New Study Covers the Market for Automotive Refinish Coatings
A new report on the global market for automotive refinish coatings has been added to Research And Markets.com's offering. The report estimates the market for automotive refinish coatings to have reached $7.8 billion in 2016, in terms of value, and expects the market to register a compound annual growth rate (CAGR) of 5.3% from 2016 to 2021, also in terms of value. In terms of volume, the report expects the global automotive refinish coatings market to register a CAGR of 4.5% between 2016 and 2021.
The growth is attributed to rising disposable income, increasing number of vehicle collisions, growing demand for recreational vehicles, and an increase in the average age of vehicles, among others. However, stringent regulations for VOC emissions and lack of skilled professionals are some of the factors hampering the growth of the global automotive refinish coatings market.
The development of environment-friendly technologies, increasing number of rental car owners and used car markets, and growing demand from the emerging economies such as China, India, Japan and Brazil, among others, are expected to create opportunities for the growth of the global automotive refinish coatings market.
The global automotive refinish coatings market has been divided into 4 segments on the basis of product type, namely basecoats, clearcoats, primers and fillers, and ‘others’. In 2016, clearcoats based refinish coatings dominated the global automotive refinish coatings market with a share of 40.0%, and 38.5%, by value, and volume, respectively. The major factors attributing to this robust growth are the increasing average age of vehicles, and the rising automotive collision rate. The final coating, known as clearcoat, is done on the automobile surface in order to protect the basecoat, and provide aesthetic look, durability, protection against environmental damages, and scratch resistance to the overall coating.
On the basis of resins, the global automotive refinish coatings market is segmented into alkyd, acrylic, polyurethane, epoxy, and ‘others’.
Various technologies such as solvent-borne, waterborne, and UV-cured are utilized by the automotive body shops and repair centres for the refinishing of automotive vehicle parts. In the global automotive refinish coatings market, the solvent-borne technology based coatings segment accounted for a share of 48.0% in 2016. This growth can be attributed to the advantageous properties of using solvent-borne technology based automotive refinish coatings such as higher gloss retention, excellent block resistance, tolerance to adverse weather conditions, and good adhesion, among others. Refinish coatings are being widely employed for various vehicles such as cars, commercial vehicles, and two wheelers, among others. Automotive refinish coatings are used on passenger vehicles to endow them with similar mechanical and optical properties as provided by the factory applied coatings. The rental car service industry is also growing at a robust rate globally, especially in the emerging economies such as Latin America, India, China, Brazil, and others. For instance, in China, the total number of rental cars in 2015 was 430,000, an increase of 7% as compared to 400,000 in 2014. The increased demand for rental car services, globally, is driving the growth of the global automotive refinish coatings market since these vehicles are mainly used cars and need proper maintenance from time to time.
The refinish coatings market for vehicles with age less than 5 years is expected to grow in all the regions. The major factor attributing to the growth of the refinish coatings market for vehicles less than 5 years of age is the rise in the disposable income across several countries, especially in the emerging economies of Asia pacific. The rise in the disposable income is driving the sales of new vehicles, thereby increasing the congestion on roads. This has led to an increase in the number of collisions which is driving the market for automotive refinish coatings.
The trends of the automotive refinish coatings market varies with different geographical regions. The automotive refinish coatings market holds a prominent share in various countries of Asia-Pacific (APAC), North America, Europe, South America, and Middle East and Africa. Asia-Pacific accounted for the largest market share of 34.5% in the global automotive refinish coatings market. This growth is attributed to the growing demand of vehicles from the Asia-Pacific countries such as India, and China. Some of the automotive refinish coating players such as BASF SE, and Axalta Coatings Systems are adopting different strategies to establish their presence in the Asia-Pacific automotive refinish coatings market. For instance, Axalta Coating Systems, in 2017, introduced water borne refinish coating “Syrox” for China’s automotive refinish coating market.
The competitive landscape for the automotive refinish coatings market demonstrates an inclination towards companies adopting strategies to expand their business and focusing on research and development activities. Some of the major established players in the automotive refinish coatings market, are focusing more on business expansion & contracts to keep a strong hold on the market. Axalta Coatings Systems, PPG Industries Inc., AkzoNobel N.V., BASF SE, Sherwin Williams, KCC Paints, Covestro, Berger Paints, Kansai Paint, Nippon Paint, NOROO Paint, Lubrizol Corporation, S.Coat, and Diamond Vogel, among others are some of the prominent companies in the global automotive refinish coatings market. These companies are actively aiming at an increased number of agreements, partnerships, & collaborations, and products to expand their operations, thereby, enhancing their share in the nanocoatings market. These companies expanded their business in different countries to expand their customer base in the market.