Automotive Coating Market is Projected to Reach USD 16.24 Billion by 2021 – At a CAGR of 7.02%

The global market size of automotive coating is estimated to be USD 11.57 billion in 2016 and is projected to reach USD 16.24 billion by 2021, at a CAGR of 7.02% between 2016 and 2021. Demand from end users for different color & texture, increasing population, and increasing purchasing power of people in emerging economies are the key factors which drive the automotive coating market.

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Various regulation in North America and European countries on VOC substances in coating is expected to change focus of coating manufacturers towards eco-friendly and green coating technologies such as water-borne and powder coatings. The high growth in end-use industries from developing countries is expected to drive the market during the forecast period.
Basecoat is projected to be the fastest-growing coat type in the automotive coating market during the forecast period. The growth for this segment is high as new and innovative technologies are being developed by automotive coating producers. For instance, in new integrated systems, the primer layer is omitted and is replace with two layers of basecoat. One layer of basecoat absorbs UV radiation and other is advanced basecoat. This kind of technological developments are expected to drive the basecoat segment in the automotive coating market.
Water-borne technology is projected to be the fastest-growing technology segment of the automotive coating market during the forecast period. This is attributed its low toxicity, low VOC levels, and low HAP emissions, which helps reduce air emission. North America and European countries have regulations which boost the use of eco-friendly technologies in coating systems. Hence, water-borne technology is expected to grow rapidly during the forecast period.

On the basis of type, the polyurethane resin segment accounts for the largest share of the overall automotive coating market. This resin is widely used for clearcoat, which accounted for 38% of the market in 2015. Heat, corrosion, and impact resistance and flexibility of this resin makes it suitable for use in clearcoat layer. This resin is expected to dominate the automotive coating market during the forecast period.

Asia-Pacific is the fastest-growing automotive coating market, in terms of both value and volume. Countries such as China, South Korea, India, Indonesia, and Thailand are witnessing a gradual increase in the use of automotive coating in end-use industries. In 2015, China dominated the automotive coating market in Asia-Pacific, accounting for a market share of almost 51%. It is projected to remain the biggest market in the Asia-Pacific region due to its high economic growth rate, growing purchasing power, developing infrastructure, increasing demand from end-use industries, and a global shift in production capacity from the developed markets to this region. China is followed by South Korea and India, where there is high demand for automotive coating.
Companies are constantly strengthening their R&D capabilities to provide eco-friendly products. These products are manufactured adhering to the regulations set by various associations and governments. All these developments are expected to lead to sustainable growth of the automotive coating market in the next five years. BASF SE (Germany), Axalta Coating Systems (U.S.), PPG Industries, Inc. (U.S.), Kansai Paint Co., Ltd (Japan), Nippon Paint Holdings Co., Ltd. (Japan), The Valspar Corporation (U.S.), KCC Corporation (South Korea), Sherwin-Williams (U.S.), AkzoNobel (Netherlands), and Jotun A/S (Norway) are the active players of the global automotive coating market.