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Global automotive paint market is estimated to attain a valuation of US$ 27,539.6 Mn by 2031, up from 18,733.2 Mn in 2022, at a CAGR of 4.3% from 2023-2031. In terms of volume, the market is projected to witness expansion at a CAGR of 4.0% during the forecast period.
The automotive paint market continues to grow due to several factors, including increasing production of vehicles and advancements in paint technology. The usage of polyurethane paints has been increasing due to their superior performance properties and ability to be used in lower VOC formulations. The American Coating Association reports that in 2018, urethane resins accounted for approximately 21% of global demand for resins in coatings. This trend is expected to continue as more stringent regulations are put in place to limit VOC emissions in automotive painting.
Waterborne paints and primers are also becoming more popular due to their ability to reduce VOC emissions and workers' exposure to dangerous air pollutants. This shift toward environmentally friendly coatings is expected to continue as more companies adopt sustainable business practices. Powder coating is another technology that is gaining popularity in the automotive paint market due to its ability to emit no VOC emissions and have very low toxic aspects. Additionally, the operating costs for a powder line are significantly lower than for liquid lines, making it an attractive option for manufacturers.
In the North America region, powder coating has emerged as the fastest-growing finishing technology due to its efficiency and lower costs. The demand for powder coatings is expected to continue to grow as more companies adopt this technology. Overall, the automotive paint market is expected to continue to grow due to the increasing demand for environmentally friendly coatings, advancements in paint technology, and the growing production of vehicles.
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Growing Demand for Cars
The automotive industry has seen a significant increase in demand for cars in recent years. With the rise in population and the expansion of the middle class in developing countries, more people are buying cars, which is driving the growth of the automotive paint market. Additionally, increasing disposable incomes and the availability of financing options have made it easier for consumers to purchase vehicles. As a result, the demand for automotive paint has increased, as it is essential for protecting the exterior of the car and ensuring its longevity.
Rapid Technological Advancements
The automotive industry has also seen significant technological advancements in recent years, which have driven the growth of the automotive paint market. Advancements in paint formulations have led to the development of high-performance coatings that offer superior protection against corrosion, UV radiation, and abrasion. Additionally, the use of advanced paint application technologies, such as electrostatic spray and robotic paint systems, has improved the efficiency and quality of the painting process, leading to increased demand for automotive paint.
Stringent Environmental Regulations
One of the major restraints that the automotive paint market faces is the increasing pressure from environmental regulations. Governments across the world are imposing strict regulations on the use of certain chemicals in paint formulations, such as volatile organic compounds (VOCs), which can be harmful to human health and the environment. As a result, paint manufacturers are forced to invest in research and development to create eco-friendly paint formulations, which can increase the cost of production and affect the profit margins of manufacturers.
Fluctuating Costs of Raw Materials
The automotive paint market also faces the challenge of fluctuating costs of raw materials. The prices of key raw materials used in paint formulations, such as resins, pigments, and solvents, can be volatile due to changes in supply and demand and geopolitical factors. As a result, manufacturers may face difficulties in managing their costs and may be forced to pass on the increased costs to consumers, which can lead to a decrease in demand for their products.
Clearcoat, with a market share of 37%, is the most popular type of automotive paint. It is preferred for its ability to provide a shiny and deep appearance to the car while also protecting it from the sun and UV rays. Other types of automotive paints include basecoat, primer, and electrocoat. The electrocoat segment is expected to have the highest annual growth rate of close to 5% during the forecast period from 2023 to 2031.
Waterborne technology holds the highest share in the automotive paint market, exceeding 65% of the global market in 2020. It is preferred because it is eco-friendly and emits fewer volatile organic compounds (VOCs) than solvent-borne technologies. Other types of technologies used in automotive paint include solvent-borne, powder, and UV-cured.
By Resin Type:
In terms of resin type, polyurethane held close to 45% of the global market share in 2020, followed by epoxy, acrylic, and others. Polyurethane is preferred because it provides a durable and glossy finish to the car. In terms of texture, metallic automotive paint held the highest market share in 2020, followed by solid and pearlescent.
By Vehicle Type:
Passenger cars hold the highest share in the automotive paint market, exceeding 70% of the global market in 2020. This is due to the high demand for passenger cars globally, and most of the sales are attributed to OEMs distribution channels. However, aftermarket demand also competes closely with OEM channels, adding up to 50% of the global market share in the same year. Other types of vehicles that use automotive paint include commercial vehicles and two-wheelers.
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The global automotive paint market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among these regions, Asia Pacific holds the highest share in revenue terms, accounting for close to 58% of the global market. The region is projected to maintain its dominance in the market due to several factors. The region has experienced a fast pace of economic activity in recent years, which has led to an increase in disposable incomes and the expansion of the middle class. This has resulted in a surge in demand for vehicles, driving the growth of the automotive paint market. Moreover, in the last few years, the region has seen significant technological improvements in the automotive industry. Many countries in the region, such as China and Japan, have made significant investments in research and development, leading to the development of advanced paint formulations and application technologies. This has resulted in the production of high-quality and durable automotive paint, which has further fueled the demand for automotive paint in the region.
The Asia Pacific region is home to several large automotive manufacturers, such as Toyota, Hyundai, and Honda. These manufacturers have a significant demand for automotive paint, which has led to the growth of the market in the region.
Market Key Players
Global Automotive Paint Market: Segmental Overview
** In-depth Segment level market analysis included
|Market Size Value in 2022||US$ 18,733.2 Mn|
|Expected Revenue in 2031||US$ 27,539.6 Mn|
|Unit||Value (USD Mn)|
|Segments covered||By Type, By Technology, By Resin, By Texture, By Vehicle, By Channel, By Region|
|Key Companies||Axalta Coating Systems, LLC, BASF SE, Clariant AG, DOW Chemical, DuPont Coatings & Color Technologies Group, Kansai Paint Co., Ltd., KCC, Nippon Paint Holdings Co., Ltd., PPG Industries, Sherwin-Williams Company, Solvay, The Sherwin-Williams, Valspar Corporation, Other Prominent Players|
|Customization Scope||Get your customized report as per your preference. Ask for customization|
The Global Automotive Paint market generated a revenue of US$ 18,733.2 million in 2022.
In terms of volume, the Global Automotive Paint market recorded production of 2852.66 million liters in the year 2022.
Clearcoat, Electrocoat, Primer and Basecoat are four types of automotive paint included in the report.
In 2022, Clearcoat held close to 40% share of Global Automotive Paint market and generated approximate revenue of US$ 6.5 billion.
Solvent borne, Waterborne and Powder Coating are some of the technologies used in the automotive paint industry. In 2022, Waterborne held the highest market share, exceeding 65%.
PPG, Axlata, AkzoNobel, BASF SE, 3M, DuPont Coatings & Color Technologies Group, Kansai Paint Co., Ltd., Nippon Paint Holdings Co., Ltd., Valspar Corporation are some of the market players in the automotive paint market.
The global sales of automobiles dropped about 14% to 77.9 million units in 2022. This led to decreased manufacturing and use of automotive paints
Waterborne segment is contributing to more than half of the market share in the year 2022.
Asia Pacific holds about 60% of the global automotive paint market share in 2022.
The automotive paint market is estimated to grow at a CAGR of 4.3% during the forecast period of 2023-2031.
Metallic is the most popular texture with market share of nearly 60%.
During the forecast period, Asia Pacific has the highest growing potential with CAGR of 5.0%.
Passenger Cars holds highest share of approximately 70% of the Global Automotive Paint market.
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