US Automotive Paints and Coatings Market outlook to 2028

US Automotive Paints and Coatings Market outlook to 2028

Market Overview:

The United States Automotive Paints and Coatings market is primarily concerned with the manufacturing, distribution and usage of Automotive Paints and Coatings within the US. These paints are primarily used in the automobile industry.According to Ken Research, this market is anticipated to grow at a CAGR of ~9.5% between 2022-2028 owing to rapid automotive sales, rise in accidents and collisions, technological advancements, and increasing pollution due to usage of paints and coatings.

The growing sales of automotive vehicles is the primary factor that is accelerating the US Automotive Paints and Coatings market. As the sales of vehicles rise, the demand for automotive paints and coatings also rise. These paints are also used in the repairing of automotive vehicles. Due to rising accidents and collisions, the vehicles need to be repaired which require the use of these paints and coatings. Furthermore, various technological advancements in the field of paints and coatings also have made the task of painting automobiles easier and quicker which ultimately helps in the growth of US automotive paints and coatings market. One of the major downside of these paints is that they are associated with causing high pollution. Thus, the requirement for developing sustainable paints rises which acts as a growth driver for the US Automotive Paints and Coatings market.

Automotive Paints and Coatings are primarily used to paint automobiles. The US Automotive Paints and Coatings is typically concerned with the manufacturing, and usage of paints and coatings within the US. The US automotive paints and coatings market’s ecosystem comprises automotive paints and coatings players, automotive vehicles players, automobile repair players and environment regulatory players.

The key automotive paints and coatings players include Sherwin Williams, PPG Industries, RPM International, Axalta Coating Systems, Valspar, Nippon Paint and Akzo Nobel. Major automotive vehicles players include General Motors, Toyota Motor Corporation, Ford Motor Company, Fiat Chrysler Automobiles, and Honda Corporation. Key Automobile Repair players include Meineke Car Care center, Aamco Transmissions, Big O Tires, Carstar and Tuffyt Tire and Auto service. Key Environment Regulatory Players include Earth Justice, Texas Commission on Environmental Quality, US Environment Protection Agency, Kentucky Energy and Environment Cabinet.

This ecosystem is influenced by automotive manufacturing & sales, technological advancements, consumer demands, and competition. The evolving landscape emphasizes research and development for safer and more sustainable automotive paints and coatings to meet the needs of automobile companies and customers.

US Automotive Paints and Coatings Market analysis:

The United States Automotive Paints and Coatings market can be best described as a market that is concerned with the manufacturing, distribution and usage of automotive paints and coatings in the United States.
There are various reasons responsible for the growth of this market such as rapid automotive sales, increase in accidents and collisions, technological advancements and increasing pollution due to the usage of these paints and coatings.
In 2022, almost 15 million automotive vehicles were sold, which has fueled the demand for automotive paints and coatings.
The number of accidents and collisions have been rising in the United States. Almost 1 in every 63 people have a chance of getting in an accident in the US. With the increasing cases of accidents, the automobile paint market is indirectly fueled the growth in the market.
Technology is always evolving and the field of automotive paints and coatings also have witnessed many technological advancements. To make the process of painting quicker and easier, there are many technologies used to do so such as UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings.
Automotive paints and coatings are also associated with causing pollution. Automotive paints and coatings are known to form at least 55% of the micro-plastics which pollute our environment greatly. About 80-90% of all the pollution that is caused by automotive manufacturing comes from the painting and coatings only. This need to develop low pollution causing paints and coatings becomes a growth driver for the US Automotive Paints and Coatings industry.

Key trends by Market Segment:

By Resin Type: In 2022, Polyurethane dominated the US Automotive Paints and Coatings market. Polyurethane is a plastic material which has various applications such as paints, coatings, insulation, mattresses, cushioning, etc. This material can be rigid or flexible depending upon the needs of the user.
This polymer is known to provide flexible and durable coatings when used as an automotive paint. There are many reasons behind its dominance in the US Automotive paint and coatings market.

This material provides resistance against UV, abrasion and chemicals. Moreover, this material tends to be flexible meaning it can do extractions and contractions as and when temperature changes take place. Furthermore, these paints are also available in various gloss finishes such as glossy, matte, satin, etc. Moreover, these paints also happen to dry quickly which make the whole process of painting and coating very fast.

By Application: In 2022, Automotive OEM (Original Equipment Manufacturer) is the dominant segment in the US Automotive Paints and Coatings market. Automotive OEM segment refers to the new manufacturing of automobiles.
The original manufacturers largely make use of automotive paints and coatings as their new automobiles have to be painted and coated. In the US, every year almost 10 million automobiles are produced. And, every year almost 15 million automobiles are sold.

The growing manufacturing and selling of automobiles results in using of automobile paints and coatings to a great extent, due to which this segment happens to be the dominant segment in the US Automotive Paints and Coatings market.

By Geography: In 2022, the southern region of the United States dominated the US Automotive Paints and Coatings market. This is primarily due to the presence of many automotive vehicles companies, automotive repair centers and automotive paint and coatings companies situated in this region.
The major automotive paints and coatings industries that are based in southern region of US include PPG Industries, Axalta Coating Systems, Valspar, and Akzo Nobel NV. The presence of these major companies in the US make it a dominant spot for the growth of the US Automotive Paints and Coatings market.

This region also has the presence of many automotive companies such as Tesla, General Motors, and Nissan. These companies are constantly making new automobiles and that combined with the presence of automotive paints and coatings market adds to another point as to why this region is the dominant one.

Since automotive paints and coatings are not just used by automotive OEM, there are also used by repairing centers. This region also happens to have the presence of many automotive repairing centers such as Meineke Car Care Center, AAMCO transmission, and Bio O tires.

Thus, the factors such as the presence of automotive paints and coatings companies, automotive vehicle companies and automotive repairing centers make this region as the dominant segment in the US automotive paints and coatings market.

Competitive Landscape:

    The United States Automotive Paints and Coatings market has the presence of many well-established players that make automotive paints and coatings to be used in automotive OEM and automotive refinish.

The major players that are associated with making automotive paints and coatings include Sherwin Williams, PPG Industries, RPM International, Axalta Coating Systems, Valspar, Nippon Paint and Akzo Nobel.

With innovation, efficacy and pricing tactics these companies work to acquire the market share. The main focus of these companies to develop such Automotive Paints and Coatings products that are of good quality and sustainable for the environment.

Recent Developments:

In June 2021, the acquisition of Worwag was done by PPG industries. The former company is associated with manufacturing automotive paints and coatings in the US, Mexico, China, Spain, Poland, South Africa and Switzerland.
In June 2021, PPG industries revealed that they have expanded their manufacturing capacity in the Europe.
In September 2021, U-POL Holdings Limited was acquired by Axalta Coating Systems LLC. The former company is concerned with producing protective coatings, accessories and paints for the automotive market. This acquisition has strengthen the global position of Axalta coatings systems in automotive refinishing industry.
In August 2022, a next generation basecoat technology product, cromax gen was launched by Axalta Coatings Systems Ltd. This product was primarily launched in Latin America for automotive refinish industry.

Future Outlook:

The US automotive paints and coatings market is expected to grow at a CAGR of 9.5% in between 2022-2028 due to various reasons such as rapid automotive sales, rise in accidents and collisions, technological advancements and rising pollution caused by automotive paints and coatings.

There has been a significant rise in the sales of automotive sales in the United States. In 2022, almost 15 million automotive vehicles were sold. This number is anticipated to grow further. The growing sales of automotive vehicles generate the demand for automotive paints and coatings as it is mainly used to paint automotive vehicles. Thus, the growing sales of automotive vehicles will further increase the demand for automotive paints and coatings thereby accelerating the US Automotive Paints and Coatings market.
About 5 million accidents and collisions happen every year in the US. This number is only expected to rise in the future considering the rapid sales of automotive vehicles and a large number of vehicles already in future. The rising number of accidents results in the rising demand for automotive paints and coatings as they are to be used by vehicle repairing companies to repair the cars damaged by accidents and collisions.
There have been many technological advancements in the field of automotive paints and coatings. Various technological advancements such as UV curable coatings, E-coat, Robotics and automation, Additive Manufacturing, and Electrochromic coatings have made the process of painting quicker and easier. Since technology is constantly evolving, we are expected to see more of these advancements in the upcoming future which will contribute largely to the US automotive paints and coatings market.
Automotive paints and coatings contribute majorly to the pollution. In fact, about 80-90% of all the pollution that is caused by automotive manufacturing comes from the painting and coatings only. This pose as a need for developing sustainable paints and coatings which are sustainable for our environment. This requirement for producing such paints act as a growth driver for the US Automotive Paints and Coatings industry.

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