Automotive Refinish Paints Market By Type (UV-cured Coatings, Water-borne Coatings, Solvent-borne Coatings), By Application (Passenger Cars, Commercial Vehicles), By Region, And Segment Forecasts, 202...

Report Id: 44211 | Published Date: Jul 2024 | No. of Pages: 10 | Base Year for Estimate: Jul 2024 | Format:


Market Overview:

The global automotive refinish paints market has seen substantial growth in recent years due to the increasing number of vehicles on the road and the rising demand for vehicle repair and maintenance. Vehicle repairers and body shops use these paints and coatings to give the vehicle a refreshed look along with preventing the vehicle from rust and corrosion. While there has been a visible setback in the growth of the automobile industry, the value generated by the body shops and repair centres has seen considerable growth.


The global automotive refinish paints market was valued at USD 8.6 billion in 2023 and is projected to reach USD 10 billion by 2029, growing at a CAGR of 3.3% from 2024-2029. Customisation and personalisation are global trends, and the global automotive industry has experienced considerable demand for the customisation of cars. 


Premium Insights:

  • In developing regions, the rising middle-class population is driving the demand for automotive refinish services.

  • Growth in insurance policies covering vehicle repairs is bolstering the market.

  • The development of eco-friendly and low-VOC (volatile organic compounds) paints to meet stringent environmental regulations. 




Global  Automotive Refinish Paints Market Dynamics:

Drivers: Rising global vehicle ownership, advancements in paint technology and growth of the aftermath repair industry.

-The global vehicle parc (total number of vehicles) is expected to continue rising, fueled by growing economies and increasing disposable income in developing regions. This translates to a larger pool of vehicles requiring collision repair, repainting, and customisation, driving demand for refinish paints.


-Developments in paint technology are leading to faster drying times, improved durability, and scratch resistance for refinishing paints. These advancements enhance the overall efficiency and quality of collision repair processes.


-The increasing number of vehicles on the road translates to a growing demand for auto body repair services. This, in turn, fuels the demand for refinish paints used in collision repair shops and independent body shops.


Restraints: Economic downturns, the rise of rid-sharing & car-sharing services and fluctuations in raw material costs.

-Economic slowdowns can lead to decreased consumer spending on discretionary items like vehicle repairs and customisation. This can negatively impact the demand for refinish paints.


-The growing popularity of ride-sharing and car-sharing services may lead to a decrease in overall vehicle ownership in some regions. This could potentially limit the customer base for car repairs and refinishing services.


-The refinish paint industry relies on various raw materials like pigments, resins, and solvents. Fluctuations in the prices of these materials can impact production costs and profitability for paint manufacturers.


Opportunities: Focus on eco-friendly paints, focus on innovation and strategic partnerships & training initiatives.

-The growing emphasis on sustainability creates an opportunity for refinishing paint manufacturers to develop and promote water-based and high-solids content paints that minimise environmental impact.


-Developing innovative paint technologies with unique finishes, special effects, and self-healing properties can attract customers seeking customisation and enhanced vehicle aesthetics.


-Collaboration with technical schools and training institutions can help address the skills gap in the auto body repair industry. This can ensure a future workforce with the necessary expertise for applying refinish paints effectively.




Market By Automotive Refinish Type Insights:

Based on technology type, the market is segmented into solvent-borne, waterborne and powder coating. solvent-borne paints have generally held a major market share due to several advantages like quick-drying technology, exhibiting better flow and levelling properties in comparison to waterborne paints and more. Despite the emergence of waterborne paints in the market providing an eco-friendly alternative, solvent-borne ones continue to dominate.


Based on resin type, the market is segmented into Polyurethane, Epoxy, Acrylic and Other Resins. Polyurethane resins or PU resins account for a major market share in this segment due to their excellent durability, chemical resistance and gloss retention. They are also widely used in collision repair and offer superior performance compared to other resin types. Epoxy Resins have the second-largest market share after PU Resins


Based on paint type, the market is segmented into Electrocoat, basecoat, primer and clearcoat. The primer and clearcoat segment which is a two-stage system offers a high quality, durable finish. The basecoat provides colour, while the clearcoat offers protection and gloss. The segment remains dominant for professional collision repair and achieving a factory-like finish.


Based on equipment type, the market is segmented into airless spray guns and electrostatic spray guns. Out of this, electrostatic spray guns are gaining popularity due to their ability to improve efficiency, minimise paint waste and improve overall paint quality. The transfer efficiency of electrostatic spray guns is up to 97% as they utilise electrostatic charge to attract particles towards the target surface. The quick-drying capacity and reduced number of oversprays associated with this type of gun enable quicker production cycles and reduced downtime for automotive manufacturers. 


Market By End-Use Insights:

Based on end-use, the market is segmented into Passenger Vehicles, Commercial vehicles and others. Among these, the passenger vehicle paints segment occupies a major share in the market due to the rapid production of passenger cars globally. The paints for passenger cars cater to a wide range of colours, finishes and repair needs as well. 


Market By Region Insights:

Based on regional coverage, the market is segmented into North America, Asia-Pacific, Europe, Latin America and Middle East & Africa. Regionally, Asia-Pacific is experiencing a rapid growth surge and accounts for the largest share of the automotive refinish paints market owing to a visible increase in the number of cars in the region. 


Competitive Scenario:

The key market players in the industry are The Sherwin-Williams Company, Akzo Nobel N.V, Kansai Paint Co., Ltd,  KCC Corporation, Covestro AG, Axalta Coating Systems, Esdee Paints Limited, LLC, The Lubrizol Corporation, Berger Paints India Limited,  BASF SE, Mitsui Chemicals, Inc.


Scope Of Work-Automotive Refinish Paints Market

Report metric 

Details

Market Size in 2023

8.6 Bn

Market Size in 2029

10 Bn

Growth Rate (CAGR)

3.3%

Market Segments 

-By Technology Type, By Resin Type, By Paint Type, By Equipment Type

Geographies covered 

- North America, Asia-Pacific, Europe, Latin America and Middle East & Africa

Growth drivers 

-Rising global vehicle ownership, advancements in paint technology and growth of the aftermath repair industry.

Opportunities

-Focus on eco-friendly paints, focus on innovation and strategic partnerships & training initiatives.

Companies covered 

-The Sherwin-Williams Company, Akzo Nobel N.V, Kansai Paint Co., Ltd,  KCC Corporation, Covestro AG, Axalta Coating Systems, Esdee Paints Limited, LLC, The Lubrizol Corporation, Berger Paints India Limited,  BASF SE, Mitsui Chemicals, Inc.




Key Market Developments

  • December 2022- BASF launched its first biomass balance automotive coating in China and has also received biomass certification for its resins plants in Caojing and its plant manufacturing sites in Minhang and Caojing, operated by BASF Shanghai Coatings Co. Ltd. 

  • August 2023-Axalta announced adding RADAR-compliant colour formulas to its global online colour databases-ChromaWeb, Phoenix Cloud and standdown iQ Cloud Some colours, especially those with higher concentrations of aluminium flakes can interfere with RADAR sensors, Hence, Axalta has developed these RADAR-compliant colour formulas for colours that are known to interfere with RADAR sensors

  • June 2023-PPG Industries, Inc. launched PPG ENVIRO-PRIME EPIC 200R, a suite of electrocoating products that cure at lower temperatures than competing technologies. The products also provide sustainability benefits for its customers that include lower energy use and reduced Co2 emissions at manufacturing facilities.


Frequently Asked Questions (FAQs)

  1. What is the current size of the global automotive refinish paints market?

As of 2023, the global automotive refinish paints market was valued at USD 8.6 billion.


  1. What are the main drivers of the automotive refinish paints market?

Ans. The main market drivers are Rising global vehicle ownership, advancements in paint technology and growth of the aftermath repair industry.


  1. What are the primary challenges faced by the automotive refinish paints market?

Ans. The challenges faced include economic downturns, the rise of rid-sharing & car-sharing services and fluctuations in raw material costs.


  1. What opportunities exist in the automotive refinish paints market?

Ans. Opportunities include a focus on eco-friendly paints, a focus on innovation and strategic partnerships & training initiatives.

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