Automotive Coatings Market Size, Share & Industry Analysis, By Resin (Polyurethane, Epoxy, Acrylic, and Others), By Technology (Waterborne coatings, Solvent borne coatings, Powder coatings, and others), By Coat Type (Electro coat, Primer, Base coat, and Clear coat), By Application (OEM, Refinish, and Plastic Part) and Regional Forecast, 2024-2032

The global automotive coatings market size was valued at USD 23.72 billion in 2023 and is projected to grow from USD 25.94 billion in 2024 to USD 57.27 billion by 2032, exhibiting a CAGR of 10.4% during the forecast period. Asia Pacific dominated the automotive coatings market with a market share of 46.12% in 2023. Moreover, the automotive coatings market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 7.53 billion by 2032, driven by the increased demand for commercial vehicles and the logistics and e-commerce business, thus driving market size growth. 

Automotive coatings are majorly used for decoration and protection. These coatings are applied in different steps to allow the metal to be protected from corrosion. The coating application includes the steps primer, base coat, and clear coat, which are applied to serve a transparent and glossy finish. It is able to withstand UV radiation. They are widely used in the automotive sector to improve the appearance and performance of automobiles. Such a factor may increase the market demand during the forecast period.

Moreover, automotive coatings are waterproof dry coatings and are used to protect automobiles from corrosion and improve their performance and appearance. These coatings are produced from raw materials such as titanium dioxide, pigments, and acrylates, derived from petroleum-based chemicals and have main properties such as higher surface hardness and good elastomeric treatment, and are used on metal surfaces such as car bodies, wheels, and parts. Due to the increasing demand from OEMs, the growth for automotive coatings market is growing significantly during the forecast period.

Additionally, the growing demand for automotive coatings can be attributed to a shift in consumer preferences towards more aesthetically pleasing and attractive automobiles, as well as growing demand for different colors and textures, improved sales promotion policies, and rising PPP (purchasing power parity) in emerging economies.

The automotive coatings industry has been hit hard by the coronavirus outbreak. Most of the key manufacturers have undergone the closure and suspension of their ongoing projects owing to the lockdown measures. The closure of some sectors has also affected the automotive sector. Another major impact of the COVID-19 outbreak has risen from the disruption of the supply chain. The industry has seen a huge decline in demand and investment. COVID-19 had an unprecedented impact on the industry in the entire world especially in the ASEAN region by 2020. Automotive coatings production and consumption took a severe hit during the entire year. Although the numbers began to improve in the last quarter of 2020.

Automotive Coatings Market Trends

Sustainable Development in the Coatings Industry Shall Augment Market

Strict environmental regulations have created a huge demand for the sustainable development of coatings products. Automotive coatings preserve and protect the substrates on which they are applied, thus saving material resources and energy. Companies routinely consider the aspect of sustainability when conducting their business operations. The main focus is on reducing volatile organic compounds (VOCs) to include resource and energy conservation, renewable materials, increasing process efficiency, and minimizing waste.

Automotive Coatings Market Growth Factors

Growing Trends for Automotive Refinishing Coatings is Driving Automotive Coatings Market Growth

The emergence of autonomous and electric vehicles makes waves in the automotive industry. As OEMs are increasingly adopting the use of ADAS (advanced driver assistance programs), physical stores are therefore seeing an increase in the complexity and repair costs, with the particular effort required to maintain and evaluate these systems in accordance with OEM specifications.

Also, increasing demand for automotive coatings to enhance durability and enhance the appearance of automobiles. These coatings are also providing protection to automobiles from several adverse effects of harsh environmental conditions such as UV radiation, foreign particles, acid rain, and, extreme temperatures. These benefits are likely to expand the rapid industry growth during the forecast period.

Growing trends in automotive refinishing, custom paint designs and vinyl is likely to drive the use of automotive coatings solutions. These products help protect and enhance custom vehicle paint coatings finishes, increasing the visibility and longevity of expensive paint customizations. In addition, these coatings also protect against general wear and tear and protect the coatings from long-term exposure to the sun, which is likely to expand this market.

Increasing Demand for Environment-Friendly Coatings to Drive the Market Expansion

Automotive coatings products are available in the market with promising properties to help protect products from corrosion, mainly due to the upgraded performance of the coatings and their advanced manufacturing methods. Furthermore, manufacturers continue to introduce new coatings with eco-friendly properties. Nowadays, coating technology has evolved and is different from conventional technology. For instance, in addition to solvent-based coatings, there are a number of coatings available on the market, including solvent-free, water-based, and UV-cured coatings. The introduction and adoption of new manufacturing technologies have gradually increased the performance of automotive coatings.

Additionally, the adoption of new products is followed by a growing preference for water-based coatings. Powder coatings are also growing in popularity, whereas waterborne coatings are undesirable as they do not produce VOCs and optimize critical properties for demanding end uses. Some of the factors favoring their adoption include a push for sustainability, lower VOCs, and strict substance controls. Furthermore, automotive coatings provide several benefits, such as high flexibility, chemical and weather resistance, waterproofing, and enhanced protection from environmental aggressors such as water, moisture, snow, and rust.

In addition, there has been a growing inclination toward the adoption of waterborne systems in the OEM coatings industry. However, in the U.S. and Japan, this trend is not as pronounced for several reasons, including the relatively high proportion of high-solids systems in the OEM sector.

RESTRAINING FACTORS

Complication in Raw Material Sourcing is Likely to Hinder Market Growth

The raw materials used for the production of coatings include solvents, pigment binders, and additives. Titanium dioxide is one of the most important and common raw materials used for the manufacturing of the product. The fluctuating prices of raw material such as titanium dioxide, which is one of the most commonly used raw materials, is expected to hamper the market growth. Also, the difficulty in sourcing raw materials is expected to serve as a major challenge for manufacturers during the forecast period.

In addition, stringent regulations regarding emissions of volatile organic compounds and hazardous air pollutants such as xylene, toluene, methyl ethyl ketone, and ethylbenzene are expected to restrain product demand. Moreover, the high flammability and toxicity of the above products are expected to boost growth during the forecast period. Thereby, the fluctuations in prices of the raw materials and rising prices of titanium dioxide is expected to negatively hamper market growth during the forecast.

Automotive Coatings Market Segmentation Analysis

By Resin Analysis

Acrylic Resin Segment to Dominate Due to Increasing Demand from Automotive Sector

Based on resin, the market is segmented into polyurethane, epoxy, acrylic, and others

The acrylic segment is anticipated to dominate the market during the forecast period. The market is driven by increasing demand from the automotive sector shall drive the market growth during the forthcoming years. The growing popularity of new coatings models that offer better finishing and texture, and manufacturers' efforts to introduce various eco-friendly, odorless, and dust-proof, and waterproof coatings have encouraged the industry growth. Acrylic resin is mostly applied to the automotive OEM and refinishes clearcoats to provide an excellent combination of chemical resistance, mar resistance, and light stability, thus increasing the product demand.

The market for epoxy resins is expected to witness a significant growth during the forecast period. Properties such as durability, chemical resistance, toughness, good curing, excellent adhesion, excellent water resistivity, and abrasion resistance makes it suitable for protecting metals and other surfaces. These properties make it easy protection of the car body against corrosion and other damage, in some cases doubling the lifetime of the car, shall boost the epoxy resins market growth during the forecast period.

By Technology Analysis

Waterborne Technology is Expected to be Fastest Growing Segment due to Increased Demand in Automotive Industries Because of its VOC Control Properties

Based on technology, the market is segmented into waterborne coatings, solvent borne coatings, powder coatings, and others.

Waterborne technology is expected to be the fastest growing technology owing to the increased demand from automotive industries. Waterborne coatings have VOC levels under any control limits and can be used to reduce total emissions compared to solvent-based coatings. These key attributes will surplus the overall industry growth during the forthcoming years. These coatings are environmentally friendly and easy to use as the water content is high. In addition, they are an excellent primer on account of their resistance to heat and abrasion properties. They form a strong adhesive and can be used on thick or thin coats. The growing demand for waterborne coatings from automotive industries in countries such as China, India, Malaysia, South Korea, Indonesia, and Vietnam aims to drive overall market growth.

Powder coating is a dry finishing process, using polished particles of color and resin that are electrically applied and sprayed on electrically formed parts. Powder-coated products are highly resistant to reduced coating quality, which helps to reduce scratching, rust, cuts, drying, and other wear problems. The industry is expected to be driven by the increasing use of powder coatings in automotive due to their high abrasion and anti-corrosion properties, which play an important role in the protection of underground and non-ferrous metals. Powder coating has many advantages over other coatings, such as low operating costs, quick availability, insignificant VOC contamination, excellent appearance, and uniform size.

By Coat Type Analysis

Basecoats Dominated Overall Market as They Provide Exterior Aesthetics and Desired Color to Automobiles

In terms of coat type, the market is segmented into electro coat, primer, base coat, and clear coat.

Basecoats dominated the market of the global revenue share in 2023. These coats are projected to witness significant growth during the forecast period as they provide exterior aesthetics and desired color to automobiles. Furthermore, base coats of two types include, water-based or solvent-based depending on the type of top or finishing coat, whether enamel, shellac, metal, lacquer, or another type of coating.

Electrocoating is a process that uses an electric current to apply an organic coating from a paint bath to a part or assembled product. Electrocoat is projected to witness substantial growth during the forecast period due to advantages such as high operation speed, uniform coating, and applicability to a wide range of materials with excellent coverage and outstanding corrosion resistance.

By Application Analysis

OEM is Largest Segment Due to Increase in Demand for Passenger Cars

In terms of application, the market is segmented into OEM, Refinish, and Plastic Parts.

OEM light vehicles is the largest application segment and is likely to see significant growth due to increasing demand for passenger cars in emerging countries including China, India, Brazil, Thailand, and Singapore. Moreover, rapid urbanization, population growth, and rising per capita income will sustain market expansion.

The automotive refinish market is projected a rapid growth due to increasing demand for used vehicles. Additionally, the rising number of accidents in the Asia Pacific and Central & South America, especially in the mountainous regions is expected to boost industry growth during the forecast period.

The plastic parts segment is expected to witness substantial growth due to design flexibility, lightweight, cost reduction, corrosion resistance, increased recyclability, and durability. Moreover, increasing the use of carbon fiber and composites in automobile manufacturing shall fuel industry demand during the forecast period.

REGIONAL INSIGHTS

The Asia Pacific region held the largest market share and is anticipated to dominate the market during the forecast period. China, Japan, India, and South Korea are driving the growth of market in the region due to increasing demand for affordable vehicles in the region.  Moreover, the growing demand and production of passenger and commercial vehicles have further increased the need for automotive coatings. In addition, the government's support for EV vehicles has also increased the demand for coatings and driven market growth.

North America is expected to witness considerable growth rate by 2032. With strict government regulations and norms for carbon emission, most of the car manufacturers in North America are shifting their vehicle production towards vehicle electrification, which has increased the demand for commercial vehicles, and the logistics and e-commerce business is most benefitted by this shift, thus driving the regional market growth. According to the OICA (Organisation Internationale des Constructeurs d'Automobiles), the U.S. accounted for 1,926,795 car sales in 2020 and 6,895,604 sales of commercial vehicles in the same year. Additionally, increasing focus on reducing carbon emissions of vehicles has shifted the focus of various manufacturers towards electric vehicles, thus boosting the market growth in the region.

Europe is expected to witness steady growth during the forecast period due to increasing vehicle production in countries including Germany, Italy, Sweden, France, U.K., and the Czech Republic. Furthermore, the growing population along with rising income levels are likely to stimulate demand over the forecast period. Additionally, innovation in vehicle coatings and Europe’s car industry is the biggest investor in R&D shall drive the regional market growth in the near future.

The Latin America automotive coatings market share is expected to see significant growth during the forecast period due to increased vehicle ownership in economies including Argentina, Chile, and Brazil.

The Middle East and Africa is expected to witness steady growth during the forecast period due to increasing vehicle production in South Africa, Egypt, and Israel. Additionally, harsh weather conditions in countries including Saudi Arabia, UAE, Qatar, Ethiopia, Kuwait, and Oman will drive the demand for vehicle repairs in the region.

List of Key Companies in Automotive Coatings Market

Key Players are Adopting Strategies to Maintain Their Market Position

The global market share is fragmented, with key players operating in the industry are BASF SE PPG Industries, Inc., Nippon Paint Holdings Co., Ltd., AkzoNobel, The Sherwin-Williams Company, and Axalta Coating Systems, Ltd.., Most of the manufactures are expanding their business to gain competency in the industry and alleviate new entrants’ threat.  

Market participants are fiercely competing with international and regional players with extensive distribution networks, regulatory know-how, and suppliers. In addition, companies sign contracts, acquisitions, and strategic partnerships with other market leaders to expand their existing markets.

LIST OF KEY COMPANIES PROFILED:

• BASF SE (Germany)


• PPG Industries, Inc. (U.S.)


• Nippon Paint Holdings Co., Ltd. (Japan)


• AkzoNobel (Netherlands)


• The Sherwin-Williams Company (U.S.)


• Axalta Coating Systems, Ltd. (U.S.)


• ppg asianpaints (India)


• Kansai Paint Co., Ltd. (Japan)


• Kansai Nerolac Paints Limited (India)


• DSM (Netherlands)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 - AkzoNobel has acquired Lankwitzer Lackfabrik’s aluminum wheel liquid coatings business segment to strengthen its performance coatings portfolio which will accompany the existing powder coatings product portfolio and also expand the range of innovative products.


• August 2022 - Axalta launched next-generation basecoat technology for the automotive refinish industry in Latin America.


• May 2022 - BASF expanded its Automotive Coatings Application Center at the Coatings Technology Center in Mangalore, India


• April 2021 - PPG completed the acquisition of Cetelon Lackfabrik GmbH, a coatings manufacturer for light truck wheels and automotive applications. This acquisition will permit PPG to further build upon its powder and liquid coating technologies, color matching potential, and existing coatings product portfolio.


• November 2021 - 3M India launched ceramic coating for the automotive and paint industry in India. The launched product offers an enhancement to all problems related to the exterior surfaces of cars.


• May 2021 - Axalta Coating Systems expanded its waterborne coatings manufacturing unit in Jiading, Shanghai, China to the meet growing demand for sustainable coating solutions for industrial, automotive, and commercial vehicle markets in China and the Asia Pacific region.

REPORT COVERAGE

The global automotive coatings market research report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, resin, technology, coat type, and application. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

This report includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 10.4% from 2024 to 2032
Unit	Value (USD Billion) and Volume (Kilo Tons)
Segmentation	By Resin Polyurethane Epoxy Acrylic Others
By Technology Waterborne coatings Solvent borne coatings Powder coatings Others
By Coat Type Electro coat Primer Base coat Clear coat
By Application OEM Refinish Plastic Part
By Region North America (By Resin; By Technology; By Coat Type; By Application, By Country) U.S. (By Application) Canada (By Application) Mexico (By Application) Europe (By Resin; By Technology; By Coat Type; By Application, By Country) Germany (By Application) UK (By Application) France (By Application) Spain (By Application) Italy (By Application) Rest of Europe (By Application) Asia Pacific (By Resin; By Technology; By Coat Type; By Application, By Country) China (By Application) India (By Application) Japan (By Application) South Korea (By Application) Rest of Asia Pacific (By Application) Latin America (By Resin; By Technology; By Coat Type; By Application, By Country) Brazil (By Application) Rest of Latin America (By Application) Middle East & Africa (By Resin; By Technology; By Coat Type; By Application, By Country) Saudi Arabia (By Application) South Africa (By Application) Rest of the Middle East & Africa (By Application)