Market Insights
Automotive coatings are employed to coat automobile surfaces and demonstrate innovative technologies that are proficient in manufacturing sturdy surfaces, maximizing overall vehicle efficiency while meeting environmental regulations. Automotive OEM coatings improve the overall appearance and durability of a vehicle and help protect it from extreme temperatures, UV radiation, and foreign particles.
Innovation is fueling the growth of the global automotive OEM coatings industry since new variants, such as waterborne and e-based products, are penetrating both consumer automotive as well as automotive OEMs. Ultraviolet-based coatings are projected to witness high demand. Although UV coating applications are still in their infancy, a steady shift toward UV cure coatings is expected over the forecast period. Moreover, several benefits, such as lower energy costs and ease of application, are some major aspects fostering the adoption of automotive OEM coatings across the value chain. Additionally, the increase in per capita disposable incomes of consumers, especially in developing economies such as China, India, Thailand, etc., has propelled the overall demand for passenger cars. Thus, automotive manufacturers are setting up their manufacturing facilities in the aforementioned countries to cater to this burgeoning demand. These manufacturers are progressively shifting toward high-performance and low-cost OEM coatings manufactured by regional vendors. Amplified by the launch of newer products with relatively more sophisticated and unique functionalities, local players are focusing on collaborating with major automotive OEMs to come up with tailored solutions for consumers.
The automotive OEM coatings market is segmented by type into waterborne, solvent-borne, powdered, and others. The solvent-borne segment accounted for the largest share in 2017 and is chiefly driven by an increasing preference for low-priced coatings, especially for basecoat applications. On the basis of layer, the global automotive OEM coatings market is segmented into the primer, basecoat, electro coat, and clear coat. Based on the type of vehicle, the market is categorized into light commercial vehicles, passenger cars, heavy commercial vehicles, and others (bicycles, motorbikes, etc.). Passenger cars accounted for the largest share owing to increasing automobile production, especially in China, India, and Brazil. Furthermore, rising disposable incomes and changing consumer lifestyles are expected to supplement passenger car demand in the coming years.
Passenger cars represent the segment with the greatest potential in the global automotive OEM coatings market due to the rise in demand for general utility vehicles and passenger cars globally, along with the increase in expenditure toward public transportation. Moreover, the rising inclination of consumers towards easy and efficient transportation facilities further augments the overall demand for such coatings in passenger cars. Owing to persistent growth in the disposable incomes of consumers coupled with an increase in demand for commercial vehicles on account of rapid growth in logistics and transportation, the use of automotive OEM coatings in commercial vehicles has been foreseen as a key development. The passenger car segment is estimated to witness significant growth during the forecast period. However, an increase in apprehensions related to several environmental perils associated with the use of solvent-borne coatings might hamper the overall growth, although increasing investments in research and development activities in the production of newer and relatively safer alternatives are projected to pose lucrative growth opportunities.
In 2017, in terms of demand and consumption, globally, Europe was the major market for automotive OEM coatings, closely followed by the Asia Pacific and North American regions. As of 2017, China was the largest exporter of automotive OEM coatings globally. The other Asia-Pacific countries leading in exports of automotive OEM coatings are India, Japan, and Indonesia. Latin America is expected to foresee rapid growth due to the presence of untapped and emerging markets such as Mexico, Peru, Argentina, Ecuador, and Columbia, among others.
The global automotive OEM coatings market is segmented as below:
By Type
- Solvent Borne
- Water Borne
- Powdered
- Others
By Layer
- Primer
- Basecoat
- Electrocoat
- Clearcoat
By Type of Vehicle
- Passenger Cars
- Light Commercial Vehicles (LCV)
- Heavy Commercial Vehicles (HCV)
- Others (bicycles, motorbikes, etc.)
By Geography
- North America
- Europe
- Germany
- France
- Italy
- U.K.
- Russia
- Rest of Europe
- Asia-Pacific
- India
- China
- Japan
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
Key players across the automotive OEM coatings market value chain are:
Axalta Coating Systems, PPG Industries, BASF SE, Kansai Paint, Nippon Paint, Sherwin-Williams Company, AkzoNobel, Bayer AG, KCC Paint, and Arkema SA are among other notable players.
This report offers the following:
- Assessment of automotive OEM coatings market trends for the period 2016–2026
- Historical (past) information for 2016 and 2017 and projections with CAGRs from 2018 to 2026, considering 2017 as the base year for the market.
- Market drivers, restraints, future prospects, and competitive analysis (market positioning) of key market players
- Overview of the automotive OEM coatings industry value chain
- Company profile with major information about the key players operating in the automotive OEM coatings market
- Estimation of the market size in terms of value and volume
