Market Research Report
Global Automotive OEM Coatings Market - 2019-2026
|Published by||DataM Intelligence||Product code||753095|
|Published||Content info||130-180 Pages
Delivery time: 1-2 business days
|Global Automotive OEM Coatings Market - 2019-2026|
|Published: September 1, 2019||Content info: 130-180 Pages||
Currently the automotive OEM coatings consumption to be slowdown during the short term owing to the poor automotive sales. However, moving forward turmoil in the current automobile industry is anticipated to settle down in the near term and improving environment for electric vehicles production to bring 350 million electric vehicles on the road by 2040, these prospects to aid the automotive OEM coatings industry.
Automotive OEM Coatings Market is segmented by type, layer, vehicle type and geography. By type market is segmented into Solvent-borne, Water-borne, Powdered, UV-cured. By layer the market is further segmented by primer, basecoat, E-coat, clear coat. By vehicle type market is divided into passenger cars, light commercial vehicles, heavy commercial vehicles, and others Whereas by geography the market is divided into North America, South America, Europe, Asia Pacific and Rest of the World.
Waterborne coatings represent a technology that has been in the market for many years already, particularly in mature markets. Currently, the developing region namely Asia Pacific region have started switching to waterborne coating technology in order to comply with the legislation requiring lower VOC emissions. Asia Pacific region represents the largest segment for consumption of automotive coatings in the world, accounting around half a percent of global demand.
After years of strong growth, global automobile sales were broadly flat in 2018, on account of slump in demand in the world's major market, China. Trade tensions between U.S and China is one of the factor behind the slowing down of economy and thus auto industry.
Jaguar Land Rover have figured out decline in the company sales due to poor Chinese demand, while Ford has pulled plans to sell a Chinese made Ford focus in the US because of the impact of trade tariffs.
Moreover in Europe emission norms have led to the major drop in diesel vehicle sales, contributing to a 7% fall in new car registrations in the UK in 2018.
While the fourth largest automobile industry in the World, India have slowdown in the automobile sales owing to the liquidity issues in the financial sector, followed by mandatory transition to the Bharat stage VI vehicles is also one of the factor have lead to the poor demand.
Although the conventional fuel vehicle sales have been negative , However, Electric vehicles sales continues to grow rapidly. In 2018, the global electric car fleet exceeded 5.1 million, which has advanced by 2 million from 2017, almost doubling the number of new electric car registrations.
Government policies continue to have a major influence on the development of electric vehicles. Further technological advancements, investments flow for the electric vehicle infrastructure development and price reductions of electric vehicles are driving the electric vehicles sales.
Moving forward turmoil in the current automobile industry is anticipated to settle down in the near term and improving environment for electric vehicles production to bring 350 million electric vehicles on the road by 2040, these prospects to aid the automotive OEM coatings industry.
Type segment Analysis
Based on type, Automotive OEM Coatings market is classified into Solvent-borne, Water-borne, Powdered, UV-cured. Currently, solvent borne is the dominant coating type segment and it accounts for approximately XX% of the market.
Waterborne coatings represent a technology that has been in the market for many years already, particularly in mature markets. Currently, the developing region namely Asia Pacific region have started switching to waterborne coating technology in order to comply with the legislation requiring lower VOC emissions.
Waterborne coatings can replace solvent-borne coatings, but the challenge is that solvent-borne coatings are low cost and provide robust application. Moreover, waterborne coatings are less tolerant to harsh environmental conditions such as temperature and humidity due to their composition.
In the U.S., some state and local jurisdictions are taking the lead in regulating automotive refinishing emissions. California and several northeastern states have developed practice standards for shops in selected air districts to reduce VOC emissions. Canada is also requiring a switch to waterborne basecoats.
While awareness for environmental protection is growing in China, customers are looking for new solutions that help them reach their sustainability goals set by the government's in order to reduce emission of harmful voltaic organic compounds into the environment.
Also the automotive OEM paints and coatings manufacturers have been started rising production of waterborne coatings for instance Axalta have started production of water borne coatings at its new Axalta Savli's plant in India which is currently having production capacity of producing both high and low temperature cured coatings. The facility is also designed to scale up to produce environmentally responsible processes and is designed for low emissions such as waterborne coatings.
In 2016, BASF established BASF Coatings (Guangdong) Co., Ltd., its first automotive refinish manufacturing operation in Asia Pacific, located in Jiangmen, Guangdong Province, China. This state-of the-art production and technology facility plays a major role in developing the waterborne coatings solutions for customers in the region. Since its introduction of waterborne coatings solutions to the Asia Pacific market, BASF has reduced the use of solvents by about 75,000 tons in Asia.
Therefore moving forward with the technological advancements in the coatings industry and government regulations over the environment harm coatings such as solvent borne coatings to further propel demand of waterborne coatings in the automobile industry.
Vehicle Type segment Analysis
Based on vehicle type , Automotive OEM Coatings market is classified into passenger cars, light commercial vehicles, heavy commercial vehicles. currently construction application is the dominant segment and it accounts for approximately XX% of the market.
Consumption of automotive paints is directly related to the production of vehicles, especially passenger cars. Increased vehicle interior applications and growing demand for Automated Manual Transmission are giving a boost to the specialty coatings market. At the same time, rising sales of premium passenger cars are expected to drive the demand for eco-friendly, low VOC coatings in near future.
Compared to the other class of vehicle, passengers cars segment to have strict regulations for eco friendly and low VOC coatings use. Therefore this vehicle class will be the major driver for the waterborne coatings demand in the coming days.
The Asia Pacific Automotive OEM Coatings Market size was worth USD XX million in 2018 and is estimated to reach USD XX million by 2026, at a CAGR of XX% during the forecast period. Asia Pacific region is expected to grow with high CAGR during the forecast period owing to the strong growth in the automobile industry in this region.
Asia Pacific region represents the largest segment for consumption of automotive coatings in the world, accounting around half a percent of global demand.Also compared to the other parts of the globe, automotive OEM coatings to grow at a higher rate compared to the other regions .
Coatings used on passenger cars and light commercial vehicles (LCV) represent the largest market for automotive coatings. The leading national markets for automotive OEM coatings in the region includes by size are China, Japan, India and South Korea.
Moving forward automotive industry in the region to further expand with the flow of investments into the automobile industry for instance. On January 29, 2019 KIA motors have initiated car production at the newly constructed car manufacturing facility with a annual production capacity of up to 300,000 units.
Maruti Suzuki India plans to increase its capacity to 0.75 million units at its unit in Gujarat plant by 2020, taking the total capacity to over 2.25 million units a year. While Thailand, wants to raise annual automobile production to 3.5 million units by 2025.
Therefore the growing population, improving economies and rising middle class income levels, investments flow into the region to further propel the development of automotive industry in the region, and thus to contribute to the demand of automotive OEM coatings.
Some of the major players in the global Automotive OEM Coatings Market includes BASF SE, Axalta Coating Systems, NIPSEA GROUP, Akzo Nobel N.V, PPG Industries, Inc, The Sherwin-Williams Company, The Valspar Corporation, Kansai Paint Co., Ltd, Covestro AG, DuPont de Nemours, Inc.
The Automotive OEM Coatings market is a consolidated market with the presence of many major players in the market. Key players in the market are implementing mergers and acquisition, product launches, expansions strategy in order to improve the market share.
The global Automotive OEM Coatings Market report would provide an access to an approx, 61 data table, 55 figures and 190 pages
Global Automotive OEM Coatings Market Methodology and Scope