Automotive Coatings Market Forecasts to 2028 – Global Analysis By Resin Type (Acrylic, Polyurethane, Epoxy, Other Resin Types), Technology (Water-Based, Powder-Based and Other Technologies), Coat Type (Basecoat, Clearcoat and Other Coat Types), Vehicle Ty

Automotive Coatings Market Forecasts to 2028 – Global Analysis By Resin Type (Acrylic, Polyurethane, Epoxy, Other Resin Types), Technology (Water-Based, Powder-Based and Other Technologies), Coat Type (Basecoat, Clearcoat and Other Coat Types), Vehicle Type (Heavy Commercial Vehicles, Light Commercial Vehicles and Passenger Cars), Application and Geography

According to Stratistics MRC, the Global Automotive Coatings Market is accounted for $15.0 billion in 2022 and is expected to reach $21.6 billion by 2028 growing at a CAGR of 6.3% during the forecast period. The main purposes of automotive coatings are protection and decoration. To prevent corrosion on the metal, these coatings are applied in a series of phases. Primer, base coat, and clear coat are steps in the coating application process that are used to create a transparent and glossy surface. It can survive ultraviolet rays. They are frequently utilised in the automotive industry to enhance the aesthetic and functionality of vehicles. During the projection period, such a circumstance can raise market demand.

According to OICA, in the first half of 2021 (January-June), the global passenger vehicle production has increased by more than 26% when compared to the same period in 2020. In the first six months, the production has increased from 2,23,14,111 units in 2020, to reach about 2,81,48,90 in 2021.

Market Dynamics:

Driver:

Growing trends for automotive refinishing coating

In the automobile business, the emergence of autonomous and electric vehicles is making waves. Physical stores are also witnessing an increase in complexity and maintenance costs, with the additional effort required to maintain and analyse these systems in compliance with OEM criteria, since OEMs are adopting the usage of ADAS (advanced driver assistance programmes).There is a growing market for automotive coatings that improve the durability and aesthetics of cars. Additionally, these coatings shield autos against the harmful impacts of harsh environmental factors like UV radiation, foreign objects, acid rain, and extreme temperatures. These advantages will probably increase the industry's rapid growth during the anticipated period.

Restraint:

Complication in raw material sourcing

Solvents, pigment binders, and additives are examples of the raw ingredients used to make coatings. One of the most significant and typical raw materials utilised to create the product is titanium dioxide. The expansion of the market is anticipated to be hampered by the fluctuating prices of raw materials like titanium dioxide, one of the most widely utilised raw materials. Additionally, it is anticipated that during the projected period, manufacturers would face significant challenges related to acquiring raw materials. The high flammability and toxicity of the aforementioned goods are also anticipated to spur increase during the anticipated timeframe. Therefore, it is anticipated that changes in raw material prices and rising titanium dioxide prices will adversely affect market growth throughout the course of the forecast.

Opportunity:

Increasing advancements and protective features

The worldwide automotive coatings market is anticipated to expand as a result of rising protective features and technological advancements supplied by car manufacturers and aftermarket companies, including protection from UV radiation, acid rain, and high heat. The global market for automotive coatings is also anticipated to develop as a result of the high demand for certain eco-friendly coatings, including powder coatings, aqueous coatings, and UV-cured coatings. In addition, rising consumer acceptance of personal convenience and transportation, which is anticipated to lead to rising demand for automobiles and their coatings internationally, are some of the key factors anticipated to propel growth of the target market.

Threat:

Stringent regulatory policies

Due to the growing number of regulatory laws that various governments have implemented, manufacturers of automobile coatings are continually updating their procedures to be in compliance with the new laws. Products that don't adhere to the law are prohibited in nations with strict restrictions, particularly in western Europe and North America. Unfortunately, some lawmakers still rely their emission limits only on the amount of VOC present in exhaust gases. This may result in the approval of processes that produce high mass emissions, which call for higher airflows than low mass emissions, which only need for extremely low airflows. The reduced atmospheric emissions that result from the use of low-VOC coatings are likewise disregarded by the concentration approach.

Covid-19 Impact

The coronavirus outbreak has had a significant negative impact on the automotive coatings sector. Due to the lockdown measures, the majority of critical manufacturers had to close and suspend their ongoing initiatives. The automotive industry has also been impacted by the closure of some industries. The supply chain interruption caused by the COVID-19 outbreak has become another significant effect. Demand and investment have drastically decreased in the sector. By 2020, COVID-19 had an enormous effect on the global industry, particularly in the ASEAN area. Throughout the whole year, both the production and consumption of automotive coatings suffered greatly. Nevertheless, in the final quarter of 2020, the numbers started to rise.

The acrylic segment is expected to be the largest during the forecast period

The acrylic segment is estimated to have a lucrative growth. The market is driven by rising demand from the automobile industry, which will fuel market expansion in the ensuing years. Industry development has been aided by manufacturers' attempts to provide diverse eco-friendly, odourless, dust-proof, and waterproof coatings as well as the rising popularity of new coating models that offer better finishing and texture. A great mix of chemical resistance, mar resistance, and light stability is provided by acrylic resin when it is used to refinish clear coats on automobiles, which boosts demand for the material.

The Water-based segment is expected to have the highest CAGR during the forecast period

The Water-based segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the increased demand from the automotive industries, water-based technology is anticipated to grow at the quickest rate. In comparison to solvent-based coatings, water-based coatings have VOC levels that are below any regulation limits and can be utilised to cut overall emissions. These essential characteristics will outpace the industry's overall expansion during the coming years. Due to their high water content, these coatings are both easy to use and environmentally friendly. Additionally, because of their heat and abrasion resistance, they make a great primer. They can be used on thick or thin coatings and generate a powerful adhesive. The automotive sectors in emerging nations are experiencing a rise in demand for water-based coatings, which is expected to fuel market expansion.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising auto manufacturing and economic expansion in emerging countries in Asia Pacific. Due to rising auto demand, an increase in domestic manufacturers, and improvements in transportation infrastructure, China is anticipated to lead this industry. Large coating producers like Nippon Paint, BASF, Kansai Paint, and KCC Paint are present in the Indian market, and this is anticipated to promote domestic market expansion. The Asia Pacific automobile refinish market may benefit from the drop in accidents in Europe.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to stringent government regulations and standards for carbon emissions, the majority of North American automakers are switching to electrified vehicle production, which has increased demand for commercial vehicles. The logistics and e-commerce industries stand to gain the most from this shift, which is fueling regional market expansion. The market expansion in the area has also been aided by the fact that manufacturers are now focusing more on electric vehicles as a way to reduce carbon emissions from vehicles.

Key players in the market

Some of the key players profiled in the Automotive Coatings Market include PPG Industries, Inc., Nippon Paint Holdings Co., Ltd., BASF SE, The Sherwin-Williams Company, PPG Asian paints, AkzoNobel, Axalta Coating Systems, Ltd., Kansai Nerolac Paints Limited, DSM, Kansai Paint Co., Ltd. and 3M.

Key Developments:

In August 2022, Axalta launched next-generation basecoat technology for the automotive refinish industry in Latin America.

In July 2022, AkzoNobel has acquired Lankwitzer Lackfabrik’s aluminum wheel liquid coatings business segment to strengthen its performance coatings portfolio which will accompany the existing powder coatings product portfolio and also expand the range of innovative products.

In May 2022, BASF expanded its Automotive Coatings Application Center at the Coatings Technology Center in Mangalore, India.

In November 2021, 3M India launched ceramic coating for the automotive and paint industry in India. The launched product offers an enhancement to all problems related to the exterior surfaces of cars.

In May 2021, Axalta Coating Systems expanded its waterborne coatings manufacturing unit in Jiading, Shanghai, China to the meet growing demand for sustainable coating solutions for industrial, automotive, and commercial vehicle markets in China and the Asia Pacific region.

In April 2021, PPG completed the acquisition of Cetelon Lackfabrik GmbH, a coatings manufacturer for light truck wheels and automotive applications. This acquisition will permit PPG to further build upon its powder and liquid coating technologies, color matching potential and existing coatings product portfolio.

Resin Types Covered:
• Acrylic
• Polyurethane
• Epoxy
• Other Resin Types

Technologies Covered:
• Water-Based
• Powder-Based
• Solvent-Based
• UV Cured Coating
• Other Technologies

Coat Types Covered:
• Basecoat
• Clearcoat
• E -Coat
• Primer
• Other Coat Types

Vehicle Types Covered:
• Heavy Commercial Vehicles
• Light Commercial Vehicles
• Passenger Cars

Applications Covered:
• Refinish
• Plastic Part
• Original Equipment Manufacturer (OEM)
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements