Automotive OEM Coatings Market Analysis

Global Automotive OEM Coatings Market Overview

Automotive OEM Coatings Market Size was valued at USD 9.49 Billion in 2023. The automotive OEM coatings industry is projected to grow from USD 10.13 Billion in 2024 to USD 15.954 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.85% during the forecast period (2024 - 2032). One of the key market drivers propelling the automotive OEM coatings market towards growth is the considerable expansion of the automotive industry, combined with the increased demand for commercial utility vehicles and energy-efficient transportation due to the growing environmental concerns.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive OEM Coatings Market Trends

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  Growing automotive production is driving the market growth

  
  

The fourth quarter of 2020 saw up to 16,763 new motor vehicle registrations in Europe, 37,467 in Asia, 3080 in South America, 17,421 in North America, 12,733 in Western Europe, and 5180 in other regions around the world, according to a recent study by the German Association of Automotive Industry. The European Automobile Manufacturers Association (ACEA) estimates that from January to June 2021, the demand for new passenger cars in the EU climbed significantly by 25.2%, reaching almost 5.4 million units. The need for automotive OEM coatings, which cover inside car components including instrument panels, meter clusters, center clusters, speaker grills and others, will therefore rise as the number of cars produced and sold rises. This will most likely fuel the market's CAGR in the coming years.

Furthermore, the significant growth in the automotive sector, along with the rising demand for energy-efficient transportation and commercial utility vehicles, is one of the key factors anticipated to propel the growth rate of the automotive OEM coatings market due to the growing environmental concerns. Accordingly, the demand for eco-friendly and sustainable waterborne and solvent-borne coatings to paint a variety of interior components of the vehicle, such as speaker grills, meter clusters, steering wheels, door trim, instrument panels and armrest bezels, will continue to fuel the market expansion.

Additionally, numerous market expansion prospects are presented by the leading companies' rapid product releases and other advancements. To preserve their dominance and presence in the automotive OEM coatings market, the players are implementing a variety of strategies, including mergers and acquisitions, supply/distribution agreements, growth, and new product releases. For instance, on May 16, 2019, Hempel unveiled Hempaprime Shield 700 HS, a new epoxy primer. Heavy-duty machinery and trucks can be coated using this primer. This recently introduced primer is a two-component, high-solids epoxy primer with great corrosion resistance and exceptional adhesion even in the roughest situations. Additionally, even at a high dry film thickness (DFT), this primer possesses quick drying properties, fracture and wrinkle resistance, and short minimum overcoat intervals. Thus, driving the automotive OEM coatings market revenue.

Automotive OEM Coatings Market Segment Insights

Automotive OEM Coatings Product Type Insights

The automotive OEM coatings market segmentation, based on product type includes clearcoat, basecoat, primer, e-coat and others. The primer segment dominated the market due to the qualities and benefits they provide, which drive demand. Primers are typically used to materials as an undercoat before a base coat or topcoat is applied. Primers provide a stable base for subsequent coats to be applied on top of, ensuring better paint and coating adhesion to the surface, increasing the coating's durability, helping to conceal seams and imperfections, and providing additional protection to the materials being coated, among many other advantages over the base coat, clear coat, or topcoat.

Automotive OEM Coatings Resin Insights

The automotive OEM coatings market segmentation, based on resin, includes polyurethane, acrylic, epoxy and alkyd. The epoxy category generated the most income due to the characteristics and advantages epoxy resin offers over other forms of resin, which are driving up demand for it. For instance, it possesses a wide range of qualities, is simple to process, resists corrosion, and is less impacted by heat, water, and other elements.

Automotive OEM Application Insights

The automotive OEM coatings market segmentation, based on application, includes passenger cars, commercial vehicles and two-wheelers. The passenger cars category generated the most income. The overall demand for automotive OEM coatings in the passenger cars segment has increased due to increased demand for passenger cars and general utility vehicles ly, increased public transportation spending, and a rise in consumer preference for efficient and convenient transportation needs.

Figure 1:  Automotive OEM Coatings Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive OEM Coatings Technology Insights

The automotive OEM coatings market segmentation, based on technology, includes solvent-borne, waterborne, UV cured, high solid coatings and powder coatings. The waterborne category generated the most income due to a number of benefits they provide over other coating technology kinds. 80% water and a little number of additional solvents, like polyvinyl ether and glycol, make up waterborne coatings, which are surface coatings. In compared to other coating types and solvent-borne coatings, it offers a wide range of qualities and advantages, including great adhesion, outstanding heat and abrasion resistance, and anti-corrosion capabilities.

Automotive OEM Coatings Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific automotive OEM coatings market area will dominate this market because the whole economy is growing more quickly. Furthermore, another important factor that propels the market's expansion is the increase in expenditures made by significant manufacturers in the area. Major firms in this region have made significant economic investments in R&D efforts to create cutting-edge products that would meet market demands.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  AUTOMOTIVE OEM COATINGS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe automotive OEM coatings market accounts for the second-largest market share. The region's product market is developing in part due to Germany's expanding automobile sector. In the upcoming years, the area will probably experience spectacular expansion. Additionally, advancements in vehicle coatings and the fact that the automotive sector in Europe is the largest investor in R&D will likely propel regional market expansion in the near future. Further, the German automotive OEM coatings market held the largest market share, and the UK automotive OEM coatings market was the fastest growing market in the European region

North America Automotive OEM coatings Market is expected to grow at the fastest CAGR from 2023 to 2032 because of the growing population. Additionally, it is anticipated that the growth of the region's building industry would further fuel the market in the years to come. In addition, the region is predicted to have significant growth as a result of rising automotive demand and average household income. Moreover, US automotive OEM coatings market held the largest market share, and the Canada automotive OEM coatings market was the fastest growing market in the region.

Automotive OEM Coatings Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the automotive OEM coatings market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, automotive OEM coatings industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the automotive OEM coatings industry to benefit clients and increase the market sector. In recent years, the automotive OEM coatings industry has offered some of the most significant advantages to market. Major players in the automotive OEM coatings market attempting to increase market demand by investing in research and development operations include BASF SE (Germany), PPG Industries Inc. (US), Nippon Paints Holdings Co. Ltd (Japan), Akzo Nobel N.V. (The Netherlands), Axalta Coating Systems Ltd (US), Berger Paints India Ltd (India), Kansai Paint Co. Ltd (Japan), The Sherwin-Williams Company (US), KCC Corporation (South Korea), Covestro AG (Germany), Esdee Paints Ltd (India) and Lubrizol Corporation (US).

Paints, varnishes, enamels, and lacquers are produced and sold by Berger Paints India Ltd. The company's product line comprises undercoats, construction chemicals, metal and wood paints, protective coatings, external and interior wall coatings and protective coatings. Additionally, Berger provides consultation, audit, and supervisory services. Additionally, Berger provides specialized services associated with each paint market group. It runs manufacturing facilities and sales offices throughout India and sells its products through a dealers and sales offices network.

PPG Industries Inc. (PPG) is a chemical business that produces and sells paints, coatings, optical goods, and specialty materials. Sealants, amorphous precipitated silicas, and protective and decorative coatings are all provided. Customers of the business can purchase its goods and services in a variety of end-use markets, including those for industrial equipment and components, packaging, aircraft and marine equipment, original equipment (OEM) automobile vehicles, automotive refinishing, and industrial and consumer goods. The new construction and maintenance markets for commercial and residential buildings are also served. In May 2021, Wörwag, an international producer of coatings for industrial and automotive uses, was acquired by PPG Industries, Inc.

Key Companies in the automotive OEM coatings market include

• BASF SE (Germany)


• PPG Industries Inc. (US)


• Nippon Paints Holdings Co. Ltd (Japan)


• Akzo Nobel N.V. (The Netherlands)


• Axalta Coating Systems Ltd (US)


• Berger Paints India Ltd (India)


• Kansai Paint Co. Ltd (Japan)


• The Sherwin-Williams Company (US)


• KCC Corporation (South Korea)


• Covestro AG (Germany)


• Esdee Paints Ltd (India)


• Lubrizol Corporation (US)

Automotive OEM Coatings Industry Developments

May 2022: In order to enhance customer service and create cutting-edge solutions, BASF has announced the expansion of its Automotive Coatings Application Centre in Mangalore (India).

April 2021: Cetelon Lackfabrik GmbH, a producer of coatings for automobile and light truck wheels, was acquired by PPG in full. With this acquisition, PPG can expand on its liquid and powder coating technology, color matching capabilities, and current coatings product lineup.

April 2019: Hemmerlrath Lackfabrik GmbH, a maker of automobile OEM coatings with a location in Germany, was acquired by PPG Industries Inc. With this acquisition, the company also sought to improve its market position in the European automobile OEM coatings sector.

Automotive OEM Coatings Market Segmentation

Automotive OEM Coatings Product Type Outlook (USD Billion, 2018-2032)

• Clearcoat


• Basecoat


• Primer


• E-coat


• Others

Automotive OEM Coatings Resin Outlook (USD Billion, 2018-2032)

• Polyurethane


• Acrylic


• Epoxy


• Alkyd

Automotive OEM Coatings Application Outlook (USD Billion, 2018-2032)

•  Passenger Cars


• Commercial Vehicles


• Two-Wheelers 

Automotive OEM Coatings Technology Outlook (USD Billion, 2018-2032)

• Solvent-Borne


• Waterborne


• UV Cured


• High Solid Coatings


• Powder Coatings

Automotive OEM Coatings Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America