The automotive refinish coating market is poised for substantial growth, with an estimated value of USD 11,544.3 million in 2024, projected to reach USD 19,352.3 million by 2034, reflecting a robust CAGR of 5.3% over the decade. This surge is driven by the rising demand for automotive refinish coatings, fueled by the increased sales of automobiles and the growing emphasis on vehicle maintenance and aesthetics. As more vehicles take to the roads, the need for quality refinish coatings to repair and enhance their appearance continues to expand, positioning the market for steady and sustained growth.
Key drivers fueling the soaring demand for Automotive Refinish Coatings
- The market for automotive refinish coatings has grown significantly in recent years. Automotive is one of the largest industries across the globe. Thus, the market for automotive refinish coatings has enormous potential in the long run due to its demand for high-quality corrosion protection.
- Due to the growth of this sector, numerous new automakers now provide a variety of distinctive models every year. Additionally, businesses frequently create eco-friendly models and charge reasonable costs for their vehicles.
- Furthermore, emerging automotive refinish coatings market trends and the demand for improved infrastructure, logistics, and so on have pushed the automotive refinish coatings market to directly produce end-use products to meet the needs of such industries.
- Technological advances, combined with ongoing product development to improve the performance of refinish coatings, will drive market growth in the coming years. Furthermore, government efforts to reduce VOC emissions through the deployment of eco-friendly technology will create new market opportunities during the forecast period.
How is Focus on Sustainability Affecting Automotive Refinish Coatings Market?
Growing environmental concerns among consumers are compelling them to prefer eco-friendly products over conventional products. Restrictions imposed by governments over the use of various environment-degrading products also have resulted in the consumer base of the market shifting to eco-friendly refinish coatings.
In North America, governments have imposed strict regulations on the use of solvent-based coatings as these coatings emit VOCs and fumes, which cause diseases and pollute the environment. This is expected to hamper the growth of the automotive refinish industry in the region
Contrary to this, the sales of water-based coatings are expected to grow. Being eco-friendlier, water-based coatings are expected to become the most preferred product type in the automotive refinish coatings market over the forecast period.
Competitive Landscape
To increase their market position, major players in the market are concentrating on merger and acquisition strategies along with product development. To boost their yearly turnover, they are still boosting their production capacity. For instance:
- AkzoNobel recently decided to expand its presence in Africa by signing a contract with Kansai Paint and starting its coatings-related operations there on June 1, 2022. With Kansai Paints, AkzoNobel will be able to build a foundation for future market expansion and generate 280 million euros in sales. Additionally, this partnership will emphasize commitment to innovation and sustainability, leading to the expansion of products and the provision of appropriate solutions for clients.
- Tikkurila and its activities in the areas of governance, social responsibility, and the environment have been acquired by PPG Industries. This gave PPG access to additional growth opportunities due to an expanded selection of coatings products and emerging new technologies. With this acquisition, PPG has moved closer to its goal of reducing emissions by 15% by 2025, which has expected to open up more opportunities for the coatings sector.
- Axalta Coating Systems, a major supplier of liquid and powder coatings, announced in September 2021 that it had acquired “U-POL” Holdings Limited. Since the acquired firm assisted them in offering accessories, coatings, aerosols, and products for the automobile industry, the acquisition of this company has produced a substantial advancement in the expansion strategy. The advantages of this acquisition and these products will enable Axalta to broaden its target market base into the refinish coatings sector, which has anticipated experiencing rapid growth over the forecast period.
Recent Developments in the Automotive Refinish Coating Market
- In April 2024, BASF SE launched a new line of eco-friendly undercoats.
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Leading Players in the Automotive Refinish Coatings Market
- Axalta Coating Systems, LLC
- 3M Company
- AkzoNobel N.V.
- PPG Industries, Inc.
- The Sherwin-Williams Company, Dow Inc.
- Nippon Paint Holdings Co., Ltd.
- Kansai Paint Co., Ltd.
- Covestro AG, KAPCI Coatings
- NOVOL Sp. Z o.o.
- KCC Corporation
- Bernardo Ecenarro S.A.
- SEM Products, Inc.
- Sheboygan Paint Company
- Cresta Paint Industries Ltd.
- Alps Coating Sdn. Bhd.
- NOROO Paint & Coatings Co., Ltd.
- DSM Coating Resins B.V.
- WEG SA
- The Lubrizol Corporation
- Guangzhou Zhenroumei Chemical Coating Limited
- HMG Paints Ltd.
- James Briggs Limited
- Reichhold LLC
- TOA Performance Coating Corporation CO., Ltd.
- Yashm Paint & Resin Industries
- Allnex Group
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