Vehicle Ownership Rates Driving Auto Refinish Coating Market
The automotive refinish coating market is expected to grow to $12 billion by the end of 2022.
The automotive refinish coating market has seen substantial growth in the last decade. This is primarily due to rapid growth in vehicle ownership in emerging economies, which has increased the accident rate. Greater governmental regulations with respect to high levels of volatile organic compounds could further impact the growth of the automotive refinish coating market, which is currently projected to record a robust compound annual growth rate (CAGR) of 5.7% from 2017 to 2022.
Polyurethane has the highest potential for growth in the automotive refinish coating market and is anticipated to gain share at the expense of other resin types. The polyurethane segment is predicted to be worth just under $4.7 billion at the end of 2022.
North America is the largest region for the polyurethane segment of the automotive refinish coating market. Alkyd is the second-largest in terms of resin-type segments, but it is poised to lose market share in the medium term. Along with North America, the Europe alkyd segment of the automotive refinish coating market is predicted to cross $1 billion at the end of the forecast period—the only other region to do so.
Heavy- and light-commercial vehicles have a relatively similar market share in the automotive refinish coating market by vehicle type. While both are estimated to lose market share points, the drop should be considerably steeper in the heavy-commercial segment. The heavy-commercial segment is projected to grow with a lower CAGR of roughly 5% until 2022.
A battle for supremacy is being waged between compact and mid-sized passenger cars in the automotive refinish coating market, with the latter inching ahead. An absolute dollar opportunity of more than $855 million exists in the mid-sized passenger car segment of the automotive refinish coating market for the five-year period. Mid-sized passenger cars are typically preferred in North America and Europe, since these regions are well-developed and customers are less price-sensitive than their counterparts in emerging economies.
The primer segment has a revenue share of roughly one-third of the automotive refinish coating market by coating structure and is projected to gain substantial share throughout the study period. The North America primer market contributes one-third of the primer market and is expected to have a value of over $1.3 billion in 2022. ASI