According to the Market Statsville Group (MSG), the global automotive paints market was valued at USD 10.2 billion in 2021 and is projected to reach USD 14.3 billion by 2030, registering a CAGR of 4.2% from 2022 to 2030. The automobile painting process comprises defined steps to ensure the application of protective and efficient coating. The parts and body panels of the vehicle are arranged into a temporary assembly known as body-in-white. Afterward, automotive paint is applied in a temperature-controlled environment to accelerate the drying process. Multiple application stages are done to ensure the integrity of paintwork for an extended period of time.
Factors such as upsurge in demand for eco-friendly automotive paints and an increase in automobile production are the key factors driving the growth of the global automotive paints market. However, the rise in raw materials prices to manufacture automotive paints hinders the market's growth. On the contrary, an increase in focus to produce cost-effective automotive paints is projected to offer remunerative growth opportunities for the player operating in the automotive paints market.
Global Automotive Paints Market Definition
Automotive paint is a water-based formula sprayed on an automobile's surface with the assistance of a spray gun. These paints consist of polyurethane-based enamel, which protects the surface of an automobile from environmental damages, thus enhancing the aesthetics of the motor vehicles.
An increase in preference for eco-friendly paints compared to traditional paints is a key factor contributing to the market's growth. This is attributed to the fact that eco-friendly paints are waterborne and the traditional paints are solvent-borne. Solvent-borne paints use products based on the petrochemicals that contain volatile organic compounds harmful to the environment. VOCs contain various chemicals, some of which may have short- and long-term adverse health effects. Waterborne paints are thinned with water, which significantly reduces the amount of VOCs they contain. Thus, a rise in demand for eco-friendly paints is anticipated to propel the growth of the automotive paints market, as they can reduce the negative environmental impact.
For all the companies operating in the automotive paints industry, the cost of raw materials required to produce paints is increasing significantly over the last few months. The cost of commodities and raw materials plays a vital role for paint manufacturers, as more than 50% of the operating costs are of raw materials. Thus, the upsurge in commodities prices has led to a rise in the product’s final price. Thus, the rise in prices of raw materials is anticipated to hinder the growth of the automotive paints market.
The study categorizes the automotive paints market based on coating, texture type, technology, painting equipment, and vehicle type, at the regional and global levels.
Depending on the coating, the market is classified into the primer, base coat, clear coat, and electrocoat. Among these, the clear coat segment was the highest contributor to the automotive paints market. The clear coat is the top layer applied on the top of the base coat that does not contain any pigment or color. Also, the clear coat is used to protect the base coat layer and not to add any color tone. Furthermore, this coat contains specialized chemicals that provide easy adherence to components, such as automotive plastics and bumper heads, and provides a glossy finish, thereby enhancing the vehicle's aesthetics.
North America is the fastest-growing region during the forecast period
Based on the regions, the global automotive paints market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, North America is the fastest-growing region with a CAGR of 7.3% in the global automotive paints market during the forecast period.
Expanding business by incorporating new manufacturing plants by leading automotive paint companies and initiatives taken by the automobile companies to improve the quality of automotive paints to reduce environmental impact are the key factors anticipated to propel the growth of the automotive paints market in North America.
The key market players with innovative product offerings seek opportunities for growth in the global automotive paints market to attain a higher market share. Product launch, partnership, and collaboration are the most widely adopted strategies, followed by agreement, acquisition, and business expansion among the market leaders.
Major players in the global automotive market are:
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