Automotive Paint Market Projected To Attain Valuation Of USD 28.4 Billion By 2032 | Astute Analytica

(MENAFN- GlobeNewsWire - Nasdaq) The automotive paint market is poised for significant growth, driven by advancements in paint technology and increasing demand for durable, aesthetically pleasing coatings. The market is expected to benefit from the shift towards environmentally friendly products, such as waterborne and powder coatings, which reduce VOC emissions and enhance sustainability. Additionally, the automotive sector's recovery and expansion, particularly in emerging markets, will further fuel demand.

New Delhi, July 31, 2024 (GLOBE NEWSWIRE) -- The global automotive paint market was valued at US$ 19.5 billion in 2023 and is estimated to reach US$ 28.4 billion by 2032, at a CAGR of 4.3% from 2024-2032.

The global automotive industry has seen a significant uptick in vehicle production, with over 90 million vehicles manufactured in 2023 alone and over 92.3 million vehicles were sold in the same year. This surge in production naturally drives the demand for automotive paint, as each new vehicle requires a high-quality finish to meet consumer expectations. Additionally, the increasing consumer preference for customized and unique vehicle appearances has contributed to the rising demand. In 2023, the custom automotive paint market alone accounted for a substantial segment of the industry, with custom paint jobs being a popular trend among vehicle owners.

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The impact of newly sold vehicles on the demand for automotive paint is notable. With 92 million vehicles sold globally in 2023, the need for OEM (Original Equipment Manufacturer) paints is at an all-time high. Each newly sold vehicle necessitates a precise and durable paint job to ensure long-lasting aesthetics and protection. Furthermore, the growing popularity of electric vehicles, which saw a sale of 14.2 million units in 2023, has also influenced the demand for specialized paints that cater to unique materials and design requirements. The automotive paint industry is thus experiencing a boom, driven by the continuous flow of new vehicle sales and the evolving requirements of advanced vehicle technologies.

Aging vehicles also play a crucial role in driving up the demand for automotive paint market. With the average vehicle age reaching 12 years in 2023, a significant portion of the global vehicle fleet requires repainting to maintain their appearance and value. The aftermarket paint sector has seen a rise, with an estimated 30 million vehicles undergoing repainting or touch-ups in 2023. Additionally, the increasing number of road accidents, which amounted to 1.4 million incidents globally in 2023, has further fueled the demand for automotive paints for repair and restoration. Consequently, the combined effect of new vehicle sales, aging vehicle maintenance, and accident-related repairs ensures a robust and growing market for automotive paints.

Key Findings in Automotive Paint Market

Market Forecast (2032)	US$ 28.4 Billion
CAGR	4.3%
Largest Region (2023)	Asia Pacific (58%)
By Type	Clearcoat (37%)
By Vehicle Type	Passenger (72%)
By Resin Type	Polyurethane (44%)
By Texture	Metallic (61%)
By Technology	Waterborne (67%)
Top Trends	Increasing adoption of eco-friendly, waterborne automotive paints for environmental sustainability. Rising popularity of customizable, multi-color paint options to attract diverse consumer preferences in automotive paint market. Growth in demand for automotive paint with enhanced durability and scratch resistance.
Top Drivers	Technological advancements in paint formulations leading to superior quality and performance. Surge in automotive production and sales globally boosting paint market demand. Stringent environmental regulations pushing for low-VOC and eco-friendly paint solutions.
Top Challenges	High costs associated with developing and adopting innovative, eco-friendly paint technologies. Volatility in raw material prices affecting the profit margins of manufacturers. Intense competition among key players leading to continuous price wars and pressure.

Leading with Luster: Clearcoat's 37% Revenue Stronghold in Automotive Paint Market

Clearcoat automotive paints have seen a significant rise in demand and dominance over other paint types in recent years. One of the primary reasons for this is their superior ability to protect the underlying paint layer from environmental damage, such as UV rays, acid rain, and road debris. This protective layer not only maintains the vehicle's aesthetic appeal but also enhances its resale value. According to a 2023 study by the Automotive Paint Manufacturers Association (APMA), 85% of new vehicles are now coated with clearcoat paint, a jump from 70% in 2018. This increase in the automotive paint market is driven by advancements in clearcoat technology, which have improved its durability and longevity.

Moreover, consumer preferences have shifted towards high-gloss finishes that clearcoats provide, contributing to their popularity. A survey by AutoTrader in 2023 revealed that 78% of car buyers preferred vehicles with a high-gloss finish, attributing it to a more luxurious and well-maintained appearance. Environmental regulations also play a crucial role; waterborne clearcoat systems, which reduce volatile organic compound (VOC) emissions, have gained traction. The International Organization of Motor Vehicle Manufacturers (OICA) reported a 22% increase in the adoption of eco-friendly clearcoat systems in the past year. Additionally, the average lifespan of clearcoat finishes has increased by 30% over the past decade, making it a cost-effective choice for manufacturers and consumers alike.

Waterborne Paints Take the Lead: Controlling 67% of Automotive Paint Market Revenue

The high demand for waterborne technology in automotive paints is driven by several factors, which is primarily centered around environmental sustainability and regulatory compliance. Waterborne paints, which use water as the primary solvent, significantly reduce the emission of volatile organic compounds (VOCs), making them a more environmentally friendly option compared to traditional solvent-based paints. This shift is particularly pronounced in regions with stringent environmental regulations, such as California and the European Union, where low-VOC technologies are mandated. In fact, over 70% of new cars in Europe are now painted with waterborne paints. Additionally, major automotive manufacturers, including Ford and BMW, have adopted waterborne technology in their painting processes, further driving demand.

The automotive industry's push towards greener practices has accelerated the adoption of waterborne paints in the automotive paint market, with most new cars now being painted with this technology at the factory level. The number of patents filed for waterborne paint technology has tripled in the past five years, indicating significant innovation and development in this area. Moreover, electric vehicle manufacturers prefer waterborne paints due to their lower environmental impact, contributing to their growing popularity.

Most of the consumers prefer them as waterborne paints offer superior hiding power, often requiring fewer coats to achieve full coverage, which translates to cost savings and efficiency in the painting process. Apart from this, advancements in waterborne paint formulations have addressed earlier issues related to durability and compatibility, ensuring that the quality of waterborne paints is on par with, if not superior to, solvent-based paints. For instance, more than 80% of automotive paint shops in California have switched to waterborne paints to comply with local environmental regulations. Furthermore, vocational schools and training programs now include waterborne paint application techniques in their curriculums, ensuring a skilled workforce ready to meet industry demands.

Polyurethane Resins Command the Automotive Paint Market, Holding 44% Share

Polyurethane (PU) resins have become the leading choice in automotive paints due to their superior properties and adaptability. These resins offer exceptional durability, flexibility, and resistance to environmental factors such as UV radiation, chemicals, and abrasion. This makes them ideal for the automotive industry, where long-lasting and high-performance coatings are essential. Notably, in 2023, over 90% of new vehicles were reported to use PU-based coatings for their superior protective qualities. The Asia-Pacific region, in particular, dominates the PU resin market, with China producing over 60 million vehicles annually, the highest globally, heavily relying on PU resins for automotive paints. Additionally, PU resins are favored for their quick drying times and ease of application, contributing to their widespread adoption in the automotive manufacturing process.

Several key factors contribute to the growing demand and popularity of PU resins in automotive paint market. Wherein, the rise in electric vehicle production, with over 10 million units sold globally in 2023, has increased the need for high-quality coatings that can withstand diverse environmental conditions. Secondly, stringent environmental regulations are pushing for eco-friendly solutions, and PU resins, with their low volatile organic compound (VOC) emissions, meet these requirements effectively. The global automotive industry also saw a significant rise in the use of PU resins in coatings, with an estimated 75% of automotive manufacturers switching to PU-based systems from traditional coatings. Furthermore, automotive paints using PU resins reported a 30% increase in scratch resistance and a 25% improvement in gloss retention compared to other resin types. The versatility of PU resins is evident as they are used in various applications such as basecoats, clearcoats, and primers, with over 85% of high-end vehicles using PU-based clearcoats for their superior finish. The dominance of PU resins is thus well-supported by their performance, environmental compliance, and adaptability in meeting the evolving demands of the automotive industry.

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Asia Pacific is the Leading Consumer of Automotive Paint Market

The Asia Pacific (APAC) region has emerged as the leading consumer of automotive paints globally, driven by its robust automotive industry and economic growth. In 2023, the APAC region produced a staggering number of vehicles, with China alone manufacturing 30.09 million automobiles. India and Indonesia also significantly contributed to this figure, with India producing 4.1 million vehicles and Indonesia adding another 1.05 million. This massive production volume necessitates a high demand for automotive paints, making APAC the largest market for these products.

The rapid pace of economic activity and technological advancements in the region have spurred growth of the automotive paint market. Countries like China and India, which account for approximately 34% of the total vehicle production, are pivotal in this expansion. Additionally, the increasing disposable income and purchasing power of consumers in these countries have led to a surge in vehicle ownership, further boosting the demand for automotive paints. Furthermore, the region's automotive lubricants market is expected to reach 10.82 billion liters by 2026, indicating a thriving automotive sector.

The higher demand for automotive paint market in the APAC region can be attributed to several enabling factors. The availability of low-cost labor and raw materials in countries like China and India allows manufacturers to produce automotive paints at competitive prices. Moreover, government initiatives to boost infrastructure and industrial production have created a conducive environment for the automotive industry to flourish. The top three countries consuming automotive paints on a large scale are China, India, and Indonesia. China, being the world's largest manufacturer of automobiles, leads the market, followed by India and Indonesia, which have seen significant growth in their automotive sectors.

Global Automotive Paint Market Key Players

• Axalta Coating Systems, LLC
• BASF SE
• Clariant AG
• DOW Chemical
• DuPont Coatings & Color Technologies Group
• Kansai Paint Co., Ltd.
• KCC
• Nippon Paint Holdings Co., Ltd.
• PPG Industries
• Sherwin-Williams Company
• Solvay
• The Sherwin-Williams
• Valspar Corporation
• Other Prominent Players

Key Segmentation:

By Type

• Electrocoat
• Primer
• Basecoat
• Clearcoat

By Technology

• Solvent-borne
• Waterborne
• Powder Coating

By Resin

• Polyurethane
• Epoxy
• Acrylic
• Other Resins

By Texture

• Solid
• Metallic
• Matte
• Pearlescent
• Solar reflective

By Vehicle

• Passenger Cars
• Light Commercial Vehicle
• Heavy Commercial Vehicle

By Channel

• OEMs
• Aftermarket

By Region

• North America
• South America
• Europe
• Asia Pacific
• Middle East & Africa

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