The automotive refinish coatings market is expected to reach a value of $11.3 billion by 2030 with a CAGR of around 6.6%.
Automotive Refinish Coatings Market Overview
The automotive refinish coatings market is expected to gain a market value of USD 13 billion by 2030 at a CAGR of 6.2% from 2022-2030.
Automotive refinish coatings are particular types of paint used to refinish or repair the paint job on a vehicle. These coatings can be either water-based or solvent-based. Professional automotive body shops usually apply these coatings. Water-based automotive refinish coatings are becoming more popular because they are more eco-friendly than solvent-based coatings.
The automotive refinish coatings market has become very prominent in recent years. The automotive industry is one of the biggest industries in the world. Hence, its demand for high-quality protection against corrosion comes under a massive scope for the automotive refinish coating market over the long term. The rise of this market has led to many new car manufacturers providing different and unique models each year. Firms also tend to design and produce eco-friendly models while simultaneously providing affordable car prices. The development of the automotive industry has also been a significant reason for the rise in car demand. According to the IBEF, the Indian passenger car market is expected to reach USD 54.84 billion by 2027.
The COVID-19 pandemic has negatively impacted the automotive refinish coatings market. Due to the imposed lockdowns, the need for automotive was reduced, and the supply of automotive coatings decreased quickly because of the shortages in personnel and accumulated stocks. Post-COVID-19, the demand is expected to increase as various companies operate in normal conditions as the world returns to its normal state. Right now, there is an increase in demand for electric cars. It is expected that the automotive refinish coatings market will bounce back from the covid losses.
Competitive LandscapeThe competitive landscape in terms of the automotive refinish coatings market has been immense and nail-biting with new players easily entering the market and the existing players making huge investments in this segment.
The key players in the market are more focused on developing future strategies and set themselves as joint ventures to increase the automotive refinish coatings market share and size.
The automotive refinish coatings market has been experiencing a diversified growth in all segments and across different regions due to the rising populations and the increasing per capita incomes of people which has shifted the demands of people to highly sophisticated and technologically advanced products and equipment which have acted as a motivating factor to the automotive refinish coatings market.
Secondly, the automotive refinish coatings industry has been experiencing a boom in its activities due to specialized properties of automotive refinish coatings such as high durability, resistance, glossy, heat and weather resistant, less corrosive, and highly aesthetic which has shifted the demands of the consumers towards such coatings and designs.
Also the emerging automotive refinish coatings market trends and the demand for improved infrastructural facilities, logistics, etc have driven the automotive refinish coatings market to directly produce end-use products for fulfillment of needs of such industries. Rapid technological advancement and government policies have also played a major role in such development.
The overall growth in the automotive refinish coatings market has been expediently rising but certain factors hinder the growth process of the market which include large sums of money to be invested initially in setting up of automotive refinish coatings companies and thus it restricts various new players to enter the markets.
Another key factor that acts as a barrier towards an increase in automotive refinish coatings market share is the availability of cheap and a variety of substitutes in the market which shifts the demands of the consumers towards these substitutes and reduces demand for the automotive refinish coatings and their by-products.
Another key restraint that has been observed off late is the fluctuating prices of the raw materials which creates a negative impression and impact in the minds of the manufacturers as rising prices would restrict them to produce at a large scale and thus affect the demand-supply relationship adversely.
In terms of technology, solvent-borne technology witnesses slow growth owing to stringent rules and regulations related to VOC emission fuels. However, recent innovations and research and developments have led to high solid formulations along with high resistance, reduced emissions, and high quality finishes thereby increasing the number of applications and use in a variety of luxury cars.
The UV cured technology is a rapidly developing technology and accounts for a good portion of the total automotive refinish coatings market revenue since innovations made in this regard have provided benefits of fast cure time, benefits of competitive cost, and lucrative finish to the automotive. Further, increasing the use of this technology in clear coats and primers will increase the demand for such technology in automobiles.
Segment Overview: The automotive refinish coatings market has been segmented as followsBy Product Type
Regional AnalysisThe global automotive refinish coatings market has been divided into five regions where each region has been contributing significantly in terms of its capabilities and population demands. However, among the five regions, the Asia Pacific region has been accounting for the major automotive refinish coatings market share whereby the key drivers towards the growth of the automotive refinish coatings industry are developed here, and the population seems to be quite interested in the innovations in terms of new products in the market.
The major automotive refinish coatings market revenue is expected to come from countries like China, Japan, Korea, and India. The automotive refinish coatings statistics indicate that the population along with the disposable incomes of people of these countries has been increasing which has led to shifts in lifestyles and changing demands.
The European region has also been experiencing major growth with contributions coming from developed nations such as France, Germany, Denmark, Belgium, etc. . The North American region is also experiencing vast growth in automotive refinish coatings market shares as the countries in this region have been reaping the benefits of technology thereby maximizing the level of operations and reducing operational cost.
The Global report helps the investors to gain meaningful information about the automotive refinish coatings market and make decisions wisely. The report discusses the steps taken by the automotive refinish coatings market leaders to boost the market growth and inflate market valuation for their good. The report fully summarises the ongoing market scenario in the automotive refinish coatings market which would help the intended audience to seek more information about the market. The objective of the report was to fully summarise the key players in the market and their role in boosting the automotive refinish coatings market value. The report also discusses the future growth prospects and the competitive landscape in the automotive refinish coatings industry and lays down the expected growth rate of the market along with the hindrances it may face.
|Market Size||2030: USD 11.3 billion|
|CAGR||2030: 6.6% CAGR|
|Forecast Period||2021 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Product Type, Technology, Resin, Vehicle Type & Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||KCC Corporation (South Korea), BASF SE (Germany), Mitsui Chemicals, Inc. (Japan), PPG Industries, Inc. (US), Nippon Paint (Japan), KAPCI Coatings (Egypt), The Valspar Corporation. (US), The Sherwin-Williams Company (US), 3M (US), Akzo Nobel N.V (The Netherlands), Kansai Paint Co., Ltd (Japan), Covestro AG (Germany), Esdee Paints Limited (India), Axalta Coating Systems, LLC (US), The Lubrizol Corporation (US) and Berger Paints India Limited (India).|
|Key Market Opportunities||The development of technologies such as UV-cured and waterborne along with the expansion of the used car markets is expected to boost the market|
|Key Market Drivers||The rising number of vehicle collisions also have considerably increased the demand for automotive refinish coatings.|
The expected growth rate of the automotive refinish coatings market is estimated to be 6.6% by 2030.
The key manufacturers who hold a dominant position in the automotive refinish coatings market are KCC Corporation (South Korea), BASF SE (Germany), Mitsui Chemicals, Inc. (Japan) , PPG Industries, Inc. (US), Nippon Paint (Japan), and KAPCI Coatings (Egypt).
The segment by technology is expected to provide maximum growth due to its wide applications and uses in a variety of manufacturing processes.
The Asia-Pacific region is expected to have a high growth rate and market share in the automotive refinish coatings market.