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The APAC automotive OEM coatings market is estimated to grow by USD 700 million at a CAGR of 3.2% between 2023 and 2028. The automotive industry in the Asia Pacific region is experiencing significant growth, driving a heightened demand for advanced coatings solutions. One key offering in this sector is the availability of coatings designed for fuel efficiency. These coatings, which include waterborne varieties, help reduce vehicle weight and improve aerodynamics, leading to improved fuel economy. The increasing demand for waterborne coatings is a result of growing environmental concerns and regulatory pressures. These coatings offer several benefits, including lower volatile organic compound emissions and improved application and drying times. With the automotive industry continuing to expand in the APAC region, the market for advanced coatings, particularly those that enhance fuel efficiency, is poised for robust growth.
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The market is driven by a diverse range of specialty products including powder coatings, liquid coatings, and UV cured variants, catering to varying film thickness requirements and environmental regulations like VOCs. Key components such as Epoxy Primer, E-Coat, Polyurethane, Acrylic, Epoxy, and Alkyd are crucial for achieving durability and aesthetic appeal in automotive finishes. Vendor selection plays a pivotal role in ensuring quality and consistency across the supply chain, with industry giants like Lubrizol leading innovations in high solid coatings. The market's growth is bolstered by the increasing demand from sectors like Two-Wheelers, driving advancements in coating technologies to meet evolving consumer preferences for both performance and sustainability in automotive applications. Our researchers analyzed the data with 2023 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 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 market in APAC during the forecast period.
Fluctuation in raw material prices is one of the key factors hindering the 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
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.
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 companies, 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 1.38 billion in 2018. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Automotive Paints and Coatings Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, France - Size and Forecast
Paints and Coatings Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, India, Germany, France - Size and Forecast
Coated Flat Glass Market Analysis Europe, APAC, North America, South America, Middle East and Africa - US, UK, China, France, Germany - Size and Forecast
The market is influenced by various factors such as wastewater management and the disposal of paint sludge from coating manufacturers and automakers. It caters to diverse consumer segments including luxury automotive, middle-class, and upper-middle-class buyers, reflecting broader trends in macroeconomic growth and increasing motor vehicle registrations globally. Innovations in the clearcoat category like Hempaprime Shield 700 HS ensure durability and protection for metal parts and plastic parts alike. The market also addresses the demand for energy-efficient transportation solutions in commercial vehicles and commercial utility vehicles, leveraging advanced coatings such as Acrythane 4G. Products like varnishes, enamels, and lacquers continue to evolve to meet stringent environmental standards set by regulatory bodies like the EU, driving sustainability and performance in automotive finishes. Automotive OEM coatings protect metal parts in both commercial vehicle and new passenger cars from the damaging effects of the sun while ensuring durability and aesthetic appeal.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 700 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Axalta Coating Systems Ltd., BASF SE, Berger Paints India Ltd, 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., RPM International Inc., S.Coat Co. Ltd., Savita Paints Pvt. Ltd., Solvay SA, Tara Paints and Chemicals, and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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