Automotive Paint and Coatings Market Set to Grow “Exponentially”
According to a recent report from Global Market Insights, the global automotive paints and coatings market will rise exponentially from 2019 to 2025.
This increase is expected to be augmented by a rising number of refurbishment and repair activities due to continuously increasing vehicle damage resulting from crashes and minor scrapes, along with the customer’s desire to restore the vehicle to its original working condition and appearance.
Fuelling this trend has been an increase in disposable income around the globe, which is swelling the demand for cars and trucks.
This trend is expected to offer lucrative growth opportunities to businesses operating in the automotive paints and coatings marketplace. Automotive paint products are designed to facilitate protection to the vehicle from corrosion as well as enhancing the need for finishing products and services, supplementing global demand.
According to the report, consistent R&D and technological advancements in the automotive sector have complemented innovations in automotive coating products. Additionally, the increased adoption of stringent regulations regarding the use of sustainable ingredients aimed at minimizing the VOC content in refinish products is also expected to amplify paints & coatings market share.
Additional trends fuelling the growth in market share of the automotive paint and coatings sector are the availability of several vehicle model options at different price ranges, along with simplified vehicle financing options and seasonal discounts provided by OEMs.
Furthermore, innovations in passenger vehicles such as the introduction of environment-friendly electrified “green” cars and the launch of driverless vehicles are expected to positively influence market demand.
The report notes that several key players are venturing into the automotive paint and coatings market such as BNB coatings, a subsidiary of Berger Paints, which entered the car painting industry in 2016.
In terms of technology, water-borne paints represent increasing significance for the global automotive paints and coatings market outlook. Reduced toxic material content and strict rules regarding reducing VOC emissions are seen as pivotal factors influencing the demand for these products. Additionally, the need to comply with stringent emission laws and indoor air quality standards along with high corrosion resistance and enhanced durability is expected to significantly support the growth in product demand between 2019-2025.
Regionally, Europe is expected to evolve as one of the most significant regional markets for automotive paints and coatings in the coming years mainly due to stringent regulations regarding vehicle paints. The minimal usage of VOC based paints and innovations in waterborne paints and coatings will considerably impact the development and adoption of auto paint and coating products.
On an additional note, the widespread prevalence of automobile OEMs offering a plethora of car options with diversified paint schemes at different costs will also bolster the demand for passenger cars and light commercial vehicles, fuelling the market forecast. Prominent key players underscoring the industry’s competitive dynamics include PPG Industries Inc., BASF SE, Nippon Paints Holdings, Covestro, Eastman and Dupont, among others.
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