Automotive Coatings Expected to Witness High Demand in Asia-Pacific Region
Automotive coatings have two major purposes – to protect the metal body from harsh environmental conditions and to improve the appearance quality. The appearance of the coating affects the perception of the consumer towards the product. The color and texture of the vehicle is highly considered during its purchase.
A flourishing automotive sector, rising automotive production across the globe, and continuous development for high-quality coatings that are able to resist high temperatures and harsh environmental conditions are some factors providing a growth prospective to the automotive coatings market. In addition, rising environmental regulations pertaining to VOC (volatile organic compounds) emissions, coupled with growing demand for coating materials that are eco-friendly are expected support the growth.
Furthermore, increasing investment for R&D activities, the presence of a large number of players and inclination towards an increase the business presence is resulting in an approach towards strategic merger and acquisition activities, which is expected to increase customer bases and enhance product portfolios.
However, stringent government regulations related to VOC emissions from paints in developed countries and raw material price volatility are some factor that are expected to pose a threat to the market growth. Moreover, the availability of various alternative coating options is expected to hinder the market growth.
Growing awareness among consumers related to eco-friendly products, manufacturers’ inclination towards the use of water-based coating materials, coupled with adoption of advanced technology that has high efficiency, minimal waste, and low operating costs are among other factors expected to further support the revenue growth of the market.
UV and powder coatings are eco-friendly materials, as they have low or no VOC emissions. Growing demand for high-quality protective coating material and wide applicability of paints in vehicle interiors and exteriors are also supporting segment growth.
Stringent government regulations related to automotive coating materials, coupled with growing demand for eco-friendly coating products from luxury car owners are some major factors driving growth in North America. In addition, the presence of major players operating in countries such as the U.S. and Canada, and the introduction of new products are expected to further support the market growth in this region. Moreover, rising environmental concern is shifting manufacturers’ focus on the development of ecological products, which is expected to increase demand for water-based coating products.
Rapid industrialization in developing countries and growing automotive sales are some major factors expected to bolster market growth in Asia-Pacific. In addition, favorable business policies and the availability of 100% FDI are attracting prominent manufacturers to shift their production facilities to developing countries, further supporting the regional market growth.
- In 2019, Akzo Nobel N.V. added three new production lines at its Changzhou powder coatings plant in China, with investment worth US$ 3.4 Mn.
- In 2018, the company acquired Swire Industrial Limited. This acquisition will strengthen the company’s position in China’s decorative paints market and also increase the flexibility to further develop the business.
Some of the major players operating in the global automotive paint and coating market include Wanda Refinish, Akzo Nobel NV, Axalta Coating Systems, KCC Corporation, PPG Industries Inc., Donglai Coating Technology, Clariant AG, and Valspar Corporation, Covestro, Cabot Corp., East.
By Acumen Research and Consulting