Automotive refinish coatings market to reach $11.34 billion by 2026
New York—The global automotive refinish coatings market is expected to reach $11.34 billion by 2026, according to a new report by Reports and Data. It can be mainly associated with increasing disposable income, changing lifestyle and buying behavior of people, and the demand for luxury vehicles from the segment.
Automotive refinishing coatings are used to address a growing need for up-to-date maintenance and servicing of vehicles to enhance the look and durability of the vehicles and by protecting them from damages due to harsh temperatures and UV radiation. Developments and innovations in coatings, such as high-tech eco-friendly coating materials having low solvent content, is another factor fueling the growth of the market.
Stringent regulations regarding various VOC-containing products is one of the factors restraining the growth of the market.
Further key findings from the report suggest the following:
• The polyurethane segment dominated the market in 2018, and is forecasted to grow at a CAGR of 2.2 percent during the forecast period, since it is less expensive, environment-friendly and also versatile.
• Clear coats, which provide protection to the paint on the vehicles from sun, dust or water, held the largest share of the market in 2018. It is expected to have a growth rate of 3.4 percent during the forecast period.
• Solvent-borne coatings hold the largest share in the market in 2018 with a CAGR of 2.9 percent during the forecast period, the reason is because of its cost effectiveness as compared to other technologies.
• Metal substrates are the largest share holding segment in 2018, and is expected to lead the segment throughout the forecast period with an annual growth rate of 3.8 percent, since metal surfaces are prone to suffer from corrosion.
• The passenger vehicles segment had the largest market share of approximately 43 percent of the market in 2018, in terms of revenue. The demand is expected to substantially increase because of high disposable incomes, changing buying behavior and demand for luxury cars.
Among the key participants were PPG Industries Inc., The Sherwin Williams Company, Axalta Coating systems Ltd., and AzkoNobel N.V BASF SE.
The companies have adopted various strategies including mergers, acquisitions and partnerships to hold ongoing trails and come up with new developments in the market.