Potential of Automotive-Related Coatings in Eastern Europe

Figure 1

IRL has published a new title for the industrial coatings sector - Potential of Automotive-Related Coatings in Eastern Europe. This new study covers eight key automotive-producing economies in Eastern Europe and examines the markets of automotive OEM coatings, automotive refinishes, powder coatings and coatings for plastics in each.

The total market for these coatings, including non-automotive applications, is estimated at 278,000 tonnes across the eight countries, and is split as shown in Figure 1.

Total demand in 2010 is expected to reach 478,000 tonnes, equivalent to an average growth of 12% pa. In fact, automotive OEM coatings, powder coatings and coatings for plastics will grow on average by about 12-14% pa, with refinish growth trailing slightly at about 9% pa.

From the individual markets we note the -following:

The automotive OEM coatings market will show strong growth as a result of the automotive industry exporting to Western Europe. Russia is by far the most attractive economy for this but the location of the Czech and Slovak Republics also bodes well for the future.

The automotive refinish market is highly competitive and in most countries quite fragmented, with a tendency to be dominated by “the big four”. In some economies, segmentation between the medium- and low-quality markets is poor. EU legislation on solvent emissions is expected to reduce the consumption of low-quality refinishes by chasing small or illegal workshops out of the market.

Powder coatings will demonstrate attractive growth, particularly in segments such as white goods and construction. Turkey is a particularly strong growth market, while the Ukrainian powder segment is being driven by captive capacity investment by end-users. Many of the leading European powder coatings companies are competing for business in these markets.

Coatings for plastics exhibit strong demand within the electrical goods and automotive industries, and Poland, Turkey and Russia will emerge as key markets. There is a strong German influence in the plastic finishing segment in the more developed markets, while others will continue to seek better technology from the west.

Potential of Automotive-Related Coatings in Eastern Europe is available in two versions. The first is organized according to country and then coatings segment, the second is organized according to coatings segment and then country. Both forms contain just over 200 pages and 93 tables in each. The report costs €2,750 but sections of it, priced individually, will soon be available to purchase online at www.informationresearch.co.uk.

For more information on this report, contact Terry Knowles at tknowles@brg.co.uk.