BRAMPTON, Ontario – According to a new market study, the global automotive coatings market is estimated to grow from $17.82 billion in 2019 to $27.64 billion by 2027, increasing at a compound annual growth rate (CAGR) of 5.7% during the forecast period of 2020-2027. The report, Automotive Coatings Market by Technology, by Resin, by Product, by End Use OEM and by Region: Global Industry Trends, Dynamics, Competitive Insights and Forecast Analysis, 2021–2028, is published by ReportCrux Market Research.
Based on technology, the market is segmented into waterborne, solventborne and UV–cured technologies. The report predicts that waterborne technology will grow with the fastest CAGR of 6.8% during the forecast period of 2020 to 2027.
Based on resin type, the market is segmented into polyurethane, acrylic, epoxy and others. According to the study, the polyurethane segment dominated the market by about 36.12% in 2019, due to the rising use of polyurethane in topcoats. Greater flexibility along with high impact, corrosion and heat resistance make this resin the most suitable for its use in basecoats and clearcoats, making this segment the most dominant in the market.
Based on product type, the market is segmented into primer, basecoat, electrocoat and clearcoat. The clearcoat segment had the largest share of the market in 2019 or 34.8%, while the reports expects the basecoat segment to grow at the fastest CAGR of 6.5% during the forecast period.
By end-use, the market is segmented into commercial OEM, light vehicle OEM and automotive refinish. Light vehicle OEM dominated the market in 2019, acquiring about 42.9% of the global market, and is likely to keep dominating the market in the upcoming years. Rising demand for passenger cars in the developing countries, such as Thailand, Singapore, China, India and Brazil, is expected to boost the growth of this segment. Additionally, increasing per capita income and rapid urbanization and population growth are adding to market growth. The report predicts that the automotive refinish segment will grow at the fastest CAGR of 6.8% during the forecast years of 2020 to 2027.
At a regional level, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa. North America was the dominant regional market in 2019, with a revenue share of about 46.8%, whereas the Asia-Pacific market is expected to grow at the fastest pace with a CAGR of 6.4% during the forecast period. Countries such as Thailand, Indonesia, India, South Korea and China are experiencing a gradual rise in the use of automotive coatings. China, due to rising purchasing power and a high economic growth rate, is expected to remain the largest market in the Asia-Pacific region during the forecast period. A global production capacity shift from the developed regions to the developing countries is expected to enhance further growth.