Automotive Coatings Market by Resin Type (Polyurethane, Epoxy, Acrylic), Vehicle Type (Passenger Cars, Commercial Vehicles), Technology Type (Solvent-based, Water-based, Powder-based), Coat Type (Clearcoat, Basecoat) & Region - Global Forecast to 2028
The automotive coatings market is projected to grow from USD 15.5 billion in 2023 to USD 19.0 billion by 2028, at a CAGR of 4.1% between 2023 and 2028. The passenger cars, by vehicle type segment in Asia Pacific region is expecting a boom in the forecasted period and will lead to an increase in the demand for automotive coatings.
Attractive Opportunities in the Atomotive Coatings Market
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Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
Automotive coatings Market Dynamics
Drivers: Growth in Automotive industry coupled with EV sales
The growth in the automotive industry, coupled with the increasing sales of electric vehicles (EVs), is driving the automotive coatings market. The overall expansion of the automotive market, marked by increased production and sales of traditional and electric vehicles, directly boosts the demand for automotive coatings. As more vehicles are manufactured, the need for coatings to protect and enhance their surfaces rises correspondingly. The growing market share of electric vehicles is a notable factor. Electric vehicles often require coatings that cater to the specific needs of their components, such as battery systems and lightweight materials, contributing to the overall demand for advanced coatings. Consumers' preferences for high-quality finishes and visually appealing vehicles are driving the demand for advanced coatings. This trend is particularly pronounced in the automotive industry, where aesthetics play a significant role in consumer decision-making.
Restraints: Revocation of government subsidiaries on EVs
Government incentives and subsidies have played a pivotal role in promoting the adoption of electric vehicles, encouraging consumers to make the switch to more sustainable and environmentally friendly transportation options. These subsidies often contribute to making electric vehicles more cost-competitive and financially appealing to consumers. revocation of the subsidies could have a ripple effect on the demand for coatings tailored to electric vehicles. Reduced financial incentives for consumers may slow down the adoption rate of electric vehicles, impacting the overall production and sales of EVs. As a result, the demand for specialized coatings designed for electric vehicles, which often require unique formulations to protect sensitive electronic components and advanced systems, could experience a decline.
Opportunities: Advancement in coating technology
The automotive industry is experiencing rapid technological advancements, including the development of electric and autonomous vehicles. These advancements require specialized coatings to protect sensitive electronic components, contribute to energy efficiency, and meet the unique requirements of advanced vehicle systems.
Challenges: Stringent regulatory policies
Regulations aimed at reducing the environmental impact of automotive coatings often focus on limiting the use of certain chemicals, particularly volatile organic compounds (VOCs) that contribute to air pollution. Compliance with strict emission standards can necessitate the reformulation of coatings, which may require significant research and development investments by manufacturers. Adhering to stringent regulations may require coatings manufacturers to invest in the development of new formulations that meet or exceed regulatory requirements. These additional research and development costs can impact the overall cost structure of the industry. The automotive coatings market is global, and different regions have varying regulatory frameworks. Adapting products to comply with diverse regulations across different markets adds complexity and can require customization based on regional standards.
Automotive coatings Market Ecosystem
Prominent companies in this market include well established , financially stable manufactures of Automotive coatings. These companies have been operating in the market for several years and posses a diversified product portfolio and strong global sales and marketing networks. Prominent companies in the market include BASF SE (Germany), PPG Industries, Inc. (US), Axalta Coating Syatems (US), Akzo Nobel N.V. (Netherlands), and Kansai Paint Co., Ltd (Japan)
Water-based coating by technology is expected to register highest CAGR during the forecast period.
There is a growing emphasis on environmental sustainability and the reduction of volatile organic compounds (VOCs) in coatings. Water-based coatings align with these objectives, as they have lower VOC emissions compared to traditional solvent-based coatings, meeting stringent regulatory standards and environmental guidelines. Increased awareness of the environmental impact of automotive manufacturing processes has prompted automakers and coatings manufacturers to adopt eco-friendly practices. Water-based coatings are considered more environmentally friendly as they reduce air pollution, minimize hazardous waste, and contribute to overall sustainability.
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In Asia Pacific, India is the fastest-growing automotive coatings market.
the country's robust economic growth and a burgeoning middle class have led to an increase in disposable income and consumer spending. This has fueled a significant rise in the demand for vehicles, both two-wheelers and four-wheelers, driving the need for automotive coatings to protect and enhance the appearance of these vehicles. the Indian government's initiatives such as "Make in India" and "Atmanirbhar Bharat" (Self-Reliant India) have boosted the manufacturing sector, including the automotive industry. The growth in automotive manufacturing translates directly into an increased requirement for coatings for new vehicles. the Indian automotive market is witnessing technological advancements, including the rise of electric vehicles (EVs). The unique coating requirements of EVs, such as protection for battery systems and lightweight materials, contribute to the overall growth of the automotive coatings market.
Key Market Players
BASF SE (Germany), PPG Industries, Inc. (US), Axalta Coating Syatems (US), Akzo Nobel N.V. (Netherlands), and Kansai Paint Co., Ltd (Japan) are the key players in the global automotive coatings market.
Kansai Paint Co Ltd produces and markets a diverse range of coatings and paint products, offering five main product categories: automotive coatings, automotive refinish coatings, decorative coatings, protection coatings, and industrial coatings. Within its automotive coatings, the company provides clear coat paints, top coat paints, and primers. In the realm of industrial coatings, Kansai Paint supplies paint and coatings for a variety of applications, including bridges, roads, storage tanks, power plants, and manufacturing facilities. The primary customer bases for Kansai Paint's products are the automotive, marine, and construction industries.
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Report Metric |
Details |
Market size available for years |
2018-2028 |
Base year considered |
2022 |
Forecast Period |
2023-2028 |
Forecast Units |
Value (USD million/billion) |
Segments Covered |
By Resin Type, By Technology, By Vehicle Type, By Coat Type, By Region |
Geographies Covered |
Asia Pacific, Europe, North America, Middle East & Africa and South America |
Companies covered |
BASF SE (Germany), PPG Industries, Inc. (US), Axalta Coating Syatems (US), Akzo Nobel N.V. (Netherlands), and Kansai Paint Co., Ltd (Japan) |
Based on Resin type, the automotive coatings market has been segmented as follows:
- Polyurethane
- Epoxy
- Acrylic
- Others
Based on Coat Type, the automotive coatings market has been segmented as follows:
- Clearcoat
- Basecoat
- Primer
- E-Coat
Based on vehicle type, the automotive coatings market has been segmented as follows:
- Passenger cars
- Commercial Vehicles
Based on technology, the automotive coatings market has been segmented as follows:
- Solvent-based
- Water-based
- Powder-based
Based on the region, the automotive coatings market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In May 2023, KANSAI HELIOS Coatings GmbH (“KANSAI HELIOS”), a European consolidated subsidiary of Kansai Paint Co., Ltd (“Kansai Paint") has completed its acquisition of the global Railway Coatings business assets from Beckers Group´s company Becker Industrie SAS (“Beckes")
Frequently Asked Questions (FAQ):
What are the growth driving factors of automotive coatings market?
Growing Automotive industry coupled with EVs sales driving the market.
What are the major coat type for automotive coatings?
The major coat type of automotive coatings are Clearcoat, Basecoat, Primer, and E-Coat.
Who are the major manufacturers?
BASF SE (Germany), PPG Industries, Inc. (US), Axalta Coating Syatems (US), Akzo Nobel N.V. (Netherlands), and Kansai Paint Co., Ltd (Japan) are some of the leading players operating in the global automotive coatings market.
What are the reasons behind automotive coatings gaining market share?
Automotive coatings are gaining market share due to growing automotive and EVs production and sales in Asia Pacific region.
Which is the largest region in the automotive coatings market?
Asia Pacific is the largest region in automotive coatings market. .
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The study involved four major activities in order to estimating the current size of the automotive coatings market. Exhaustive secondary research conducted to gather information on the market. The next step was to conduct primary research to validate these findings, assumptions, and sizing with the industry experts across the value chain. Both top-down and bottom-up approaches were used to estimate the total market size. The market size of segments and subsegments was then estimated using market breakdown and data triangulation.
Secondary Research
Secondary sources include annual reports of companies, press releases, investor presentations, white papers, articles by recognized authors, and databases, such as D&B, Bloomberg, Chemical Weekly, and Factiva; and publications and databases from associations, including International Organization of Motor Vehicle Manufacturers (OICA), Bureau of Transportation Statistics, European Automobile Manufacturers’ Association, and American Coating Association.
Primary Research
Extensive primary research was carried out after gathering information about automotive coatings market through secondary research. In the primary research process, experts from the supply and demand sides have been interviewed to obtain qualitative and quantitative information and validate the data for this report. Questionnaires, emails, and telephonic interviews were used to collect primary data. Primary sources from the supply side include industry experts, such as chief executive officers (CEOs), vice presidents (VPs), marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the automotive coatings market. Primary interviews were conducted to elicit information such as market statistics, revenue data collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also assisted in comprehending the various trends associated to resin type, vehicle type, coat type, technology, and region.
The breakup of Primary Research:
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Company Name |
Designation
|
PPg Industries, Inc |
Sales Manager |
Basf SE |
Project Manager |
Akzo Nobel N.V. |
Individual Industry Expert |
Axalta Coating Syatems |
Manager |
Market Size Estimation
The following information is part of the research methodology used to estimate the size of the automotive coatings market. The market sizing of the automotive coatings market was undertaken from the demand side. The market size was estimated based on market size for automotive coatings in various technology.
Global Automotive Coatings Market Size: Bottom Up Approach
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Global Automotive Coatings Market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size, the market has been split into several segments.To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
Automotive coatings are applied to vehicles to enhance aesthetic appeal and provide a polished finish, to protect the vehicle's surfaces from environmental factors such as UV radiation, corrosion, and abrasion; and third, to ensure the durability and longevity of the vehicle's appearance in diverse and challenging conditions.
Key Stakeholders
- End User
- Raw Material Suppliers
- Senior Management
- Procurement Department
Report Objectives
- To define, describe, segment, and forecast the size of the automotive coatings market based on resin type, technology, coat type, Vehicle type, and region.
- To forecast the market size of segments with respect to various regions, including North America, Europe, Asia Pacific, middle east & Africa and South America along with major countries in each region
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the automotive coatings market
- To analyze technological advancements and product launches in the market
- To strategically analyze micromarkets, with respect to their growth trends, prospects, and their contribution to the market
- To identify financial positions, key products, and key developments of leading companies in the market
- To provide a detailed competitive landscape of the market, along with market share analysis
- To provide a comprehensive analysis of business and corporate strategies adopted by the key players in the market
- To strategically profile key players in the market and comprehensively analyze their core competencies
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the automotive coatings market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the automotive coatings Market
Growth opportunities and latent adjacency in Automotive Coatings Market