Latin America Commercial Vehicle Coatings Market Research Report: Forecast (2023-2028)
By Product Type (Primer, Basecoat, Electro-coats, Clear-coats), By Substrate (Metal, Plastic, Composite), By Technology (Waterborne Coatings, Solvent-borne Coatings, Powder Coating...s, UV-Cured Coatings), By Resin Type (Polyurethane, Epoxy, Acrylic, Others (Vinyl, Alkyd)), By Application (Light Commercial Vehicle (Pickup Trucks, Pickup Vans & Trucks, Light Bus), Medium & Heavy Commercial Vehicle), By Country (Brazil, Mexico, Argentine, Peru, Others), By Competitors (Axalta Coating Systems, BASF, PPG Industries, Kansai Paint, Akzo Nobel, Valspar Corporation, Cabot Corporation, Clariant AG, Eastman Chemical Company, Lord Corporation, Others) Read more
- Automotive
- Jun 2023
- 212
- PDF, Excel, PPT
Market Definition
Commercial Vehicle Coatings are applied on vehicle surfaces for both aesthetic & protection purposes to enhance the vehicle's durability and resistance to heat, UV rays, dust, corrosion, & other foreign particles. Nowadays, manufacturers apply multiple layers of coatings to the body of the vehicle to improve protection & ensure long-term durability. Depending on the consumer's preferences, various coatings, such as primer, basecoat, electro-coats, and clear-coats, are applied to the vehicle's surface. The need for coatings arises primarily during the manufacturing of commercial vehicles and throughout the vehicle's lifecycle when the original coating fade due to corrosion & harsh working conditions.
Market Insights & Analysis: Latin America Commercial Vehicle Coatings Market (2023-28)
The Latin America Commercial Vehicle Coatings Market is projected to grow at a CAGR of around 6.7% during the forecast period, i.e., 2023-2028, owing to the growing manufacturing of commercial vehicles such as pickup trucks, pickup vans, light buses, and heavy trucks & buses across the region. The requirement for paint & coating has grown with the surging production of commercial vehicles to protect from harsh environmental conditions, including acid rain, extreme temperature, UV radiation, and other particles. According to the International Organization of Motor Vehicle Manufacturers, the total production of light commercial vehicles has grown from around 2.5 million units in 2020 to about 2.9 million units in 2021. Thus, the continuous production of commercial vehicles across the region has enhanced the demand for commercial vehicle coatings in the region.
Report Coverage | Details |
---|---|
Study Period | Historical Data: 2018-21 |
Base Year: 2022 | |
Forecast Period: 2023-28 | |
CAGR (2023-2028) | 6.7% |
Countries Covered | Brazil, Mexico, Argentina, Peru, Others |
Key Companies Profiled | Axalta Coating Systems, BASF, PPG Industries, Kansai Paint, Akzo Nobel, Valspar Corporation, Cabot Corporation, Clariant AG, Eastman Chemical Company, Lord Corporation, Others |
Unit Denominations | USD Million/Billion |
Furthermore, soaring sales of commercial vehicles such as LCV & HCV have fueled the requirement for commercial vehicle coatings through the aftermarket segment due to continuous wear & tear of the body materials of the vehicle. The LCV & HCV requirements have grown during the historical period due to the expansion in the public transportation services & logistics services by the allied industries.
Additionally, it is anticipated that end-user industries such as food & beverage, agriculture, dairy, and others are anticipated to grow at a steady pace during the forecast years owing to the massive investment in these sectors. This would lead to considerable growth in the demand for commercial vehicles ultimately augmenting the Latin America Commercial Vehicle Coatings market during the forecast period.
Market Segmentation
Based on the Product Type:
- Primer
- Basecoat
- Electro-coats
- Clear-coats
Of them all, the Basecoat held a considerable share in the Latin America Commercial Vehicle Coatings market due to its growing application for providing exterior aesthetics & desired color to automobiles. The factors like the escalating use of basecoats for aftermarket repair, automotive service, and painting for visual appearance have been the key reasons for augmenting the demand for basecoats in the Latin America Commercial Vehicle Coatings market.
Additionally, the Primer segment also gained a steady growth in the Latin America Commercial Vehicle Coating market during the historical period owing to its growing application in commercial vehicle manufacturing for preventing corrosion. Primer significance also grew due to the ability to provide adequate appearance, photostability, and UV protection to commercial vehicles. Hence the demand for primer would grow at a robust pace during the forecast period owing to the growing production of commercial vehicles across the region.
Based on Technology:
- Waterborne Coatings
- Solvent-borne Coatings
- Powder Coatings
- UV-Cured Coatings
Here, Powder coatings emerged significantly during the historical period due to the solvent-free method for layering feature it offers. Powder coating does not release any volatile organic compounds during consumption which has been an aiding factor for its growing demand. Further, when compared to other coating technologies, such as waterborne coating, solvent-borne coating, and UV-cured coatings, the use of powder coating in commercial vehicles has been effective in providing high resistance to corrosion, chipping, and abrasion.
As a result of the pertinent parameters and its eco-friendliness, various market players such as Arkema SA, PPG Industries, Clariant AG, and others have been investing to enhance powder coating production to meet the demand for powder coating during the forecast period.
Based on Application:
- Light Commercial Vehicle
- Pickup Trucks
- Pickup Vans & Trucks
- Light Bus
- Medium & Heavy Commercial Vehicle
Among them, Medium & Heavy Commercial vehicles, such as buses & trucks, witnessed considerable growth in the Latin America Commercial Vehicle Coating market, owing to the large-scale production & presence of extensive fleet size across the region. Additionally, the availability of large-scale manufacturing sites for trucks & buses in countries, including Mexico, Brazil, etc., has been proliferating the demand for coating materials. The growing use of trucks for transporting huge volumes of products like petroleum products, food & beverages, construction products, e-commerce, etc., to long distances in the region, has been driving the manufacturing & sales of trucks in the region.
Moreover, the increasing government's investment in strengthening its infrastructure by building connected transportation networks across the countries has augmented the demand for trucks to carry heavy loads, construction materials, etc. Companies such as Volkswagen, Fiat, Daimler, and others have been investing in and producing various models of light trucks & heavy trucks to catalyze the surging demand from end-user industries.
Additionally, buses have been the most preferred mode of public transportation for the mobility of the region's population, resulting in a growing demand for coating due to its long time exposure to UV rays, rain, oxidization, corrosion, and so on. Hence, the rising production of eco-friendly EV trucks & buses is expected to fuel the Latin America Commercial Vehicle Coatings market during the forecast period.
Regional Landscape
Geographically, the Latin America Commercial Vehicle Coatings Market expands across:
- Brazil
- Mexico
- Argentina
- Peru
- Rest of Latin America
Of all the countries across the region, Mexico experienced significant growth in the sale of commercial vehicle coatings, owing to the presence of manufacturing facilities of various commercial vehicle OEM companies such as Daimler, Volvo, Ford, etc. Due to the presence of free trade agreements such as the North American Free Trade Agreement (NAFTA) in the region and the availability of low-cost labor in the country, automotive OEMs from the US & Canada have been investing continuously in expanding production capabilities in Mexico. This has positively impacted the country's truck demand, which is expected to provide more opportunities for automotive coatings providers.
Further, the cities in the country are investing in the replacement of old transportation with buses with lower emissions features to shift to sustainable transport.
Market Dynamics:
Key Driver
- Rising Sales of Commercial Vehicles Across the Region
The Latin America Commercial Vehicle Coatings market has been highly dependent on the sales of new commercial vehicles across the region. The sales of commercial vehicles have been rising due to the fast-growing population, urbanization, construction, and expansion of the industrial sector. Latin America is home to several major countries, including Chile, Peru, and others, which are rich in mineral resources and thus offer numerous opportunities for mining activities.
In response, the region's significant mining activities are expected to stimulate the demand for trucks, leading to a rise in coating demand. Furthermore, the rapidly growing population & urbanization have increased the need for public buses to improve mobility, while the expansion of construction & industrial activities has resulted in a mass supply of raw materials & finished goods to various locations.
As a result of these factors, regional commercial vehicle sales increased from around 2.5 million units in 2020 to around 2.9 million units in 2021. As a consequence, the increasing sales of commercial vehicles generate demand for paints and coatings for both OEM and aftermarket applications.
Possible Restraint
- Strict Environmental Norms & Increasing Raw Material Prices
The harmful effects of VOC (Volatile Organic Compounds) emissions from solvent-borne coatings on the environment have led to stringent regulations for automakers across many countries to use bio-based coatings & paints. As a result, there's a gradually declining utilization of solvent-based solutions in the automotive sector. Moreover, the region is witnessing increasing prices of paint & coating raw materials, i.e., another aspect hampering the supply & demand of automotive coatings worldwide. Hence, these aspects are likely to create significant challenges for the Latin America Commercial Vehicle Coatings market to expand during 2023-28.
Gain a Competitive Edge with Our Latin America Commercial Vehicle Coatings Market Report
- Latin America Commercial Vehicle Coatings Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, share, 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.
- Latin America Commercial Vehicle 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 str ategies to minimize risks & optimize their operations.
Frequently Asked Questions
- Introduction
- Product Definition
- Research Process
- Assumptions
- Market Definition
- Executive Summary
- Impact of COVID-19 on Latin America Commercial Vehicle Coatings Market
- Latin America Commercial Vehicle Coatings Market Trends & Insights
- Latin America Commercial Vehicle Coatings Market Dynamics
- Drivers
- Challenges
- Impact Analysis
- Latin America Commercial Vehicle Coatings Market Hotspots & Opportunities
- Latin America Commercial Vehicle Coatings Market Regulations & Policy
- Latin America Commercial Vehicle Coatings Market Outlook, 2018-2028F
- Market Size & Analysis
- By Revenues (USD Million)
- Quantity Sold (Thousand Tons)
- Market Share & Analysis
- By Product Type
- Primer
- Basecoat
- Electro-coats
- Clear-coats
- By Substrate
- Metal
- Plastic
- Composite
- By Technology
- Waterborne Coatings
- Solvent-borne Coatings
- Powder Coatings
- UV-Cured Coatings
- By Resin Type
- Polyurethane
- Epoxy
- Acrylic
- Others (Vinyl, Alkyd)
- By Application
- Light Commercial Vehicle
- Pickup Trucks
- Pickup Vans & Trucks
- Light Bus
- Medium & Heavy Commercial Vehicle
- Light Commercial Vehicle
- By Country
- Brazil
- Mexico
- Argentina
- Peru
- Others
- By Competitors
- Competition Characteristics
- Market Share & Analysis
- Competitive Matrix
- By Product Type
- Market Size & Analysis
- Brazil Commercial Vehicle Coatings Market Outlook, 2018-2028F
- Market Size & Analysis
- By Revenues
- Quantity Sold
- Market Share & Analysis
- By Product Type
- By Substrate
- By Technology
- By Resin Type
- By Application
- Market Size & Analysis
- Mexico Commercial Vehicle Coatings Market Outlook, 2018-2028F
- Market Size & Analysis
- By Revenues
- Quantity Sold
- Market Share & Analysis
- By Product Type
- By Substrate
- By Technology
- By Resin Type
- By Application
- Market Size & Analysis
- Argentina Commercial Vehicle Coatings Market Outlook, 2018-2028F
- Market Size & Analysis
- By Revenues
- Quantity Sold
- Market Share & Analysis
- By Product Type
- By Substrate
- By Technology
- By Resin Type
- By Application
- Market Size & Analysis
- Peru Commercial Vehicle Coatings Market Outlook, 2018-2028F
- Market Size & Analysis
- By Revenues
- Quantity Sold
- Market Share & Analysis
- By Product Type
- By Substrate
- By Technology
- By Resin Type
- By Application
- Market Size & Analysis
- Latin America Commercial Vehicle Coatings Market Key Strategic Imperatives for Success and Growth
- Competition Outlook (Whichever Applicable)
- Competition Matrix
- Brand Specialization
- Target Markets
- Target End Users
- Research & Development
- Strategic Alliances
- Strategic Initiatives
- Company Profiles
- Axalta Coating Systems
- BASF
- PPG Industries
- Kansai Paint
- Akzo Nobel
- Valspar Corporation
- Cabot Corporation
- Clariant AG
- Eastman Chemical Company
- Lord Corporation
- Others
- Competition Matrix
- Disclaimer