The Automotive Refinish Coatings Market size is estimated to reach US$12.8 billion by 2027 after growing at a CAGR of 4.6% during the forecast period 2022-2027.
The Automotive Refinish Coatings Market size is estimated to reach US$12.8 billion by 2027 after growing at a CAGR of 4.6% during the forecast period 2022-2027. The automotive refinish coatings are paints or coatings comprising polyurethane, alkyd, acrylic, epoxy and other resin for refurbishing, repairing the automotive vehicle components and covering from damages. The increase in road accidents and collision cases creates a positive outlook for the market by surging the requirement for refinishing, repair and maintenance activities, thereby acting as a driving factor in the automotive refinish coatings market. In addition, the rise in consumer preferences towards vehicle modification and customization supports the growth in the market. The covid-19 outbreak resulted in significant disruption and growth hamper for the market due to logistics restrictions, closure of automotive repair and disruptions in the manufacturing trends impacting the market. However, significant recovery and established automotive industry post-pandemic are boosting the demand for automotive refinish coatings for various applications in vehicles. Thus, the automotive refinish coatings industry is anticipated to grow rapidly during the forecast period.
Report Coverage
The “Automotive Refinishing Coatings Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Automotive Refinishing Coatings Market.
By Product Type: Primers, Sealers, Undercoats, Topcoats, Varnishes and Others.
By Resin Type: Epoxy, Polyurethane, Vinyl, Polyester, Alkyd, Acrylic and Others.
By Formulation: Water-Based, Solvent-Based, Powder-Based, UV-Based and Others.
By Application: Door Frame, Roofing, Bumper, Hood, Bonnet and Others.
By End-use Industry: Passenger Vehicles (PV), Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV) (Trucks and Buses) and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Belgium and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and Rest of South America), Rest of the World [Middle East (Saudi Arabia, UAE, Israel and Rest of the Middle East) and Africa (South Africa, Nigeria and Rest of Africa)].
Key Takeaways
The Asia-Pacific dominates the Automotive Refinish Coatings Market, owing to its rising demand in the automotive aftermarket for repair and maintenance, refurbishment and protection applicability, thereby propelling the growth of automotive refinish coatings in this region.
The flourishing passenger vehicles (PV) industry is propelling the demand for automotive refinish coatings for various applications involving refinishing, maintenance and repair activities for new and old cars, thereby boosting growth prospects and contributing in the automotive refinish coatings market size.
The demand for waterborne coating is high owing to its superior features such as low volatile organic compounds (VOC) content, eco-friendly and durability compared to other toxic coatings types.
However, the toxicity associated with various coating formulations such as solvent-borne coating impacts the growth of the market. The restrictions of VOC content in solvent-based coatings affect the applicability and growth in the market, thereby acting as a major challenge for the industry.
Automotive Refinish Coatings Market Segment Analysis – by Formulation
The water-based segment held the largest Automotive Refinishing Coatings market share in 2021 and is forecasted to grow at a CAGR of 4.8% during the forecast period 2022-2027. The demand for water-borne coating is high owing to its superior properties and wide range of applications in the automotive sector for refinishing and refurbishing. The increasing technological development and preference for water-borne over solvent-borne coatings owing to their non-toxicity and negligible VOC content are boosting its growth in the automotive industry for repair, refurbishing and maintenance. The water-borne coatings have zero or less volatile organic compounds (VOCs) and are comparatively non-toxic and environment-friendly over other types such as solvent-borne, powder and others. Thus, its durability and environment-friendly features make it preferable for automotive repair and refinishing activities. With the increasing development and advancements and major applicability of water-borne refinish coatings in automotive, the water-borne segment is anticipated to grow during the forecast period.
Automotive Refinish Coatings Market Segment Analysis – by End-use Industry
The passenger vehicles segment held a significant Automotive Refinishing Coatings market share in 2021 and is projected to grow at a CAGR of 5.3% during the forecast period 2022-2027. The rising demand for automotive refinish coatings in the passenger vehicles segment is influenced by the rise in repair and maintenance for new and old passenger cars to protect them from accidents and a harsh environment. Refinish coatings are majorly used in exterior components of passenger cars for long-term protection. The passenger vehicles segment is growing rapidly due to the rise in the production of cars and three-wheelers and urbanization. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger vehicle production rose from 55,834,456 units in 2020 to 57,054,295 units in the year 2021. The growing aftermarket sector also boosts the demand for refinish coatings. According to the Autocare Association, the global automotive aftermarket grew by 14.8% in 2021 and is expected to reach US$514 billion by 2024. With an increase in production for passenger cars and aftercare, the applicability of automotive refinish coatings for refinishing and maintenance is anticipated to rise, thereby the passenger vehicles segment is projected to grow rapidly in the automotive refinish coatings market during the forecast period.
Automotive Refinish Coatings Market Segment Analysis – by Geography
The Asia-Pacific held the largest Automotive Refinishing Coatings market share in 2021 up to 51%. The automotive industry in the Asia Pacific is growing rapidly due to rising demand for passenger cars, the requirement for repair and refinishing of old vehicles among the middle-class segment and urbanization. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA, the total automotive vehicle production in China rose by 3%, a 30% increase in India, 8% growth in Taiwan and 63% growth in Indonesia for the year 2021 compared to the previous year. Furthermore, various projects allocated for the flourishing automotive sector also support the growth of automotive refinishes coatings in APAC. For instance, according to the Make in India and Automotive Mission Plan 2026, the plan is implemented to boost the automotive sector in India and offer a contribution of 12% from automotive in the GDP by 2026. With the increase in automotive production activities and development in the automotive sector, the demand for vehicle refinishing, maintenance, repair and refurbishment for new and old vehicles is rising, which is anticipated to boost the growth of automotive refinish coatings in the Asia-Pacific region during the forecast period.
Automotive Refinish Coatings Market Drivers
Flourishing Demand for Automotive Aftermarket:
The demand for Automotive Refinish Coatings is growing rapidly for applications in the vehicle aftermarket segment for repair, customization and maintenance. The automotive aftermarket segment is flourishing rapidly due to the increasing trend for vehicle customization, vehicle servicing and maintenance activities. The factors such as crashes, wear and tear and others in automotive vehicles support the demand for the automotive aftermarket. For instance, according to the Autocare Association, the auto care, repairs and maintenance sector in the U.S is projected to reach US$383 billion by the year 2024. According to Hedges & Company, the personal consumption of aftermarket auto parts rose by 8% in the U.S in October 2020 compared to October 2019. Thus, with the rise in vehicle repair, maintenance and customization trend in the automotive sector, the applications of automotive refinish coatings for refinishing and protection for both new and old vehicles is rising, thereby offering major demand and growth in the market during the forecast period.
Increasing Demand for Electric Vehicles:
The demand for Automotive Refinish Coatings in electric vehicles is growing rapidly due to the increasing applicability for refinishing, remodeling, repair and protection. The refinish coatings based on alkyd, acrylic, epoxy, polyester, polyurethane and others protect the RV from harsh environmental conditions and corrosion and maintain the aesthetics. The electric vehicles sector is rapidly growing due to factors such as the government’s initiative for vehicle electrification, emphasis on limiting fuel-based motor vehicles and urbanization. For instance, according to India Energy Storage Alliance (IESA), the Indian EV industry is projected to expand at a CAGR of 36% by 2030. According to the International Energy Agency (IEA), the stock foe electric cars hit a high of 10 million in 2020, showing an increase of 43% over 2019. With increasing demand and production for electric vehicles (EVs), the applicability of automotive refinish coatings for aesthetics, customization, refurbishment and maintenance is rising, which in turn is boosting the demand and growth prospects for the automotive refinish coatings, thereby driving the automotive refinish coatings industry.
The passenger vehicles segment held a significant Automotive Refinishing Coatings market share in 2021 and is projected to grow at a CAGR of 5.3% during the forecast period 2022-2027. The rising demand for automotive refinish coatings in the passenger vehicles segment is influenced by the rise in repair and maintenance for new and old passenger cars to protect them from accidents and a harsh environment. Refinish coatings are majorly used in exterior components of passenger cars for long-term protection. The passenger vehicles segment is growing rapidly due to the rise in the production of cars and three-wheelers and urbanization. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), global passenger vehicle production rose from 55,834,456 units in 2020 to 57,054,295 units in the year 2021. The growing aftermarket sector also boosts the demand for refinish coatings. According to the Autocare Association, the global automotive aftermarket grew by 14.8% in 2021 and is expected to reach US$514 billion by 2024. With an increase in production for passenger cars and aftercare, the applicability of automotive refinish coatings for refinishing and maintenance is anticipated to rise, thereby the passenger vehicles segment is projected to grow rapidly in the automotive refinish coatings market during the forecast period.
Automotive Refinish Coatings Market Segment Analysis – by Geography
The Asia-Pacific held the largest Automotive Refinishing Coatings market share in 2021 up to 51%. The automotive industry in the Asia Pacific is growing rapidly due to rising demand for passenger cars, the requirement for repair and refinishing of old vehicles among the middle-class segment and urbanization. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA, the total automotive vehicle production in China rose by 3%, a 30% increase in India, 8% growth in Taiwan and 63% growth in Indonesia for the year 2021 compared to the previous year. Furthermore, various projects allocated for the flourishing automotive sector also support the growth of automotive refinishes coatings in APAC. For instance, according to the Make in India and Automotive Mission Plan 2026, the plan is implemented to boost the automotive sector in India and offer a contribution of 12% from automotive in the GDP by 2026. With the increase in automotive production activities and development in the automotive sector, the demand for vehicle refinishing, maintenance, repair and refurbishment for new and old vehicles is rising, which is anticipated to boost the growth of automotive refinish coatings in the Asia-Pacific region during the forecast period.
Automotive Refinish Coatings Market Drivers
Flourishing Demand for Automotive Aftermarket:
The demand for Automotive Refinish Coatings is growing rapidly for applications in the vehicle aftermarket segment for repair, customization and maintenance. The automotive aftermarket segment is flourishing rapidly due to the increasing trend for vehicle customization, vehicle servicing and maintenance activities. The factors such as crashes, wear and tear and others in automotive vehicles support the demand for the automotive aftermarket. For instance, according to the Autocare Association, the auto care, repairs and maintenance sector in the U.S is projected to reach US$383 billion by the year 2024. According to Hedges & Company, the personal consumption of aftermarket auto parts rose by 8% in the U.S in October 2020 compared to October 2019. Thus, with the rise in vehicle repair, maintenance and customization trend in the automotive sector, the applications of automotive refinish coatings for refinishing and protection for both new and old vehicles is rising, thereby offering major demand and growth in the market during the forecast period.
Increasing Demand for Electric Vehicles:
The demand for Automotive Refinish Coatings in electric vehicles is growing rapidly due to the increasing applicability for refinishing, remodeling, repair and protection. The refinish coatings based on alkyd, acrylic, epoxy, polyester, polyurethane and others protect the RV from harsh environmental conditions and corrosion and maintain the aesthetics. The electric vehicles sector is rapidly growing due to factors such as the government’s initiative for vehicle electrification, emphasis on limiting fuel-based motor vehicles and urbanization. For instance, according to India Energy Storage Alliance (IESA), the Indian EV industry is projected to expand at a CAGR of 36% by 2030. According to the International Energy Agency (IEA), the stock foe electric cars hit a high of 10 million in 2020, showing an increase of 43% over 2019. With increasing demand and production for electric vehicles (EVs), the applicability of automotive refinish coatings for aesthetics, customization, refurbishment and maintenance is rising, which in turn is boosting the demand and growth prospects for the automotive refinish coatings, thereby driving the automotive refinish coatings industry.
Automotive Refinish Coatings Market Challenge
Toxicity Associated with the Refinish Coatings:
The toxicity associated with solvent-based refinish coatings impacts the growth of the market. The presence of volatile organic compounds (VOCs) in the solvent-borne coating creates a challenge in the market, as a result of the harmful emissions into the environment. The restriction on the usage of high volatile organic compounds (VOC) content affects the growth and applications in the industry. Thus, due to regulations and restrictions implemented by the government on the usage of toxic VOC-based coatings, the demand for solvent-borne coating faces a major slowdown and hindrance, thereby acting as a challenge for the automotive refinish coatings industry.
Automotive Refinishing Coatings Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the automotive refinishing coatings market. The top 10 companies in the Automotive Refinish Coatings market are:
AkzoNobel
BASF SE
PPG Industries
Axalta Coating Systems
3M Company
Clariant AG
Kansai Paints Co. Ltd.
Nippon Paint Holdings Co. Ltd.
The Sherwin-Williams Company
KCC Corporation
Recent Developments
In September 2020, BASF launched new water-borne coatings solutions line, which is an advanced refinish product line. The launch of the product offers eco-friendly solutions for automotive applications with low volatile organic compounds, thereby maintaining sustainability in the market.
In February 2020, AkzoNobel signed the supply agreement with the BMW Group for the supply of refinishing products including paints & coatings. The agreement approves the usage of Akzo Nobel’s Lesonal and Sikkens brands for paint repair at authorized dealer branches, thereby boosting the position and portfolio in the market.
In April 2019, Automotive refinish coatings producer Hemmelrath was procured by PPG Industries. This acquisition will offer enhanced production capacity and growth opportunities for PPG in the market.
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