Global outlook of the automotive coatings, adhesives, and sealants market
Technavio’s market research analyst has predicted that the global market for automotive coatings and adhesives and sealants will grow at a CAGR of almost 6% and above 5% respectively, by 2020. Many countries are enforcing regulations to improve efficiency and reduce carbon emissions of automobiles. This is driving the development of light vehicles and has increased the use of plastics in automobiles to reduce weight. Another development in the market is the increased focus on UV-curable coatings which exhibit high performance and provide faster assembly line benefits. Vendors in the market are also introducing innovative UV-cure products such as clear coats that offer scratch and mar resistance. In addition, bio-based water-soluble adhesives and sealants made of eco-friendly and natural ingredients, such as dextrin adhesives, resin adhesives, and starch adhesives, are gaining popularity in the market. These adhesives ensure sustainable development and operational efficiency for manufacturers as they minimise energy consumption and production expenses and enhance product freshness, convenience, and attractiveness.
APAC will continue to dominate the market during the forecast period and is anticipated to occupy more than 47% of the overall market revenue. Much of the region’s growth can be attributed to China and India which are expected to be the fastest-growing markets for automotive OEM coatings. Factors such as tax subsidies, incentives, and liberal government regulations are propelling automotive OEMs to focus their investments in this region. Also, the availability of cheap labor and easy access to raw materials will attract the interest of several international automakers, significantly contributing to the growth of the overall market in this region in the coming years.
Competitive landscape and key vendors
The global automotive coatings, adhesives, and sealants market is extremely fragmented and highly competitive with the presence of many international and regional vendors. The market is technologically driven and is easily affected by macroeconomic factors and prices of raw materials. The strong position of international players will restrict the entry of new players in the market during the forecast period.
Leading vendors in the market are -
Other prominent vendors in the automotive coatings, adhesives, and sealants market include 3M, Arkema, BASF, DuPont, and Huntsman.
Segmentation by technology and analysis of the automotive coatings, adhesives, and sealants market
The solvent-based automotive segment dominated the market and accounted for around 65% of the total market share in 2015. Solvent-based coatings can be classified into high-solid solvent-borne and conventional solvent-borne coatings. Stringent regulations regarding the emission of volatile organic compounds (VOCs), especially in North America and Western Europe are compelling automotive OEMS to develop eco-friendly alternatives to coatings, adhesives, and sealants. The growing awareness about the eco-friendly alternatives is foreseen to increase their consumption significantly in the coming years.
Segmentation by vehicle type and analysis of the automotive coatings, adhesives, and sealants market
The OEMs segment is the largest end-user segment in the automotive coatings, adhesives, and sealants market and will occupy around 53% of the total market share by 2020. The major reason for this segment’s growth is the increased production of automobiles in APAC. The rising production of smaller vehicles such as microcars, subcompacts, and superminis is likely to boost prospects for the growth of the OEM coatings market in the coming years. The introduction of innovative products will also drive the market for automotive OEM clear coats. For instance, BASF offers iGloss, a novel clearcoat that ensures cars appear new and lustrous for a longer time.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the global automotive coatings, adhesives, and sealants market?
What are the key market trends impacting the growth of the global automotive coatings, adhesives, and sealants market?
What are the challenges to market growth?
Who are the key vendors in the global automotive coatings, adhesives, and sealants market?
What are the market opportunities and threats faced by the vendors in the global automotive coatings, adhesives, and sealants market?
Trending factors influencing the market shares of the Americas, APAC, and EMEA.
What are the key outcomes of the five forces analysis of the global automotive coatings, adhesives, and sealants market?
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