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The Global Automotive Refinish coatings market size is estimated to grow at a CAGR of 4.34% between 2022 and 2027. The market size is forecast to increase by USD 2,428.29 million. The growth of the market depends on several factors, including the increased focus on R&D and innovative methods to reduce the cycle time, support services leading to efficient use of coatings, and economic stability associated with increasing disposable income.
This automotive refinish coatings market report extensively covers market segmentation by Type (solvent-based coatings, water-based coatings, and others), Application (passenger cars, light commercial vehicles, and heavy commercial vehicles), and Geography (APAC, Europe, North America, South America, and Middle East and Africa).
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Automotive refinish coatings are applied to old and new vehicles to cover up damage caused by external factors such as climate; road conditions; foreign particles such as stones, debris, and rubble; and accidents. These coatings are part of the aftermarket. Vehicle owners take their vehicles to automotive body shops and repair centers to repair the damage by getting them painted.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increased focus on R&D and innovative methods to reduce the cycle time is notably driving market growth. Global companies are investing in R&D activities to introduce new technologies in refinish coatings to cater to the changing customer requirements and improve their product portfolio. Several companies such as BASF and PPG focus on developing new products to reduce cycle time, improve efficiency, and reduce operational costs. BASF offers Onyx HD coating, which is an advanced water-borne topcoat that is applied to vehicles. It is environmentally friendly and does not cause VOC emissions.
Under the Direct Repair Program (DRP), direct repair facility shops enter strategic partnerships with insurance companies. DRP streamlines claim settlements in case of road accidents and reduce the time required for documentation and cycle time. PPG’s MVP business solutions are a training program on the latest technologies provided to body shop owners and managers. There has been an increase in participation by managers and other employees in these programs. They help reduce cycle time and improve performance by providing them with knowledge on lean six sigma programs and the implementation of new technologies. Thus, increased focus on R&D and innovative methods to reduce the cycle time is one of the major drivers that is expected to drive the growth of the global automotive refinish coatings market during the forecast period.
The increasing adoption of UV-curable coatings is key trend that will shape market growth. UV-curable coatings exhibit high performance, high adhesion, and film flexibility. Vendors in the global automotive refinish coatings market are focusing on R&D to develop UV-curable coatings that offer scratch and mar resistance. For instance, BASF offers various multi-functional polyol intermediates for manufacturing UV-curable acrylic monomers and oligomers that are used in UV-curable coatings. The company’s UV-curable coating technology provides benefits in terms of environmental compatibility, high performance, and processing efficiency. Similarly, Akzo Nobel offers UV-curable clearcoat for automotive refinish coatings. The company’s UV-curable clearcoat delivers high performance with application, appearance, and protection characteristics as compared to the traditional two-component clearcoat.
Stringent regulations to address the growing consumer awareness about the harmful effects of volatile organic compound emissions implemented by the Environmental Protection Agency (EPA) and the Ministry of Environmental Protection of China have compelled vendors to develop eco-friendly coating products. Such stringent regulatory standards implemented by regulatory bodies are increasing the popularity of UV-curable and water-borne coatings made from eco-friendly and natural ingredients. Features such as versatility, appearance, durability, and weather resistance-associated UV-curable coatings are increasing their preference among automobile manufacturers. Therefore, the increasing adoption of UV-curable refinish coatings is expected to drive growth opportunities in the overall global automotive refinish coatings market during the forecast period.
The increasing supply-demand balance may impede market growth. Changes in consumption patterns, technological innovations, and the introduction of new products pose serious challenges to the global automotive refinish coatings market. New coating processes that are efficient and, thereby, reduce the volume consumption are offered by manufacturers. The increasing adoption of specially designed spray guns with features such as minimal wastage of coating composition during automotive coatings has reduced the consumption of coatings (in terms of volume). Recycling coatings reduce consumption volumes and restrict the growth of the market. A gradual shift to such technologies is expected during the forecast period. Vendors are concentrating on product differentiation, product performance, innovations, and product launches to stay ahead of the competition.
The increased demand for low-maintenance vehicles and long lifespans hinder the growth of the global automotive refinish coatings market. Hybrid Electric Vehicles (HEV) are generally used for short distances and require less maintenance. Environmental regulations and pollution control measures have increased the popularity of HEVs. HEVs are energy efficient and environmentally friendly and offer a range of performance benefits such as increased acceleration and low maintenance. Several governments promote the use of these vehicles as they reduce the consumption of conventional fuels, noise, and air pollution. Thus, increasing supply-demand imbalance is a major challenge for the growth of the global automotive refinish coatings market during the forecast period.
The market share growth by solvent-based coatings segment will be significant during the forecast period. The solvent-based coatings segment accounted for the largest share of the global automotive refinish coatings market in 2022. Solvent-based coatings are types of coatings that use solvents to dissolve the ingredients of the coating to make it more spreadable and easier to apply. Solvent-based coatings have been widely used in the automotive refinishing industry because they offer a high-quality finish, good durability, and excellent resistance to weathering, chemicals, and abrasion.
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The solvent-based segment was valued at USD 4,150.86 million in 2017 and continued to grow until 2021. However, stringent regulations have reduced the demand for these coatings as they have a higher content of organic solvents in comparison to water-based solvents. These organic solvents are harmful to the environment and humans. They improve the drying speed, texture, and color and ensure a smooth surface of coatings.
When solvent-based coatings begin to dry and evaporate, they emit Volatile Organic Compounds (VOCs) into the atmosphere. These compounds are toxic in nature and cause harm to the environment and humans. As a result, several governments are banning the use of solvents and promoting the use of bio-based solvents, particularly in Western Europe and North America. Bio-based solvents such as glycols, methyl soyate, lactate esters, and diols exhibit the same properties as that of petroleum-based solvents and are cost-effective because of the low cost of feedstock. Despite the challenges, solvent-based coatings continue to be used in the automotive refinish industry, particularly in applications where a high-quality finish and excellent durability are required. Manufacturers have also developed low-VOC and eco-friendly solvent-based coatings to meet the demand of customers who prioritize environmental sustainability. This is expected to drive the growth of the solvent-based coatings segment in the global automotive refinish coatings market during the forecast period.
APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Rapid urbanization, the rising number of road collisions, the increasing presence of automobile manufacturers, the rise in vehicle ownership, the growing preference for old, refurbished vehicles, and the presence of global and local vendors are major factors driving the growth of the automotive refinish coatings market in APAC.
The outbreak of COVID-19 in 2020 had a severe impact on the automotive refinish coating market in APAC. However, lockdown restrictions were removed in the second half of 2020 with the help of rapid vaccination drivers across APAC. This resumed operations in different industries, including automotive, which increased the demand for refinish coatings in 2021. The sales of EVs are also growing significantly in the region. For instance, India achieved a significant milestone by selling one million electric vehicles in just one year in 2022. Such growing sales of EVs will increase the demand for automotive refinish coating, which, in turn, will boost the growth of the automotive refinish coatings market in APAC during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Refinish Coatings Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co. - The company offers automotive refinish coatings, namely 3M Finesse-It Polish Premium Series 300.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
3M Co., Akzo Nobel NV, Alps Coating Sdn Bhd, Angel Coating Pvt. Ltd., Axalta Coating Systems Ltd., BASF SE, BERNARDO ECENARRO S.A., Carl Schlenk AG, Covestro AG, General Paint Co., Kansai Paint Co. Ltd., KAPCI Coatings Systems LLC, Nippon Paint Holdings Co. Ltd., NOROO Paint and Coatings Co. Ltd., NOVOL Sp zoo, PPG Industries Inc., S.Coat Co. Ltd., Tara Paints and Chemicals, The Sherwin Williams Co., and TOA Paint Thailand Public Co. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The automotive refinish coatings market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Refinish Coatings Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.34% |
Market growth 2023-2027 |
USD 2,428.29 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.55 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Akzo Nobel NV, Alps Coating Sdn Bhd, Angel Coating Pvt. Ltd., Axalta Coating Systems Ltd., BASF SE, BERNARDO ECENARRO S.A., Carl Schlenk AG, Covestro AG, General Paint Co., Kansai Paint Co. Ltd., KAPCI Coatings Systems LLC, Nippon Paint Holdings Co. Ltd., NOROO Paint and Coatings Co. Ltd., NOVOL Sp zoo, PPG Industries Inc., S.Coat Co. Ltd., Tara Paints and Chemicals, The Sherwin Williams Co., and TOA Paint Thailand Public Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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