Automotive OEM Coatings Market Major Advancements in the Technologies; Global Industry Analysis | 2024
Coatings used in automobiles to protect the underlying metal or synthetic body panels from harsh environments are referred to as automotive coatings. Initially, chromium, lead, and other heavy metals were employed in these coatings. However, with the introduction of various environmental regulations, the use of toxic chemicals has been prohibited, which has resulted in a switch to water-based coatings. Growing demand from passenger cars and light commercial vehicles is expected to boost the need for automotive OEM coatings in the near future.
Based on application, the automotive OEM coatings market has been divided into the following segments: passenger cars, light commercial vehicles, and heavy commercial vehicles. Passenger cars accounted for a significant share in the global market due to the surge in vehicles in the tourism industry. This segment offers the maximum potential in the automotive OEM coatings market owing to the rising global demand for passenger cars & general utility vehicles, escalating public transportation expenditure, and increasing consumer inclination toward efficient & easy transportation, thereby boosting the overall demand for automotive OEM coatings in the passenger cars segment. On the basis of type, the market has been classified into the solvent-borne, waterborne, and powdered categories. In 2015, solvent-borne coatings constituted a significant share in the global market due to the growing demand for a smooth surface finish.
Geographically, the global automotive OEM coatings market has been distributed over Asia Pacific, North America, Europe, Middle East & Africa, and Latin America. Asia Pacific was a major market in 2015 and is estimated to expand due to the burgeoning automotive OEM industry. The water-borne sector is anticipated to register a high growth rate over the forecast period due to stringent regulations on VOC emissions.
Developments in the automobile sector are also likely to fuel the need for automotive OEM coatings in Asia Pacific in 2015. Their use in light commercial vehicles has witnessed a major rise on account of the constantly rising per capita disposable incomes and the subsequent demand for commercial utility vehicles. China and the U.S. are predicted to hold major shares in the automotive OEM coatings market in Asia Pacific and North America respectively. The market is predicted to witness a shift from developed countries to the developing economies of Asia due to the fewer stringent environmental regulations in the latter. The automotive OEM coatings market in China and India is projected to register a high growth rate due to advancements in end-use sectors, technological developments, and new innovative products launched in these countries, thereby creating a huge demand for the product in Asia Pacific over the forecast period.
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The global demand for automotive OEM coatings is poised to rise significantly in the near future, offering immense growth opportunities for the market. The rapid surge in the product’s end-use applications, competitive manufacturing costs, and high economic growth rates are propelling the automotive OEM coatings market in Asia Pacific. These factors are attracting companies to adopt expansion and R&D strategies in the region to meet the global demand. Market players are focusing on Asia Pacific to gain substantial market shares. Several producers are shifting their plants to China and India due to the high demand and low raw material and labor costs in these countries. Developments in various end-use sectors in the region have fuelled the requirement for the product during the forecast period.
Key players operating in the global automotive OEM coatings market include Beckers Group, Cabot Corporation, Berger Paints, Eastman Chemical Company, Valspar Corporation, Clariant AG, Deft, Inc., Jotun A/S, Royal DSM, Lord Corporation, and Solvay S.A.