A new report from BCC Research, “Automotive Coatings: Technologies and Global Markets,” estimates that by 2023, the global market for automotive coatings will reach $27.3 billion, up from $22.8 billion in 2018, indicating a compound annual growth rate (CAGR) of 3.6%.
Automotive coating features such as scratch resistance, compatibility with any substrate and environmental friendliness fuel demand for automotive coatings. Although automotive coatings face threats from environmental issues and increasing raw material prices, the market continues to grow with increasing demand.
Top leaders in the global market for automotive coatings include: Axalta (AXTA), AkzoNobel (AKZOY), Noroo Holdings and Kapci Coatings.
- Market type analysis. In 2018, the two main automotive coating types, OEM and Refinish, saw about a 50/50 split in market share, and are expected to reach $13.68 billion and $13.60 billion by 2023, respectively.
- Geographic market analysis. China, France, Germany, the U.K. and the U.S. are the leading countries in the electric vehicle market, where electric vehicle sales are increasing at a strong rate. Global stock exceeded 3 million cars in 2017.
- Market driver analysis. Global automotive production is growing at a faster rate in the Asia-Oceania region due to increased income levels, increasing urbanization, improving economic conditions, decreasing price trends and increasing demand for new vehicles in Western China.
“There is huge demand for hybrid and electric cars in the automotive market due to increasing carbon emission that causes air pollution. Currently, car manufacturers are investing in R&D to increase the performance of vehicles,” says BCC Research analyst Aneesh Kumar.
The Effect of the Economy
This market is impacted by various economic factors, including the production and sales of automobiles and vehicle longevity. When the economy is booming, demand for motor vehicles increases as people seek to replace their old vehicles with new ones. When the economy becomes sluggish, consumers try to use their vehicles for a longer time.