Automotive OEM Coatings Market

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.

The increasing adoption of electric vehicles (EVs) is a pivotal driver for the Global Automotive OEM Coatings Market Industry. As manufacturers pivot towards sustainable mobility solutions, the demand for specialized coatings that enhance battery efficiency and thermal management is rising. For instance, EVs require coatings that can withstand higher temperatures and provide better insulation. This shift is expected to contribute to the market's growth, with projections indicating that the Global Automotive OEM Coatings Market will reach 10.1 USD Billion in 2024, reflecting the industry's adaptation to new technologies and consumer preferences.

Stringent regulations regarding emissions and environmental impact are compelling automotive manufacturers to adopt eco-friendly coatings. The Global Automotive OEM Coatings Market Industry is witnessing a shift towards water-based and low-VOC (volatile organic compounds) coatings, which align with global sustainability goals. Compliance with these regulations not only mitigates environmental risks but also enhances brand reputation among consumers. As manufacturers strive to meet these standards, the market is likely to experience a compound annual growth rate (CAGR) of 5.84% from 2025 to 2035, reflecting the industry's commitment to sustainability.

Innovations in coating technologies are transforming the Global Automotive OEM Coatings Market Industry. Advanced techniques such as electrocoating and powder coating are gaining traction due to their efficiency and environmental benefits. These technologies not only enhance the durability and aesthetic appeal of vehicles but also reduce waste and energy consumption during the application process. As a result, manufacturers are increasingly investing in these advanced coating solutions, which could potentially drive the market's value to 18.9 USD Billion by 2035, indicating a robust growth trajectory fueled by technological progress.

The expansion of automotive production in emerging markets is a crucial factor influencing the Global Automotive OEM Coatings Market Industry. Countries such as India and Brazil are witnessing a surge in vehicle manufacturing, driven by rising disposable incomes and urbanization. This growth necessitates a corresponding increase in the demand for high-quality coatings that meet local market needs. As these regions develop their automotive sectors, the Global Automotive OEM Coatings Market is poised for growth, with manufacturers capitalizing on new opportunities in these burgeoning markets.

Consumer demand for personalized and aesthetically pleasing vehicles is a significant driver in the Global Automotive OEM Coatings Market Industry. As buyers increasingly seek unique finishes and colors, manufacturers are responding by offering a wider array of coating options. This trend is particularly evident in the luxury vehicle segment, where customization is paramount. The ability to provide tailored solutions not only enhances customer satisfaction but also drives sales growth. Consequently, the market is positioned for substantial expansion, as manufacturers align their offerings with evolving consumer preferences.

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, Market Research Future 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.

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.