Indonesia Automotive Refinish Coatings Market by Product Type (Clearcoats, Basecoats, Primers & Filers), by Resin Type (Polyurethane, Acrylic, Alkyd, Epoxy), by Technology (Solvent-Borne, Water-Borne, UV-Cured), by Auto Type (Cars, Commercial Vehicles, Two-Wheelers), by Vehicle Age (<5 Years, 5–10 Years, >10 Years), by Sales Channel (OEM, Aftermarket), by Region (West Java, Central Java, East Java, South Sumatra, North Sumatra, South Sulawesi, East Kalimantan) –Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

Indonesia Automotive Refinish Coatings Market Overview

The Indonesian automotive refinish coatings market was valued at $240.2 million in 2017 and is projected to reach $336.6 million by 2023, witnessing a CAGR of 4.9% during the forecast period.

On the basis of product type, the Indonesian automotive refinish coatings market is classified into basecoats, clearcoats, primers and fillers, and others. In terms of value, clearcoats accounted for the largest revenue share in the market in 2017. The large share of the category is attributed to the high-volume demand for these coats from the automotive industry for refinishing purposes. A thick clearcoat on automobiles is also highly favored due to its ability to offer protection to metal body, paint, and improve resistance to damage caused by fluids and foreign substrates.

Based on resin type, the Indonesian automotive refinish coatings market is categorized into alkyd, acrylic, polyurethane, epoxy, and others. In 2017, the largest revenue share in the market was held by polyurethane-based coatings. These are conventionally preferred, highly durable, and able to resist chipping upon damage by foreign substrates.

Based on technology, the Indonesian automotive refinish coatings market is classified into solvent-borne, water-borne, and UV-cured. Historically, solvent-borne accounted for the largest market share. A diversified portfolio of solvent-based coatings is available in the market and also these products are climate favorable. Furthermore, the products have low drying time, which encourages the usage of these products.

On the basis of auto type, the Indonesian automotive refinish coatings market is categorized into cars, commercial vehicles, two-wheelers, and others. In terms of value, the cars category held the most significant revenue share in the market in 2017, accounting for more than 70.0% share. Furthermore, the demand for refinish coatings in cars is forecasted to grow, owing to increasing number of cars and vehicle age, and shift in mass-customers’ sentiment toward adoption of refinishing.

On the basis of vehicle age, the Indonesian automotive refinish coatings market is categorized into vehicles aged less than 5 years, 5–10 years, and more than 10 years. In 2017, the highest revenue in the market was estimated to be generated by the category of vehicles aged in the less than 5 years category. Owing to customers’ tendency to refinish any damage to a new automobile to retain esthetics, the demand for automotive refinishing coatings in this category continue to remain high in the Indonesian market.

The Indonesian automotive refinish coatings market is bifurcated, on the basis of sales channel, into aftermarket and original equipment manufacturer (OEM). The aftermarket demand for automotive refinish coatings is expected to account for larger revenue share during the forecast period, due to increasing prevalence of pre-owned car dealerships and a large number of car repair and custom car shops, which are expected to generate high-volume demand for automotive refinish coatings in the country.

Based on region, the Indonesian automotive refinish coatings market is categorized into West Java, Central Java, East Java, South Sumatra, North Sumatra, South Sulawesi, East Kalimantan, and others. West Java accounts for the largest revenue share in the market, owing to the presence of a vast customer base, macroeconomic growth, significant economic activity, and high-volume product demand from the automotive industry in the region. The region also has a large number of metropolitan cities, complemented by high population, along with smaller cities with a high concentration of auto body repair shops.

Indonesia Automotive Refinish Coatings Market Dynamics

Growth Driver

Rising disposable income, increase in number of vehicle collisions, and increasing average age of vehicles are the major factors driving the growth of the automotive refinish coatings market in Indonesia.

The economic recovery coupled with high growth in disposable income has resulted increasing purchasing power in local demographics. A large number of differentiated products have also been introduced in the Indonesian automotive refinish coatings market along with rising adoption of automotive refinish coatings. Thereby, these factors along with high-volume demand for automobiles are further likely to offer traction to market demand for these coatings in the forthcoming period.

Indonesia Automotive Refinish Coatings Market – Competitive Landscape

The market players operating in the Indonesian automotive refinish coatings market are BASF SE, Akzo Nobel N.V., Kansai Paint Co. Ltd., The Lubrizol Corporation, PPG Industries Inc., The Sherwin-Williams Company, PT. Hartwell Paint Indonesia, PT. Danapaint Indonesia, Alps Coating Sdn. Bhd., PT. Anugerah Berkat Cahayaabadi, PT. Victorindo Pratama Mandiri, PT PABRIK CAT DAN TINTA PACIFIC PAINT, KCC Corporation, and PT. NP Auto Refinishes Indonesia.

The market operations of several manufacturers are forward and backward integrated, and include functions such as procurement of raw materials and refinish products from their international production facilities, manufacturing of the products for the automotive industry, and distribution of these products to several OEMs and aftermarket automotive players. The product portfolios of manufacturers include coatings, which are manufactured from a range of resins such as alkyd, polyurethane, acrylic, polyester, and epoxy. These product lines can also be categorized into standard, low-emission, and low volatile organic compound (VOC) solutions.