Advanced Materials and Chemicals

Automotive Paints Market is Expected to Reach USD 26.16 Billion by 2031

May 2024

Advanced Materials and Chemicals

As per the report published by Kings Research, the global Automotive Paints Market was valued at USD 18.61 billion in 2023 and is projected to reach USD 26.16 billion by 2031, growing at a CAGR of 4.47% from 2024 to 2031.

The automotive paints market is witnessing notable growth, driven by a confluence of factors that are reshaping the industry landscape. One of the primary drivers aiding this growth is the resurgence of the automotive sector following the recent economic downturn. As consumer confidence rebounds and purchasing power increases, the demand for new vehicles has surged, thereby bolstering the need for automotive paints and coatings.

Moreover, the emphasis on vehicle aesthetics and customization among consumers has spurred the demand for high-quality paints that offer not only protection but also visual appeal. This trend is particularly evident in mature markets where consumers seek personalized and distinctive vehicle finishes.

Regionally, the automotive paints market exhibits diverse dynamics. While mature markets in North America and Europe continue to observe high demand for premium coatings with advanced properties, emerging economies in Asia Pacific and Latin America present untapped opportunities for market expansion owing to increasing automotive sector. Rapid industrialization, urbanization, and infrastructural developments in these regions are driving the demand for automobiles, thereby fueling the need for automotive paints.

Furthermore, regulatory initiatives aimed at reducing vehicle emissions and enhancing safety standards have compelled manufacturers to adopt eco-friendly paint formulations. Water-based paints, in particular, have gained prominence due to their lower environmental footprint and compliance with stringent regulations.

Key Insights

  • Based on technology, the waterborne coatings segment held the largest market share of 57.12% in 2023
  • Based on coating, the clear coat segment generated the highest revenue of USD 9.62 billion in 2023
  • On the basis of region, Asia-Pacific accounted for the largest market share of 35.48% in 2023

NIPSEA Group Subsidiary Completes Acquisition Of D-Act Co., Ltd. to Strengthen Market Share in Asia-Pacific

November 2023 (Acquisition) - NP Auto Refinishes, with its headquarters in Thailand, is a subsidiary of NIPSEA Group, which is recognized as Asia Pacific's number one paint and coatings manufacturer in terms of production and sales revenue. The company announced acquisition of D-Act Co., Ltd. NIPSEA Group has a strong presence in the paint and coatings industry, offering innovative solutions across various sectors, including architectural, industrial, automotive, marine coatings, and more.

Technological Formulation Advancements to Drive Automotive Paints Market Growth

Ongoing advancements in paint formulations and application technologies are driving innovation in the automotive paints market. Manufacturers are investing in research and development to create paints with improved durability, scratch resistance, and environmental sustainability. For instance, the adoption of waterborne coatings and powder coatings is increasing due to their lower VOC emissions and eco-friendliness compared to traditional solvent-borne coatings. Additionally, advancements in color matching technology and application processes enhance efficiency and precision in paint application, further driving market growth.

Shift Towards Electric Vehicles (EVs) to Offer Opportunities for Automotive Paints Market Progress

The growing adoption of electric vehicles presents notable growth opportunities for the automotive paints market. EV manufacturers prioritize lightweight materials and advanced coatings to optimize vehicle performance and range. The ongoing expansion of the EV market is boosting the need for specialized coatings that offer thermal management, corrosion resistance, and aesthetic appeal to differentiate electric vehicle models, which is facilitating innovation and product development in the automotive paints market.

Emerging Markets and Infrastructure Development to Augment Automotive Paints Market Growth

Rapid urbanization and infrastructural development in emerging markets present untapped opportunities for manufacturers in the automotive paints market. Countries undergoing industrialization, such as India, Brazil, and Indonesia, are experiencing increased demand for automobiles, driving the need for automotive paints and coatings. Furthermore, infrastructural projects such as road construction and urban redevelopment contribute to the demand for commercial vehicles, further boosting the automotive paints market in these regions.

Europe Stands as The Second-Largest Region in The Market Attributing Revenue of USD 4.28 Billion in 2023

Based on region, the global automotive paints market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. Europe was the second-largest region in the global market, characterized by a mature automotive industry, technological advancements, and stringent environmental regulations. The region accounted for USD 4.28 billion in 2023 and is estimated to progress at a CAGR of 3.96% over the forecast period. Key automotive manufacturing hubs such as Germany, France, Italy, and the United Kingdom drive the demand for automotive paints in the region. According to the European Automobile Manufacturers Association (ACEA), Europe produced over 14 million motor vehicles in 2022, showcasing the region's significance in automotive production.

Environmental concerns and regulatory initiatives, such as the European Union's REACH regulations and emission standards, are propelling the adoption of eco-friendly coatings and sustainable paint formulations in Europe. Waterborne coatings and powder coatings witness increased demand due to their lower VOC emissions and compliance with regulatory requirements. Furthermore, surging consumer preference for premium vehicles with advanced paint finishes and customization options is contributing to market growth.

Major Companies Forge Agreements to Strengthen Industry Foothold

The global automotive paints market is fragmented with key players such as 3M, Axalta Coating Systems, LLC, AkzoNobel N.V., BASF SE, Berger Paints India Limited, Henkel Corporation, Nippon Paint Holdings Co., Ltd., PPG Industries, Inc., RPM International Inc., Sika AG, and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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