Global Automotive Specialty Coating Market Overview
Automotive Specialty Coating Market Size was valued at USD 3.2 Billion in 2022. The Automotive specialty coating industry is projected to grow from USD 3.3 Billion in 2023 to USD 4.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.50% during the forecast period (2023 - 2032). Increasing demand for cars, rising demand for customized finishes, Modernization of coatings techniques, environmental rules that are strict are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Specialty Coating Market Trends
Increasing demand for cars is driving the market growth
The market for automotive specialty coatings is primarily driven by the rising demand for automobiles. This phenomena is influenced by a number of elements, which also shape the market's expansion and development. Urbanization is escalating together with the growth of the world's population. The need for personal transportation rises as more people relocate to urban areas. Rising earnings and higher standards of living in emerging economies are fueling this tendency, which is more prominent there. As a result, automakers are seeing an increase in demand for their cars, which directly helps the market for automotive specialty coatings.
Consumer tastes are changing. Modern car consumers are becoming more and more concerned with appearance, uniqueness, and the entire feel of their cars. Specialty coatings, which provide several customisation choices, are essential in addressing these demands. With the use of these coatings, customers may customize their automobiles to suit their tastes by selecting from a variety of distinctive colors, textures, and finishes. The specialty coating market is expanding as a result of this personalization trend.
The rate of technological development and innovation in the automobile sector is unprecedented. Advanced driver assistance systems (ADAS), driverless vehicles, and electric vehicles (EVs) are all gaining popularity. In order to guarantee the operation and endurance of various automotive components, these advancements call for specialist coatings. For instance, coatings are required for heat management and protection in EV battery enclosures. This change in technology opens up new possibilities for speciality coatings.
Automakers are looking for eco-friendly solutions, such as coatings with low volatile organic compounds (VOCs) and reduced environmental impact, as environmental concerns and regulations get stricter. In keeping with the general movement toward more environmentally friendly vehicle manufacturing, specialty coatings are satisfying these requirements by providing water-based and sustainable alternatives. Thus, driving the automotive specialty coating market revenue.
Automotive Specialty Coating Market Segment Insights
Automotive Specialty Coating Application Insights
The automotive specialty coating market segmentation, based on application, includes engine exhaust, interior, transmission and wheels. The transmission segment dominated the market in 2022. Transmission parts include coatings to prevent heat, corrosion, and wear, extending the life of these vital parts. Transmissions that last longer cost car owners less to maintain.
Automotive Specialty Coating Technology Insights
The automotive specialty coating market segmentation, based on technology, includes solvent-borne, water-borne and powder. The solvent-borne category generated the most income in 2022. Solvent-borne coatings have traditionally been known for their exceptional performance characteristics, such as excellent adhesion, durability, and resistance to extreme weather conditions, chemicals, and UV radiation. These qualities make them preferred choices for applications where performance is critical, such as for automotive exteriors and underbody protection.
Figure 1: Automotive Specialty Coating Market, by Technology, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Specialty Coating Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Automotive Specialty Coating Market dominated this market in 2022 (45.80%). The implementation of stringent environmental rules aimed at decreasing volatile organic compounds (VOCs) and hazardous emissions from coatings has been led by North America, in particular the United States and Canada. The demand for low-VOC and environmentally friendly speciality coatings has increased as a result of the Clean Air Act in the United States and legislation of a similar nature in Canada. Automakers and suppliers are under pressure to use coatings that reduce their environmental impact as consumers become more environmentally aware. Further, the U.S. Automotive specialty coating market held the largest market share, and the Canada Automotive specialty coating market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: AUTOMOTIVE SPECIALTY COATING MARKET SHARE BY REGION 2022 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Automotive specialty coating market accounts for the second-largest market share. Consumers in Europe are becoming more aware of environmental challenges, which is why shopping decisions must take sustainability into account. This consumer demand encourages automakers to implement environmentally friendly procedures, such as using coatings with minimal effects on the environment. The European market has been further shaped by the innovation it has sparked in environmentally friendly specialty coatings. Further, the German Automotive specialty coating market held the largest market share, and the UK Automotive specialty coating market was the fastest growing market in the European region.
The Asia-Pacific Automotive Specialty Coating Market is expected to grow at the fastest CAGR from 2023 to 2032. A rapidly expanding middle class and increasing urbanization in the Asia Pacific area have increased car ownership. As more people join the ranks of car owners, customers' expectations for better quality and more aesthetically pleasing design increase. Specialty coatings are crucial in meeting consumer demands for vehicles that not only provide mobility but also exhibit their own tastes and sense of style. Moreover, China’s automotive specialty coating market held the largest market share, and the Indian Automotive specialty coating market was the fastest growing market in the Asia-Pacific region.
Automotive Specialty Coating Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive specialty coating 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 specialty coating 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 specialty coating industry to benefit clients and increase the market sector. In recent years, the automotive specialty coating industry has offered some of the most significant advantages to medicine. Major players in the Automotive specialty coating market, including Kansai (Japan), Sherwin Williams (US), Covestro (Germany), KCC (South Korea), Nippon Paint (Japan), PPG (US), Axalta (US), BASF (Germany), AkzoNobel (Netherlands), DOW Chemical (US), Solvay (Belgium) and others, are attempting to increase market demand by investing in research and development operations.
Kansai Electric Power Co Inc (KEPCo) is an integrated power utility. Along with purchasing and selling natural gas, it also produces and distributes thermal energy. The company uses a range of fuels to produce power, including solar, wind, hydro, nuclear, oil, and natural gas. KEPCo purchases liquefied natural gas via long-, medium-, and short-term contracts, spot procurement agreements, and other kinds of deals. Following processing, liquefied natural gas is delivered to customers via pipeline networks. Additionally, it provides IT and communications services to both residential and commercial users, including optical telephone, optical internet, and optical television. In addition to other services, KEPCo provides staffing, home security, nursing care, and business solutions. The corporation offers power to consumers, utility providers, and non-utility enterprises in the Kansai and capital areas. The corporate headquarters of Kansai Electric Power Co Inc. are located in Osaka, Japan.
Sherwin-Williams Co. (Sherwin-Williams) manufactures and distributes paints, coatings, and related products. It provides equipment, floor covering materials, architectural paints, coatings, and varnishes. Customers in the commercial, retail, industrial, professional, and industrial sectors can purchase the company's products. Several various brand names, including Sherwin-Williams, Dutch Boy, Krylon, Minwax, Thompson's Water Seal, and others, are used by Sherwin-Williams to market its products. It advertises and sells the products through its own facilities, merchandisers, independent paint dealers, hardware stores, home centers, auto retailers, and industrial distributors. The company has operations in North America, South America, the Middle East, Asia-Pacific, Europe, and Central America. The company's corporate offices are in Cleveland, Ohio, in the US.
Key Companies in the automotive specialty coating market include
Sherwin Williams (US)
KCC (South Korea)
Nippon Paint (Japan)
DOW Chemical (US)
Automotive Specialty Coating Industry Developments
August 2022: For the Latin American vehicle refinishing market, Cromax Gen, the next-generation basecoat technology from Axalta Coating Systems Ltd., was introduced. The innovative product helped body shops become more productive and cost-effective.
July 2022: The wheel liquid coatings division of Lankwitzer Lackfabrik GmbH was bought by Akzo Nobel N.V. The acquisition agreement boosted the company's selection of performance coatings.
Automotive Specialty Coating Market Segmentation
Automotive Specialty Coating Application Outlook
Automotive Specialty Coating Technology Outlook
Automotive Specialty Coating Regional Outlook
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Latin America
|Market Size 2022
||USD 3.2 Billion
|Market Size 2023
||USD 3.3 Billion
|Market Size 2032
||USD 4.3 Billion
|Compound Annual Growth Rate (CAGR)
|Market Forecast Period
|Market Forecast Units
||Value (USD Billion)
||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
||Application, Technology, and Region
||North America, Europe, Asia Pacific, and the Rest of the World
||The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
|Key Companies Profiled
||Kansai (Japan), Sherwin Williams (US), Covestro (Germany), KCC (South Korea), Nippon Paint (Japan), PPG (US), Axalta (US), BASF (Germany), AkzoNobel (Netherlands), DOW Chemical (US), Solvay (Belgium).
|Key Market Opportunities
||Increasing acceptance of electric vehicles.
|Key Market Dynamics
||Growing adoption of advanced driver assistance systems (ADAS)
Frequently Asked Questions (FAQ) :
The automotive specialty coating market size was valued at USD 3.2 Billion in 2022.
The market is projected to grow at a CAGR of 3.50% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are Kansai (Japan), Sherwin Williams (US), Covestro (Germany), KCC (South Korea), Nippon Paint (Japan), PPG (US), Axalta (US), BASF (Germany), AkzoNobel (Netherlands), DOW Chemical (US), Solvay (Belgium).
The Transmission category dominated the market in 2022.
The Solvent-borne had the largest share in the market.
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