Automotive Paints & Coatings Market Analysis

Automotive Paints & Coatings Market Analysis

The passenger cars segment in the automotive paints & coatings market will witness a growth rate of 5% till 2026 propelled by increasing vehicle adoption across the globe. Emerging vehicle financing market has encouraged the passenger vehicles industry to provide loans on the vehicle to their customers. Owning a passenger vehicle is usually observed as a status symbol in many developing countries, but nowadays they are being bought by middle class families. As income level rises in developing countries the demand for passenger vehicle will also continue to rise thereby driving the market revenue during the forecast period.

Electrocoat is projected to reach USD 8 billion in 2026 due to its use in passenger cars, commercial vehicles and automotive parts. Electrocoat contains polymeric materials such as acrylic and epoxy that can are used for protective and decorative purposes. The resin component present in the formulation determines the end-use performance and processing of electrocoat. Electrocoats offer various benefits including corrosion resistance and lower curing temperature that will further enhance the segment expansion.

Waterborne technology in the automotive paints & coatings market valued at USD 6.5 billion in 2019 owing to its low VOCs emission and superior performance. Waterborne paints are composed of pigments and synthetic resins that are kept dispersed in water by surfactants. Waterborne technology has various advantage like less odor in work environment and improved air quality without giving up on performance and color-matching capability. As developed economies in North America and Europe have already implemented VOC emission standards, OEMs and automotive paint suppliers are increasingly adopting waterborne technology.
 

Metallic paints segment is predicted to attain a CAGR of 5.5% CAGR through 2026. Metallic paints contain small quantity of powdered metal added to it. The type and size of metal added differs according to the manufacturer choices but is usually about 1 part in 50 of aluminum powder. The metal particles present in the paint reflect more incident light than the basic paint colors giving it a shiny look. It also hides minor damage from a distance in a much more effective way.
 

OEMs segment dominated more than 70% of the automotive paints & coatings market share in 2019 impelled by growing automobile sales due to increasing consumer spending on aesthetic appearance, comfort and functionality. Availability of corrosion resistant and long-lasting paints will further support the industry expansion.
 

Polyurethane held around 20% of revenue share in 2019 driven by its durability, high gloss, corrosion resistance and scratch resistance. Polyurethane coatings are also used to increase strength, glaze windshield and windows and to provide fog resistance. Changing preference of service provides towards the segment can be attributed to presence of different texture options and color shade.
 

Asia Pacific automotive paints & coatings market is poised to expand at more than 5.5% CAGR during 2020 to 2026 on account of huge automotive production and developing economies in the region. The industry is evolving along with the automotive industry. Both industries are working towards providing eco-friendly products and advanced technologies to their customers. Passenger vehicles are expected to be the biggest market for automotive paints & coatings. Moreover, the migration of manufacturing bases of companies like Volkswagen, Audi, Skoda, Fiat, Tesla towards Asia Pacific region owing to low labor cost and lenient labor laws is anticipated to drive the market demand.