Enjoy complimentary customisation on priority with our Enterprise License!
The automotive OEM coatings market in APAC size is forecast to increase by USD 700 million at a CAGR of 3.2% between 2024 and 2028. The market is experiencing significant growth, driven by the increasing demand for fuel-efficient electric vehicles and the availability of coatings specifically designed to enhance their aerodynamic properties. Another trend influencing the market is the growing adoption of UV-curable coatings and nanocoatings, which offer superior durability, gloss retention, and resistance to environmental factors. However, stringent regulations, particularly regarding VOC emissions, pose a challenge to market growth. Manufacturers must comply with these regulations while continuing to innovate and provide high-performance coatings that meet the evolving needs of the automotive industry. In summary, the automotive OEM Coatings market is driven by the demand for fuel-efficient coatings, the adoption of advanced technologies, and the need for regulatory compliance.
The market is a significant segment of the global coatings industry, driven by the increasing production of passenger cars and two-wheelers. The market is segmented into various types of coatings, including UV-curable coatings, nanocoatings, and specialty products. UV-curable coatings are gaining popularity due to their faster curing process and lower volatile organic compound (VOC) emissions. Nanocoatings offer enhanced durability and corrosion resistance. Vendor selection is a critical factor in the automotive OEM coatings market, with key players including Lubrizol, PPG Industries, Axalta Coating Systems, and BASF SE. Coating types include powder coatings, liquid coatings, and e-coat.
Primer, epoxy primer, basecoat, clearcoat, and e-coat are essential components of the automotive coating system. The market is also witnessing the adoption of high-solid coatings and solvent-borne coatings. Epoxy, polyurethane, acrylic, and alkyd are common resin types used in automotive coatings. Film thickness, VOCs, and application methods are essential factors influencing the choice of coating type. The automotive OEM coatings market is expected to grow steadily due to increasing demand for fuel-efficient and eco-friendly coatings.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the water-borne segment will be significant during the forecast period. Waterborne coatings contain maximum water as a solvent to disperse a resin. Other solvents, such as glycol ethers, are added in significantly small quantities to automotive OEM coatings manufactured using waterborne technology, which makes them eco-friendly and easy to apply.
Get a glance at the market share of various segments Request Free Sample
The water in waterborne-based coatings takes time to evaporate as it depends on different environmental conditions such as temperature, airflow, and humidity. The evaporation process is quite faster when coatings are solvent-based. However, during the evaporation process, solvent-borne coatings release harmful fumes. The low volatile organic compounds (VOC) content of these automotive paint coatings has fostered high adoption in developed regions owing to stringent regulations regarding emissions. The market growth in APAC is attributed to the growth in the automotive industry and the increasing preference for water-borne coatings for automobiles. Generally, epoxy-based, water-soluble paints are used as functional coatings for substrate protection. Epoxy-based automotive OEM coatings offer efficient corrosion protection and impact resistance, and adhesion. The major drawback of epoxy-based water-based paints is their poor weather sustainability. Epoxy-based water-based paints are used in automotive OEM coatings components. Hence, these factors will positively influence the growth of the water-borne segment of the automotive OEM coatings market in APAC during the forecast period.
The automotive OEM coatings market is witnessing significant growth due to the increasing demand for eco-friendly and energy-efficient transportation. With the emphasis on reducing vehicular weight to meet emission norms, there is a rising trend towards the use of lightweight materials such as plastics in paints. This shift is driven by regulations like the Kyoto protocol, which restricts the emission of greenhouse gasses, including carbon dioxide. Coating manufacturers are responding to this trend by introducing new low-density coatings, such as UV-curable nanocoatings and specialty products. These coatings offer advantages like faster curing times, improved film thickness, and reduced VOCs (volatile organic compounds) emissions.
Powder coatings and liquid coatings, including solvent-borne and waterborne varieties, are also gaining popularity due to their lower environmental impact. In the luxury automotive segment, clearcoat categories like Acrythane 4G and Hempaprime Shield 700 HS are preferred for their superior gloss and durability. For commercial vehicles, epoxy primers, clearcoats, basecoats, and primers like E-Coat, polyurethane, acrylic, and epoxy are widely used. Commercial Utility Vehicles are also adopting these coatings to enhance their durability and resistance to wear and tear. The macroeconomic growth in emerging markets like the EU, China, and India is driving the demand for new passenger cars, further fueling the growth of the automotive OEM coatings market.
However, the production of these coatings generates wastewater and paint sludge, which poses environmental concerns. Therefore, it is crucial for automakers and coating manufacturers to focus on sustainable production processes and waste management practices to minimize the environmental impact.
The growing adoption of UV-curable coatings and nanocoatings is shaping the market trend. UV-curable coatings exhibit high performance and offer quick assembly-line benefits. The intense focus on R&D for developing UV-curable coatings is a positive development in the automotive OEM coatings market in APAC.
However, nanocoatings are another innovation of manufacturers that has solved the problem of long-lasting shine solutions. They are easy and quick to use and are excellent in repelling rain, dirt, and other environmental contaminants. To address growing consumer awareness about the harmful effects of volatile organic compound emissions, regulatory agencies such as the EPA and the China Ministry of Environmental Protection have implemented stringent regulations. These regulations have compelled manufacturers to develop eco-friendly coating products. Their major applications such as durability, versatility, appearance, and superior weather resistance enhance the preference for UV-curable coatings. These coatings are predominantly used in automotive, industrial, wood furniture, general metal, and flooring applications. Hence, the increasing adoption of UV-curable coatings is expected to support the growth of the market in APAC during the forecast period.
Automotive Original Equipment Manufacturer (OEM) coatings play a crucial role in safeguarding the surfaces and structures of automotive parts from environmental stressors and chemical exposure. These coatings enhance the durability and longevity of metal and plastic components in vehicles, particularly in the luxury, middle-class, and upper-middle-class segments. UV-curable coatings and nanocoatings are gaining popularity due to their ability to provide enhanced protection against UV radiation and improved film thickness. Vendor selection is a critical factor in the automotive OEM coatings market, with coating manufacturers prioritizing factors such as product quality, environmental sustainability, and cost-effectiveness. Automotive OEM coatings comprise various categories, including powder coatings and liquid coatings.
Powder coatings offer advantages such as reduced waste generation in the form of paint sludge and lower VOC emissions. Liquid coatings, on the other hand, are more commonly used in the clearcoat category for their ability to provide a smooth and glossy finish. However, both types of coatings have environmental concerns, with solvent-borne coatings containing volatile organic compounds (VOCs) and waterborne coatings generating wastewater. In the automotive industry, automakers are increasingly focusing on energy-efficient transportation and environmental concerns. Clearcoat, basecoat, primer, e-coat, epoxy primer, polyurethane, acrylic, and epoxy are some of the commonly used coatings in the automotive sector.
Coating manufacturers are developing innovative products such as Acrythane 4G, Hempaprime Shield 700 HS, and Epoxy Primer to cater to the evolving needs of the industry. Commercial vehicles and commercial utility vehicles are also adopting advanced coatings to enhance their durability and performance. The macroeconomic growth in emerging markets and the increasing number of motor vehicle registrations in the EU and new passenger cars are expected to drive the demand for automotive OEM coatings in the coming years.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Akzo Nobel NV - As a leading provider in the Automotive Original Equipment Manufacturer (OEM) coatings market, the company offers a comprehensive range of advanced coating solutions. These include primers, basecoats, topcoats, and clearcoats, each meticulously formulated to ensure superior protection and aesthetically pleasing finishes for automotive parts and vehicles.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for UV-curable coatings and nanocoatings in the luxury and middle-class automotive segments. Coating manufacturers are focusing on producing specialty products to cater to the diverse requirements of automakers. Vendor selection is a critical factor in the market, with key players including Powder coatings and Liquid coatings. Environmental concerns and regulatory norms are driving the shift towards VOCs (Volatile Organic Compounds) reduction. This has led to the popularity of Waterborne coatings, such as Acrythane 4G, over Solvent-borne coatings. The Clearcoat category, which includes Hempaprime Shield 700 HS, Epoxy Primer, Clearcoat, Basecoat, Primer, E-Coat, Polyurethane, and Acrylic, is witnessing high demand due to its ability to provide a smooth finish and excellent UV protection.
The Metal parts category dominates the market, but Plastic parts are gaining popularity due to their lightweight and energy-efficient properties. Commercial vehicles, including Commercial Utility Vehicles, are also adopting advanced coatings to improve durability and reduce maintenance costs. Macroeconomic growth in developing economies, such as the EU, is expected to boost the demand for New Passenger Cars, further fueling the growth of the Automotive OEM Coatings market.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2017-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.2% |
Market growth 2024-2028 |
USD 700 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.06 |
Regional analysis |
APAC |
Performing market contribution |
APAC at 100% |
Key countries |
China, Japan, India, South Korea, and Rest of APAC |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akzo Nobel NV, Axalta Coating Systems Ltd., BASF SE, Berger Paints India Ltd, Color Communications LLC, Dai Nippon Toryo Co. Ltd., Grand Polycoats Co. Pvt. Ltd., Isamu Paint Co. Ltd., Jotun AS, Kansai Paint Co. Ltd., KCC Co. Ltd., Nippon Paint Holdings Co. Ltd., PPG Industries Inc., ROCK PAINT Co. Ltd., RPM International Inc., S.Coat Co. Ltd., Savita Paints Pvt. Ltd., Solvay SA, Tara Paints and Chemicals, and The Sherwin Williams Co. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.