Shining Bright: Trends and Innovations in the Automotive Paints and Coatings Market from Maria Yardena's blog

Key Highlights

·         The automotive paints and coatings market generated a value of USD 18.8 billion in 2023, which will increase to USD 32.2 billion, powering at an 8.0% compound annual growth rate, by 2030.

·         Polyurethane paints and coatings are extensively used because of their long lifespan as well as rust-prevention properties.

·         Polyurethane coatings and resins, apart from metallic surfaces, are also used on concrete and wood.

·         These products are accepted for their robust protective layer, which enhances the durability of the coated surface by decreasing the impact of scratches, chemicals, and environmental changes.

·         Due to their strength and flexibility, they are exceptionally beneficial for harsh weather situations like in personal vehicles and marine structures.

·         The automotive sector has been affected by the rising need of customers for environment-friendly and sustainable coating, which is encouraging companies to adapt.

·         The necessity to tackle the ecological problems because of conventional paints and coatings is a major reason the automotive sector is changing to environment-friendly and robust paints & coatings.

·         To decrease the hazard of heavy metal poisoning in the repainting workforce, environment-friendly, water-based paints with no or less lead are being produced.

·         Automotive paints & coatings are therefore being developed with the lead content ranging from 0.00025-107.928 mg/g.

Market Insights

APAC was the largest contributor to the industry in 2023, with a 55% share, and it is also likely to advance at an 8.5% compound annual growth rate during this decade.

The environmental policies employed in the wake of the critical air quality in regional cities are boosting the need for environment-friendly paints & coatings.

Electrocoat led the industry in 2023, generating more than USD 8.5 billion, and it will continue this trend throughout this decade. This layer offers many advantages, such as uniform covering, less wastage, and rust resistance.

Waterborne technology accounted for the largest share of the industry in 2023, of approximately 50%, and it will remain the largest in the coming years. These formulations are environment-friendly and comprise nearly no VOC; therefore, they can decrease air pollution.

The polyurethane category was the largest contributor in 2023, with approximately 45% share. Polyurethane is weather-resistant, enabling it to protect the automobile from moisture, snow, heat, and hail.

In the automotive sector, polyurethane is extensively employed for interior components, exterior and interior cladding, production of gaskets and seals, protective coatings, and more.

Metallic texture led the industry in 2023, as it offers a polished and refined appearance. Not only does the metallic texture enhance the look of an automobile by giving it a superior look, but it also defends the automobile from severe weather.

The passenger cars category was the largest contributor to the industry. With the rising need for passenger cars, the requirement for paints and coatings is also surging, as car owners want a unique look.

The automotive paints and coatings industry is highly competitive because of the presence of numerous global and local companies. New companies are entering continuously, which leads to many problems for the existing players and opportunities for new players.

In this competitive industry, players often invest in better-quality products, customer service, and innovations.

Source: P&S Intelligence