Global Automotive OEM Coatings Market is segmented By Type (Solvent-Borne, Waterborne, Powdered, UV-cured), By Layer (Primer, Basecoat, E-coat, and Clearcoat), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Automotive OEM Coatings Market Overview
The Global Automotive OEM Coatings Market size reached US$ 16.9 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 25.5 billion by 2030. The market is growing at a CAGR of 5.6% during the forecast period 2024-2031.
The Global Automotive OEM Coating Market plays a pivotal role in the automotive industry, providing protective and decorative vehicle coatings during manufacturing. As the market demand for automobiles continues to rise worldwide, the OEM coating market is experiencing significant market share growth, driven by evolving industry trends, lucrative market opportunities, and government initiatives.
While solvent-borne dominates the type segment with over 30% of the market share, North America dominates the regional segment, accounting for over 25%. Automotive manufacturers are increasingly offering customized colors and finishes to meet the diverse preferences of consumers. The respective market trend has driven the demand for advanced coating solutions that provide a wide range of color options, special effects, and textured finishes.
Automotive OEM Coatings Market Scope
| Metrics | Details |
| CAGR | 5.6% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Layer, Vehicle and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Advancements in Products and Technologies
Technological advancements have enabled the development of advanced coatings that reduce VOC emissions. For instance, Nanotechnology coatings are gaining prominence in the Automotive OEM Coating market due to their advanced properties, such as enhanced scratch resistance, self-cleaning capabilities, and improved durability.
The respective coatings protect against harsh weather conditions and UV radiation, extending the lifespan of automotive finishes. Government-backed initiatives and research grants have also contributed to the advancement of environmentally friendly coatings in the automotive industry. Therefore, advancements in products and technologies is recognised a major market driver boosting market opportunities for the automotive OEM coating market.
Stringent Government Regulations and Environmental Concerns Associated With VOCs Emissions
One significant restraint in the Automotive OEM Coating market is the stringent government regulations and environmental concerns associated with volatile organic compounds (VOCs) emissions. Governments across the globe have been implementing strict norms and regulations to curb the release of harmful pollutants into the environment. The respective regulations aim to reduce air pollution, improve air quality, and promote sustainable practices in the automotive industry.
For instance, the European Union (EU) introduced the Euro 6 standards, which impose strict limits on vehicle emissions, including VOCs. However, to comply with these regulations, automotive manufacturers and coating suppliers have been investing in research and development to innovate environmentally friendly coating solutions.
Market Segmentation
The Global Automotive OEM Coatings Market is segmented based on type, layer, vehicle and region.
Stringent Environmental Regulations and Emission Standards
The water-borne segment in the Global Automotive OEM Coating Market has gained significant attention in recent years, driven by various factors such as environmental regulations, technological advancements, and shifting consumer preferences. Governments worldwide have implemented stringent environmental regulations and emission standards to address concerns regarding volatile organic compounds (VOCs) and their impact on air quality.
For instance, the European Union's VOC Directive restricts using high-VOC coatings in automotive manufacturing, encouraging the transition to water-borne coatings. As a result, there has been a growing emphasis on the use of eco-friendly and sustainable coating solutions in the automotive industry. Low VOC content water-borne coatings have gained prominence as an environmentally responsible alternative to solvent-based coatings.
Market Geographical Share
The Presence Of A Strong Automotive Industry And A Focus On Technological Advancements
North America is prominent in the Global Automotive OEM Coating Market, exhibiting robust growth and substantial opportunities. With a strong automotive industry and a focus on technological advancements, North America plays a vital role in shaping the market's dynamics. In the U.S., the Department of Commerce reports that the automotive industry accounted for approximately 3.5% of the country's Gross Domestic Product (GDP) in recent years.
The industry's resilience and commitment to innovation have driven the growth of the Automotive OEM Coating market. Additionally, Canada has a well-established automotive manufacturing sector, contributing significantly to the North American market.
Market Competitive Landscape
The major global players include Axalta Coating Systems, NIPSEA GROUP, Akzo Nobel N.V., PPG Industries, Inc, The Sherwin-Williams Company, The Valspar Corporation, Kansai Paint Co., Ltd, Covestro AG, DuPont de Nemours, Inc. and BASF SE.
COVID-19 Impact on Market
COVID Impact
Government statistics reveal the severity of the COVID-19 impact on the global automotive industry and, consequently, the automotive OEM coating market. The International Energy Agency (IEA) reported a 16% decline in global car sales in 2020 compared to the previous year. The respective decline resulted from lockdown measures, reduced consumer spending, and the closure of automotive manufacturing facilities. As a result, the demand for automotive OEM coatings witnessed a notable decline during this period.
Government responses to the pandemic, such as travel restrictions and social distancing measures, further compounded the challenges faced by the automotive industry. The aforementioned measures disrupted supply chains, leading to shortages of raw materials necessary for automotive OEM coatings. Additionally, production stoppages and reduced consumer confidence impacted new vehicle purchases, thereby affecting the demand for coatings used in original equipment manufacturing.
AI Impact
The global Automotive Original Equipment Manufacturer (OEM) Coating market has witnessed a significant impact from Artificial Intelligence (AI) technology, revolutionizing various aspects of the industry. AI-powered solutions are transforming manufacturing processes, improving product quality, enhancing efficiency, and creating new growth opportunities. For instance, AI-based computer vision systems have significantly improved the automotive OEM coating industry's quality control and inspection processes.
The AI systems use advanced algorithms to analyze paint quality, detect defects, and ensure consistent coating thickness. By automating these processes, manufacturers can achieve higher quality standards, reduce rework, and enhance customer satisfaction.
Russia-Ukraine War Impact
The Russia-Ukraine War has had far-reaching consequences, impacting various sectors of the global economy. The automotive OEM coating market is one such sector affected by this geopolitical conflict. The Russia-Ukraine War has disrupted the automotive OEM coating supply chain, as Russia and Ukraine are key players in producing and supplying raw materials used in coatings.
The conflict has led to trade restrictions, border closures, and logistical challenges, affecting the availability and cost of essential coating materials. Further, fluctuations in currency exchange rates, import-export tariffs, and trade uncertainties have resulted in raw materials and finished coatings price fluctuations.
By Type
- Solvent-borne
- Water-borne
- Powdered
- UV-cured
By Layer
- Primer
- Basecoat
- E-coat
- Clearcoat
By Vehicle
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Germany
- The UK
- France
- Italy
- Russia
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- Axalta, a U.S.-based supplier of coatings and application solutions for the automotive industry, launched ChromaDyne F Plus, a high-performance waterborne coating system, in 2021. This system offers automotive OEMs enhanced color options, improved durability, and better color harmony across different vehicle substrates.
- Sherwin-Williams, a U.S.-based paints and coatings manufacturer, introduced the Ultra 9K waterborne basecoat system in 2020. This innovative coating solution delivers exceptional color-matching accuracy, improved productivity, and reduced environmental impact.
- The Japanese coatings and paints giant, Nippon Paint introduced Aquabase Plus, a waterborne automotive OEM coating system, in 2021. This system offers automotive manufacturers improved color accuracy, faster drying times, and reduced volatile organic compound (VOC) emissions.
Why Purchase the Report?
- To visualize the Global Automotive OEM Coatings Market segmentation based on type, layer, vehicle and region and understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous automotive OEM coatings market-level data points with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Automotive OEM Coatings Market Report Would Provide Approximately 61 Tables, 60 Figures And 174 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
