Every car owner is concerned about the appearance and health of their vehicle, however after time, the OEMs' original coating starts to fade, resulting in a drab appearance. Additionally, the topcoat may become harmed from collision and impact, necessitating repair. Automotive refinish coatings are paint and coatings that auto mechanics and body shops use to give the car a new look and provide protection from corrosion and rust. The frequency of repairs, accident rates, and the collective number of vehicles all influence the dynamics of the automotive refinish coatings market.

While recent years have witnessed a bit of a slowdown in the growth of the automotive sector, the value produced by body shops and repair facilities has increased significantly. Advanced Driver Assistance Systems (ADAS), laws governing traffic safety, and an increase in the price of locally produced vehicle parts all contribute to the growth, which illustrates the market for automotive refinish coatings' potential for expansion.

The trend of personalizing and customizing products is widespread, and the automotive sector has experienced a significant increase in demand for customized cars. Refinish coatings are used by customers to customize the appearance of the car. Additionally, many buyers look to personalize the car finish following accidents in order to keep the car's resale value high. The market for automobile refinishes coatings is thus growing as a result of such customized procedures.

The market for aftermarket refinishes coatings is being driven by an increase in passenger car sales, particularly of luxury and executive vehicles, which has been caused by an increase in people's per capita income. Nowadays, car owners place more emphasis on vehicle maintenance, which has raised investments in vehicle insurance that, among other things, covers body shop paint, and coatings and repair charges. Between 2016 and 2020, there was an increase in car production, which helped to provide the right conditions for the market to grow. A milestone of 70.5 million passenger automobiles were produced in 2018, up from the total of 68.5 million in 2015, which increased at a roughly 2.9% annual rate.

Additionally, production of all types of cars was estimated at 90.8 million units in 2015 and increased by an average of 5.3% per year from 2015 to 2018 to reach a total of 95.6 million units in 2018. Sales of automobile refinish coatings were previously propelled by the impressive expansion in the fleet of vehicles.

The tendency is anticipated to endure, particularly if automotive production picks up after COVID-19. The market for automotive refinish coatings will have growth opportunities due to the rising demand for personal vehicles in emerging economies. Consumers are being prompted by rising environmental concerns to favor eco-friendly goods over traditional goods. Government restrictions on the use of certain environmentally harmful materials have also caused a movement in the market's consumer base toward eco-friendly refinish coatings.

Automotive Refinish Coatings Market Overview

One of the largest industries in the world is the automotive sector. Thus, the market for automotive refinish coatings has enormous potential in the long run due to its demand for high-quality corrosion protection. Due to the growth of this sector, numerous new automakers now provide a variety of distinctive models every year. Additionally, businesses frequently create eco-friendly models and charge reasonable costs for their vehicles. The growth of the automotive sector has also been a key factor in the increase in demand for cars. The Indian passenger automobile industry is anticipated to grow to USD 54.84 billion by 2027, according to the IBEF.

The market for automotive refinish coatings has been badly affected by the COVID-19 outbreak. The imposed lockdowns diminished the demand for automotive, and the supply of automotive coatings declined swiftly as a result of staff shortages and stockpiles. Following COVID-19, demand is anticipated to rise as businesses resume normal operations and the global environment returns to normal. Demand for electric vehicles is currently rising. The automotive refinish coatings market is anticipated to recover from the COVID losses. The automotive refinish coatings market size was USD 9.94 billion in 2021 and is expected to register a revenue CAGR of 4.3% during the forecast period, according to Reports and Data.

The consumer demand for highly sophisticated and technologically advanced goods and equipment has changed as a result of rising per capita incomes and population density, and the automotive refinish coatings market has been expanding in a number of ways across all segments and geographical locations. Second, the demand for these coatings and designs has increased due to the specialized properties of automotive refinish coatings, such as high durability, gloss, heat- and weather-resistance, less corrosive, and high aesthetics. As a result, the industry has seen a boom in its operations.

Additionally, the market for automotive refinish coatings has been compelled to produce directly for end users in order to meet demand due to new trends in the industry and the need for better infrastructure, logistics, etc. Government policy and the quick growth of technology have both been very important in this evolution.