The global automotive OEM coatings market size was estimated at USD 15.50 billion in 2023 and is projected to grow at a CAGR of 4.3% from 2024 to 2030. The market is experiencing significant growth driven by the increasing demand for commercial utility vehicles, a shift towards more efficient transportation, and a rising preference for personal automotive transport, especially in the premium vehicles segment.
Additionally, the growing demand for passenger cars and the trend towards lightweight vehicles offering lower fuel consumption and higher efficiency are creating new opportunities in the global market. Despite challenges such as high-cost raw materials, strict environmental emission standards, and concerns related to solvent-borne automotive coatings, the market is poised for growth. Furthermore, investments in R&D for new production alternatives, strategic collaborations, and new product launches are expected to drive lucrative opportunities in the global market.
Gather more insights about the market drivers, restrains and growth of the Global Automotive OEM Coatings Market
The Asia Pacific region, including countries like China, India, Japan, and South Korea, dominates the market in terms of consumption. China is one of the countries with the largest consumption of market in the world. The demand for product, particularly in the passenger cars segment, is expected to increase post-recovery. This is due to factors such as rising investment opportunities in the Middle East and Africa and the growing demand for electric vehicles. The increase in per capita disposable incomes, especially in developing economies like China, India, and Thailand, has propelled the overall demand for passenger cars and, consequently, automotive OEM coatings.
The considerable expansion of the automotive industry, combined with the increased demand for commercial utility vehicles and energy-efficient transportation, has contributed to the growth of the automotive OEM coatings market. The production of new cars, trucks, and other vehicles boosts the demand for product, as these vehicles require coatings as part of the painting and manufacturing process. Overall, the demand for product is driven by factors such as increasing vehicle sales, rising disposable incomes, and the expansion of the automotive industry. China, as a major consumer, plays a significant role in the global market.
Regional Insights
Asia Pacific Automotive OEM Coatings Market Trends
Asia Pacific is the largest market for product globally, driven by the region's huge automotive production base and increased investments in countries like China, India, and ASEAN countries. The region's high-volume vehicle production, particularly in countries like China, India, Japan, and Thailand, creates a considerable demand for automotive OEM coatings.
The automotive OEM coatings market in China is influenced by technological advancements. This includes innovations in light weighting, color design, and manufacturing process improvements.
North America Automotive OEM Coatings Market Trends
Major companies in the market have made significant investments in North America to expand their production capacity. There is a trend towards the adoption of water-based coatings in North America. Many OEMs in the region have switched their assembly facilities from solvent-based coatings to water-based primers and basecoat layers to reduce VOC emissions and improve environmental sustainability.
Europe Automotive OEM Coatings Market Trends
The European sector has seen investments in new and expanded automated paint shops. These investments, particularly by Chinese carmakers, are driving advancements in paint applications and process technologies, which are likely to have a long-term impact on the European coatings industry. European OEMs are reorganizing their coatings and production processes in anticipation of a significant increase in demand for electric vehicles (EVs) and hybrids. This shift in demand requires adjustments in coatings and production to meet the specific requirements of EVs.
Key Automotive OEM Coatings Company Insights
Some of the key players operating in the market include PPG Industries, Inc., BASF SE, PPG Industries Inc.,Nippon Paints Holdings Co. Ltd. Akzo Nobel N.V., Axalta Coating Systems Ltd, Berger Paints India Ltd, Kansai Paint Co. Ltd, The Sherwin-Williams Company, KCC Corporation, Covestro AG.
Akzo Nobel is a Dutch multinational company that creates paints and performance coatings for both industry and consumers worldwide. The company has a long history of mergers and divestments and has activities in more than 150 countries.The Sherwin-Williams Company is a major player in the protective coatings market, with a significant share in global production. It is one of the top five players dominating global production in the automotive OEM coatings market.Key Automotive OEM Coatings Companies:
The following are the leading companies in the automotive OEM coatings market. These companies collectively hold the largest market share and dictate industry trends.
BASF SEPPG Industries Inc.Nippon Paints Holdings Co. LtdAkzo Nobel N.V.Axalta Coating Systems LtdBerger Paints India LtdKansai Paint Co. LtdThe Sherwin-Williams CompanyKCC CorporationCovestro AGOrder a free sample PDF of the Automotive OEM Coatings Market Intelligence Study, published by Grand View Research.
