The global automotive paint market is expected to be valued at over $29 billion by 2024, growing at an estimated CAGR of 6.2% from 2017 to 2024.
Increased demands for an automotive vehicle in developing and developed countries are the major driving factor for the growth. Benefits from these paints like protecting the vehicle body from sunlight, dust, corrosion, scratches and improving appearance are the major factors for the demand. Increasing population and increase in economic status of the middle-class family is also boosting the growth.
Key Product Categories & Technologies
Automotive paints are having application in the vehicle interior and exterior and for almost every material used in an automobile such as lightweight steel, plastic, aluminum, metal alloys, fiber, and others. Global automotive paints can be classified mainly based on their type of coatings such as Electro-coat, Primer, Basecoat & Clear-coat, as per technology, Solvent & Waterborne, Powder Coating. Old coating techniques like, air dry varnish, are replaced with new cost-effective techniques such as air gun and high volume low pressure (HVLP) guns. In recent years, the focus of automobile industries is shifted towards spray technologies with minimal wastage, environment-friendly coatings such as low Volatile Organic Compounds (VOC), waterborne paints, zero VOC powder coating and futuristic UV coating. Such techniques help in significantly reducing the number of coating layers required.
A significant shift from solvent-based coating towards waterborne coating due to advantage over solvent borne coatings including less flammability, less toxicity along with environmental issues. Waterborne coatings use water as a solvent to dissolve a resin, thus making these automotive coatings eco-friendly and easy to apply. Application of Waterborne in Automotive OEM is expected to grow at a CAGR of 8.3 from 2015 to 2024. The waterborne technology was valued at 3.5 billion USD in 2015.
Volatile organic compound free powder coatings are benefited from stricter environmental regulations and expected to show significant growth in automotive paint market. Primary usage areas include shock absorbers, oil & fuel filters, brake pads, engine block casings, battery trays, suspension components, radiators, wheels, grills, bumpers, door handles, roof racks, trailer hitches, and exterior and interior trim. The market size was estimated at over 465-kilo tons in 2015 and expected to grow 7.5% by 2024. Germany powder coatings demand was worth close to 305 million USD in 2015 and this technology expects to grow at a significant rate with over 4.8% CAGR by 2024.
The motor car market is one of the key segment for the growth of automotive paint market. Increased metallic paints to give sparkling, rich look and color customization is giving growing demand for electro-coat and expected to reach 4 billion USD by 2024 with a CAGR of 4.5%.
The main functions of the primer are to act as a leveler and protector and to make the base coat easier to apply. The basecoat is the layer applied to a vehicle body after electro-coat and primer layer. Basecoat is the fastest growing market compared to other types of coats with a CAGR of 7.28% from 2015 to 2024.
The major technology development targeted in automotive paint industry is to reduce the cost of the painting process. A few automakers have a target of reducing the painting process by up to 50%. Recently, a process that greatly reduces the primer and topcoat painting process by up to 30% has been developed and undergone extensive trials in Europe. The Eco-Concept eliminates the waterborne primer-surfacer process and combines both the primer-surfacer process with the basecoat/clearcoat process. This new process combines the color of the basecoat with a polyurethane dispersion in the first coat of the basecoat application. PPG has produced several innovative technologies to generate substantial savings in capital and operating costs like the Compact Paint Systems or Compact Paint Processes.
Top Players, Company Share, Competitive Dynamics & M&A Insights
The key players in automotive paint sector are BASF SE, Axalta Coating Systems, PPG Industries, Inc., Kansai Paint Co., Nippon Paint Holdings Co., Ltd, The Valspar Corporation, KCC Corporation, Sherwin-Williams, AkzoNobel, Berger Paints, and Jotun A/S.
Expansion in existing production capacity is essential to meet the market demand, BASF Shanghai Coatings Co. invests 140 million Euros for the new automotive coating plant at the existing Shanghai Chemical Industry Park in Caojing and is expected to start operation in the fourth quarter of 2017.
PPG Industries has marked the completion of a 7.8 million USD investment at its Coatings Innovation Center in Allison Park, Penn.which is exclusive to enhance the resources for creating and testing sealants, adhesives, and pretreatment solutions for training distributors, painters, and collision repair professionals to use the company’s automotive
Companies are following merging and acquisitions to increase their market scope, BASF has agreed to buy Albemarle’s Chemetall surface treatments business for 3.2 billion USD in 2016.
Growth Drivers & Restraints
Improved living standards and growing economy and increasing demand of luxurious vehicle are some of the dominant drivers for automotive paint. Whereas the governmental norms against volatile organic compound (VOC) automotive paint in Europe and North America is expected to boost the Low VOCs automotive paint market in these regions. Strict environmental regulations, buying of used cars and usage of outdated coating technologies are the major restraints for the market growth.
Global automotive coatings market demand was 3.8 million tons in 2015 and is expected to exceed 5.5 million tons by 2024. Asia Pacific is the largest regional market and is expected to witness an estimated CAGR of 5.8% from 2015 to 2024, North America accounted for 22.8% of the global revenue share in 2015. Metal applications were dominant and accounted for over 70% of the total automotive coating market share in 2014.
This report provides factors about current markets trends, product category, technologies, and market drivers and M&A. Provides market and technology projections for the upcoming years including the present technology and trends.
- Market growth drivers
- Top players
- Product outlook
- Technology outlook
- North America
- Asia Pacific
- Water borne
- Powder coating