Global Automotive Coatings Market Research Report: Forecast (2024-2030)

Market Definition

Automotive Coatings are specialized formulations that are applied to vehicles to protect their surfaces and enhance their aesthetic appeal. These coatings make the automobiles corrosion-protected, UV-resistant, scratch-resistant, and have color retention maintaining its visual appeal.

Market Insights & Projections: Global Automotive Coatings Market (2024-30):

The Global Automotive Coatings Market size was valued at USD 14.5 billion in 2023 and is projected to reach USD19.8 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 4.44% during the forecast period, i.e., 2024-30.

The factors attributing to the surge in demand for automotive coatings solutions are the increasing customer awareness to guard their vehicle against rust, water, and snow. Along with this, customers nowadays are ensuring that their automobiles get proper maintenance and look eye-pleasing. Furthermore, the top companies are introducing unique cost-effective, and high-performance coating solutions. These innovative solutions help in minimizing volatile emissions. Thus, the growing focus of individuals towards reducing VOC emissions is further supporting market growth.

Moreover, several countries such as China, India, Brazil, etc., are registering growth in the automotive industry due to the mounting automobile sales. These nations are witnessing an increase in vehicle ownership rates due to factors such as urbanization, increasing disposable incomes, etc. The growing demand for vehicles has led automotive companies to expand their production capacities. As per the International Organization of Motor Vehicle Manufacturers, motor vehicle production across the globe increased from around 80 million in 2021 to around 93 million in 2023. This rise in automotive production is resulting in a higher demand for coating solutions since they are applied onto the vehicle's surface to ensure better finishing.

Further, the official authorities across the globe are laying regulations regarding the presence of harmful compounds in these formulations. As a result, the top market players are now primarily focusing on developing advanced coating technologies that comply with the upgraded standards.

Furthermore, the rising construction & development projects in regions such as Asia-Pacific, the Middle East & Africa, etc., have boosted the requirement for construction and commercial vehicles such as excavators, graders, trucks, etc. These vehicles usually work on rugged terrain & environment. Therefore, the automotive coating on these vehicles gets damaged quickly. Hence, the owners ensure that their commercial vehicles undergo frequent coating furnishing treatment to protect the vehicle from rust & corrosion, supporting market growth.

Global Automotive Coatings Market Drivers:

Extensive Utilization of Passenger Cars Uplifting Market Growth– In recent years, the requirement for automobiles has increased substantially owing to the expansion of ride-hailing services and inclination of the consumers towards cars for intercity & intracity travel. The tourism industry has grown significantly across the globe. This is attributed to the increased focus of various governments to boost the arrival of tourists. The increased tourist arrivals have resulted in higher demand for rental cars as they provide comfort to tourists and are cost-effective if compared to taxis. Hence, there is an increased usage of the passenger car fleet of the companies providing rental car services. Along with this, the consumers in the developed & developing countries are highly using the personal automotive vehicles for daily commuting purposes. This widespread usage of cars deteriorates their outer paint. As a result, consumers are ensuring that their cars undergo regular maintenance including consistent coating furnishing to maintain its aesthetic looks, positively impacting the demand for automotive coatings.

Global Automotive Coatings Market Challenges:

Fluctuations in Raw Material Prices Restrain Market Growth – The cost of coatings has spiked substantially since the price of raw material procurement has risen substantially. The majority of the raw materials used for the coating production are petrochemical-based. Thus, the ongoing volatility of the crude oil prices is directly impacting the coatings' prices. Along with this, the accessibility and demand-supply dynamics of key raw materials such as pigments, additives, etc., have been impacted due to the trade tensions between nations such as India & China. Therefore, the manufacturers in these regions have been adversely impacted. Additionally, the geopolitical tensions and economic instability in the major raw material-producing countries such as Iran, Russia, etc., have led to disturbance in the supply chain and compelled the top companies to increase their selling price. Thus, consumers with limited financial resources are refraining from changing their automotive pigments for longer duration, hindering market growth.

Global Automotive Coatings Market Trend:

Increasing Inclination of the Consumers Towards Car Customization Supporting Market Growth – The younger generation, especially genZ are nowadays following big influencers & celebrities. Along with this, they are actively following the sports enthusiasts and vloggers who post content related to cars & supercars. As a result, they are trying to imitate the car customization done by their favorite influencers on their personal cars. These individuals are now trying new designs and prints on their cars. As a result, the demand for the paints & coating is increasing.

Further, car racing events across the globe are increasing and more individuals are getting inclined towards motorsports. In 2024, a Formula F4 car racing event was organized in Srinagar, India. These events have high-performance cars designed with different prints. As a result, individuals are now remodeling their cars and getting them customized as per the latest design, uplifting the requirement for automotive coating & enlarging the market size.

Global Automotive Coatings Market (2024-30): Segmentation Analysis

The Global Automotive Coatings Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Application

• Plastic-Parts
• Metal-Parts

Of them, the metal parts segment holds a major market share owing to the rising application and consumption of metals for the production of automobiles. Metal parts traditionally constitute a larger portion of automotive construction, encompassing body panels, chassis components, and engine parts, thereby resulting in higher coating requirements. Moreover, metal surfaces of cars, trucks, and other vehicles often undergo more rigorous conditions, such as exposure to harsh weather, road debris, and corrosion, necessitating robust and durable coatings for protection creating the need for Automotive Coatings in metal parts and proliferating the segment growth.

Based on End User:

• OEMs
• Refinish

Among them, the OEMs segment is poised for a substantial market share owing to the increasing manufacturing of passenger cars, vans, and commercial vehicles worldwide. OEMs require large volumes of coatings to meet the production demands of new vehicles, as they effectively apply coatings during the manufacturing process leading to the surged demand. Various coating layers such as primer, basecoat, and clearcoat, are essential for protecting and enhancing the appearance of vehicles in the manufacturing process further boosting their adoption among OEMs. Moreover, OEMs often have long-term contracts with coating suppliers, providing stability and consistent demand for Automotive Coatings in the automobile manufacturing process. In addition, the launches of new models, and rising innovation in the automobile industry necessitate the demand for coatings ultimately boosting the growth of the OEM segment in the Global Automotive Coatings Market.  

Global Automotive Coatings Market (2024-30): Regional Projection

Geographically, the Global Automotive Coatings Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Geographically, the Asia-Pacific holds a prominent market share owing to the higher number of automobiles & manufacturers in the region. Asian countries have robust automotive manufacturing industries due to the business favorable policies & prevalence of the mass consumer base. This presence of the original equipment manufacturers is generating a consistent demand for coatings as well as related automotive paints in the region. Along with this, the growing initiatives by the national governments to boost manufacturing capability would continue to positively contribute to the growth of the Asia Pacific Automotive Lubricants Market.

Furthermore, the rising disposable income of the population in the Asia-Pacific countries has increased the popularity of premium passenger car models. This is resulting in the increased sales of luxury car models from brands such as BMW, Audi, etc. This, in turn, is facilitating the adoption of premium automotive coatings across the region, supporting the market growth.

Global Automotive Coatings Industry Recent Development:

• 2024: BASF SE announced the expansion of its e-coat production facility in Mangalore, India. E-coat is used to secure a car’s body from corrosion.
• 2023: PPG Industries., announced the launch of GLADIATOR XC Matte Extreme coating which is a low-gloss urethane protective coating that can be utilized in various industries including automotive.

Gain a Competitive Edge with Our Global Automotive Coatings Market Report

• Global Automotive Coatings Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Automotive Coatings Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.