Automotive paint and coating market plays a crucial role in the automotive industry. These paints and coats are available in various colours and textures. Besides adding beauty, they also add protective layers to the vehicles. The application of automotive paints and coatings can increase the tensile strength, fuel efficiency, resistance to weather conditions, durability, design flexibility along with aesthetic colour choices. The growing demand for automobiles across the world has been driving the growth of the automotive market. The market is further expected to grow considerably in the coming few years.
Global Automotive Paint and Coatings Market Trends in 2019 are:
- Automobile Industry Drives Demand:
Urbanization, increased purchasing power and increased financial capabilities of the middle-class people have steered the demand for automobiles. This increased demand has further conveyed the growth of automotive paint and coatings industry. This coating can increase the fuel efficiency, contents like plastics which are lightweight can be further used to reduce the mass of the vehicle.
- Water-Borne to Replace Solvent-Borne:
The growing environmental concerns have driven the manufacturers to shift from solvent-borne that emitted harmful VOC to water-borne that uses water as a solvent, thus making it eco-friendly. Waterborne paints and coatings contain up to 80% water with small quantities of other solvents that emit less VOC; this has further piloted the growing popularity of water-borne technology.
- The Clear Coat Covers it all:
A clear coat is the outermost layer of the paint and covers all three layers, namely base, primer and electro coat. It is the thickest layer and provides shine and finish to the vehicles. However, the main aim is to protect the body of the vehicle from UV radiations, weather, physical scratches, etc. Automotive original equipment manufacturers (OEMs) are using clear coat based combination instead of a pre-manufactured coat, this along with an increased number of customers refurbishing their vehicles have fueled the demand for clear coat.
- The Entry of New Players:
Government regulation in the manufacturing of automotive paints and coating are not extensive. The initial investment is moderately high. The market is big and at the same time, consolidated globally. These are the barriers that are keeping the new entries to the market a far possibility. The existing leaders of the market like PPG, NIPPON, VALSPAR, etc. enjoy a huge capital resource, which makes it difficult for the new entrants to cope with the competition.
- The Scarcity of Substitutes:
The substitutes of automotive paints and coatings are very low. The only difficulty faced by this industry is the emission of the VOC and the enactment of stringent VOC standards, leading to the development of eco-friendly technology. Thus the availability and threat of substitute remain low.
- Matte Paint Texture adds to the Variety:
Matte paint textures due to its rough, non-reflective appearance and sandy textures have started to gain attention in the market. It is generally used in high-end automobiles, providing a premium colour finish to the vehicle. It also prevents the vehicle from fingerprints, discolouration and oxidation.
- The Asia Pacific Lead the Market:
The Asia Pacific holds the largest share in the automotive paints and coating market and is expected to grow further at a considerable rate over the forecasting period. The major driver for this growth is the developing automobile industry and emerging economies in this region. The automobile industry uses paint and coatings while manufacturing cars and also as after-sale service and refurbishments. The lightweights of automotive are considered to reduce the mass of the vehicle. The growth of the Asia Pacific market is steered by emerging countries like India, China, South Korea, Malaysia and Singapore.
- Europe Follows the Asia Pacific:
Europe has emerged as the second-largest region in the global market. The presence of major automotive players like BMW, Volkswagen, Groupe PSA, Renault, and Daimler are driving the automotive paints and coating market in Europe. The limited usage of VOC and increasing usage of water-borne technology is further catering to the growth of the market in this region.
- Rise in Technology:
Advanced technologies like anti-fingerprint paint finishes, glaring anti coats, UV radiation protective coats, transparent protective coats are adding to the automotive speciality and thus increasing the demand for these technologies. Further, the adoption of dual coat technologies to resist the corrosion and to provide smooth surface finish drives the market in a positive light.
- Shift Towards Nano Paints:
Nano paints constitute of microscopic particles that can change structure or behaviour with alteration in condition or user-defined conditions. Nano paints are highly durable, water repellent and emit low VOC. It can be applied in liquid form, which holds the ability to recover any damage caused to the exterior part of the vehicle. It is UV radiation resistant and can also restrict radio frequency signals from smartphones, radios, wireless devices as per customer’s requirements. In addition, polyurethane-based paints and coating are gaining huge importance; it has an organic base and is low on VOC emission.
The growth of the automobile industry is constant, and the future is bright, which would pilot the demand for automobile paints and coatings in the market. Globally, the automotive paints and coatings market continues to focus on developing technologies that would reduce the emission of VOC to zero. The variety keeps growing, and the future will see more customized textures and colours for vehicles.