Automotive Paints: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Paint used on automobiles for both protection and cosmetic purposes is known as automotive paint. The most popular type of paint today is water-based acrylic polyurethane enamel since it has a smaller environmental impact. With a total thickness of about 100 m (0.1mm), modern vehicle paint is applied in a number of layers. To ensure effective application, preparatory and priming processes are needed.

Market Insights

The market for automotive paints was projected to generate $9.83 billion in revenue in 2022 and is anticipated to expand at a CAGR of 5.89% over the forecast period. Along with the automotive sector, the market for automotive paints has developed. Demand patterns in the automobile sector, environmental legislation, health and safety standards, consumer preferences, lifestyle, and the expanding economy are just a few examples of the elements that have a significant impact on the demand for automotive paints and improvements in the paint technology.

Globally, rising purchasing power encourages greater use of automobiles, which in turn drives up demand for automotive coatings. In order to improve the performance of coating goods, coating firms all over the world have significantly increased their R&D spending. The market for automobile coatings will grow as a result.

Due to increased production requirements to keep up with the rising demand for new vehicles, OEM expectations for greener coatings are now high. The North American and Asia-Pacific markets are principally responsible for the steady growth of the global market for automotive coatings. However, by outsourcing manufacturing needs and establishing factories in developing nations, developed markets offer a significant opportunity for developing markets.

The integrated automobile industry experienced a quick and severe global impact as a result of the COVID-19 epidemic. Due to COVID, issues including the suspension of Chinese component shipments, widespread manufacturing halts in Europe, and the closure of American assembly plants have happened over the past two years. The production of passenger and commercial vehicles was also drastically reduced in 2020, and in 2021, only a slight improvement was witnessed. This, in turn, has impacted the growth of automotive coatings globally.

Due to the increase in demand for premium and ultra-premium cars, powder coating will present new prospects. The general lifestyle of consumers has changed as economies around the world have improved. Consumer tastes have changed as a result of end-user needs changing to accommodate new lifestyles as disposable money has increased. Sales of ultra-luxury vehicles have increased as a result globally. Western Europe, North America, and a few Asian nations like Japan and South Korea dominate the market for premium automobiles. China and India, two developing nations, present enormous growth potential for the premium and luxury automobile industries. Additionally, hybrid and electric cars are becoming more and more well-liked worldwide.

These automobiles fall under the category of premium and ultra-luxury automobiles. According to estimates, the biggest markets for powder coating are China, Germany, and the US, countries that have a high proportion of electric and hybrid vehicles.

Due to their exceptional longevity, fine polish, and great efficiency, powder coatings are frequently employed by OEMs for premium and ultra-premium cars. From 670.7 thousand units in 2011 to 1,044.5 million units in 2016, the world’s production of ultra-luxury vehicles has surged. According to the Euro car classification, these are the E and F segment automobiles. The steadily rising demand for ultra-luxury vehicles, particularly in developing nations like China, can be ascribed to the increase in their manufacture.

 In the market for automotive paints, powder coating is anticipated to grow in popularity as demand for high-end and luxury vehicles rises. One of the primary features of the E & F category vehicles is their exterior paint, which is modern, attractive, and resistant to environmental hazards. In comparison to waterborne and solvent-borne technology, powder coatings are more efficient and long-lasting. However, only premium and ultra-luxury cars can use it because of its hefty setup cost. Thus, the increasing demand for premium and ultra-premium vehicles has opened up a market for automotive paint producers.

Market Dynamics: Drivers

Environmental Concerns and Strict Emission Standards for the Paint Manufacturing Process Will Increase the Demand for Eco-friendly Paints

While government laws have an impact on technology and R&D investments, rising vehicle demand is what drives demand for automotive paints. Similar to this, strict emission laws and norms pertaining to paint products, production techniques, and the industry’s CO2 footprint will be what fuels future growth and improvements in the automotive paints market. One illustration of this is the surface pretreatment of metal, which calls for painting the surface to increase paint adhesion and corrosion resistance. For these pre-treatment processes, chromate and phosphate conversion coatings (CC) were traditionally preferred. These kinds of coatings emit a lot of VOCs. However, these coating chemicals are being replaced by low- or non-VOC surface pre-treatments as a result of new non-VOC standards. For instance, the National Emission Standards for Hazardous Air Pohutants (NESHAP) regulations of the Environmental Protection Agency in the United States serve as the framework for the federal regulations governing the use of VOCs. Since they emit fewer VOCs than solvent-borne technologies, aqueous and powder coating technologies are replacing solvent-borne ones in the automobile paint industry as a result of these rules.

Additionally, due to environmental restrictions like REACH in European nations, the bulk of electro-deposition technologies have now switched to a lead-free approach. In order to comply with environmental regulations and accommodate the various metal substrates from various OEMs, developments in the automotive paints industry such as lower baking temperature type electro-deposition, high weathering resistance electro-deposition type paints, and thin film electro-deposition paints are also introduced in the market. Waterborne paint technology has replaced solvent-bore paint technology for basecoat and clearcoat because it offers benefits including enhanced air quality and reduced workplace odour without compromising performance or colour matching.

Waterborne technology has numerous additional advantages in addition to environmental ones, like accurate mixing, simpler blending, and fewer hazardous waste. Automotive paint suppliers and OEMs are turning their attention to waterborne technology as developed nations like North America and Europe have already imposed VOC emission limits.

Market Segmentation

• Based on Demand Type, the Global Automotive Paints market is segmented into
  • OEM
  • Refinish
• Based on Coating, the Global Automotive Paints market is segmented into
  • Base coat
  • Clear coat
  • E-coat
  • Primer
• Based on Technology, the Global Automotive Paints market is segmented into
  • Water-Borne
  • Solvent-Borne
  • Powder
  • UV-Cured
• Based on Polymer, the Global Automotive Paints market is segmented into
  • Epoxy
  • Acrylic
  • Polyurethane
  • Others
• Based on Vehicle, the Global Automotive Paints market is segmented into
  • Passenger Cars
  • Heavy Commercial Vehicles
  • Light Commercial Vehicles
• Based on Geography, the Global Automotive Paints market is segmented into
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar, while the market volumes are given in tons.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

 Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Automotive Paints Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Automotive Paints Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Automotive Paints Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Automotive Paints Market study?