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The global automotive coatings market is expected to reach US$27.69bn by 2022, according to a new study by Grand View Research Inc. Increasing demand for coatings owing to its ability to protects vehicles against UV radiation, acid rain and harsh weather is expected to drive market growth. In addition, growing automotive production growth in Mexico, China and the USA coupled with rising middle class income is expected to fuel market growth over the forecast period. Surging coatings demand in the automotive refinish segment on account of increasing accidents and aging of vehicles is anticipated to augment market demand. Growing consumption of UV-cured coatings on account of their excellent properties including low-temperature processing, high chemical resistance and solvent free formulations is anticipated to spur automotive coatings demand. Asia Pacific is expected to witness high growth as a result of growing luxury cars production in the region on account of rising income level in China, India and Japan. New investments by companies coupled with the growing number of production facilities of coatings in Brazil is expected to stimulate market for automotive coatings in Latin America.
Waterborne coatings were the second largest segment in 2014, accounting for more than 30% of market revenue and are expected to gain market share owing to their cost advantage over solventborne coatings. Powder coatings is expected to be the fastest growing segment as EPA and REACH have been promoting their use as an environmentally friendly coating option.
Further key findings from the study suggest:
Global automotive coatings market demand was 3,769.2kt in 2014 and is expected to exceed 5000kt by 2022, growing at a CAGR of more than 4.5% from 2015 to 2022.
Basecoat was the largest product segment in 2014 and is expected to show rapid growth at an estimated CAGR of more than 5.0% from 2015 to 2022 on account of increasing usage per vehicle as it imparts exterior aesthetics, colour along with decorative effects.
Light vehicle OEM was the largest end-use segment in 2014 and is expected to witness significant growth over the next seven years on account of increasing demand for passenger cars in China, India, Thailand, Mexico and Saudi Arabia. Rising industrialisation is expected to stimulate market for commercial vehicles, which is further expected to fuel market growth.
Asia Pacific was the largest regional market and is expected to witness swift market growth, at an estimated CAGR of 5.6% from 2015 to 2022, owing to increasing vehicle production in China, India, Indonesia, Thailand, Japan and Malaysia. Moreover, increasing government spending on road infrastructure is expected to spur market growth.
The market is dominated by key players including: PPG Industries, BASF, Axalta Coating Systems, AkzoNobel, Kansai Paint and Nippon Paint. Other players include KCC Paint, Sherwin-Williams Company, Arkema SA, Bayer AG, Beckers Group, Berger Paints, Cabot Corporation, Clariant AG and Valspar Corporation. BASF provides ‘ColorFuse technology’, which reduces material usage, lowers VOC emissions and provides excellent appearance, physical properties and outdoor durability. Ongoing product development by various companies to manufacture cost-efficient and high performance coatings is further expected to drive demand over the next seven years.
For the purpose of this study, Grand View Research has segmented the global automotive coatings market on the basis of product, technology, application, end-use and region.
For more information visit: www.grandviewresearch.com/industry-analysis/automotive-coatings-market
