Automotive coatings sales totaled US$ 16.3 billion in FY 2021, and it is anticipated that they would grow by 4.3% year over year in 2022 to reach US$ 17 billion.
The industry is also anticipated to grow at a CAGR of 7% from 2022 to 2032, reaching a market value of US$ 33.44 billion at the end of the aforementioned period of assessment.
Market share growth is anticipated to be fueled by rising consumer demand for vehicles with high-performance, low-maintenance, as well as affordable, long-lasting plastic coating solutions. The perception of low-maintenance cars among consumers is projected to change, and there will be a greater demand for coating solutions that are affordable.
Automobile coatings are easy to use, economical, and offer lasting solutions. By improving metallic hues on cars, these solutions also help to improve shine and aesthetic appeal, which is expected to raise the market share of automotive coatings.
Prominent Automotive Coatings Industry Growth Drivers
With manufacturers looking into materials for multi-substrate designs and producing light-weight automobiles, coating process innovation and automobile design continue to drive demand and supply trends in the automotive coatings market.
As coating is the most expensive, energy-intensive, and environmentally damaging process in the automotive industry, OEMs are constantly looking for ways to make it better while retaining quality.
Automotive coatings goliaths like PPG Industries, Axalta Coating Systems, and BASF were spurred by this to develop compact painting techniques, which are now swiftly taking over the industry in order to satisfy upcoming sustainability criteria.
Among the most widely used small car coatings methods worldwide are the B1:B2, 2-Wet, and 3-Wet processes, as well as other primer-less innovations like LCV painting and Eco Concept for autos.
Transition toward Low-maintenance Automobiles widening Growth Opportunities
Because of the shift to low-maintenance vehicles, the United States is anticipated to grow at a CAGR of 5.8% until 2032.
Customers in the region are embracing durable and high-performance coating options swiftly to shield their automobiles from rust, moisture, and rain during the region’s hard winters, which is anticipated to increase market revenue for automotive coatings.
Participants in the domestic automotive business are working swiftly to create novel, customised solutions for various car sectors. Furthermore, it is anticipated that the sector in the United States would expand due to the nation’s expanding tendency of customising historic cars. These substances are frequently used to provide base coat paint a longer lifespan and a sparkling appearance.
With an average revenue range of US$ 5 Billion-US$ 8 Billion, the top five firms in the automotive coatings industry will continue to command roughly two-fifths of the market. This also suggests a high level of consolidation in the automotive coatings industry at the apex, as opposed to a fragmented nature at the apex. Recent developments in the market are as follows:
- In January 2022, Axalta Coating Systems introduced its new Global Automotive Color of the Year 2022 series of automotive coatings- specifically the Royal Magenta series. The new coatings shade is not only designed to enhance aesthetic appeal, but also provide more robust finish, protecting automotive bodies from abiotic conditions.
- PPG Industries announced in April 2022 its decision to introduce the PPG ENVIROCRONTM P8 Series Anti-Graffiti Coating at the PaintExpo 2022. The product is a hybrid powder coating that stands up to the harshest cleaners and chemicals and is designed to leave no trace of surface damage or graffiti residues. Since it is formulated without block agents, they contain no carcinogenic, mutagenic or toxic-to-reproduction (CMR) substances commonly found in other products.
- In May 2022, automotive giant BMW announced a collaboration with BASF in order to incorporate its CathoGuard 800 ReSource e-coat at its plants in Leipzig, Germany, and Rosslyn, South Africa. Additionally, BMW also intends to leverage the company’s iGloss matt ReSource Clearcoat throughout Europe. These coatings are capable of reducing CO2 emissions in the plants by as much as 40% per coating layer, which is equivalent to more than 15,000 tons.
Key Automotive Coatings Service Providers
- Nippon Paint (USA)
- Benjamin Moore & Co.
- Behr Process Corp.
- Kansai Paint Co. Ltd.
- BASF Coatings
- Axalta Coating Systems
- Nippon Paint Holdings Co.
- RPM International Inc.
- The Sherwin-Williams Co.