OCEAN VIEW, DE - According to a report by research company Global Market Insights, the size of the global automotive coatings market was estimated at more than 3.7 million tons in 2014 and is likely to exceed 5.5 million tons by 2022, with a growth rate of above 4.8%.
Rising consumer preference for vehicle protection against factors such as UV radiation, foreign particles, acid rain and extreme temperature variation is likely to drive automotive coatings market size.
Increasing government infrastructure spending in countries such as India and China, coupled with growing demand for personal convenience, is likely to drive automotive coatings market share. China and India infrastructure spending was about $421 billion and $149 billion respectively in 2012.
Passenger and commercial vehicle sales in China were over 22 million units in 2014, while vehicle production in India stood close to four million units in the same year. An increase in vehicle production is also likely to take place in countries such as Indonesia and Thailand owing to government subsidies and low labor wages. Tight raw material supply and a dynamic regulatory scenario might result in an upswing in the prices for automotive coatings.
Stringent environmental regulations regarding VOCs from solvenborne technology in Europe and North America are anticipated to pave the way for eco-friendly automotive coatings such as waterborne, powder and UV-cured. Waterborne coatings are widely preferred in the automotive industry due to their flexibility, stain and corrosion resistance, hardness, and adhesion.
Raw material price fluctuation is likely to impact overall profitability. Technology innovation for improving product performance coupled with lower manufacturing costs are anticipated to provide new growth avenues and increased profitability.
Solventborne technology was dominant, with a value exceeding $7.8 billion in 2014. This technology is likely to witness a slow growth rate due to stringent VOC regulations. Waterborne automotive coatings accounted for over 35% of the total demand in 2014 and are likely to witness significant growth rate at above 5% from 2015 to 2022. Demand for waterborne coatings is likely to increase over the forecast period owing to factors such as air emission reduction, low flammability and less toxicity.
Basecoat finish was valued at $8 billion in 2014. These finishes are likely to witness high growth rates over the forecast period. Electrocoat accounted for over 22% of the total volume in 2014 and is likely to witness gains at above 4.5% from 2015 to 2022.
Coatings applied to metal had a value exceeding $13 billion in 2014, with automotive coatings for plastic accounting for more than 27% of the total demand in 2014. These coatings are likely to witness significant gains. The use of plastics for lightweight vehicle production in order to curb emissions and increase fuel efficiency is likely to drive demand.
The OEM coatings market was worth over $7.5 billion in 2014 and is likely to witness high growth during the forecast period owing to growing demand for cars. Automotive refinish accounted for more than 35% of the total demand in 2014 and is likely to witness gains at over 4.5% up to 2022.
APAC, driven by China, was the largest market for automotive coatings during the analysis period. The automotive coatings market in China was worth more than $4 billion in 2014. Expansion of road networks in China and the government’s commitment to infrastructure improvement are expected to increase vehicles sales in the region.
Latin America, driven mainly by Brazil, is likely to witness significant gains in demand for automotive coatings. Automotive coatings demand in Brazil was over 110 kilo tons in 2014 and is likely to grow at over 5% up to 2022.
For additional information about the report, Automotive Coatings Market Size By End-Use (Commercial OEM, Automotive Refinish, Light Vehicle OEM), By Application (Plastic, Metal), By Technology (Solventborne, Waterborne, UV-Cured, Powder Coatings), By Product (Electrocoat, Primer, Clearcoat, Basecoat), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2015 – 2022, visit www.gminsights.com.