Automotive Appearance Chemicals Market

Rising sales of EV is driving the market growth

Due to increased environmental awareness and the necessity to meet future energy needs, the EV industry saw substantial development. The requirement for sustainable mobility significantly influences the demand for EV. Compared to the total number of EVs sold during the first half of 2018, around 1.1 million sold ly in the first half of 2019. This represents a 46% increase. Compared to the first half of 2018, the first half of 2019 saw a rise in EV sales of 22% in the US, 66% in China, and 35% in Europe.

Around 2.1 million EVs were sold ly in 2018, up 64% of the units sold in 2017. The governments of several nations have enacted supportive policies for the use of electric vehicles and the development of the industry supporting them. The automotive appearance chemicals market is anticipated to increase as a result of rising energy costs and competition among innovative energy efficiency technologies. The market introduction of more EVs has been the subject of numerous plans and schedules from automakers in recent years. Toyota stated that by 2025, electric vehicles would account for half of its sales.

Additionally, the business will collaborate with Chinese battery producers. By 2023, Volkswagen claims to have invested more than USD 30 billion in the development of EVs. By 2030, the firm wants 40% of its fleet to be electric vehicles. Thus, the automotive appearance chemicals market CAGR is anticipated to grow with the rise in electric vehicle sales.

Furthermore, the demand for rental automobiles is anticipated to rise during the forecast period due to the increasing travel and tourism industry growth. The automobile rental services will also be driven by the expanding urban population, who are also becoming more adventurous and interested in travel. Governments in both developed and emerging markets strongly emphasize reducing vehicle emissions and promoting car rentals as one of the most economical ways of transportation.

The market for automotive appearance chemicals is expected to be driven by a number of other reasons, including the accessibility of these services through websites and mobile applications and the rising disposable income of people. Vehicle upkeep and servicing are key factors in determining rental rates as the car rental industry expands. The employment of AAACs to clean, safeguard, and fortify vehicle structures for end-use is expected to propel market expansion. Thus, driving the automotive appearance chemicals market revenue.

The Global Automotive Appearance Chemicals Market Industry is experiencing growth driven by the increasing production of vehicles worldwide. In 2024, the global automotive production is projected to reach approximately 30.4 million units, leading to a heightened demand for appearance chemicals such as waxes, polishes, and coatings. This surge in vehicle manufacturing not only enhances the market for automotive appearance chemicals but also encourages innovation in product formulations to meet evolving consumer preferences. As manufacturers strive to improve vehicle aesthetics, the market is likely to expand further, indicating a robust trajectory for the Global Automotive Appearance Chemicals Market Industry.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific automotive appearance chemicals market area will dominate this market. The number of young adults and people in the workforce who buy old cars is increasing in nations like China and India. The demand for automotive appearance chemicals in the cars application category is anticipated to increase over the forecast period due to the growing demand for automobiles.

In addition, the demand for LCVs and HCVs is anticipated to increase due to the growing need for vehicles that can move commodities from one location to another.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  AUTOMOTIVE APPEARANCE CHEMICALS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe automotive appearance chemicals market accounts for the second-largest market share. Over the projected period, rising consumer demand for automotive appearance chemicals in nations like Germany is anticipated to fuel market expansion. Due to the extensive production of luxury and other types of passenger automobiles, the market for automotive appearance chemicals is growing in the area. Further, the German automotive appearance chemicals market held the largest market share, and the UK automotive appearance chemicals market was the fastest growing market in the European region

North America Automotive appearance chemicals Market is expected to grow at the fastest CAGR from 2023 to 2032. This is attributable to rising auto sales and drivers' desire to customize their automobiles. The rights of consumers to drive decorated, customized, and influential figures in the nation vigorously defend vintage vehicles. For anyone who appreciates automobiles and trucks to oppose proposed laws that would harm their passion and support legislation that is advantageous to vehicle fans, the Specialty Equipment Market Association (SEMA) keeps tabs on lawmakers in Washington, D.C., as well as each state in the USA.

Moreover, US automotive appearance chemicals market held the largest market share, and the Canada automotive appearance chemicals market was the fastest growing market in the region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive appearance chemicals market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automotive appearance chemicals industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the automotive appearance chemicals industry to benefit clients and increase the market sector. In recent years, the automotive appearance chemicals industry has offered some of the most significant advantages to market.

Major players in the automotive appearance chemicals market attempting to increase market demand by investing in research and development operations include 3M (US), The Dow Chemical Company (US), Meguiar's (US), Permatex (US), Malco Products Inc (US), Terra Silikon Teknolojileri ve Kimya (Turkey), Nuvite Chemical Compounds (US), General Chemical Corp (US) and Blue Ribbon Inc (US).

A material science corporation is Dow Inc (Dow). The Dow Chemical Co (TDCC), a completely owned subsidiary of the firm, manages its operations. The company's product line consists of silicones, industrial intermediates, coatings, silicones, and performance materials. Customers in the packaging, infrastructure, mobility, and consumer care categories can choose from a variety of the company's products and solutions. Home and personal care, durable goods, adhesives and sealants, coatings, food and specialty packaging are just a few industries where Dow's products are used.

Specialty chemicals have been provided by General Chemical Corp. since 1980 to help customers all over the world solve manufacturing-related issues. It specializes in: Paint strippers for various substrates, General Foundry Chemicals, Soldering Fluxes for Copper Brass Radiator Plants and Cast Strap Battery Plants, Lubricants for Metal Working Processes, Cleaners for Household and Industrial Uses, Specialty Protective Coatings for the Construction Industry and Paint/Spray Booth Maintenance Chemicals.