CAGR: 8.10% Current Market Size: USD 18.1 BillionFastest Growing Region: APAC
Largest Market: EuropeProjection Time: 2023-2030Base Year: 2022
The global automotive paints and coatings market is expected to grow from USD 18.1 billion in 2022 to USD 36.4 billion by 2030, at a CAGR of 8.10% during the Projection period 2023-2030. The growth of the automotive paints and coatings market is driven by the rise of waterborne coatings.
The worldwide automotive paints & coatings industry is growing as consumer preferences are shifting toward appealing texture and better visual look of the automobiles. Significant advantages provided by paints and coatings, like UV protection and colour preservation, are currently garnering a lot of attention. The introduction of various exterior car colours and coating options has significantly increased the market's growth potential. Additionally, ongoing industry collaboration to create cutting-edge, affordable coating & paint solutions is anticipated to drive market expansion in the ensuing years. The demand for paints and coatings is also anticipated to increase during the Projection period due to the rising production of commercial and passenger vehicles. According to data published by the International Organization of Motor Vehicle Manufacturers (OICA), 91.78 million vehicles were produced globally in 2019, of which 67.15 million were passenger cars and 24.64 million were commercial vehicles. However, the number of incidents has decreased due to increased vehicle safety measures, which is limiting the market growth for paints, coatings, and refinishing. However, increasing use of eco-friendly paints and coatings is anticipated to boost the automotive paints & coatings market in the upcoming years due to strict government restrictions for gas emissions and environmental concerns connected to paint & coating production process.
Sample Request: - Global Automotive Paints and Coatings Market
Market Dynamics:
Drivers:
Technology advancements in aqueous paints and coatings have helped products meet and occasionally even surpass performance standards. The AVANSE MV-100 technology created by DuPont de Nemours is one such instance. High-performance acrylic binders, which are primarily used to coat metal surfaces, are produced using this method. Waterborne coatings come in the forms of emulsions or latex paints, water-based alkyds, water-soluble paints, and paints that disperse in water. Due to their increasing popularity and cutting-edge prospects, powder and waterborne low-VOC technologies are being quickly adopted by the paint industry. The worldwide automotive paints and coatings market will experience growth during the Projection period as a result of the expanded opportunity for process and product innovations in the sustainable coatings sector.
Restraints:
Major automobile producing nations like India, Japan, and the US had increases in vehicle production from 2017 to 2018. However, a slowdown in the growth rate of car sales in 2019 is forcing OEMs to cut or temporarily halt production as a result of rising inventory costs. As of June 2019, there were unsold passenger vehicles worth $5 billion in India from a number of OEMs, including Maruti Suzuki India Ltd., Tata Motors Ltd., Honda Motor Co. Ltd., and Mahindra & Mahindra Ltd. Automobile OEMs were required to temporarily halt manufacturing as a result.
Opportunities:
UV-curable coatings provide excellent performance and speed up production lines. To address the rising consumer knowledge of the negative impacts of volatile organic compound emissions, regulatory agencies like the EPA and China's Ministry of Environmental Protection have put in place strict rules. Manufacturers have been forced to create eco-friendly coating products as a result of these laws. As a result, coatings that are UV-curable and aqueous and made of natural and eco-friendly materials are becoming more and more popular. UV-curable coatings are preferred because of their greater weather resistance, durability, adaptability, and aesthetics. These coatings are mainly applied to flooring, wood furniture, general metal, and automotive and industrial uses. Therefore, throughout the Projection period, the market for automotive paints and coatings is anticipated to benefit from the rising adoption of UV-curable coatings.
Challenges:
The demand for automotive components, paints, and coatings is falling as a result of factors that negatively impact vehicle sales and production, which restrains the expansion of the global automotive paints and coatings market.
Segmentation Analysis:
The global automotive paints and coatings market has been segmented based on product, type, material, and region.
By Product
The product segment is water-based products, solvent-based products, and others. The water-based products segment led the largest share of the automotive paints and coatings market with a market share of around 40.32% in 2022. Over the Projection period, the category expansion is anticipated to be supported by rising construction investment and customer demand for eco-friendly goods. In small, poorly ventilated rooms, water-based paints and varnishes are frequently utilised. Due to the quick evaporation of water from the coating layer, these coatings dry more quickly than those with a solvent base.
By Type
The type segment is primer coat, electro-coat, clear coat, and base coat. The primer coat segment led the largest share of the automotive paints and coatings market with a market share of around 43.3% in 2022. A paint component called primer improves the adhesion of finishing paint compared to when it is used alone. It is made to stick to surfaces and provide a binding layer that is more suitable for receiving paint. A primer can be designed to have better filling and binding capabilities with the material beneath rather than being utilised as the outermost durable finish like paint. Sometimes, like in the instance of aluminium priming, this is accomplished through chemistry, but more frequently, this is accomplished by managing the physical characteristics of the primer, such as its porosity, tackiness, and hygroscopy.
By Material
The material segment is epoxy, acrylic, polyurethane, alkyd, polyester, and others. The acrylic segment led the largest share of the automotive paints and coatings market with a market share of around 39.3% in 2022. The superior stability and weathering capabilities of acrylic compounds are credited with this expansion. When making coatings and varnishes, acrylic resins are frequently employed in water-reducible and emulsion resins. It has great dimensional stability, a thermoplastic nature, optical clarity, and weather/UV resistance.
Global Automotive Paints and Coatings Market - Sales Analysis.
The sale of the automotive paints and coatings market expanded at a CAGR of 5.8% from 2016 to 2022.
The market is anticipated to be propelled by rising product consumption in the automotive, general industry, and construction application sectors. It is projected that the rapid urbanisation and industrialisation in emerging nations like India, China, and Southeast Asia will drive product demand across a range of applications. The COVID-19 epidemic, however, could soon have a detrimental effect on market expansion. The global market has expanded moderately over the past few years despite a number of uncertainties, including the slowdown of major economies, the positive and negative effects of low crude oil prices, changes in the value of the dollar, the high growth rates of the automotive and construction industries in the United States, the shaky recovery in some European countries, and changes in global regulatory norms.
Even though many of these elements are outside the control of coatings and glaze formulators, manufacturers, distributors of raw materials and finished goods, and marketers, the sector has reacted to these significant changes in the market environment remarkably quickly. This has been made possible by the introduction of numerous cutting-edge manufacturing techniques and technologies that have enabled businesses to immediately mitigate a variety of potential negative effects and maximise their opportunities for bringing growth to the products that are decorated and glazed. Innovative formulation technologies have made it more easier to meet a variety of new and changing consumer expectations over the last ten years. Some of the most current advancements on the market today include nanocoatings, low-VOC content coats, and anticorrosive protection. The development of nanotechnology has had a big impact on the sector.
Thus, owing to the aforementioned factors, the global automotive paints and coatings market is expected to grow at a CAGR of 8.10% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the automotive paints and coatings market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe region dominated the automotive paints and coatings market and held a 38.2% share of the market revenue in 2022.
Global Automotive Paints and Coatings Market - Country Analysis:
Germany's automotive paints and coatings market size was valued at USD 0.75 billion in 2022 and is expected to reach USD 1.19 billion by 2030, at a CAGR of 6% from 2023 to 2030. With 42 engine manufacturing and assembly facilities, which together account for one-third of the region's total automobile output, Germany dominates the automotive market in Europe. With the economy's steady growth and rising new-car sales, which show consumer confidence, the paints and coatings industry is anticipated to benefit in the upcoming year. However, the implementation of the new WLTP emission control rule to promote vehicle quality by decreasing emissions to as low a level as feasible, which has generated various limits on new car registration, has resulted in a slight decline in new car sales.
China’s automotive paints and coatings market size was valued at USD 0.78 billion in 2022 and is expected to reach USD 1.26 billion by 2030, at a CAGR of 6.2% from 2023 to 2030. 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 Asian nations promotes regional development. PPG stated in August 2018 that it would open a research and development facility in Tianjin, China, to improve its capacity to provide cutting-edge and alluring products.
India's automotive paints and coatings market size was valued at USD 0.60 billion in 2022 and is expected to reach USD 0.96 billion by 2030, at a CAGR of 6.1% from 2023 to 2030. In the coming years, the Indian government will promote numerous projects. By 2022, more than 20 million affordable dwellings for the urban poor are expected to be built as part of the government's Housing for All initiative.
Key Industry Players Analysis:
To increase their market position in the global automotive paints and coatings market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
8.10% |
Market Size |
18.1 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product, By Type, By Material, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Akzo Nobel NV, Cabot Corp, Axalta Coating Systems, Donglai Coating Technology, Kansai Paint Co. Ltd, BASF SE, Nippon Paint Holdings Co. Ltd, Clariant AG, Covestro, Dupont, Eastman, KCC Corporation, The Valspar Corporation., PPG Industries, Inc., and Wanda refinish. |
By Product |
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By Type |
|
By Material |
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Regional scope |
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Scope of the Report
Global Automotive Paints and Coatings Market By Product:
Global Automotive Paints and Coatings Market By Type:
Global Automotive Paints and Coatings Market By Material:
Global Automotive Paints and Coatings Market By Region:
Global automotive paints and coatings market size was USD 18.1 billion in 2022
Leading market players active in the global automotive paints and coatings market are Akzo Nobel NV, Cabot Corp, Axalta Coating Systems, Donglai Coating Technology, Kansai Paint Co. Ltd, BASF SE, Nippon Paint Holdings Co. Ltd, Clariant AG, Covestro, Dupont, Eastman, KCC Corporation, The Valspar Corporation., PPG Industries, Inc., and Wanda refinish. among other
The automotive paints and coatings market is projected to have a CAGR of 8.10%.
Technology advancements in aqueous paints and coatings have helped products meet and occasionally even surpass performance standards. The AVANSE MV-100 technology created by DuPont de Nemours is one such instance. High-performance acrylic binders, which are primarily used to coat metal surfaces, are produced using this method.
Political Factors- Political stability is necessary for commercial organizations because it affects investor and consumer confidence, which has a significant effect on the economy. High levels of political unrest are detrimental to economic growth, company investment, and consumer purchasing. Political unrest is currently present in the region where the automotive paints and coatings market is acting as a result of both internal and external conflicts. The company may not be able to meet its growth goals and it may be unwilling to spend additional money if management is unable to recognize and control the current political uncertainty.
Economic Factors- It is possible for capital to amass and for the production of goods and services by the efficiency of the financial market and the expansion of the overall economy, which have a strong positive association. In order to quickly develop financial and human resources, the automobile washer industry must select nations with particularly efficient financial needs. The market for car washer treatments can stay one step ahead of the competition by keeping an eye on the efficiency of the financial market. Before deciding whether to go global, the automotive paints and coatings market should assess the rates of economic growth of the various nations. There are more options available in nations with rapid economic growth to meet long-term growth goals.
Social factors- Consumption patterns and economic issues are related. The automotive paints and coatings market will have significant growth potential once customers have more disposable income and are keen to spend more on goods and services to improve their lifestyles. This is because it is easier to introduce new products and services to these customers and there is a higher chance that sales will increase. The automotive paints and coatings sector must carefully analyze the consumption/spending behaviors and preferences of today's increasingly choosy consumers in order to alter its marketing mix strategies.
Technological Factors- The rate and expansion of technological innovation could have an effect on the market and industry as a whole. The automotive paints and coatings market will be able to comprehend the rate of new product creation, the length of the product life cycle, and the specific features that consumers demand by looking at the upcoming trends in technological innovation. The automotive paints and coatings sector can determine whether switching to e-commerce will be more profitable than launching a physical site by looking at consumer perceptions of cutting-edge, new digital technologies. The automotive paints and coatings sector may be forced to switch from manual to automated methods if competitors use automation technology to cut costs, especially if the general public is digitally savvy.
Environmental Factors- Businesses are under pressure to lessen their environmental influence because of strict environmental legislation in many countries. The automotive paints and coatings market should adopt ethical production practises in response, promote ethical consumption among its target market, work to improve its brand's sustainability reputation, and ensure full compliance with local and international environmental laws because failure to do so could result in harsh, reputation-damaging criticism from relevant stakeholders. In order to comply with rules and requirements in the Basic Materials industry, the automotive paints and coatings market must make preparations.
Legal Factors- A vast array of regulations generally known as employment law defend workers' rights, such as those to a fair wage, equality, equity, inclusion, justice, and their physical and psychological safety. While some nations fail to effectively enforce employment laws, others impose severe penalties for violating any of the aforementioned employee rights. The automotive paints and coatings market should ensure the safety of the workplace before expanding or conducting business there. Both direct and indirect discrimination must be avoided, thus the appropriate procedures must be in place.
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