SHELBYVILLE, DE — According to a new study by Global Market Insights Inc., the market for automotive coatings will reach $28 billion by 2022.
Growth in the automotive industry in Asia-Pacific is a major factor in the rise in demand for automotive coatings. Recent infrastructural developments, including the building of more roads, coupled with the growing purchasing power parity (PPP) in the emerging economies of countries in East and Southeast Asia will have a positive impact on the market in the next few years.
According to the report, China controls over a quarter of the global automotive market, both in terms of demand and supply. Vehicle production in the country recorded a volume of over 23.7 million units in 2014, while around 23.5 million vehicles were sold in the same year. Japan and India followed with sales of over 5.5 million and 3 million vehicles respectively in 2014. Attractive and protective coatings are gaining in popularity for their ability to protect vehicles from corrosion or color fading due to ultraviolet rays, atmospheric acidity, highly inconsistent climate and extreme temperature variation.
Advancements in powder coating technology, which are becoming more popular due to the high VOC content in solventborne coatings, will also have a positive influence on the global automotive coatings market. Superior features of powder coatings include easy customization, high efficiency, durability, easy application and minimum waste. The increased use of this technology in primers and basecoats for external bodies, engines, accessories, and interior parts such as steering wheels and dashboards, will spur growth in this sector for the next eight years.
EPA and REACH regulations regarding VOCs in solventborne coatings could hamper growth in the automotive coatings market in North America and Europe. Powder, UV-cured and waterborne coatings could replace solventborne coatings in these regions in the upcoming years. The global automotive coatings market could also see less growth because of fluctuating prices of raw materials for coatings production, which include titanium oxide, binders, pigments, additives and resins.
Solventborne automotive coatings have had the largest global market share, accounting for more than $7.9 billion in 2014. However, this sector is losing share to other technologies such as waterborne and powder coatings because of the high VOC content in solventborne coatings and the implementation of stricter environmental regulations.
In 2014, basecoats registered more than $8 billion in sales. This segment is expected to have the fastest growth rate, followed by electrocoat, which was valued at over $4 billion in 2014.
Lightweight OEMs are the largest end-user segment for automotive coatings, with more than 40% of the overall market share. This segment accounted for more than $7.5 billion in 2014 and is expected to have a healthy growth due to increasing demand for personal cars across the globe.
For additional information about the report, Automotive Coatings Market Size By End-Use (Commercial OEM, Automotive Refinish, Light Vehicle OEM), By Application (Plastic, Metal), By Technology (Solventborne, Waterborne, UV-Cured, Powder Coatings), By Product (Electrocoat, Primer, Clearcoat, Basecoat), Industry Analysis Report, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2015–2022, visit https://www.gminsights.com/industry-analysis/automotive-coatings-market-report.