Automotive Refinish Coatings Market

Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)


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Global Automotive Refinish Coatings Market: Outlook

Automotive refinishing coatings are utilized for up-to-date maintenance and servicing of vehicles. Refinish coatings are used to enhance the look and durability of the vehicles and protects them from damages due to harsh temperatures and UV radiation. The current global market for automotive refinish coatings is growing steadily and rebounding nicely now from the past recession. Major contributing factors include lower fuel prices combined with an overall increase in vehicle registrations and miles driven, especially in mature markets.

Aftermarket Coating Services to Drive Market While COVID-19 Impact to Slowdown Growth Opportunities

The demand for automotive refinish coating is governed by car parc, accident rates, scratch or repair large scale damages, maintenance rates, and aftermarket painting. Developments and innovations in coatings, such as high-tech eco-friendly coating materials having low solvent content is another factor fuelling the growth of the market. The market is driven by investments into new refinish coating manufacturing facilities as well as capacity expansion projects. The auto refinish market is impacted by a variety of factors including VOC legislation, lack of market growth, increased complexity, and collision centre consolidation. Also, the rise in use of self-driving and electric vehicles is having a major impact on the auto refinish market.

COVID-19 outbreak and lockdowns have led to shutdown of several small-scale industries, including automotive. Scarcity of labour and disruption in supply chain of raw material/equipment/component remains the key challenging factors. Majority of nations in Middle East, Africa, and Latin America are still dependent on imports of refinish coating from other nations such as U.S., china, etc. COVID-19 pandemic followed by lockdowns has impacted the import-export activities involving refinish coatings. This has resulted in delays and accumulation of backlog demand as well as a need for establishment of domestic refinish coating facilities in these regions.

Waterborne Refinish Coating to Nab Additional Market Share

Water-borne coatings are widely preferred due to its eco-friendly nature coupled with ongoing concerns on usage of toxic chemicals and VOC legislations. The overall demand for solvent-borne coating is expected to lose share when compared to other formulations in the next few years. In the past, solvent-based coatings has been the conventional choice, however, the high VOC content of solvent-borne coatings followed by Government regulation to limit the usage of toxic chemical based formulation is expected to curb its usage in the automotive industry. Other formulations include UV-cured coatings. The specific automotive application where UV-cured coatings has become the standard technology is in the automotive forward lighting industry, where UV coatings have been used for more than 15 years and now command considerable market share.

High Growth Prospect for Asia Pacific Region

European and North American markets are matured and constitutes largest in value and volume of repairs. However, the balance is changing with the rapidly growing car population in Asia Pacific. Car sales in China fell 92% in the first half of February. China is the world’s biggest car market. In China, Wuhan, the city at the centre of the outbreak, is home to auto plants including General Motors, Honda, Nissan, Peugeot Group and Renault. This has badly impacted the automotive industry in China. However, strategic developments and capacity expansion projects for automotive refinish coating in China are expected to drive the market by 2025.

On December 2019, BASF announced to double production capacity of automotive refinish coatings at Jiangmen site, China. The facility will start production in the first half of 2022.On May 2020, BASF and DiDi, the world’s leading mobile transportation platform, signed a strategic cooperation agreement in Hangzhou, Zhejiang Province, China. Under the agreement, BASF will provide DiDi with sustainable automotive refinish products developed at its research and production site in Jiangmen.  Thus, post-COVID, there has been significant rise in utilization rate for automotive refinish coating production plants in China. DiDi currently has 25 owned body and paint shops in China and will be expanding to more than 200 owned and franchised shops globally by the end of this year. DiDi’s fleet consists of 300,000 cars and is projected to reach one million in 2022. This is expected to benefit the overall demand for automotive refinish coating in Asia Pacific in the next few years.

Global Automotive Refinish Coating Market: Competitive Landscape 

Top five players constitute more than 50% of the global automotive refinish coating market. Globally, top 2 players involved in market are BASF SE. and AkzoNobel N.V. Other key players include: Coating Systems Ltd., PPG Industries Inc., The Sherwin-Williams Company., DowDuPont Inc., Kansai Paint Co., Ltd., Nippon Paint Holdings Co Ltd., and others.

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