Automotive Refinish Coatings Market to Reach $11.3 Billion
The global market for automotive refinish coatings will be worth $11.3 billion by 2021, and will grow at a compound annual growth rate (CAGR) of 6.3% during 2015–2021, according to “World Automotive Refinish Coatings Market—Opportunities and Forecast, 2014-2020,” a new report by Allied Market Research.
The solventborne refinish coating technology segment currently accounts for about half of the revenue. However, the waterborne coating segment is expected to grow at the fastest rate, with waterborne refinish coating revenues matching the solventborne segment by 2020.
Continuous adoption of newer technologies, rising disposable income and growing consolidation of used vehicle market will reportedly be the prime factors for automotive refinish coatings market growth. Increasing road accidents, vehicle customization (especially in China, India and Brazil), and a growing trend of recreational vehicles are also supplementing the overall market growth. However, environmental hazards related to toxic waste produced from solventborne refinish coatings and price volatility of raw materials will reportedly hinder the growth of the global automotive refinish coatings market.
Within different product categories, the basecoat refinish coating segment is expected to remain the largest market, with about 33% revenue in 2014. Polyurethane will be the largest resin segment, both in terms of volume and revenue. The key factor driving the growth of the polyurethane segment is its characteristic as a foam that assists manufacturers to make automotive seating, which can then be assembled, disassembled and recycled.
Asia-Pacific currently leads the global automotive refinish coatings market. The key driving factors of this growth are the increasing sales of pre-owned vehicles, growing cab services, and increasing vehicle repair and body shops in the region. Asia-Pacific will reportedly continue to lead the market during the forecast period due to rising demand of vehicle customization.
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