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The rapidly increasing vehicle production in Southeast Asian (SEA) countries is steering the automotive coatings market in Asia Pacific. With the automotive industry in the region likely to continue this upward progression due to favourable macroeconomic indicators and strong support from governments, the outlook for automotive coating manufacturers remains bright. Although the surge of smaller cars is expected to considerably affect the volume of coating used per vehicle, growing car production volumes will boost overall coating consumption.
New analysis from Frost & Sullivan, ‘APAC Automotive OEM Coatings Market’, finds that the market earned revenues of US$379.5M in 2013 and estimates this to reach US$567.1M in 2020. Thailand, Indonesia and Malaysia will be the largest markets for coatings in the region.
"Original equipment manufacturers are continuously looking to reduce the number of steps involved in automotive manufacturing. As a result, the coatings industry is seeing innovations and R&D activities to optimise processes, materials and cost,” said Frost & Sullivan Chemicals, Materials and Food Senior Research Analyst Soundarya Shankar. "Developing ultraviolet and infrared cured coatings, wet-on-wet-on-wet coatings, primerless coatings and quick drying coatings will provide a competitive edge for manufacturers in the market.”
On the flip side, greater efficiency in coating application lowers the volume of paint used. For instance, state-of-the-art spray guns with high volume low pressure (HVLP) and low pressure low volume (LPLV) features are designed for higher transfer efficiency, thus, limiting sale volumes. Recycling of paints and the reduction in old and leftover paints will further contribute to the decline in the total volume of paint consumed for automotive coating.
In addition, the price-sensitive nature of customers in this region curbs the adoption of high-performance products. SEA countries, especially, remain major low-cost manufacturing centres.
"Offering products with a superior price performance index will remain a key competitive aspect,” stated Shankar. "Establishing partnerships and joint ventures with local companies will also help global coating manufacturers address consumer requirements and facilitate their further expansion into the Asia-Pacific market.”
