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According to the research study, the global automotive paint market is estimated to grow at a CAGR of 4.3% in the forecast period of 2021 to 2027, reaching revenue of US$ 23,244.2 Mn by 2027. The global automotive paint market growth is attributed to several factors such as growth in production of vehicles, high usage of polyurethane paints. Polyurethane paints are protective and attractive, which quickly dry and easy to apply. Furthermore, polyurethane paint forms a durable and hard surface which provides protection from stains, starches, and mechanical abrasion.
The increasing demand and rise in production of automobiles leads to growth of automotive paint market. In 2019, top five car producing countries were China, United States, Japan, Germany, and India. After being facing a decline in production due to COVID-19 pandemic, China contributed 25.6% in production of vehicles.
Regulations Against Volatile Organic Compounds Emissions
Automotive paint market faces certain challenges like regulation against volatile organic compounds emissions. Volatile organic compounds (VOCs) are emitted as gases that may have short- and long-term adverse health effects and environmental effects as well. The sources of VOCs comprise of paints, paint strippers and other solvents, wood preservatives, aerosol sprays, cleansers and disinfectants and air fresheners, stored fuels, and automotive products. China, which is the largest producer of vehicles over the past years, has recently announced mandatory national standards in August 2020 limiting the use of (VOCs) and other substances used in coatings, inks, and adhesives. The limit on VOC imposed is proposed to support China’s 2020 Volatile Organic Compounds Management Plan to attain the goal of reducing VOC emissions by 10% by confining the use of VOCs that may pose a challenge the market demand for automotive paint and restrain the market growth.
In volume terms, the global market for automotive paint is valued at2691.6 Mn liters, growing at CAGR of 4.0% over the forecast period.
China Dominates the Share of Asia Pacific Automotive Paint Market
Asia Pacific holds the highest share in the global automotive paint market because of its rapid pace of economic activity and technological improvements in the region and the huge expansion in automobile production in China, India, Indonesia, and other Asian countries. With rising demand has come the need to develop coatings that are more ecologically friendly and have better performance features.
In 2020, China held the highest share in automotive paint market across Asia Pacific, accounting for close to 57% share and is projected to grow with the highest CAGR of 5.1%. Asia manufactures more vehicles than any other region, making it the automotive coatings industry's most important market. Nippon, Kansai, and KCC Paints' significant regional presence will undoubtedly contribute to the region's coatings market growth.
Impact of COVID – 19 on Automotive Paint Market
The Covid – 19 outbreaks adversely affected the market; and market saw a significant drop in investments, demand, and production The market saw decreased production of vehicles and subsequently drop in use of automotive paints. As per analysis, in 2020, the global sale of automobiles dropped from 90.42 Mn Units to 77.9 Mn Units.
However, the recovery phase from Covid – 19 impacts has already started across the world, with relaxation in government regulations, many companies planning to expand their operations. Companies started the production of vehicles again and started investing. For example, Axalta has invested to expand its existing plant in China to enhance their production.
Automotive Paint Market – Key Players
The Automotive paint market is observed to have an oligopoly competitive landscape and is expected to maintain the same nature in forecast period. Threat for new entrants of low as existing players in market has a good brand value with loyal customer database, also complying with rules and maintaining standards for environment protection creates a barrier for new players.
The cumulative market share of the five major players such as PPG, Axlata, AkzoNobel, BASF and Nippon are close to 70.60%. These companies hold a top position in the data triangulation of Global Automotive Paint Market, whereas bottom section is captured by other local players.
The global automotive paint market is categorized based on by paint type, by technology, by resin, by texture, by vehicle, and by channel. These segments are further categorized into subsegments to view the automotive paint market from different dynamics.
As per the research study, in 2020, clearcoat has the largest market share in the automotive paint market when compared to other types of automotive paint by 37% because it offers the car a shinier and deeper appearance while also protecting the paint from the sun and UV rays. As per the study, it is expected that Electrocoat type of automotive paint will grow at a faster annual growth rate of 4.8% in the forecast period because of its capacity to deliver entire surface coverage with unsurpassed film uniformity due to throw power.
The market structure is designed to calculate the revenue from different viewpoint of different segments.
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