CAGR: 7.7%Current Market Size: USD 8.25 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The Global Automotive Specialty Coatings Market is expected to grow from USD 8.25 billion in 2022 to USD 14.93 billion by 2030, at a CAGR of 7.7% during the Projection period 2023-2030. The growth of this market is mainly driven by a worldwide increase in automobile production.
A specialty coating is a kind of coating that provides performance in accordance with the demands of certain applications. Specialty coatings have a number of advantages, such as antireflection, substrate compatibility, sealing, good adhesive characteristics, improved corrosion protection, and temporary protection. They can also withstand high temperatures or fires. Automotive speciality coatings are applied to vehicle parts to prevent corrosion and to improve performance in hot environments. The automotive coatings industry is made up of companies (organisations, sole proprietors, and partnerships) that sell coatings for use on cars' exteriors to prevent corrosion and enhance their visual appeal. To improve the appearance, toughness, and shock- and heat-resistance of vehicles as well as their look and toughness, automotive coatings are used to coat interior and exterior vehicle elements with some powder or liquid. Automotive coating options offer improved defence against environmental irritants including rust, water, snow, and dampness. These items are becoming more and more popular with consumers since they assist in maintaining automobiles properly even after extensive use. To stay competitive, market participants are spending quickly in the introduction of affordable and high-performance solutions. The usage of automotive coating solutions is anticipated to be encouraged by rising trends in vehicle remodelling, bespoke paint patterns, and vinyl. The visibility and lifetime of expensive paint modifications are increased thanks to these items' assistance in protecting and improving bespoke paint coats on automobiles. Additionally, these coatings shield paint from prolonged sun exposure and normal wear and tear, which is projected to boost the market for automobile coatings.
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Market Dynamics:
Drivers:
One of the key factors propelling the growth of the automotive specialty coatings market is the rise in customer demand for vehicles with high performance and dependability. Production of automobiles increases as demand for these improved vehicles rises.
Restraints:
market expansion is anticipated to be hampered by rising trends in engine downsizing and higher beverage sales. The market for automotive specialty coatings is anticipated to face challenges from strict volatile organic compound (VOC) regulations between 2022 and 2030.
Opportunities:
expansion of the automotive sector, surge in investments and increased disposable income extends profitable opportunities to the market players in the Projection period of 2022 to 2030. The market is also being affected by the increase in the use of automotive speciality coatings due to their numerous advantages, including good adhesive characteristics, temporary protection, sealing, increased corrosion protection, substrate compatibility, and fire resistance.
Challenges:
One of the most widely used raw minerals, titanium dioxide, has volatile costs, which could be challenge to growth. Moreover, businesses may face difficulties over the Projection period in locating raw materials. Metals make up more than 85% of the materials used in passenger automobiles. To prevent corrosion and deterioration, almost all metals are coated.
Segmentation Analysis:
The global Automotive Specialty Coatings Market has been segmented based on Product, Technology, Application, End-use and Regions.
By Product
The Product segment includes Primer, Electrocoat, Basecoat, and Clearcoat. The Basecoat segment led the largest share of the Automotive Specialty Coatings Market with a market share of around 30% in 2022. As they provide cars the required colour and outside appearance, these coatings are anticipated to experience significant increase in the years to come.
By Technology
The Technology segment includes Waterborne Coatings, Solventborne Coatings, Powder Coatings, and UV-cured Coatings. The Solventborne Coatings segment led the Automotive Specialty Coatings Market with a market share of around 32% in 2022. The technique that was most commonly utilised, solvent-borne, is predicted to increase slowly over the next nine years. Demand for products is expected to be constrained by strict restrictions governing emissions of volatile organic compounds and harmful air pollutants including toluene, xylene, ethylbenzene, and methyl ethyl ketone. These compounds' high flammability and toxicity are also anticipated to pose difficulties for future expansion.
By Application
The Application segment includes Metal Parts and Plastic Parts. The Metal Parts segment led the Automotive Specialty Coatings Market with a market share of around 57% in 2022. The market is anticipated to benefit from the widespread use of metals in the manufacture of vehicles. However, it is anticipated that the use of glazes on metal surfaces would be constrained due to price volatility in metal and an increase in the use of lightweight materials.
By End-use
The End-use segment includes Light Vehicle OEM, Commercial Vehicle OEM, and Automotive Refinish. The Light Vehicle OEM segment led the Automotive Specialty Coatings Market with a market share of around 37% in 2022. Due to the rising demand for passenger automobiles in emerging nations like India, Brazil, China, Singapore, and Thailand, is expected to see considerable development. Additionally, market expansion will be aided by population growth, fast urbanisation, and rising per capita income.
Global Automotive Specialty Coatings Market- Sales Analysis
The sale of Automotive Speciality Coatings types expanded at a CAGR of 5.2% from 2016 to 2022.
Consumer expectations for high performance, longer service life, and better corrosion resistance from vehicle coatings are causing specialty coatings to be used more frequently in the automotive sector, which is driving market expansion.
The market is anticipated to expand as a result of rising automotive production in emerging nations and an increase in the coatings that are being applied to them for better mechanical, weather, and corrosion resistance.
The installation of strict environmental rules relating to precise emission limits for volatile organic compounds (VOCs) may have a negative effect on the coatings industry's manufacturing pace.
The market for automotive specialty coatings may be indirectly impacted by a fall in vehicle sales due to the rise in raw material prices and drop in oil prices. Since battery-operated vehicles (BEVs) lack engines, which are a prominent application area for automotive speciality coatings, the growth in BEV sales would also function as a market barrier.
Automotive specialised coatings producers would have new prospects for company growth as the sale of high-end automobiles increased and investments in the specialty coatings sector to provide eco-friendly coating solutions grew.
Thus, owing to the aforementioned factors, the global Automotive Specialty Coatings Market is expected to grow at a CAGR of 7.7% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analysed for the Automotive Specialty Coatings Market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Automotive Specialty Coatings Market and held a 35% share of the market revenue in 2022.
Global Automotive Specialty Coatings Market- Country Analysis:
Germany’s Automotive Specialty Coatings Market size was valued at USD 0.43 billion in 2022 and is expected to reach USD 1.31 billion by 2030, at a CAGR of 15% from 2023 to 2030. The market is expected to rise because to the rising demand for enhanced comfort, safety, and convenience in automobiles, particularly in emerging and developed nations. The rising demand for luxury and high-end vehicles as well as the expanding usage of autonomous vehicle technologies are both likely to support market expansion.
China’s Automotive Speciality Coatings’ market size was valued at USD 0.48 billion in 2022 and is expected to reach USD 1.68 billion by 2030, at a CAGR of 17% from 2023 to 2030.
Due to its extensive base of auto manufacturing, China is predicted to have considerable development. Due to its abundant economic labour, China was the world's largest producer of vehicles and is anticipated to continue to be the industry leader. Additionally, it is projected that the market demand would be boosted by the move of production bases by businesses like Volkswagen, Audi, Honda, Nissan, Toyota, Hyundai, Skoda, and Fiat to China due to the availability of a cheap labour force.
India's Automotive Specialty Coatings Market size was valued at USD 0.37 billion in 2022 and is expected to reach USD 0.98 billion by 2030, at a CAGR of 13% from 2023 to 2030. Throughout the Projection period, rising urbanisation, discretionary income, and nuclear families are anticipated to drive industry expansion for automotive specialty coatings.
Key Industry Players Analysis:
To increase their market position in the global Automotive Speciality Coatings business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, type developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.7% |
Market Size |
8.25 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product, By Technology, By Application, By End-use, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
PPG Industries, Inc, BASF SE, Axalta Coating Systems, Akzo Nobel N.V, The Sherwin-Williams Company, Solvay S.A, The Dow Chemical Company, Nippon Paint Holdings Co., Ltd, Clariant, and Hexion Inc. |
By Product |
|
By Technology |
|
By Application |
|
By End-use |
|
Regional scope |
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Scope of the Report
Global Automotive Specialty Coatings Market by Product:
Global Automotive Specialty Coatings Market by Technology:
Global Automotive Specialty Coatings Market by Application:
Global Automotive Specialty Coatings Market by End-use:
Global Automotive Specialty Coatings Market by Region:
The Asia Pacific Automotive Specialty Coatings Market was projected to gain a global market share of 35% in 2022.
The global Automotive Specialty Coatings Market is expected to grow with a 7.7% CAGR during the Projection period.
The Application segment includes Metal Parts and Plastic Parts.
PPG Industries, Inc, BASF SE, Axalta Coating Systems, Akzo Nobel N.V, The Sherwin-Williams Company, Solvay S.A, The Dow Chemical Company, Nippon Paint Holdings Co., Ltd, Clariant, Hexion Inc. and Others
The growth of this market is mainly driven by worldwide increase in automobile production.
Political Factors- Political variables and legal systems in various nations directly impact the political and economic aspects of the market for automotive speciality coatings. Automotive speciality coatings that are environmentally friendly rely more on electricity and less on gasoline. Customers that drive electric vehicles have a chance of getting a special tax credit. The government incentive has also enhanced its financial performance since it strongly emphasises environmental sensitivity. Political factors have promoted the development and expansion of the Automotive Specialty Coatings Market.
Economical Factors- The car is mostly categorised as a luxury automobile. The sale of electric automobiles has benefited the global economy. Between 2016 and 2017, the global automotive industry had a phenomenal expansion. The increase in sales has made it possible to build affordable vehicles in the future. Growth is, however, impacted by the regional economy of the nation. Producing speciality coatings accessible to average consumers will benefit the company in the long run in two ways. To compete with other companies in the sector, first and foremost. Second, to meet the growing market demand for electric cars.
Social Factor- Automotive Speciality Coatings have contributed to the popularity of luxury electric vehicles. This part of the research focuses on comprehending a location's socio-cultural characteristics while examining its investors, consumers, and employees and maximising profit for the organisation. Both the widespread use of renewable energy sources and peoples' concern for the environment promote automobile speciality coatings. The business should be cautious while investing in emerging markets. These markets might help increase business revenue. In this far-off macroenvironment element, the Automotive Specialty Coatings Market puts other businesses up against the intense competition.
Technological Factors- Automotive Speciality Coatings keeps up with new technological developments. These Speciality Coatings, which feature the newest technology, are where the future is, and these qualities appeal to buyers. Fuel efficiency redefines what is meant by sustainability. In addition to all of this, the most recent technology is an additional benefit. However, technology is always evolving. A company can easily create a similar function to compete. This part of the examination shows potential for growth based on technological advancement.
Environmental Factors- In recent years, environmental concerns have surpassed all others in importance. Governmental regulation of carbon footprint, pollution, the shortage of natural resources, and other environmental challenges are discussed. The more ecologically conscientious a company is, the better. Automotive Speciality Coatings benefit from excellent environmental conditions. The manufacturers are in favour of expanding environmental programmes to address issues with resource management and climate change. Many significant players have been able to build their brands because they follow many of these guidelines. Solar panels, batteries, and electric cars are examples of ecologically friendly products that are part of the sustainable future.
Legal Factors- Automotive Speciality Coatings producers must abide by the law and update their procedures as their operations expand to other countries. The market for automotive speciality coatings has the ability to promote its environmentally friendly vehicles while also growing its global patent portfolio. It might also choose to introduce its energy solution products in additional markets. Direct sales are restricted in some areas, and Automotive Speciality Coatings limited sales operations overseas may be difficult.
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