The global automotive coatings market is expected to expand at a healthy rate of 6.28% CAGR between 2018 to 2026, according to an upcoming report on the automotive coatings market. The rising disposable income is paving way for the customer to look for attractive colors and they do not mind paying to improve aesthetic.
This might aid in the expansion of the global automotive coatings market during the forecast period.
On the basis of technology, the global automotive coatings market is segmented into solvent borne, water borne, UV cured, and powder. Among all these, the global automotive coatings market is expected to led by water based solvent. The growth can be attributed to its environment friendly properties owing to low amount of volatile organic compounds.
The substantial demand for paint coatings comes from automotive manufacturing units. The coatings are not just for visual appeal but also to protect the vehicle. The rising number of vehicle production to result in the expansion of the global automotive coatings market. For an instance- in 2018, Toyota motors sold around eight million vehicles across the globe.
If Toyota alone sold such a huge numbers of vehicles, all other brands if taken in to account may indicate enormous amount of vehicles sales. Ever Increasing demand for vehicles is projected to pave the way for growth in the global automotive coatings market.
Additionally, paints are applied in many coatings such as base coat, first coat, primer coat, etc. This may lead to increasing sales of coatings in automobile manufacturing, thus, aiding in the growth of the global automotive coatings market in the upcoming years.
These paints are applied after the primer coating; it is the base coat that adds to attractiveness of the vehicles. Solid paints are used by vehicles such as cars, motorbikes, and trucks, resulting in growth avenues of the global automotive coatings market.
Further, the authorized service centers of the automotive companies are also expected to boost the demand for coatings.
Stringent regulations from government against using volatile organic compounds (VOC) in coatings are expected to dampen the growth of the global automotive coatings market during the forecast period.
Nonetheless, the availability of alternative coatings such as water solvent coats is expected to surge the global automotive coatings market.
In term of demand for vehicles, Asia Pacific is anticipated to dominate the global automotive coatings market. The growth in this region can be attributed to fast paced urbanization and rising disposable income among population.
North America and Europe is a hub of automotive manufacturing units and are expected play a catalyst in the global automotive coatings market over the forecast period.
Some of the stalwarts of the global automotive coating market include Axalta Coatings, Valspar Corporation, BASF SE, The Sherwin-Williams Company, KCC Corporation, Nippon Paint Holding, , and Jotun. The competition among these companies is fierce.
Of all these companies, Axalta recently opened new refinish centre in Johannesburg, South Africa to cater to the local customers. The company is believed to be in the business for more than 150 years and is deployed with latest technologies to serve its customer with best. Such strong portfolio of these companies makes the competition stiff, aiding in the expansion of the global automotive coatings market.