Published: November 2019 | Report Code: CM11770 | Available Format: PDF | Pages: 149
Valued at $10,997.4 million in 2018, the global automotive OEM coatings market is projected to surpass $13,661.4 million by 2024, witnessing a CAGR of 4.2% between 2019 and 2024.
Among all regions, APAC is expected to witness the fastest growth in the industry during the forecast period. This is mainly attributed to the presence of major automotive manufacturers in this region. In addition, the high-volume vehicle production in China coupled with India, Japan, and Thailand generate significant demand for automotive OEM coatings in the region.
Dynamics of Automotive OEM Coatings Market
The key trend observed in the automotive OEM coatings market is increasing adoption of powder coatings in place of liquid coatings owing to, lower release of volatile organic compounds (VOCs). For instance, Bayerische Motoren Werke AG (BMW) plants in Europe are shifting towards powder coatings for the clearcoat process. Additionally, the application of powder clearcoats offer several advantages including uniform film thickness, and no wastewater or paint sludge is produced during application.
Technological advancements and innovation for automotive OEM coatings in the APAC region is the one of the factors which is expected to drive the market for automotive OEM coatings during the forecast period. This is mainly driven by OEM paint and coating manufacturers that are focusing on new technologies and products, and processes in order to provide the most efficient products for car manufacturers. Apart from it, automobile manufacturers are looking for technological initiatives and developments covering various features and benefits in automotive coatings, for instance, greater functionality, regulatory compliance, reduced emissions, and less maintenance costs.
Investments to boost automotive production are expected to serve as an upcoming opportunity for the global automotive OEM coatings market in the coming years. For instance, luxurious automobile manufacturers in emerging economies like India, Brazil, and Indonesia are aiming for further expansion in these countries in order to tap upper-middle and middle-class population. With macroeconomic growth and rise in disposable incomes in these countries, consumer demand for automobiles is expected to act as a key focal point for generating demand for allied products such as automobile accessories and automotive OEM coatings.
Automotive OEM Coatings Market Segmentation Analysis
When segmented on the basis of layer, clearcoat was the largest demand generating segment in the automotive OEM coatings market. This can be attributed to the advantages it offers related to protection from UV (ultraviolet) rays and sun, which necessitate the application of a thicker coat in comparison to other layers of automobile coatings.
In terms of technology, solvent-borne coatings are the largest category in the automotive OEM coatings market and is expected to hold over 43.8% value share by 2024. This can be mainly ascribed due to the growing preference of water-borne coatings over solvent-borne coatings owing to the various environmental benefits they offer.
Under the segmentation by application, faster growth in the automotive OEM coatings market during the forecast period is expected from metal parts. This can be imputed to the major parts and components of an automotive vehicle are made up of metals, which require a larger amount of coating in comparison to coatings on plastic parts.
Geographical Analysis of Automotive OEM Coatings Market
Globally, in terms of volume, APAC was the largest and fastest market for automotive OEM coatings during the historical period and is expected to maintain the trend during the forecast period as well. This can be mainly attributed due to the presence of major automotive manufacturers.
Considering the future industry scenario, China is expected to lead the APAC automotive OEM coatings market, generating revenue worth $3.4 billion in 2024. This significant growth rate is attributed to the country’s gigantic numbers in automotive vehicle production. For instance, China is world’s second largest two-wheeler manufacturer and largest passenger car and commercial vehicle manufacturer in 2019. As per industry expert, country’s two-wheeler sales stood at 15.5 million units, which is expected to increase with the help of e-bikes over the coming years.
Competitive Landscape of Automotive OEM Coatings market
The automotive OEM coatings market is consolidated in nature, characterized by the presence of established companies such as PPG Industries Inc., BASF SE, Axalta Coating Systems Ltd., Nippon Paint Holdings Co. Ltd., Kansai Paint Co. Ltd., The Sherwin-Williams Company, and Akzo Nobel N.V.
PPG Industries Inc. held the number rank one in the market with largest share in the global market owing to the broad portfolio of paints, coatings, and specialty materials.
Recent Strategic Developments of Major Automotive OEM Coatings Market Players
In recent years, major players in the automotive OEM coatings market have taken several strategic measures such as product launches, mergers & acquisitions, and facility expansions to gain a competitive edge in the industry. For instance, in April 2019, PPG Industries Inc., completed its acquisition of automotive OEM coatings manufacturer, Germany based Hemmerlrath Lackfabrik GmbH. Additionally, with this acquisition, the company aimed to increase its market share in the European automotive OEM coatings market.
Moreover, in March 2019, HMG Paints Ltd, the U.K. based paint manufacturer announced the launch of commercial vehicle topcoat, Acrythane 4G which is a high gloss and high solids acrylic polyurethane coating, and developed to meet and exceed the stringent requirements of the commercial vehicle market.
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