Automotive Coatings Market

Automotive Coatings Market Growth Outlook (2022-2032)

Sales of automotive coatings amounted to US$ 16.3 Billion in FY 2021, and is forecast to experience a year-over-year expansion rate of 4.3% in 2022, reaching US$ 17 Billion.

Furthermore, the industry is poised to document a value CAGR worth 7% from 2022 to 2032, reaching a market value of US$ 33.44 Billion by the conclusion of the said period of assessment.

Growing demand for automobiles with high-performance, low-maintenance as well as cost-effective, long-lasting plastic coating solutions, is expected to drive market share growth.

Changing customer views of low-maintenance automobiles, as well as increased need for cost-effective coating solutions, are expected to drive product demand.

Automotive coatings are simple to apply, cost-effective, and provide long-term solutions. These solutions also help to improve shine and aesthetic appeal by enhancing metallic hues on automobiles, which is projected to increase the market share of automotive coatings.

Report Attributes	Details
Market Size in 2021	US$ 16.3 Billion
Market Value in 2022	US$ 17 Billion
Projected Forecast Value (2032)	US$ 33.44 Billion
Global Growth Rate (2022-2032)	7% CAGR
Growth Rate of the U.S (2022-2032)	5.8% CAGR
Expected Market Value of China (2032)	US$ 2.5 Billion
Key Companies Profiled	Nippon Paint (USA) Benjamin Moore & Co. Behr Process Corp. Kansai Paint Co. Ltd. BASF Coatings Axalta Coating Systems Nippon Paint Holdings Co. RPM International Inc. The Sherwin-Williams Co. AkzoNobel PPG

Automotive Coatings Market Revenue Analysis 2015-2021 vs. Future Outlook 2022-2032

Between 2015 and 2021, demand for automotive coatings increased at a CAGR of 4.8%. The worldwide industry has been significantly hampered by the outbreak of the COVID-19 pandemic. This is due to travel restrictions and national lockdowns in certain places.

However, the customer base for automotive coatings is now growing at a rapid pace. The global recovery of the automobile sector will help sales of automotive coatings increase by 6% during the next assessment period. The market will be driven by increased customer preference for improved vehicle look and durability.

Aside from increased luxury automobile purchases, an emphasis on maintaining the appearance and performance of older vehicles on the road will provide appealing opportunities for market development. This tendency will be most noticeable in North America and Europe.

Prominent Automotive Coatings Industry Growth Drivers

Compact Painting Processes Gain Attention in Order to Meet Future Sustainability Goals

Coating process innovation and automobile design continue to drive demand and supply trends in the automotive coatings industry, with automakers investigating materials for multi-substrate designs and making light-weight vehicles.

OEMs are always working to improve the automobile coating process while maintaining quality retention, as coating is the most energy- and cost-intensive process in the automotive industry and has the highest environmental imprint.

This has prompted automotive coatings behemoths like as PPG Industries, Axalta Coating Systems, and BASF to create compact painting processes, which are quickly becoming the industry standard for meeting future sustainability requirements.

B1:B2, 2-Wet, and 3-Wet processes, as well as other primer-less technologies such as LCV painting and Eco Concept for automobiles, are among the major compact automotive coatings techniques being deployed globally.

The Transition of Automakers from Metals to Plastic will continue to have a Gradual Influence on Automotive Coatings Development

As manufacturers continue to investigate numerous lightweight material alternatives to standard steel, a steady movement toward a multi-material approach to achieve effective weight reduction is being observed. Among the materials being investigated by automakers are different high-strength plastics and carbon fiber reinforced polymers.

Coating formulators and applicators alike have significant hurdles when it comes to vehicles made from multi-metal substrates.

This is also expected to spur innovation throughout the automobile coating process and supply chain. However, the transition from metals to plastics in the automobile sector is likely to be gradual rather than abrupt. Despite worries about coatings on multi-metal substrates, the automotive coatings business will continue to be driven by manufacturers' progressive transition from metal to plastic.

Key Challenges Prevalent in the Global Automotive Coatings Market

Resistance to Adopt Smart Coatings may Impede Growth Prospects

The adoption of low-temperature cure coating systems, which require transformation into comprehensive coating systems, has increased the focus on smart coatings in the automobile sector. This guarantees that all coating layers are completely cured at the specified temperature.

Low temperature curing, quicker drying and high gloss technology have lately permeated the bus and truck manufacturing industries. Self-cleaning and self-healing capabilities, as well as solar reflective capabilities, are projected to increase smart automotive coatings' market adoption.

However, the capacity to be painted in large quantities while maintaining quality over the lifespan of the vehicle is a major impediment to the market penetration of smart automotive coatings.

Moreover, volatile pricing of titanium dioxide, one of the most extensively used raw minerals, are expected to stymie industry expansion. Over the projection period, manufacturers are likely to face significant challenges in procuring raw materials.

Furthermore, strict rules governing volatile organic compound emissions and harmful air pollutants including toluene, xylene, ethylbenzene, and methyl ethyl ketone are expected to limit product demand. Furthermore, the aforementioned items' high flammability and toxicity are predicted to stymie future expansion.

Country-wise Analysis

What is the Growth Outlook for Automotive Coatings in the U.S?

Transition toward Low-maintenance Automobiles widening Growth Opportunities

According to Fact.MR, owing to the transition toward low-maintenance automobiles, United States is expected to increase at a CAGR of 5.8% through 2032.

Consumers in the area are quickly embracing long-lasting and high-performance coating solutions to protect their cars from rust, moisture, and rain during harsh winter conditions, which is expected to boost revenue in the automotive coatings market.

Domestic industry participants are quickly working toward developing new and specialized solutions for various car sectors. Furthermore, the growing trend of personalizing vintage automobiles in this country is expected to increase growth of the industry in the United States. These compounds are commonly used to extend the life of base coat paint and to offer a gleaming visual appeal.

How do Growth Prospects appear in the Chinese Market?

Increasing Demand from Vehicle Repair Shops to Boost Market Growth in China

Asia-Pacific has the largest automotive coatings market. Automotive output in China is expected to raise Asia-Pacific demand for automotive coatings. In China, rising pre-owned vehicle sales, expanding taxi services, and expanding vehicle repair and body shops are all expected to enhance demand for automotive coatings.

Automobile manufacturing in China was hampered in 2019. This trend maintained in 2019 and is expected to continue in the first half of 2020. The automobile sector, on the other hand, is expected to rebound by the second half of 2020. Furthermore, the China is expected to expand the most throughout the projection period. A valuation of US$ 2.5 Billion is expected for the Chinese market by 2032.

Country-wise Forecast CAGRs in the Automotive Coatings Market

U.S	5.8%
U.K	5%
China	5.7%
Japan	4.5%
South Korea	3.6%

Category-wise Insights

Which Resin Type is most popular in the Automotive Coatings Market?

Glossy Appearance of Acrylics to be Top Growth Driver in the Coming Years

According to Fact.MR, acrylics are predicted to account for around 55% of the market.

Furthermore, acrylics are projected to maintain their market dominance. Acrylics' advantages, including as their glossy appearance and other benefits, are projected to be important drivers driving market demand.

Which is the Most Popular Coat Type of Automotive Coatings Market?

Primers and Base Coats to Dominate the Market

In the automotive coatings sector, primers and base coats are dominating. Both groups account for about 66.3% of the worldwide automotive coatings market.

The broad range of applications provided by primers and base coats are expected to drive demand in this category.

Which Vehicle Type Will Generate the Most Sales?

Increasing Number of Passenger Vehicles on the Road to Surge up the Sales of Automotive Coatings Market

In 2022, demand for passenger vehicles is expected to expand at a 5.7% CAGR. In the meantime, demand for automotive coatings in the commercial vehicle category is predicted to grow at a 5% CAGR between 2022 and 2032.

Over the projected period, the increasing number of passenger vehicles on the road worldwide is likely to generate substantial prospects for automotive coatings producers.

Competitive Landscape

With an average revenue range of US$ 5 Billion-US$ 8 Billion, the top five firms in the automotive coatings industry will continue to command roughly two-fifths of the market. This also suggests a high level of consolidation in the automotive coatings industry at the apex, as opposed to a fragmented nature at the apex. Recent developments in the market are as follows:

• In January 2022, Axalta Coating Systems introduced its new Global Automotive Color of the Year 2022 series of automotive coatings- specifically the Royal Magenta series. The new coatings shade is not only designed to enhance aesthetic appeal, but also provide more robust finish, protecting automotive bodies from abiotic conditions.
• PPG Industries announced in April 2022 its decision to introduce the PPG ENVIROCRONTM P8 Series Anti-Graffiti Coating at the PaintExpo 2022. The product is a hybrid powder coating that stands up to the harshest cleaners and chemicals and is designed to leave no trace of surface damage or graffiti residues. Since it is formulated without block agents, they contain no carcinogenic, mutagenic or toxic-to-reproduction (CMR) substances commonly found in other products.
• In May 2022, automotive giant BMW announced a collaboration with BASF in order to incorporate its CathoGuard 800 ReSource e-coat at its plants in Leipzig, Germany, and Rosslyn, South Africa. Additionally, BMW also intends to leverage the company’s iGloss matt ReSource Clearcoat throughout Europe. These coatings are capable of reducing CO2 emissions in the plants by as much as 40% per coating layer, which is equivalent to more than 15,000 tons.

Key Segments Covered in the Industry Report

• By Resin Type :

  • Acrylics-based Automotive Coatings
  • Fluoropolymers-based
  • Urethanes-based
  • Epoxy-based
  • Poly Alkyds-based
  • Amines-based

• By Vehicle Type :

  • Passenger Cars
  • Commercial Vehicles

• By Technology :

  • Water Borne Automotive Coatings
  • Solvent Borne
  • UV Cure

• By Coat Type :

  • Top Coat 
  • Primer
  • Base Coat
  • Clear Coat

• By Region :

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • MEA