The global automotive refinish coatings market is expected to reach USD 11.34 Billion by 2026, according to a new report by Reports and Data. This can be mainly contributed by the increasing disposable incomes and changing lifestyle, growth of automotive industry, rise of environment friendly coating technologies and increasing demand for UV-curable coating and nanocoating.
Increasing number of registered cases of accidents thanks to increased road congestion, rapid adoption of technologies and rising disposable income among the average income population in the developing economies are boosting the market growth. Asia-Pacific is the key market for these coatings as the automotive industry experiences growth, and demand for car sharing, ride hailing services in the region.
Volatile costs of raw materials and stringent regulations regarding various VOC-containing products are the factors hindering the growth of the market.
Salient Trends of the Automotive Refinish Coatings Market
- Automotive refinish coatings market is expected to grow at a CAGR of 3.8% in terms of value and is forecasted to reach USD 11.34 Billion in 2026.
- The increasing disposable incomes and changing lifestyle of people, and the demand for luxury vehicles from the segment is the major factor influencing market growth.
- The market is growing in Asia-Pacific, particularly in India and China, due to growing automotive industry, traffic congestion, resulting to the rise in the number of registered cases of accidents.
- Polyurethane automotive refinish coatings influence the growth of the market, since it offers a variety of color options, and a glossy appearance.
- The North American region, particularly the US, is forecasted to grow due to the rising demand for passenger vehicles.
- The European region is forecasted to grow due to the presence of a large number of automotive manufacturers in the region.
- Developments and innovations in coatings, such as high-tech eco-friendly coating materials having low solvent content is another factor fueling the growth of the market.
- The use of VOC-containing products, releases VOCs causing air pollution and smog, to improve the same, governments of many countries have implemented a series of control measures.
- The valuation for automotive refinish coatings market was USD 8.39 Billion in 2018 and it is forecasted to reach USD 11.34 Billion by 2026.
- The market is segmented on the basis of resin type into epoxy, alkyd, polyurethane, others.
- The polyurethane segment dominated the market in 2018, and is forecasted to grow at a CAGR of 2.2% during the forecast period.
- The market is segmented on the basis of product into primer, basecoat, clear coat, activator, filler & putty.
- Clear coats hold the largest share of the market in 2018. It is expected to have a growth rate of 3.4% during the forecast period.
- Primer is forecasted to witness the fasted growth, of 4.2% during the forecast period, since primer is the base of any paint that is needed to be applied before applying coatings.
- The market is segmented on the basis of technology into solvent-borne coatings, water-borne coatings, UV-cured coatings.
- Solvent-borne coatings hold the largest share in the market in 2018 with a CAGR of 2.9% during the forecast period, the reason being its cost effectiveness as compared to other technologies.
- Water-borne coatings is forecasted to witness the fasted growth, of 4.4% during the forecast period, due to stringent government regulations and policies regarding environmental friendly coating technologies.
- Metal substrates segment have the largest market share in 2018, and is expected to lead the segment throughout the forecast period with an annual growth rate of 3.8%.
- The market is segmented on the basis of applications into commercial vehicles, passenger vehicles, and two wheelers.
- The passenger vehicles segment had the largest share of ~43% of the market in 2018, in terms of revenue.
- The demand is expected to increase because of rise in disposable income among the population in developing economies, thus increasing the sale of automobiles over these countries.
- Asia Pacific region dominated the industry in 2018 and is expected to remain dominant over the forecast period, at a CAGR of 3.4%.