CHICAGO, Dec. 12, 2023 /PRNewswire/ — Automotive Paints Market is estimated to be USD 8.4 billion in 2023 and is projected to reach USD 9.9 billion by 2028, at a CAGR of 3.2% from 2023 to 2028, according to a new report by MarketsandMarkets™. The shift in consumer preference to SUVs from sedan and hatchback, also there is increase in adoption for powder coating and water-borne coating technologies in automotive sector to reduce the environmental impact. Hence these factors are driving the automotive paints market.
Browse in-depth TOC on “Automotive Paints Market”.
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Automotive Paints Market Scope:
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Report Coverage |
Details |
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Market Size |
USD 9.9 billion by 2028 |
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Growth Rate |
CAGR of 3.2% |
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Largest Market |
Asia Pacific |
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Market Dynamics |
Drivers, Restraints, Opportunities & Challenges |
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Forecast Period |
2023-2028 |
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Forecast Units |
Value (USD Billion) |
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Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
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Segments Covered |
By Paint type, By Technology type, By Resin type, By Texture type, By Electric & Hybrid Vehicle type, By Vehicle type, By Content type, By Resin Refinish Paint type, By Painting Equipment |
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Geographies Covered |
Asia Pacific, North America, Europe, and Rest of the World. |
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Report Highlights |
Updated financial information / product portfolio of players |
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Key Market Opportunities |
Booming sales of SUVs |
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Key Market Drivers |
Stringent emission regulations have forced key players to produce sustainable and low-VOC paints |
Polyurethane resin is projected to have the highest demand in automotive paints market
Polyurethane-based coatings are popular in automotive OEM and refinish painting because they offer a unique combination of properties, this includes good elastic property at very low temperatures, solvent and water resistance, abrasion resistance, machine washability and dry cleanability. In addition to these benefits, polyurethane-based coatings do not increase paint thickness or change styling factors, such as drape. Also, with an increase in need of automotive paints by OEMs, the paint manufacturers have started investing in expanding their plant capacity for polyurethane resins. For instance, BASF SE has announced a single-digit million-euro investment in the capacity expansion of water-based polyurethane dispersions (PUDs) at its Castellbisbal site in Spain to increase the production capacity. Hence, polyurethane-based paints have the largest market in automotive paints industry, by resin type.
Passenger car is the second fastest growing segment in vehicle type for automotive paints market
Compact and mid-sized SUVs are among the most popular vehicle segments, and their demand is continuously growing. This has led to increased production of these vehicles, boosting the demand for automotive paints. These vehicles typically have a larger surface area than smaller cars, requiring more paint per vehicle. This has increased the consumption of automotive paints for these vehicle segments. Additionally, two-tone paints are becoming increasingly prevalent in compact and mid-sized SUVs, adding a more distinctive and customized look to these vehicles.
According to MarketsandMarkets Analysis, the global premium car segment under passenger car market is dominated by premium SUVs, which accounted for about 53% of total production in 2021 and grew to 62% in 2022 Developed countries such as the US, Canada, Japan, and South Korea hold the majority of the market, representing over 90% of global premium SUV production. For example, in 2021, the US produced luxury SUVs that comprised around 75% of its total luxury car production. Conversely, developing countries such as China, Brazil, and India have exhibited remarkable growth in SUV demand over the past few years. China and India’s SUV markets have grown by 36% and 10%, respectively, between 2018 and 2021. This growth in sales for SUVs is driving the market for passenger cars in the automotive paints market.
The global demand for passenger cars is expected to grow further due to the increased fuel efficiency of passenger cars, a rise in per capita income, increased employment opportunities, and efficient personal mobility solutions. The automotive industry is growing rapidly in countries such as China and India. Automotive manufacturers are increasingly investing in these countries due to the availability of affordable labour, robust infrastructure for production, and attractive government policies for the automotive industry.
In March 2022, Hyundai (South Korea) established its first production plant in the ASEAN region, marking a significant milestone in its expansion strategy. Situated in Cikarang, Indonesia, the facility represents a substantial investment of USD 1.55 billion and boasts an annual production capacity of 250,000 vehicles. This state-of-the-art plant will manufacture a range of new models, including the Creta, Santa Fe, Tucson, Stargazer, and IONIQ 5, all equipped with cutting-edge connectivity features to enhance the driving experience for customers across the region. Hence this factor has made passenger car the second fastest growing segment in automotive paints.
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Asia Pacific to remain the fastest growing market for the for automotive paints
The Asia Pacific region is home to some of the world’s largest and fastest-growing OEMs, particularly in countries like China, India, and South Korea. This rapid growth in vehicle production is driving the demand for automotive paints, as new vehicles require painting and existing vehicles need repainting to maintain their appearance and protect them from corrosion.
The Asia Pacific region is experiencing rapid urbanization and a growing middle class, leading to an increase in disposable incomes. This surge in purchasing power is fuelling the demand for new vehicles, further boosting the demand for automotive paints. Additionally, the growing urbanization trend is leading to an increase in the number of car owners, which creates a need for aftermarket services like repainting and refinishing, further driving the demand for automotive paints.
The key players of automotive paints market are having collaboration and joint venture for catering to the increasing demand for automotive paints. For instance, PPG Industries and Kansai Paint announced the formation of a joint venture focused on the development, manufacture, and sale of automotive coatings. The joint venture, which will be headquartered in Shanghai, China, will leverage the complementary strengths of both companies to offer customers a comprehensive range of high-performance automotive coatings. The joint venture will also focus on research and development to develop new and innovative automotive coatings that meet customers’ needs worldwide.
Hence, the combination of a rapidly growing automotive industry, rising disposable incomes, stringent environmental regulations, and investments by OEMs and key players is driving the Asia Pacific region to become the fastest-growing market for automotive paints. The region’s strong economic growth, increasing urbanization, and focus on sustainable practices are creating a favourable environment for the continued expansion of the automotive paints market in the coming years. Due to this reason the Asia Pacific region is the fastest growing region for automotive paints.
Key Market Players:
The major players in Automotive Paints Companies include PPG Industries LLC. (US), Axalta Coating Systems LLC, (US), Akzo Nobel N.V. (Netherlands), BASF SE (Germany), The Sherwin Williams Company (US), Valspar (US), DOW Chemical (US), 3M (US), and KCC (South Korea).
Recent Developments
In June 2023, PPG industries, Inc. launched PPG ENVIRO-PRIME EPIC 200R, a suite of electrocoating (e-coat) products that cure at lower temperatures than competing technologies. The products provide sustainability benefits for customers, including lower energy use and reduced CO2 emissions at manufacturing facilities. PPG ENVIRO-PRIME EPIC 200R electro coat products cure at temperatures as low as 150°C (302°F), which is significantly lower than the typical cure temperatures of 180°C (356°F) or higher for conventional e-coats. This lower cure temperature helps to reduce energy consumption by up to 25%. In addition, the lower cure temperature helps to reduce CO2 emissions by up to 20%.
In August 2023, Axalta announced adding RADAR-compliant colour formulas to its global online colour databases – ChromaWeb, Phoenix Cloud, and Standowin iQ Cloud. ADAS sensors are often located behind painted plastic surfaces on cars, and the coating layers can directly influence the signal emitted and received by the ADAS sensors. Some colours, such as those with high concentrations of aluminium flakes, can interfere with RADAR sensors. Axalta has developed RADAR-compliant colour formulas for colours that are known to interfere with RADAR sensors.
In December 2022, BASF launched its first biomass balance automotive coatings in China. The first product, ColorBrite Airspace Blue ReSource basecoat, is certified by REDcert² using a biomass balance approach. It was made from renewable raw materials used in the production of the basecoat and allocated to the product through a mass balance system. This results in a reduction of the product’s carbon footprint by 20%. BASF has also received biomass certification for its resins plant in Caojing and its paint manufacturing sites in Minhang and Caojing, operated by BASF Shanghai Coatings Co., Ltd.
In march 2022, The Sherwin Willaims Company introduced Collision Core is a comprehensive solution that includes applications for colour retrieval, body shop management, and performance management. The suite is designed to help shops overcome critical industry challenges, such as skilled labour shortages, rising costs, complex repair processes, and customer satisfaction.
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