An increase in road accidents, vehicle customization, as well as the growing trend of recreational vehicles, are contributing to market growth. That said, environmental issues related to solventborne refinish coatings and price volatility of raw materials are factors that may hinder the growth of the global automotive refinish coatings market. New technologies, the increase in disposable income, along with growing consolidation of the used vehicle market are a few of the prime factors for growth.
Over the past 5 years, the global automotive refinish coatings market had witnessed a tremendous growth. With a projection of $11.3 billion by the end of 2021, Solvent-borne refinishes coating technology segment currently accounts for about half of the revenue, according to new research published by Allied Market Research.
Within different product categories, basecoat refinishes coating segment would remain the largest market with about 33.0% revenue in 2014. Polyurethane would be the largest resin segment, both in terms of volume and revenue, in 2014. The key reason driving the growth of polyurethane segment is its characteristic as a foam that assists manufacturers to make automotive seating, which can be assembled, disassembled and recycled.
Key Findings of Automotive Refinish Coatings Market
- The Asia Pacific and North American regions collectively held about 62% of the overall automotive refinish Coatings market revenue in 2018.
- The water-borne coating segment is expected to grow at the fastest rate.
“In North America, driven by enhanced safety features of new vehicles, we anticipate a continued slowdown of market volume,” said Paul Whittleston, vice president, Automotive Refinish and Industrial Coatings North America at BASF. “However, safety features also create opportunities for collision repair experts. For example, we see an increase in the need for small damage repair and the requirement for even more training of technicians to be able to perform the work efficiently and effectively.”
In EMEA, Whittleston noted that consolidation is taking place reducing the number of body shops that are now more professional and able to meet the needs of insurance companies and work providers for high-quality repairs more quickly. “Bodyshops favor partners that help them meet these needs by providing high-quality paint with efficient application processes accompanied by process consultancy.”
The Asia Pacific currently leads the global automotive refinish coatings market. Driving growth of the Asia-Pacific market is increasing car parc, rising purchasing power, and rise in the number of road accidents. Asia-Pacific will continue to lead the market during the forecast period due to rising demand for vehicle customization.
“Collision centers in Asia-Pacific are focusing on becoming better businesses by modernizing their operations, often with the consultation of multi-national paint suppliers,” Whittleston added.
Leading collision repair centers are striving to deliver quality repair at minimal cost. “Cost and quality are not polar opposites,” Whittleston added. “To achieve both requires repair facilities reach the highest efficiency and effectiveness possible. At BASF we support our customers through our account representatives and business development managers delivering advanced business solutions. This can be as simple as helping our customer with inventory management or as complex as creating and/or rebuilding a new culture for their business. The beauty of our Advanced Business Solutions is that it provides a toolbox for our BASF experts to select the appropriate programs that help our customers improve their performance and profitability.”
Credit: BECCA INC. (2019). Will The Auto Refinish Market Reach $11.3 Billion By 2021 | BECCA INC. [online] Available at: http://www.beccainc.com/auto-refinish-market/ [Accessed 6 Mar. 2019].