Automotive Paints & Coatings Market Forecasts to 2028 – Global Analysis By Raw Material (Epoxy, Acrylic, Polyurethane and Other Resins), Vehicle Type (Light Commercial Vehicles, Heavy Commercial Vehicles and Passenger Cars), Coating Type (Clearcoat, Elect

Automotive Paints & Coatings Market Forecasts to 2028 – Global Analysis By Raw Material (Epoxy, Acrylic, Polyurethane and Other Resins), Vehicle Type (Light Commercial Vehicles, Heavy Commercial Vehicles and Passenger Cars), Coating Type (Clearcoat, Electrocoat, Basecoat and Primer), Technology Type (UV Curved, Powder, Water Borne and Solvent Borne), Texture (Solid, Metallic and Matte)and By Geography

According to Stratistics MRC, the Global Automotive Paints & Coatings Market is accounted for $22.38 billion in 2022 and is expected to reach $43.70 billion by 2028 growing at a CAGR of 11.8% during the forecast period. Automotive paints and coatings assist in protecting automobiles and their components from rust and other effects of the harsh environment. Growing use of environmentally friendly paints and varnishes as a result of strict government rules for within the projected period, gas emissions and environmental concerns related to the paint & coating production process are anticipated to drive the market for automotive paints and coatings. Players in the market are investing in finishes and technologies to offer customers options for personalising their automobiles. Additionally, the market is seeing considerable growth in corrosion resistance, increased gloss finishing, and scratch resistance.

According to the International Labor Organization, it is estimated that factory closures in Europe and North America caused some 2.5 million vehicles to be removed from production schedules at a cost of $77.7 billion in lost revenue for automotive and related manufacturing companies such as automotive paints, and other component industries

Market Dynamics:

Driver:

Growing developments in automotive refinishing coatings and paintings

The automotive industry has already been challenged by the emergence of autonomous and electrified vehicles. The complexity and repair costs of physical stores are rising as more original equipment manufacturer deploy advanced driver assistance systems with a particular effort needed to maintain and analyse these systems in compliance with original equipment manufacturer specifications and the rising need for automotive coatings to improve vehicles' resilience and aesthetic appeal. 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:

Strict regulations

Demand for products is anticipated to be constrained by stringent regulations governing emissions of dangerous air pollutants like ethyl benzene, toluene, methyl ethyl ketone, and volatile organic compounds like xylene. Additionally, the high flammability and toxicity of the aforementioned items are anticipated to spur expansion over the course of the projection period. As a result, it is anticipated that the growing cost of titanium dioxide and the fluctuating price of raw materials will adversely affect market expansion throughout the projection period.

Opportunity:

Sustainable development in coating and painting industry

The development of coatings and painting goods efficiently is in high demand due to stringent environmental restrictions. The substrates that automotive coatings are applied to are kept intact and protected, conserving both material resources and energy. When conducting company operations, companies often take sustainability into account. The major objective is to reduce volatile organic compounds, which includes resource and energy conservation, the use of renewable resources, improving the effectiveness of processes, and reducing waste creating huge opportunities for the growth of the market.

Threat:

Procurement of Raw Materials is Complicated

Solvents, pigment binders, and additives are some of the raw ingredients utilised in the creation of coatings. One of the most significant and typical raw materials utilised to create the product is titanium dioxide. It is anticipated that the market will experience slower growth because to the shifting pricing of raw materials like titanium dioxide, one of the most widely utilised raw materials. Additionally, during the projected period, manufacturers are anticipated to face significant challenges related to the difficulties in locating raw materials which hamper the market growth.

Covid-19 Impact

The corona virus 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, which hinder the market growth.

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

The Acrylic segment is estimated to have a lucrative growth, due to rising demand from the automobile industry, which will fuel market expansion in the ensuing years. Manufacturers' efforts to produce diverse eco-friendly, odourless, dust-proof, and waterproof coatings, as well as the growing popularity of new coating models that offer better finishing and texture, have promoted the industry's growth. A strong combination of chemical resistance, mar resistance, and light stability is provided by acrylic resin when it is applied to car OEMs and refinishes clear coats, which raises consumer demand for the material and in turn propels the market growth.

The water borne segment is expected to have the highest CAGR during the forecast period

The water borne segment is anticipated to witness the fastest CAGR growth during the forecast period, due to due to rising demand from the automotive sectors, the technology with the highest growth. In comparison to solvent-based coatings, waterborne coatings and paintings have volatile organic compound levels that are below any regulation limits and can be utilised to minimise 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.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to he region's strong economic growth, expanding manufacturing sectors, affordable labour, and a global shift in consumption and production capacity from developed to emerging markets. Additionally, the main industries in this area focus on quicker online sales growth and penetration to provide novel avenues for income generation in unexplored markets. Companies are continuously investing in disruptive technologies to allow beneficial and affordable supply chain systems, and market leaders are integrating enterprise risk management solutions into their manufacturing ecosystems.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to large number of auto manufacturers in the area. Additionally, the region looks for notable mergers and acquisitions among market participants, which heightens competition and makes the industry more volatile for growth. The main drivers of the region's growth are an increase in disposable income and rising vehicle affordability, which is anticipated to increase the rate of vehicle adoption. In addition, the expansion of global players' production facilities in European nations encourages regional growth.

Key players in the market

Some of the key players profiled in the Automotive Paints & Coatings Market include Axalta Coating Systems, BASF SE, Akzo Nobel NV, Donglai Coating Technology, Eastman, Nippon Paint Holdings Co. Ltd, PPG Industries, Inc., The Valspar Corporation., KCC Corporation, Covestro, Dupont, Cabot Corp, Kansai Paint Co. Ltd, Wanda refinish, Kwality Paints and Coatings Pvt. Ltd, Sheenlac Paints Ltd, Snowcem Paints and Jotun

Key Developments:

In Jan 2023, BASF and Cargill further expand their partnership to offer high-performance enzyme solutions to animal protein producers in the United States. Together, the two companies are committed to bringing innovative enzyme-based solutions to the market, generating distinctive value for animal feed customers.

In Jan 2023, BASF’s Monomers division announces sustainability roadmap and expands portfolio of climate-friendly products. At the same time, the division will continue to prioritize technical optimization measures to cut CO2 emissions from operations and the Monomers division supplies key industries from food packaging, textiles, automotive or construction to wood binders and many others with base chemicals.

In Oct 2022, Axalta launches their latest ICONICA powder coatings collection at Batimat, France, The newest edition is a reflection of how our world has changed since the release of the original ICONICA collection in 2017. This period has seen a notable shift across a selection of key areas, with major developments in performance standards and colour and surface finish trends, as well as a heightened focus on the environment.

In Aug 2022, Axalta Launches Next Generation Basecoat Technology for the Automotive Refinish Industry in Latin America. Its next generation basecoat technology, Cromax® Gen, is the new product will help increase productivity and optimize costs for body shops.

Raw Materials Covered:
• Epoxy
• Acrylic
• Polyurethane
• Other Resins

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

Coating Types Covered:
• Clearcoat
• Electrocoat
• Basecoat
• Primer

Technology Types Covered:
• UV Curved
• Powder
• Water Borne
• Solvent Borne

Textures Covered:
• Solid
• Metallic
• Matte

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