Global Automotive Coatings Market Projected to Surpass $28 Billion by 2022
September 24, 2018
Due to substantial growth within the Asia Pacific region, a new research report projects the global automotive coatings market to surpass $28 billion by 2022. Driven by China, India, and Japan, the region is poised to comprise over 50 percent of the global market size on account of its developing infrastructure (including road connectivity) and the increasing purchasing power of the people of the emerging countries.
The Asia Pacific region dominating automotive markets is nothing new; in fact, China already controls over a quarter of the global automotive market, both in terms of demand as well as supply. Vehicle production in the country recorded a volume of over 23.7 million units in 2014, while around 23.5 million vehicles were sold in the same year. Japan and India followed, with sales of over 5.5 million and 3 million vehicles respectively in 2014. Attractive and protective coatings are gaining popularity since they protect vehicles from environmental concerns typical to the region’s highly inconsistent climate (such as corrosion or decolorization due to ultraviolet rays, atmospheric acidity, extreme temperature variations, etc.) while still enhancing the automobile’s aesthetic features.
The report also cites that advancements in powder coating technology will have a positive influence on the global automotive coatings market. Powder coatings offer superior features, including easy customization, high efficiency, durability, easy application, and minimal wastage. The increased application of this technology during vehicle production, from the primer and basecoat of the external body, to engines and accessories, to interior parts (such as steering wheels, dashboards, ashtrays, battery trays, luggage racks, etc.), will catalyze the global automotive coatings market in the next eight years. Previously, solvent-borne automotive coatings led the global share of the market, accounting for more than $7.9 billion in 2014, but their popularity is waning due to their volatile organic compound (VOC) content. EPA and REACH regulations pertaining to the VOC amount in solvent-borne coatings could hamper the growth of the automotive coatings market in North America and Europe unless powder, UV-cured, and waterborne coatings replace solvent-borne coatings in these regions in the coming years.
Lastly, the report suggests that the global automotive coatings market will still be restrained in the coming years by the fluctuating prices of the raw materials need for their production, which include titanium oxide, binders, pigments, additives, and resins.