Market Insights
“The global automotive coatings market is expected to grow from USD 16.39 billion in 2024 to USD 21.26 billion by 2030, at a healthy CAGR of 4.43% during 2025-2030.”
Market Dynamics
Introduction
Automotive coatings are specialized paint systems applied to vehicles to protect surfaces and enhance appearance. These coatings include layers like primers, basecoats, and clearcoats. These coatings are used in both manufacturing and repairs, offering resistance to corrosion, UV rays, and wear, ensuring long-lasting durability and aesthetic appeal for automobiles.
The automotive coatings market is one of the fastest-growing segments of the global automotive market, driven by increasing demand for passenger and commercial vehicles. Automotive coatings have extensive applications in the automotive industry for protection and aesthetic purposes. The future of the automotive coatings market is defined by factors such as advancements in manufacturing low-VOC coatings, growing demand for electric vehicles, and the need for sustainability.
Market Drivers
Growing Automotive Industry
The global automotive industry is escalating with the growing production of vehicles (including PC+LCV+MHCV) globally, which is rapidly increasing with the prediction of more than 100.8 million units to be manufactured in 2030. To manufacture automotive parts like body panels, bumpers and mirrors, wheels and rims, underbody and chassis components, plastic and composite parts, interior components, etc., these coatings are extensively used. Hence, to meet the growing automotive needs, automotive manufacturing increases, resulting in high demand for automotive coatings, that is used for the protection, durability, design standards, and enhancement of the vehicle’s surface.
Market Challenges
Stringent Regulatory Policies
The shifting trends towards eco-friendliness and sustainability are limiting the use of certain chemicals, particularly volatile organic compounds (VOCs). Emphasising this trend, regulatory bodies have framed policies aiming at reducing the environmental impacts of VOCs in automotive coatings, and complying with these regulations, manufacturers may require significant research and development investments for developing new formulations that exceed regulatory requirements, ultimately creating obstruction and complexities in the cost structure of the product.
Market Opportunities
Advancement in Coating Technology
The significant progress in the development of autonomous as well as electric vehicles, including passenger cars and commercial vehicles, requires specialized coatings to prevent sensitive electronic components from deterioration. For example, the development of innovative coatings such as battery fire-resistant coatings, self-healing coatings, anti-corrosion and lightweight coatings, etc., creates an opportunity for manufacturers to develop advanced coatings to meet the various unique requirements of vehicles.
Recent Developments:
- In April 2024, BASF's Coatings division introduced a new portfolio of eco-efficient clearcoats and undercoats for the APAC market that offers higher quality and increased productivity, contributing to a significant reduction in CO2 emissions. With this comprehensive portfolio, BASF aims to support body shops with increased profitability and sustainability.
Market Segments' Analysis
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Segmentations
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List of Sub-Segments
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Segments with High-Growth Opportunity
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Vehicle Analysis
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Passenger Cars, Commercial Vehicles
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Passenger Cars are the leading segment in the automotive coatings market.
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Resin Analysis
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Polyurethane, Epoxy, Acrylic
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Acrylic segment dominates the market because of its excellent colour and gloss retention capabilities.
Polyurethane segment is projected to grow fastest during the forecast period.
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Technological Analysis
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Solvent-Based, Water-Based, Powder-Based
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Water-Based Coatings are expected to mark the highest CAGR during the forecast period.
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Coating Analysis
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E-Coat, Primer, Base Coat, Clear Coat
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E-Coat segment is projected to witness the highest growth rate in the automotive coatings market during the forecast period.
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Regional Analysis
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North America, Europe, Asia-Pacific, and The Rest of the World
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Asia-Pacific emerges as the largest region to hold the largest share of the automotive coatings market over the forecasted period because of its robust economic growth.
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By Technological Type
“Water-Based Coatings is anticipated to mark the highest growth during the forecast period.”
The automotive coatings market is segmented into Solvent-Based, Water-Based, and Powder-Based coatings. The segment to witness the fastest growth in the global automotive coatings market is water-based coatings, as they offer lower VOC emissions compared to traditional solvent-based coatings. This specialty of water-based coatings leads to increased adoption by manufacturers, reducing air pollution, minimizing waste, and promoting sustainability.
Regional Analysis
“Asia-Pacific emerges as the largest region to hold the largest share of the automotive coatings market over the forecasted period because of its robust economic growth.”
Asia-Pacific dominates the automotive coatings market due to its high disposable income and consumer spending. The region's rapid demand for vehicles increases the demand for reliable and efficient automotive coatings. Asia-Pacific is the largest automobile manufacturing hub, with increased demand for these coatings for EVs, hybrid vehicles, and other automotive.
Key Players
Most of the major players compete in some of the factors, including price, service offerings, regional presence, etc. The following are the key players in the global automotive coatings market -
- PPG Industries Inc.
- BASF SE
- Axalta Coating Systems
- Kansai Paint Co. Ltd.
- Nippon Paint Holdings Co. Ltd.
- KCC Corporation
- Akzo Nobel N.V.
- Jotun A/S
- RPM International
Note: The above list does not necessarily include all the top players in the market.
Are you the leading player in this market? We would love to include your name. Please write to us at [email protected]
Report Features
This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:
- Market structure: Overview, industry life cycle analysis, supply chain analysis.
- Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
- Market trend and forecast analysis.
- Market segment trend and forecast.
- Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
- COVID-19 impact and its recovery curve.
- Attractive market segments and associated growth opportunities.
- Emerging trends.
- Strategic growth opportunities for the existing and new players.
- Key success factors.
The automotive coatings market is segmented into the following categories.
Global Automotive Coatings Market, by Vehicle Type
- Passenger Cars (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Commercial Vehicles (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Automotive Coatings Market, by Resin Type
- Polyurethane (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Epoxy (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Acrylic (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Automotive Coatings Market, Technology Type
- Solvent-Based (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Water-Based (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
- Powder-Based (Regional Analysis: North America, Europe, Asia-Pacific, and Rest of the World)
Global Automotive Coatings Market, by Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, Italy, The UK, and Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Saudi Arabia, and Others
Research Methodology
- This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s automotive coatings market realities and future market possibilities for the forecast period.
- The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
- The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruit available in the market and formulating growth strategies to expedite their growth process.
- This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
- More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
- We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances
Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to [email protected]
