WELLESLEY, MA--(Marketwired - September 22, 2016) - The global market for automotive coatings is growing steadily, driven primarily by the North American and Asia-Pacific markets. BCC Research reveals in its new report that the mature markets have provided an enormous opportunity for the developing markets, by outsourcing their manufacturing requirements and setting up plants in the developing countries.
Automotive coatings are broadly divided into two types, automotive original equipment manufacturer (OEM) coatings and automotive refinish coatings, based on the nature of the vehicles on which the coating is used. Based on the coating layer, automotive coatings also are classified into the categories of electro coat (or e-coat), primer, base coat and clear coat. It can be further classified by coating technology into the categories of solvent coatings, waterborne coatings and powder coatings.
The global market for automotive coatings should reach $21 billion and $26 billion in 2016 and 2021, respectively, reflecting a five-year compound annual growth rate (CAGR) of 4.4%. As a segment, automotive OEM coatings is expected to grow at a five-year CAGR of 4.2%, while automotive refinish coatings as a segment should grow at a five-year CAGR of 4.6%.
With the recovery of the global economy, vehicle sales activities have geared up globally, as in the North American countries, which have seen increased, pent-up demand for new vehicles on account of the recession, which has yielded greater demand for automotive coatings. Increases in automotive sales, accidents and aging vehicles are driving global demand for automotive coatings, as well. Additionally, increasing OEM demand for greener coatings is due to increasing production needs to meet the growing demand for new vehicles
Increasing R&D investments along with ongoing product development to improve the performance of coatings is expected to augment the market's growth over the forecast period. However, fluctuation in prices of raw materials including pigments, resins, titanium oxides and other additives is expected to restrain the market's growth. In addition to above, harmful environmental effects by conventional solvent borne coatings coupled with the inability of industry participants to meet OEMs' expectations in terms of environment durability and sustainability of the coating should challenge market growth.
"The rapidly growing emerging economies, which are mainly China and India in terms of both economy and infrastructure, have significantly increased the demand for automotive coatings over the past five years," says BCC Research analyst Aneesh Kumar. "The Asia-Pacific region has become the hub for Western markets to outsource the manufacture of their automotive coatings. Also, in this region, automotive coating refinish should see rapid growth over the next seven years, owing to rising consumer spending power in emerging economies of countries such as China, India and Thailand."
Automotive Coatings: Technologies and Global Markets (CHM075B) analyzes the technical and commercial aspects of various layers of automotive coating by metrics such as technology, region, layer, and car age. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.