Growing macroeconomic conditions, especially across the emerging nations, will create an opportunity for automotive coatings industry in coming years, according to a new report from Global Market Insights.
Economic development and uplifted living standards of consumers have led to an increased production of vehicles, resulting in a proportional impact on the automotive coatings market.
Asia Pacific is one lucrative belt that has had a huge influence on the overall industry dynamics, due to enormous development in the automotive sector.
In the coming years, the market is expected to witness the highest growth rate in the Asia Pacific.
The report finds that recent infrastructural developments including road connectivity, coupled with growing PPP of emerging countries in East and South East Asia will have a positive impact on the market over the next few years.
China controls over a quarter of the global automotive market, both in terms of demand and supply.
The report segments the Automotive Coatings industry into Technology, Product, Application and End-User.
‘Technology’ is classified into Solventborne, Waterborne, UV-Cured and Powder Coatings.
The solventborne automotive coatings market size is predicted to experience sluggish growth due to strict legislation over VOC emissions in the atmosphere.
The waterborne segment is tipped to exhibit high gains at above 5% in the next few years.
The growth is attributed to factors like low flammability, air emission reduction and less toxicity.
‘Product’ is sub-divided into Electrocoat, Primer, Clearcoat and Basecoat.
Basecoat is estimated to hold sway over the product segments as it provides desirable colour and effects on the vehicle body.
It registered a value of more than US$8bn and is expected to have the fastest growth rate.
It is followed by electrocoat, which was valued at more than US$4bn in 2014.
‘Application’ is classified into Plastic and Metal.
Considering the profusion of metal parts in an automobile, metal-based applications represented 70% of the global industry, with a valuation of US$13bn in 2014.
With the shifting trends toward light-weight vehicle production, however, the automotive coatings market that cater to plastic-based variants is gaining a renewed attention.
These types of coatings are mainly applied in non-metallic parts of a vehicle, which includes dashboards, ashtrays, steering wheels, etc.
‘End-User’ is divided into Commercial OEM, Automotive Refinish and Light Vehicle OEM.
Light weight OEMs dominated the business landscape in 2014, accounting for almost 40% of the overall volume.
The trend is likely to continue in the coming years owing to the increasing demand for luxurious personal cars worldwide.
With the increasing purchase capacity of consumers, especially across developing nations, the demand for light weight vehicles equipped with sophisticated technologies is on the rise, which is opening lucrative business opportunities for the automotive coatings market.
Light-weight OEMs held a market valuation of over US$7.5bn in 2014 and are poised to chart a profitable roadmap in the years ahead.
Automotive refinish covered 35% of the overall automotive coatings market size in 2014, accounting for the second-largest end-user segment.
Robust growth in the automotive service industry is shedding a positive influence on the market from this segment.
Key Players discussed in the report include: Kansai Paints, Nippon Paint, Sherwin-Williams, Berger Paints, KCC Paint, Arkema, Valspar Corp, Clariant, Beckers Group, Lord Corporation, Cabot Corporation, Eastman Chemical Company, DSM, and Solvay.
To find out more about the report, visit: automotive coatings market