During the time frame of the forecast, the automotive coatings market is expected to grow at a CAGR of about 4%.
- One of the major factors driving market growth is increasing production in the automotive industry and growing demand for waterborne technology.
- However, stringent regulations regarding VOC emissions are likely to restrict market growth.
- Investment opportunities in the Middle East and Africa are expected to provide opportunities for market growth in the future.
- Asia-Pacific is expected to account for the fastest growth rate during the forecast period.
Automotive Coatings Market Trends
OEM is Likely to Show a Significant Market Growth
- The lockdown, the reduction of cross-border transportation, and the stay-at-home policies all had an effect on the automotive coatings market during COVID-19.
- One of the biggest companies in the world that makes OEM coatings for cars is BASF. The company offers e-coat, primer, basecoat, and clearcoat products.
- Additionally, Toyota Motor Corp. is the second-largest automotive OEM in the world, after Germany's Volkswagen AG. The company makes and sells passenger cars, trucks, buses, motorcycles, light commercial vehicles, genuine parts, turbomachinery, large-bore diesel engines, propulsion components, special gear units, and testing systems. It also develops vehicles and engines.For the year 2021, the company reported revenues of USD 295,850 million. The automotive original equipment manufacturer market is expected to reach around USD 50 million by 2030.
- Coatings are used in the automotive industry to protect against corrosion and protect the body from damage. According to OICA, in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year's production of 77.6 million units. The main thing that makes the market grow is that more cars are being made because people want them.
- The overall market for coatings used in the automotive industry is expected to be driven by the rise in the number of light and commercial vehicles being made.In January 2023, the global light vehicle sales rate stood at 83 million units per year, according to LMC Automotive.
- Automotive paints and coatings are the surface treatments that give the metal protective layers and improve the appearance of the car. The paint and coatings industry in the United States will have a positive surplus of USD 1.4 billion in 2021.
- According to the American Coatings Association, in 2021, the United States exported paint and coatings worth USD 1.1 billion to Canada and USD 632 million to Mexico, totaling USD 1,7 billion.
- Due to all of these factors, water-borne technology is likely to have the highest growth rate over the next few years.
Asia-Pacific is Expected to Witness the Highest Growth Rate
- Asia-Pacific is the largest market for automotive coatings, followed by North America and Europe. Automotive production in India and ASEAN countries is expected to boost Asia-Pacific demand for automotive coatings.
- Automotive coatings are likely to be in higher demand because more people are buying used cars, more people are using taxis, and there are more places in Asia that fix cars and do body work.
- The Chinese automotive manufacturing industry is the largest in the world. However, the industry witnessed a slowdown in recent years, as both production and sales declined. According to the China Association of Automobile Manufacturers (CAAM), automotive sales in China fell by 8.4% year over year to 2.56 million units in December 2022, whereas for the full year 2022, the sales grew to 26.86 million units.
- The India Brand Equity Foundation says that by 2027, the Indian car market will be worth USD 54.84 billion, with a CAGR of over 9%.By the year 2026, the Indian auto industry wants to export five times as many cars as it does now.In 2022, total automobile exports from India stood at 5,617,246.
- Many automakers are putting a lot of money into different parts of the industry. For example, in November 2022, Maruti Suzuki India said it would put USD 865.12 million into several projects, such as building a new facility and making new models.
- Also, the Asia-Pacific region is likely to grow the most during the period covered by the forecast.
Automotive Coatings Industry Overview
The automotive coatings market is consolidated, as the majority of the market share is divided among a few companies. Some of the key players in the market include Axalta Coating Systems Ltd., BASF SE, Akzo Nobel NV, The Sherwin-Williams Company, and PPG Industries Inc., among others.
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