the forecast period on account of high living standards along with growing demand for cars in the U.S., China and India owing to increasing innovative features such as pre-collision technology, multiple direction cameras, GPS tracking and automatic light and high beam controls. Automotive refinish is anticipated to witness rapid growth over the next seven years owing to rising consumer spending power in emerging economies of Asia-Pacific including China, India, and Thailand along with the ageing of vehicles. In addition, increasing demand for second-hand used vehicle is further expected to drive automotive refinish market. An increasing number of accidents in MEA and Latin America is anticipated to fuel market growth over the forecast period.
Asia Pacific was the dominant regional player in 2014 and is expected to be the fastest growing market on account of increasing vehicle production along with rapid economic growth in China, India, Japan, Indonesia, South Korea and Thailand. China is expected to drive demand for automotive coatings as a result of increasing demand for automobiles, growing domestic automobile manufacturers along with increasing transportation infrastructure sector. In addition, rising insurance market along with supporting governmental policies is further expected to drive Chinese market. The presence of large players in the Indian market including BASF, Nippon Paint, KCC Paint and Kansai Paint is expected to drive domestic market growth. Europe is expected to lose its share in automotive refinishes market to Asia Pacific on account of less number of accidents in the region. MEA is expected to spur market growth on account of increasing production facilities along with growing powder coating market in the region.
Automotive coatings market is highly competitive with major companies involved in constant product innovation and R&D activities. The market is mainly dominated by six participants including BASF, Axalta Coating Systems, Jotun A/S, PPG Industries, Kansai Paint, Nippon Paint and AkzoNobel. Other players include KCC Paint, Sherwin-Williams Company, Beckers Group, Arkema SA, Bayer AG, Berger Paints, Clariant AG, Valspar Corporation, Eastman Chemical Company, Cabot Corporation, Lord Corporation, DSM, and Solvay SA. Bayer AG provides environmentally friendly systems that can reduce emissions up to 90%, thereby reducing volatile air emissions by 99%. Axalta Coating Systems waterborne coatings significantly reduce the emission of volatile organic compounds (VOCs), energy consumption and investment. In addition, they are environmentally friendly and meet global environmental requirements, such as the EU’s VOC Regulation 2004/42/EC.
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