LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global automotive paints and coatings market to grow at a CAGR of almost 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global automotive paints and coatings market for 2017-2021. To calculate the market size, the report considers sales generated from paints and coatings used in the original equipment manufacturer (OEM) and automotive refinish sectors of the automotive industry.
The global automotive paints and coatings market caters to the two main functions of the automotive segment: decoration and protection. The demand and popularity of an automotive product are highly dependent on the quality and durability of the paint. The automotive OEMs and automotive refinishers use the paints and coatings. The coatings are provided in five phases: pre-treatment phase, e-coat, primer, basecoat, and clearcoat. From all these layers, the basecoat has the largest market share, and it contains the coloring part of the coating.
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Technavio chemicals and materials analysts highlight the following three factors that are contributing to the growth of the global automotive paints and coatings market:
- Coatings specifically for fuel-efficient automotive
- Increasing demand for innovative and specialty products
- Rapid expansion of automotive industry in APAC
Coatings specifically for fuel-efficient automotive
The number of laws and regulation regarding the reduction of emission of carbon dioxide from the automobiles is on the rise. The Kyoto protocol restricts the emission of carbon dioxide and other greenhouse gasses into the atmosphere. With the emission norms becoming stricter every passing day, there is a rise in demand for the lightweight materials like plastics in paints.
Swapnil Tejveer Sharma, a lead paints, coatings, and pigments analyst at Technavio, says, “The application of plastic-based paints in automobile components can help to achieve the necessary emission requirements and increase the vehicular efficiency. The reduction in vehicular weight is highly necessary, and there is a range of new low-density paints and coatings that can be considered for the automotive industry.”
Increasing demand for innovative and specialty products
Automotive OEMs are increasingly focusing on cost-reduction strategies, which include procurement of products at low costs and enhancing manufacturing efficiency. Market vendors coordinate closely with automakers to develop customized solutions that differentiate their products. Automotive OEMs are looking toward the procurement of coatings that reduce downtime by curing in a shorter span of time.
“Several product lines for coating segments such as electro coats, basecoats, primers, and clear coats along with different product technologies such as UV-curable and nanotechnology-based paints and coatings are introduced,” adds Swapnil.
Rapid expansion of automotive industry in APAC
APAC is estimated to be the largest market in terms of volume for the segment of light and medium weight vehicles. This region accounts for more than 50% of the global market share. China being the leading country in the automotive sector, ranked by sales in the new vehicle market. Production is growing at a rapid rate because of the high demand. It is mainly due to the enhancement of income of the middle-class consumer in China as well as other APAC countries.
The market trends show that it is not just the Chinese consumers who have an ascendency, but the growing impact of the Association of Southeast Asian Nations and other APAC countries is also huge. Already the countries of the Association of Southeast Asian Nations such as Thailand are key regional players. Other newcomers such as Vietnam and Indonesia are competing to grab the automotive market due to the recent increase in Chinese labor cost.
Top vendors:
- Axalta Coating Systems
- BASF
- Kansai Paint
- Nippon Paint Holdings
- PPG Industries
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