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The APAC-automotive OEM coatings market is estimated to grow at a CAGR of 3.28% between 2022 and 2027. The market size is forecast to increase by USD 697.75 million. The growth of the market depends on several factors including the availability of coatings designed for fuel-efficient automotive, increasing demand for waterborne coatings, and the growing automotive industry in APAC.
This APAC automotive OEM coatings market report extensively covers market segmentation by technology (water-borne, solvent-borne, powdered coatings, and UV-cured), and vehicle type (passenger cars, light commercial vehicles, and heavy commercial vehicles). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The availability of coatings designed for fuel-efficient automotive notably drives the market growth, although factors such as fluctuating costs associated with waterborne coatings may impede the market growth. 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 availability of coatings designed for fuel-efficient automobiles is expected to drive the market. The number of laws and regulations pertaining to the reduction of the emission of carbon dioxide from automobiles is on the rise. The Kyoto Protocol restricts the emission of carbon dioxide and other greenhouse gasses into the atmosphere. With the emission norms becoming stricter every day, there is a rise in the demand for lightweight materials such as plastics in paints.
However, the numerous application of plastic-based paints in automobile components can help to achieve the necessary emission requirements and increase vehicular efficiency. The reduction in vehicular weight is highly necessary, and there is a range of new low-density automotive OEM coatings that can be considered for the automotive industry. The aim to produce lightweight automobiles has led to the increased use of plastics in automobiles. The demand for new and efficient electric vehicles that has zero carbon dioxide emissions has increased the scope of the automotive OEM coatings market in APAC. Furthermore, photovoltaic coatings and paints have been introduced to make electric vehicles more efficient. Therefore, the surge in coatings that are specially designed for fuel-efficient vehicles has turned out to be a major factor for the automotive OEM coatings market in APAC. These factors will positively impact the growth of the market during the forecast period.
The growing adoption of UV-curable coatings and nanocoatings is shaping the automotive OEM coating market trend. UV-curable coatings exhibit high performance and offer quick assembly-line benefits. The intense focus on R&D for developing UV-curable coatings is a positive development in the automotive OEM coatings market in APAC.
However, nanocoatings are another innovation of manufacturers that has solved the problem of long-lasting shine solutions. They are easy and quick to use and are excellent in repelling rain, dirt, and other environmental contaminants. To address growing consumer awareness about the harmful effects of volatile organic compound emissions, regulatory agencies such as the EPA and the China Ministry of Environmental Protection have implemented stringent regulations. These regulations have compelled manufacturers to develop eco-friendly coating products. Their major applications such as durability, versatility, appearance, and superior weather resistance enhance the preference for UV-curable coatings. These coatings are predominantly used in automotive, industrial, wood furniture, general metal, and flooring applications. Hence, the increasing adoption of UV-curable coatings is expected to support the growth of the automotive OEM coatings market in APAC during the forecast period.
Fluctuation in raw material prices is one of the key factors hindering the automotive OEM coatings market growth. Mainly due to their high dependence on crude oil prices and natural forest products, the prices of raw materials used to manufacture automotive OEM coatings are highly unpredictable, Various substrates, including resins, polymers, solvents, pigments, and additives, are commonly used to produce paints and coating products.
However, the price volatility of petroleum-based raw materials is acting as a challenge to the growth of the automotive OEM coatings market in APAC. A drop in crude oil prices in recent years prompted players in the oil and gas industry to implement cost-cutting measures such as workforce layoffs and rig idling. Fluctuations in raw material prices bring unpredictability to the market, affect production costs adversely, and reduce the profit margins of vendors. Hence, the high volatility in crude oil prices is expected to impact adversely the automotive OEM coatings market in APAC during the forecast period.
The market 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.
APAC Automotive OEM Coatings Market Customer Landscape
Vendors 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.
Akzo Nobel NV: The company offers automotive OEM coating solutions such as primer, basecoat, topcoat, clearcoat.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the water-borne segment will be significant during the forecast period. Waterborne coatings contain maximum water as a solvent to disperse a resin. Other solvents, such as glycol ethers, are added in significantly small quantities to automotive OEM coatings manufactured using waterborne technology, which makes them eco-friendly and easy to apply.
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The water-borne segment was valued at USD 1,350.96 million in 2017 and continued to grow by 2021. The water in waterborne-based coatings takes time to evaporate as it depends on different environmental conditions such as temperature, airflow, and humidity. The evaporation process is quite faster when coatings are solvent-based. However, during the evaporation process, solvent-borne coatings release harmful fumes. The low volatile organic compounds (VOC) content of these automotive paint coatings has fostered high adoption in developed regions owing to stringent regulations regarding emissions. The market growth in APAC is attributed to the growth in the automotive industry and the increasing preference for water-borne coatings for automobiles. Generally, epoxy-based, water-soluble paints are used as functional coatings for substrate protection. Epoxy-based automotive OEM coatings offer efficient corrosion protection and impact resistance, and adhesion. The major drawback of epoxy-based water-based paints is their poor weather sustainability. Epoxy-based water-based paints are used in automotive OEM coatings components. Hence, these factors will positively influence the growth of the water-borne segment of the automotive OEM coatings market in APAC during the forecast period.
The automotive OEM coatings market in APAC 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.
Technavio categorizes the automotive original equipment manufacturer (OEM) coatings market in APAC as a part of the global commodity chemicals market within the global chemicals market. The global commodity chemicals market covers companies that primarily produce industrial and basic chemicals, including, but not limited to, plastics, synthetic fibres, films, commodity-based paints and pigments, explosives, and petrochemicals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Automotive OEM Coatings Market Scope in APAC |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.28% |
Market growth 2023-2027 |
USD 697.75 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.92 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Axalta Coating Systems Ltd., BASF SE, Color Communications LLC, Dai Nippon Toryo Co. Ltd., Grand Polycoats Co. Pvt. Ltd., Isamu Paint Co. Ltd., Jotun AS, Kansai Paint Co. Ltd., KCC Co. Ltd., Nippon Paint Holdings Co. Ltd., PPG Industries Inc., ROCK PAINT Co. Ltd., S.Coat Co. Ltd., Savita Paints Pvt. Ltd., Solvay SA, Tara Paints and Chemicals, The Sherwin Williams Co., Berger Paints India Ltd., and RPM International Inc. |
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, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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