GLOBAL AUTOMOTIVE COATINGS MARKET

INTRODUCTION

Automotive Coatings play an essential role in the automotive industry. Along with increasing the aesthetic look of the vehicle it also acts as preventive extra protection layer to the exterior body of an automobile. It mainly protects from UV radiations, corrosion and several other damages. Increased auto production and demand for eco-friendly automotive paints have been driving the market. Few coatings are causing pollution due to increased emission of VOC (Volatile Organic Compounds) which are harmful. And also increase in prices of materials required for coating has been restraining growth of the market.

 

Infographic: automotive coatings market, automotive coatings market size, automotive coatings market trends and forecast, automotive coatings market risks and report, automotive coatings market share

MARKET SEGMENTATION

By Coat

  • Primer Coat
  • Base Coat
  • Clear Coat
  • Electro Coat

By Texture Type

  • Solid
  • Metallic
  • Others

By Raw Material

  • Polyurethane
  • Epoxy
  • Acrylic
  • Other Resins

By Technology

  • Powder Coatings
  • Waterborne Coatings
  • Solvent Borne Coatings

By Distributor Channel

  • OEM
  • Aftermarket

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Two Wheeled Vehicles

By Geography

  • US
  • Europe
  • China
  • India
  • ROW

MARKET DYNAMICS

The coating of a car using different substrates bonded together with adhesives will help in reducing the overall weight of the vehicle. This will help improving the fuel efficiency of the car. The various advantages attached to car are boosting the coating market. 

 

Infographic: automotive coatings market, automotive coatings market size, automotive coatings market trends and forecast, automotive coatings market risks and report, automotive coatings market share

Based on the colour selection white is most adopted individual colour with 39% market share among new vehicles. 22% of the world’s new vehicles are painted with chromatic colours.

BY COAT TYPE

There have been innovative products which act as both primer and a base coat and thus reducing the primer market alone. The clear coat normally applied on top to protect the surface from UV radiations and avoids fading out.

Electrocoats offer multiple benefits such as high corrosion resistance and protect the surface at extreme climatic conditions. It holds the highest market share and expected to witness quick growth in the segment.

The below graph shows the share of automotive coating based on coat type:

Infographic: Automotive Coatings Market

BY TEXTURE TYPE

On the basis of texture type clearly metallic type is leading and expected to be largest gainer in the future. The customer’s preference towards metallic type for glossy appearance is the factor for the demand of metallic segment. The rise in sales of premium passenger cars boosts the metallic type.

However in the entry level and mid segment cars and the commercial vehicle segment solid texture holds upper hand. 

BY TECHNOLOGY

Waterborne type is the most commonly implemented technology for the automotive coating. The waterborne technology gives out less odour, easier blending and accurate mixing making it the leader in this segment. Powder coating technology is mostly used in the premium car segment and provides high efficiency and high durability. However, due to its expensive set up cost it is limited to premium segment cars and penetration of powder coating is less in economic countries.

 

Infographic: automotive coatings market, automotive coatings market size, automotive coatings market trends and forecast, automotive coatings market risks and report, automotive coatings market share

The solvent-borne type emits higher percentage of harmful VOC and thus, there is a decline in the usage of this technology. 

BY VEHICLE TYPE

Passenger cars accounted for largest revenue as they acquire the higher market share compared to other segments of vehicles. Light commercial vehicles acquire the next biggest share.

BY DISTRIBUTOR CHANNEL

OEM holds the higher share in the market compared to the aftermarket channel. The OEM channel continues to be in demand with the increasing vehicle production. Availability of long lasting corrosive paints will help the growth of the market.

Increasing requirements for repair and restoration is augmenting the aftermarket channel of the coatings market. Factors such as inclination towards pre-owned cars and cost effective products are propelling the market in this segment.

US AUTOMOTIVE COATINGS MARKET

In US due to strict guidelines from National Emission Standards for Hazardous Air Pollutants (NESHAP) the powder and waterborne technologies have witnessed a rise in demand due to their reasonable low emission of VOCs.

Although 3/4th of the market is occupied by achromatic colours, unlike other regions white has seen the lowest market share with 29%. America, global leader in pickup trucks the owners are shifting towards black and chromatic colours such as red

EUROPE AUTOMOTIVE COATINGS MARKET

The increase in sale of luxury and premium segment cars will boost the powder coating market in the region. Waterborne Coating has accounted for majority of sales in OEM segment. However, in aftermarket solvent borne coatings hold the higher share in the market.

With more than 75% the achromatic colours hold the majority of share. Among these colours grey has seen the rise with about 20% market share. Nearly every fourth car in Europe features chromatic colour with blue being the single largest individual colour in the segment. The region has about 160 different shades of colours making it a frontrunner in colour diversity too.

CHINA AUTOMOTIVE COATINGS MARKET

China’s Ministry of Environment and Ecology (MEE) has launched 3-year plan to reduce the VOC emissions by 10% by the end of 2020. This will propel the manufacturers to produce less volatile compounds. Based on passenger car colour selection 77% of market share is occupied by the achromatic colours viz. white, grey and black. And white remains dominant and has the highest share than any other region. Almost every second car in the region is found to be white.

INDIA AUTOMOTIVE COATINGS MARKET

Based on the colour selection, white still dominates the market and in 2019 47% of customers opted for white passenger car in the region. In the mid segment cars (mostly hatchback), interestingly red is the most preferred colour.

The chart below shows the colour share in the passenger vehicle market:

 

Infographic: Automotive Coatings Market size

MARKET SIZE AND FORECAST

The coating products with lower density help to reduce the weight of the vehicle. There is further R&D on the various compositions of chemicals that help reduce the weight and expand the coating market.

There have been continuous developments going on to reduce the VOC emissions by tweaking the composition.

RECENT MARKET TREND

  • PPG Industries from US has completed acquisition of German based manufacturer of auto coatings Hemmelrath expanding its presence in Europe.
  • AkzoNobel has partnered with BMW to supply its refinish products and services to 44 countries across the world.
  • Nippon Paint is planning to reach the target of 20% aftermarket share in India by the year 2024.
  • PPG Industries has acquired Dexmet Corporation manufacturer of speciality materials.
  • Czech automaker Skoda has opened its most advanced paint shop in Mlada Boleslav in Czech Republic.
  • Axalta has partnered for 5 years with Jaipur based Bharat Skill Development University to provide hands-on training in automotive coating in body shops.

COMPETITIVE LANDSCAPE

The key players in the coatings sector are BASF SE (Germany), Akzo Nobel (Netherlands), Nippon Paint (Japan), Axalta (US), PPG (US) and KCC (South Korea).

 

COMPANY PROFILE

  1. BASF SE Germany
  2. PPG US
  3. Akzo Nobel Netherlands
  4. Nippon Paint Automotive Coatings Co Ltd Japan
  5. KCC South Korea
  6. Kansai Paint Japan
  7. Axalta US
  8. Sherwin Williams US
  9. Clariant AG Switzerland
Sl noTopic
1Market Segmentation
2Scope of the report
3Abbreviations
4Research Methodology
5Executive Summary
6Introduction
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers
31Conclusion
32Appendix

 

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